Are you about starting a cassava processing plant? If YES, here’s a complete sample cassava processing plant business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a cassava processing plant. We also took it further by analyzing and drafting a sample cassava processing plant marketing plan template backed up by actionable guerrilla marketing ideas for cassava processing plants. So let’s proceed to the business planning section.
If you live in the united states, you might not know the value of going into the cassava processing business. This is because it is not a popular business in the US. But do you know that processed cassava is a major raw material cum ingredient in the production of alcoholic beverages?
As a matter of fact, cassava can be processed into biofuel, animal feed, laundry starch and for medicinal use. The good part is that cassava can be cultivated in the United States of America.
Cassava processing business is known to be a profitable business and over the years, it has evolved from small scale to a global industry in most countries where it is carried out. If you are considering starting a cassava processing business, the good news is that you can’t get it wrong.
This is because cassava can be processed into various forms for consumption by humans and livestock. It is important to state that starting a cassava processing business comes with its own fair share of challenges, but that does not rule out the fact that it is indeed a profitable business venture.
An aspiring entrepreneur can either choose to start a cassava processing business on a small scale or on a large scale depending on their financial status.
So, if you have decided to go into the cassava processing business, then you should ensure that you carry out thorough feasibility studies and market survey. Business plan is yet another very important business document that you should not take for granted when launching your own cassava processing business.
Below is a sample cassava processing business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Cassava Processing Plant Business Plan Template
1. Industry Overview
Businesses in the cassava farming cum processing industry primarily grow different species of cassavas and process them for different purpose. As a matter of fact, worldwide, 800 million people depend on processed cassava as their primary food staple especially in Sub – Sahara Africa, South America and some parts of Asia.
Cassava is known to be the third-largest source of food carbohydrates in the tropics, after rice and maize. Cassava is indeed a major staple food in Africa, providing a basic food for over five million people. It is one of the most drought-tolerant crops, capable of growing on marginal soils. Nigeria is the world’s largest producer of cassava, while Thailand is the largest exporter of dried cassava.
Cassava is extensively cultivated as an annual crop in tropical and subtropical regions for its edible starchy tuberous root, a major source of carbohydrates. Although it is often called yuca in Spanish and in the United States, it is important to state that it differs from yucca, an unrelated fruit-bearing shrub in the family Asparagaceae.
The Cassava Farming cum Cassava Processing Industry is indeed a very large industry and pretty much thriving in countries such as Nigeria, Thailand, Brazil, Indonesia and Republic of the Congo et al. In 2014, global production of cassava root was 268 million tones, with Nigeria as the world’s largest producer of nearly 55 million tones or 21 percent of the world total.
According to the American Cancer Society, cassava is ineffective as an anti-cancer agent: “there is no convincing scientific evidence that cassava or tapioca is effective in preventing or treating cancer”.
As a matter of fact, with the recent advancement in technology, farmers can now comfortably grow crops such as cassava in a country where such crops can hardly survive and in places where there are few farm land.
One thing is certain when it comes to cassava processing business, if you are able to conduct your market research and feasibility studies before choosing a location for your cassava processing plant, you are more likely not going to struggle to grow the business.
2. Executive Summary
Ola Williams® Cassava Processing Co. is a world class and registered cassava processing company that will be based in the outskirts of Dallas, Texas – United States.
We have done our detailed market research and feasibility studies and we were able to secure a suitable facility to build our processing plant. Our cassava processing plant is a going to be standard one hence will be involved in commercial cassava cultivation, laundry starch and animal feed production.
We will produce laundry starch, animal feeds and other products and ensure that they flood the market both in the United States and in other countries of the world; we want to compete with the best in the industry. We have also hired some key employees who are currently undergoing training so as to be able to fit into the ideal picture of the 21st century cassava processing plant workforce that we want to build.
We are in the cassava processing business because we want to leverage on the vast opportunities available in the processing industry, to contribute our quota in growing the U.S. economy, in national food production, raw materials production for industries, to export our products from the United States to other countries and over and above to make profit.
