Do you want to start a cold press oil company? If YES, here is a detailed sample cold press oil production business plan template & FREE feasibility report. Cold pressed oil is simply an oil that has been produced with the use of the low heat technique. The introduction of heat to the process of making oil will degrade the flavour, nutritional value, and colour of the oil. Heat, however, increases the yield.
This remains one of the key reasons why cold pressed oil tends to be more expensive, although it is also of higher quality. Cold Oil Press is efficient in the extraction of oils from oil-bearing materials like rape seed, peanuts, sesame seed, cotton seed, Soya beans, coconuts, tea seed, sunflower seed, etc.
A Sample Cold Pressed Oil Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
According to global reports, the cold-pressed oil market size peaked at $24.62 billion in 2018, and is projected to grow at a CAGR of 5.3% to reach $36.40 billion by 2026. These oils gotten through cold pressed are expeller extracted in a controlled temperature setting.
The controlled temperature lies below 49°C (120°F). Cold pressed oils retain most of their subtle colour, flavour, and nutritional value. Also, cold pressed oil has zero trans fatty acids and is cholesterol free. As a result, cold pressed oil has gained huge traction in the last few years.
This method of extraction is one of the methods of mechanical extraction as well as require less energy than other oil extraction techniques. Uniquely, the cold pressed concept of extraction was used on vegetables and fruits to extract oils.
But with time, this technique was used to extract oils as well. This concept is being used to retain the flavour, aroma, and nutritional value of food. Cold-pressed oils contain natural antioxidant of the seed from which they were produced.
It also eliminates all harmful effects that are born through conventional methods of oil extraction. In addition, it is environment friendly and is used to obtain high-quality oils through performing production at low temperatures using cold press method.
Cold pressed oil is safer than hot pressed oil and helps avoids adverse effects caused by high temperature. Moreover, these oils have better nutritive properties than refined oils. However, low productivity and allergy to consumers caused by soybean seed, rapeseed, coconut, and others is expected to restrict the growth of cold-pressed oil market globally.
Also, major health issues such as itchy palm and foots, shortness of breath, and nasal blockage affect the cold-pressed oil market growth. These oils provide a vital contribution toward a healthy life as they are non-refined, cholesterol free, and are free of any harmful solvent residues, which may eventually drive the global cold-pressed oil market. The global cold-pressed oil market is segmented based on type, application, and distribution channel.
Depending on type, the market is divided into coconut oil, cottonseed oil, olive oil, palm oil, palm kernel oil, peanut oil, rapeseed oil, soybean oil, and sunflower seed oil. By application, it is classified into food industry, agriculture, and cosmetics & personal care industry. Based on distribution channel, it is divided into convenience stores, departmental stores, modern trade units, and online retail.
According to reports, the palm oil segment accounted maximum in the cold-pressed oil market share in 2018. This is attached to the health benefits it provides to the consumers such as reduction in cholesterol levels, boosts brain health, and improves skin and hair, and others.
In terms of application, the food industry contributed the maximum in this market in 2018 due to its massive usage in cooking, in marinating salads and via dietary supplement. While by distribution channel, the online retail segment is projected to grow at the highest growth rate.
This is due to the convenience offered by online retailing. It reduces consumer search costs, making it easier to virtually compare different products and prices. According to statistics, North America is the leading segment in cold-pressed oil market due to rise in health awareness among the population leading to healthy lifestyle.
Also, the growth in concern among people regarding clean and pollution free environment propels the growth of the cold-pressed oil market in a developed nation such as North America. Health conscious consumers are adopting healthy eating practices. As a result, products that contain functional nutrients and are beneficial for the health have gained wide acceptance all over the world.
2. Executive Summary
Pure Oil® Inc. will support and empower California avocado farmers to make profits out of their avocados by offering them an efficient and affordable means and technology for processing the avocado into oil and creating the appropriate business and distribution structure for taking the oil to market.
We aim to be a sustainable and innovative dynamic venture capable of exporting high quality avocado oil for food and cosmetic applications in the united states. Although everyone is familiar with olive oil and its role in a healthy diet, not many people are well-versed about avocado oil.
Yet oil for oil, avocado has about the same nutritional blueprint as olive, only tastier and healthier. First, about 70 percent of avocado oil is oleic acid, a monosaturated pale yellow omega 9 fatty acid with a lard-like odour. Aside from the excellent work it does in the body — like improving glucose levels for diabetics — the acid is less susceptible to spoiling than other fats.