Ola Williams® Cassava Processing Co. is well positioned to become one of the leading cassava processing companies in the United States of America, which is why we have been able to source for the best hands and processing machinery to run the business with.
We have put process and strategies in place that will help us employ best practices when it comes to cassava processing as required by the regulating bodies in the United States of America.
Ola Williams® Cassava Processing Co. is a family business that is owned by Mr. Ola Williams and his immediate family members. The business will be fully and single handedly financed by Ola Williams and his immediate family members.
Before starting Ola Williams® Cassava Processing Co. Ola Williams has worked with some of the leading food processing and laundry starch production plants in the United States of America; he has a degree (B.Sc.) in Agriculture Science from A & M University Texas.
3. Our Products and Services
Ola Williams® Cassava Processing Co. is a world class cassava processing company that is committed to producing processed and well – packaged cassava products for both the United States’ market and the global market. We are in this line of business to make profits, and we will ensure that we do all that is allowed by the law of the United States of America to achieve our business goals and objectives.
These are the products we will produce;
- Production of cassava flakes
- Production of tapioca
- Production of laundry starch
- Production of animal feeds
4. Our Mission and Vision Statement
- Our Vision is to become one of the leading laundry starch and animal feed production brand not just in the United States of America but also on the global stage.
- Ola Williams® Cassava Processing Co. is a world class cassava production company that is in business to produce laundry starch and animal feeds et al for both the United States market and the international market. We want our well – packaged laundry starch and animal feeds to flood every nooks and crannies of the United States and other countries of the world.
Our Business Structure
Ola Williams® Cassava Processing Co. is a cassava processing company that intends starting small in Dallas – Texas, but hope to grow big in order to compete favorably with leading cassava processing companies both in the United States and on a global stage.
We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands in and around Texas.
At Ola Williams® Cassava Processing Co. we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the management of the farm. In view of the above, Ola Williams® Cassava Processing Co. have decided to hire qualified and competent hands to occupy the following positions;
- Chief Operating Officer
- Administrator / Accountant
- Laundry Starch and Animal Feeds Production Plant Manager
- Sales and Marketing Executive
- Field Employees
- Front Desk Officer
5. Job Roles and Responsibilities
Chief Operating Officer:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creates and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defining job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Responsible for financial forecasting and risks analysis
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Laundry Starch and Animal Feed Production Manager/Supervisor
- Responsible for managing the laundry starch and animal feed production plant
- Supervises other workers within the department
- Works closely with the CEO to achieve the organizations’ goals and objectives
Sales and Marketing Officer
- Recognizes and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
- Writes winning proposal documents, negotiate fees and rates in line with company policy
- Responsible for handling business research, marker surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Aids the increase sales and growth for the organization
Field Workers/Contract Staff
- Responsible for preparing the cassava that are to be processed
- Responsible for operating the cassava processing machine
- Backs up in loading and unloading raw materials and finished goods
- Carries out task in line with the stated job description
- Handles any other duties as assigned by the line manager
Client Service Executive/Front Desk Officer
- Welcomes guests and clients to the farm by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels / documents for Ola Williams® Cassava Processing Co.
- Distribute mails in Ola Williams® Cassava Processing Co.
- Handles any other duties as assigned by the line manager
6. SWOT Analysis
Ola Williams® Cassava Processing Co. does not intend to launch out with trial and error hence the need to conduct a proper SWOT analysis. We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard cassava processing plant that will favorably compete with leading cassava processing plants in the United States of America and in the rest part of the world.
We are quite aware that there are several large, medium and small scale cassava processing companies all over Dallas – Texas and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.
Ola Williams® Cassava Processing Co. employed the services of an expert HR and Business Analyst with bias in the food processing industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Ola Williams® Cassava Processing Co.;
Our strength as a cassava processing company is the fact that we have healthy relationships with loads of major players (both suppliers and buyers of cassava and processed cassava products) within and outside of the United States.