Avocado is also cholesterol-free and contains no trans fats. Because avocado oil is pressed from the pulp of the fruit rather than the seed and has such a pleasing fat ratio, extra virgin avocado oil has a high smoke point of 400 degrees Fahrenheit.
This makes it perfect for cooking as well as atop salads. Avocado oil has a mild smell, a creamy texture and rich, nutty, buttery flavour. Externally, avocado oil is hailed as an excellent source for skin and haircare and is already an ingredient in many products.
At Pure Oil® Inc., we hope to pursue simplicity overall so all packaging designs should use as many locally available resources and suppliers as possible. To properly market the first pilot product oriented to high end customers, Pure Oil® Inc. has developed a really simple, polyvalent and low cost packaging but really good looking Avocado oil for cosmetics industry which is traditionally extracted with solvents at elevated temperatures.
After extraction, the oil for application in skin care product is usually refined, bleached, and deodorized, resulting in an odourless yellow oil (Pure avocado oil). In the food industry cold-pressed avocado oil (Virgin or Extra virgin), which is sold as culinary oil for use on salads and for cooking. Like extra virgin olive oil, cold-pressed avocado oil is unrefined and so retains the flavour and colour characteristics of the fruit flesh.
Our major suppliers are the smallholder farmers who are not merely part of the project, but the entire motivation for its existence. Purchasing of the supplies is based on a fair trade for both sides. As Pure Oil® Inc. grows and adds suppliers, we will gain bargaining power and also create economies of scale.
3. Our Products and Services
At Pure Oil® Inc., simplicity is best so the main concern on our short term will be providing premium tasteful avocado oil for high end costumers. Our philosophy is manufacturing our oil as if it was for ourselves, taking extreme care of each and every detail, promoting made in California Products.
- Glass bottle 300ml
Simple but elegant product targeting high-end customers who want to add richness and flavour to their diet. The product will be found in small 300ml packaging in supermarkets or specialized organic stores.
- Restauration 3L
This product is designed for those customers with larger consumptions whose main concern is the content rather than the container. The target for this product is large consumers such as restaurants or hotels and their respective suppliers.
- Wholesale avocado oil refined 1L
High quality refined and unrefined avocado oil will be also in our product portfolio. The target of this product are other manufactures of by-products of avocado oil. But also for wholesale traders from international markets where our direct sales force is limited or non-existent.
- Cosmetic 250ml
Avocado oil can be a more effective moisturizer than chemical laden cosmetics. This oil is considered to be “a base oil” that you can apply on the skin alone, in it’s pure form. The packaging size will target high-end users and will be available in supermarkets and specialized grocery stores.
- Avocado seed powder
Still an embryonic plan to convert a waste into a valuable product. In that case turning avocado seeds into fine powder used for infusions with healthy and medicinal properties. This incorporation will be a great step toward a circle economy model.
4. Our Mission and Vision Statement
- At Pure Oil® Inc., our vision is to build brand awareness circled around organic and healthy offerings, and customer service excellence, while also increasing sales. Our mission at Pure Oil® Inc. is to offer the finest selection of healthy organic oils. All our products will surpass all of its competition. A strong customer service ethic will support the fantastic product.
Our Business Structure
Kendra Pearce will be the managing member of Pure Oil® Inc. and its holding company. Starting Core Life in 2012, Kendra has experience in building a successful cosmetics start up. Core Life have won numerous accolades and maintained a 21% profit margin.
Her attentiveness to quality, presentation, design, branding, and overall experience makes her an excellent candidate to run operations. Also, Kendra mentorship and connections with some of the fastest growing agricultural innovation teams in the Country will be an added advantage.
Meanwhile, at Pure Oil® Inc., we plan to establish three functioning units: Production, Sales and Marketing, and General and Administrative. Pure Oil® Inc. Production unit will involve our Customer Service Specialists, who will be attending to the needs of our customers.
Our Sales and Marketing will take care of the promotion of our business and services, as well as the promotion of the Drive-through and the Community Contribution program. General and Administrative will take care of the facilities, equipment, inventory, payroll, and other basic, operational processes. Below are the portfolios we plan to establish and employ capable hands to help grow Pure Oil® Inc.;
- Chief Executive Officer
- Project Director
- Chief financial officer
- Food Safety Quality and Regulatory Associate
- Director of marketing
- Warehouse manager /store manager
- Customer Service Specialists
5. Job Roles and Responsibilities
Chief Executive Officer
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counselling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results.
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Tasked with fixing prices and signing business deals
- Tasked with providing direction for the business
- Tasked with signing checks and documents on behalf of Pure Oil® Inc.
- Evaluates the success of the organization
- Tasked with overseeing the smooth running of the business
- Leads the producing of all business products
- Part of the team that determines the quantity of products that are to be produced daily
- Make lists and budget for all supplies
- Oversee the entire business process
- Tasked with training new staffs
- Makes sure that quality in maintained at all times
- Maps out strategy that will lead to efficiency amongst workers in the venture
- Tasked with training, evaluation and assessment of the workforce
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Ensures that the facility meets the expected safety and health standard at all times.
Chief Financial officer
- Tasked with preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Tasked with financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Tasked with developing and managing financial systems and policies
- Tasked with administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Food Safety Quality and Regulatory Associate
- Partner directly with supervisor and leadership to effectively complete tasks, track progress, and monitor development.
- Daily assessment of process quality parameters and food safety and quality systems, including raw materials, calibration, maintenance, procedures, food safety, training, auditing, and oversight of analytical testing performed in operations control rooms.
- Data analysis, trend identification, troubleshooting, corrective action and communication with regard to processing data, final product and wastewater.
- Identify and resolve product quality problems and work with team members from various departments to ensure quality, food safety, and microbiological requirements are met. Complete specific FSQR projects designated by the FSQR leadership team. Write FSQR/Micro procedures as needed. Complete facility and Processing Area FSQR Assessments, Sanitation Assessments, Support and coordinate corrective action teams, as needed. Participate in a committee and engagement activities.
- Provide back-up assistance for FSQR Professionals and Supervisor, Food Safety Specialist, or Microbiology Supervisor. Complete pre-shipment review and product clearances as needed. Effectively communicate FSQR and Micro results, including timely reporting of all quality assurance activities.
- Maintain all manufacturing, safety, FSQR, Pre-requisite Programs (PRPs), and HACCP policies in production of products. Organize and maintain accurate and pertinent information to assure that processes and products are food safe.
- Coordinate and monitor FSQR audits/reviews of operational systems to include the following: FSQR/Microbiology Technician, as needed, duties to include operation/calibration of equipment, aseptic technique when sampling and completing microbiological testing, information management (SPC, Computer Data Entry into spreadsheets/databases). Candidates will cross train in both FSQR and Micro functions. Must know technician duties well enough to assist in training needs and plant training programs for new FSQR /Micro employees to assure that employees performing tasks are capable and the requirements are being met.
- Perform miscellaneous job-related duties as assigned (ie. Process improvement projects, development and modification of QA procedures and documents, recruiting and interviewing of new employees and assisting other locations with process start-ups and projects.
Director of sales and marketing
- Takes care of external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyse the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities
- Tasked with supervising implementation, advocate for the customer’s needs, and communicate with customers
- Documents all customer contact and information
- Represents Pure Oil® Inc. in strategic meetings
- Helps increase sales and growth for Pure Oil® Inc.
- Reprocess edible product by de-boxing and melting the product. Operate the Baader machine and product-saver to remove the product from the packaging.
- Maintain a Safe work area.
- Ensure that products are melted into the correct formula at the correct level to avoid food safety and quality problems by introducing allergens to non-allergenic products.
- Ensure that product for reprocessing is handled in accordance with GMP’s and Kosher regulations
- Heat treat product for reprocessing, as required to achieve HACCP CCP’s.
- Ensure that all containers of product for re-melt in the area are labelled properly with the date, line #, formula, and quantity. Maintain records of usage so that product is trace-able
Warehouse manager/store manager
- Maintains receiving, warehousing, and distribution operations by initiating, coordinating, and enforcing program, operational, and personnel policies and procedures.
- Complies with federal, state, and local warehousing, material handling, and shipping requirements by studying existing and new legislation; enforcing adherence to requirements; advising management on needed actions.
- Safeguards warehouse operations and contents by establishing and monitoring security procedures and protocols.