We have some of the latest commercial cassava processing equipment that will help us process and package cassava products in commercial quantities with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in Dallas – Texas under our payroll.
Our weakness could be that we are a new cassava processing company in the United States, and perhaps the fact that cassava processing plant is not a popular venture in the US. We are aware of this and from our projection will overcome this weakness with time and turn it to a major advantage for the business which is why we are into laundry starch and animal feed production.
The opportunities that are available to us cannot be quantified; we know that there are loads of individuals who consume both organic and non – organic processed cassava in different forms both in the United States of America and other parts of the world.
We will ensure that we maximize the opportunities available to us. We will ensure that we create business structure and framework that will enable us go into biofuel production and the production of other alcoholic beverages from our cassava processing plant.
Some of the threats and challenges that we are likely going to face when we start our own cassava processing plant are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters (drought, epidemics), unfavorable government policies and the arrival of a competitor within same location.
7. MARKET ANALYSIS
- Market Trends
One of the common trends in the cassava processing line of business is that most players in the industry are no longer concentrating only on processing cassava into various products but also running a standard commercial cassava farm.
So also, it is difficult to find a cassava processing plant engage in the processing of just a product; they are usually in the production of several products that can be gotten from cassava. Beside cassava can be consumed by both human and livestock hence it is ideal to process, package and ship laundry starch, animal feed, alcoholic beverages and biofuel et al to other countries of the world with ease.
8. Our Target Market
It is a known fact that the consumers of processed cassava and also those who benefit from the business value chain are all encompassing.
Almost every household make use or products from cassava or consumes cassava in different processed forms. In essence, a cassava processing company should be able to sell its products to as many people as possible including laundries, alcoholic beverage production companies, laundry starch production companies, livestock farmers and other production companies that make use of cassava byproducts.
We will ensure that we position our business to attract consumers of processed cassava products not just in the United States of America alone but also in other parts of the world which is why we will be exporting our products to other countries of the world.
Our Competitive Advantage
The truth is that it is easier to find entrepreneurs flocking towards an industry that is known to generate consistent income which is why there are a growing number of food processing companies in the United States of America and of course in most parts of the world.
As a matter of fact, entrepreneurs are encouraged by the government to embrace food production. This is so because part of the success of any nation is her ability to cultivate her own food and also export foods to other nations of the world.
Ola Williams® Cassava Processing Co. is fully aware that there are competitions when it comes to selling processed cassava products all over the globe, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in the United States and in other parts of the world.
We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable cassava processing processes that can help us sell our produce at competitive prices, good network and excellent relationship management.
Another competitive advantage that we are bringing to the industry is the fact that we have designed our business to operate an all-round standard cassava processing plant alongside our cassava farm. With this, we will be able to take advantage of all the available opportunities within the industry.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Ola Williams® Cassava Processing Co. is in the cassava processing line of business for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives.
Below are the sources we intend exploring to generate income for Ola Williams® Cassava Processing Co.
- Production and sale of cassava flakes and tapioca
- Production and sale of laundry starch and animal feeds.
- Production and sale of animal feeds
- Production and sale of biofuel
10. Sales Forecast
We conducted a thorough market survey and feasibility studies and we were able to discover that the sales generated by a cassava processing plant depends on the size of the plant and the products they are producing.
We have perfected our sales and marketing strategies and we are set to hit the ground running and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income and build the business from survival to sustainability.
We have been able to critically examine the cassava processing business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
- First Fiscal Year: $200,000
- Second Fiscal Year-: $400,000
- Third Fiscal Year-: $750,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters, and unfavorable government policies. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are quite aware that the reason why some cassava processing companies hardly make good profits is their inability to get steady supply of raw materials for their plant. In view of that, we decided to set up a standard commercial cassava farm to help us maximize profits.
Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We want to build a standard and world – class cassava processing company that will leverage on word of mouth advertisement from satisfied clients.
Over and above, we have perfected our sale and marketing strategies first by networking with agriculture merchants and companies that rely on retail processed cassava products. In summary, Ola Williams® Cassava Processing Co. will adopt the following strategies in marketing our processed cassava products;
- Introduce our business by sending introductory letters alongside our brochure to stake holders in the retail industry, households, laundromat, textile companies, livestock farms and production companies that rely on supply of processed cassava products.
- Advertise our business in related magazines and websites
- List our business on yellow pages ads
- Attend related food processing expos, seminars, and business fairs et al
- Leverage on the internet to promote our business
- Engage in direct marketing
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.
We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our cassava processing business. Below are the platforms we will leverage on to boost our cassava processing company – brand and to promote and advertise our business;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events
- Leverage on the internet and social media platforms like Instagram, Facebook, twitter, YouTube, Google + et al to promote our processed cassava products
- Install our billboards in strategic locations all around Dallas – Texas
- Engage in roadshows from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- Contact laundries, livestock farms and production companies that rely on supply of processed cassava as raw materials, agriculture produce merchants and residence in our target areas by calling them up and informing them of our business
- List our company in local directories
- Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo
12. Our Pricing Strategy
Some of the factors that will help you sell your processed cassava products at the right price that will guarantee that you make profits is dependent on your strategy while some of the factors are beyond your control.
For example, if the climatic condition is unfavorable and if there are natural disasters in the location where you have your cassava farm, then it will directly affect the harvest of cassava and ultimately the prices of your processed cassava products.
We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for all our processed cassava products is to sell them at competitive prices hence we will do all we can to ensure that the prices of our products are going to be what other cassava processing companies would look towards beating.
- Payment Options
The payment policy adopted by Ola Williams® Cassava Processing Co. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Ola Williams® Cassava Processing Co. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via check
- Payment via Point of Sale Machines (POS Machines)
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
When it comes to calculating the cost of starting a cassava processing plant with commercial cassava farms, there are some key factors that should serve as a guide. Factor such as the capacity of cassava processing plant you want to own, the product you want to produce and the size of the commercial cassava farm.
Besides, in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to start a world – class cassava processing plant, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your production plant is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a cassava processing company; it might differ in other countries due to the value of their money.
Below are some of the basic areas we will spend our startup capital in setting up our cassava processing company;
- The total fee for incorporating the business in United States of America – $750
- The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400
- The amount needed to acquire/lease a facility – $50,000
- The amount required for constructing a standard cassava processing plant – $150,000
- The cost for acquiring the required working tools and equipment/machines et al – $20,000
- The amount required for purchase of the first set of cassava supply et al – $50,000
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost of launching an official website – $600
- The amount required for payment of workers for a period of 3 months – $100,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000
Going by the report from detailed research and feasibility studies conducted, we will need an average of $350,000 to start a standard cassava processing plant with commercial cassava farm.
Generating Funds/Startup Capital for Ola Williams® Cassava Processing Co.
No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a standard cassava processing plan with commercial cassava farm. No doubt raising startup capital for a business might not come cheap, but it is a task that an entrepreneur must go through.
Ola Williams® Cassava Processing Co. is a family business that will be owned and managed by Ola Williams and his immediate family members. They are the sole financier of the firm, but may likely welcome other partners later which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
These are the areas where we intend sourcing for fund for Ola Williams® Cassava Processing Co.;
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Ola Williams® Cassava Processing Co. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to sell our processed and packaged laundry starch and animal feeds, biofuel and other processed cassava products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Ola Williams® Cassava Processing Co. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organization’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of all forms of Insurance for the Business: Completed
- Leasing of facility in Dallas – Texas and construct processing plant: Completed
- Conducting Feasibility Studies: Completed
- Startup Capital Generation: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing/Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed work tools, machines and equipment: Completed
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Farm land Treatment, Health and Safety Arrangement: In Progress
- Establishing business relationship with key players in the industry (agriculture farm produce merchants, production companies that rely on supply of processed cassava products and transporter/haulage companies et al): Completed