- Controls inventory levels by conducting physical counts; reconciling with data storage system.
- Maintains physical condition of warehouse by planning and implementing new design layouts
- Achieves financial objectives by preparing an annual budget; scheduling expenditures; analysing variances; initiating corrective actions.
- Completes warehouse operational requirements by scheduling and assigning employees; following up on work results.
- Maintains warehouse staff by recruiting, selecting, orienting, and training employees.
- Maintains warehouse staff job results by coaching, counselling, and disciplining employees
- Contributes to team effort by accomplishing related results as needed.
Customer Service Specialists
- Ensures that all contacts with customer (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in Pure Oil® Inc. ’s products and services
- Takes care of administrative duties assigned by the store manager in an effective and timely manner
- Consistently stays abreast of any new information on Pure Oil® Inc., promotional campaigns etc. to makes sure accurate and helpful information is supplied to customers when they make enquiries
- Tasked with cleaning the facility at all times
- Makes sure that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the shop
- Any other duty as assigned by the CEO.
6. SWOT Analysis
Although everyone is familiar with olive oil and its role in a healthy diet, not many people are well-versed about avocado oil. Yet oil for oil, avocado has about the same nutritional blueprint as olive, only tastier and healthier. The Hass variety was discovered in La Habra Heights, California, in the 1920s by Rudolph Hass.
In fact, every Hass Avocado in the world can trace its lineage to the original Hass mother tree. All these goes to show how properly we’ve analysed our market and are eager to engage. Clearly summarized below is the result of our SWOT Analysis, which will break down our options and risks in this business;
- Motivated and committed project leading teams
- Financial and technical support from our MIT partners.
- Capacity to minimize fixed costs.
- Control the overall production process enabling us to make the right turn if needed .
- Great availability of raw materials
- Complicated organization of all the people involved in the project.
- First production stage really disseminated where having a direct control is complicated.
- Lack of initiative and vision from the local community.
- Lack of financial resources
- Increasing demand of avocado including avocado oil.
- Currently supply is insufficient to keep up with it.
- Local youth with a high willingness to learn and work
- Industrial park obsolete with high need to update much of the equipment.
- California economy on growth growing with new investment and business.
- Tightening of quality certifications process such as fair trade or organic product.
- Tightening of tax import conditions
- Bargaining and supplier power
7. MARKET ANALYSIS
- Market Trend
According to reliable industry sources, factors such as positive perception among health experts and consumers, nutrient rich composition, and rising awareness about healthy lifestyle are some of the factors which are expected to drive the avocado oil market during. Significant growth in health issues such as heart diseases and chronic diseases arising from substantial consumption of high fat butter and oils is boosting the demand for healthy oils.
Some beneficial properties of avocado oils such as an optimum level of antioxidants and good fatty acids are the major reasons for health experts to recommend its consumption. Also, the availability of avocado all year round provides it with a Competitive Advantage to sustain demand all year.
We at Pure Oil® Inc. believe that a key factor which is likely to hamper the market is the price of avocado oil. Avocado oils are marginally expensive, especially in developing countries, which is expected to hinder the adoption of avocado products.
A major trend observed in market is mixing of flavoured avocado oil with natural edible oils including almond oil, olive oil, safflower oil, coconut oil, grape seed oil, and shea butter. The mixture is blended in such a way that, characteristics of each oil can complement each other.
8. Our Target Market
California is the largest producer of avocados grown in the U.S. There are more than 3,000 avocado growers in California farming on approximately 50,000 acres. A single California Avocado tree can produce on average about 60 pounds or 150 fruit a year.
There are seven varieties of avocados grown commercially in California, but the Hass variety is the most popular, accounting for approximately 95 percent of the total crop volume. The Hass avocado variety is a California native.
California Avocados grow year-round and are in peak season from spring through summer. The size of an avocado does not indicate the fruit quality or stage of ripeness. An avocado’s seed actually grows with the fruit, so the seed-to-fruit ratio will always be close to the same.
- Cosmetic Industry
There is an existing local market for low quality product. Those products are mostly cream made by local small entrepreneurs, sold without any certification. The other market is high quality products for high end markets. California and neighbouring areas represent a great opportunity for us. Making soap, hair oil or cream is a promising option.
- Food Industry
At Pure Oil® Inc., we size the domestic high quality edible oil market on 832,400 liters per year
Our Competitive Advantage
Pure Oil® Inc.’s competitive advantage ranges from the freshness of our products, Business model, and the community involvement in California. We are trying to create a market to fit with farmers’ needed. Most of the oil we could substitute avocado oil with such as organic or virgin high quality oil is expensive and mostly imported. Our aim is to answer to a local demand of oil with our new product and local suppliers.
We boost of a network of farmers and cooperatives ready to invest in machines and make oil by themselves, in a bid to cut down logistic and production costs by storing oil instead. Also, since avocado is a seasonal crop that is harvested twice a year. Having a manufacturing plant would imply high fixed cost but with our lower cost mobile station we can price more competitively.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Pure Oil® Inc. earning revenue by providing California avocado farmers with the means and platforms to make profits out of their avocados by offering them an efficient and affordable means and technology for processing the avocado into oil and creating the appropriate business and distribution structure for taking the oil to market.
Pure Oil® Inc. will also make revenue by offering a really simple, polyvalent and low cost packaging but really good looking Avocado oil to cosmetics industry which is traditionally extracted with solvents at elevated temperatures.
For the food industry, our cold-pressed avocado oil (Virgin or Extra virgin) will be sold as culinary oil for use on salads and for cooking. Like extra virgin olive oil, Pure Oil® Inc. is unrefined and so retains the flavour and colour characteristics of the fruit flesh.
10. Sales Forecast
Although everyone is familiar with olive oil and its role in a healthy diet, not many people are well-versed about avocado oil. We believe that the demand for the organic oil is related to per capital oil consumption. As we know, organic oil sales fall into a commodity market where the cheapest, acceptable quality product will succeed.
The price is highly related to the demand of the product since there are many substitutes. Seeing as our products are premium products, we are afforded some leeway on the pricing which is important to consumers.
Although, demand will still follow per capita organic oil consumption, the trend of high quality, premium organic oil helps our product remain relevant and in demand. It is expected that the demand will increase in the future. Our sales forecast is conservative in order to prevent unrealistic expectations and to help ensure the achievement of these goals. Sales will grow slowly but incrementally.
As a start-up organization, it is realistic to expect that it will take time to grow the customer base so that it is at a sustainable level. Aside from our expected turbulent first year, sales for year two are forecasted to be $2,622,000 rising to $3,690,000 in year three. Net profit is projected to be 7.48% for year two and will jump to 9.34% in year three
- Marketing Strategy and Sales Strategy
According to reports, the millennial demographic as well as the baby boomer generation is becoming more health-conscious and as a result is willing to pay a premium for a fresher option. At Pure Oil® Inc., we seek to gain a competitive advantage by providing a fresh, innovative option to customers in the form of cold pressed avocado oil.
Pure Oil® Inc. plans to sell its oil in-store as well as in synergistic businesses such as yoga studios, fitness centres, and upscale cosmetology businesses. Pure Oil® Inc. pursues simplicity overall so all packaging designs should use as many locally available resources and suppliers as possible.
To market the first pilot product oriented to high end customers, Pure Oil® Inc. has developed a really simple, polyvalent and low cost packaging but really good looking. Aside from ordering in-store or at one of these satellite locations, Pure Oil® Inc. will also offer call-in and online ordering. This will allow guests the convenience of ordering at home and simply dropping in to pick up their order.
11. Publicity and Advertising Strategy
Our plan at Pure Oil® Inc. is to gather enough brand awareness to leverage the product line into other regions and gain inquiries from potential inventors. To achieve this goal to expand and grow, we plan to do the following;
- Pure Oil® Inc. will spend $2,300 per month on Public relations services for the next year intended to build awareness of editors and product information insertions, reviews, etc. We believe that the school fundraising program or our other charity programs will generate a fair amount of publicity on its own and will, perhaps, minimize–or even eliminate–the need for a publicist.
- Pure Oil® Inc. will also spend $980 per month concentrating on drive time Radio advertising. We plan to experiment with different stations, keeping careful track of results. As with the school fundraising program, we expect the stand and signage to be a substantial portion of our advertising.
- List our business on yellow pages ads (local directories)
- Attend relevant international and local food and entertainment expos, seminars, and fairs et al
- Create different packages for different category of clients (individuals, start – ups and established corporate organizations) in order to work with their budgets
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
12. Our Pricing Strategy
Our price is aggressively lower than the average market price, and we produce exclusively in California. Many businesses value local production but can only purchase avocado oil from other countries. We aim to get the local market and fill that gap with Pure Oil® Inc. products.
- Glass bottle 300ml – $10.00
- Restauration 3L – $98.00
- Wholesale avocado oil refined 1L – $8.00
- Cosmetic 250ml – $16.00
At Pure Oil® Inc., our payment options will be all inclusive and acceptable because we understand greatly that different people prefer different payment options as it suits them Here are the payment options that we will make available to our clients;
- Payment by cash
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
We have also chosen banking platforms that will help us achieve our plans with little or no issues. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
Relying on demand projection and the expectation to outperform the current avocado oil production growth expectations, we estimate Pure Oil® Inc. will grow at 22% a year for the first two years. To be able to meet this demand and to have the facilities, staff, and equipment necessary to operate, we will need an initial capital investment of $802,561.
This will be facilitated through loans and an Initial capital investment of $340,000 from the owner. This startup capital will be used to buy equipment, pay relevant expenses for the first six months of operation, and purchase inventory that is required to operate Pure Oil® Inc.
The major cost incurred by the business is that of Inventory. We will be operating under the expectation that we will be able to partner with small and large suppliers at the beginning of operation.
Note that these partnerships will allow us to have consistent sales and will help us grow as our brand becomes well known. Our expectation is to venture into the market having already made partnerships that started at least six months prior to start of operations.
Generating Funding/Start up Capital for Pure Oil® Inc.
Pure Oil® Inc. will be structured as a Limited Liability Company and registered for Business in the state of California. The management will be composed of a single member (Kendra Pearce) for the time being, and the entity will be treated as a sole proprietorship under federal taxation. We hope to raise our startup fund through the following ways;
- Generate part of the startup capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Generate fund from angel investors
Note: We have been able to raise $340,000 from the personal savings of our founders, $180,000 from soft loans from family members and friends, and we are almost at the verge of completing the money needed as capital from a reliable Angel investor.
14. Sustainability and Expansion Strategy
All the processing technology has been developed locally with the support of our partners from MIT (Massachusetts Institute of Technology). These equipment were designed with efficiency, simplicity and functionality in mind. The aim remains to build small scale industrial equipment capable to process large amounts efficiently and easily while ensuring good quality standards.
California will be the proof of the concept once the production is settled and the oil finds its way on the market. Our next step will be replicating the business model in other places with similar situations. Our objective at Pure Oil® Inc. is to create synergies among the different processing centres by optimizing resources and capacities while sharing the same distribution chain and market linkages all under the same brand Pure Oil® Inc.
Our primary form of advertisement will be social-media based. We plan to create targeted posts to attract our main demographic to visiting our website. Instagram and Facebook will be the two social media avenues we will focus on most.
Prior to our social media campaign, we will hire a photographer to take high quality pictures of our products and photos capturing the voice of our brand. Throughout the year, Pure Oil® Inc. plans to host outreach events that encourage guests to come out and enjoy an active event with the Pure Oil® Inc. team.
Lastly, Pure Oil® Inc. will host seminars in educational and corporate settings to inform the surrounding area about the benefits of avocado oil. Avocado oil is still a growing market, so it is important we educate the people of California about the benefits of oil and offer our knowledge to help potential guests understand thoroughly.
As in all agriculture business there is a trend of high bargaining power from the buyers. Since most of the products are perishable and seasonal wholesalers or traders have leverage to set the sale price. However, once processed into oil, our product has a long shelf life.
Additionally, by controlling our fixed structural costs and carefully matching with the appropriate distribution partners we could minimize that bargaining power. Our major suppliers are the smallholder farmers who are not merely part of the project, but the entire motivation for its existence. Purchasing of the supplies is based on a fair trade for both sides. As Pure Oil® Inc. grows and adds suppliers, we will gain bargaining power and also create economies of scale.
Meanwhile, the threat of substitutes is high for general edible oils and cosmetic since there are plenty of alternatives (olive oil, macadamia nut oil, sunflower, or even chemical base products). However if we narrow the scope to organic or virgin high quality oils, the risk of substitute is lower due to the positioning of our avocado product.
- Business Name Availability Check:>Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: 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 form of Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the start up capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Packaging and Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress