Are you about starting an evaporated milk production business? If YES, here is a complete sample evaporated milk production business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting an evaporated milk production company.
We also took it further by analyzing and drafting a sample evaporated milk marketing plan template backed up by actionable guerrilla marketing ideas for evaporated milk production companies. So let’s proceed to the business planning section.
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
Why Start an Evaporated Milk Production Business?
If you are certain that you have a winning formula when it comes to producing evaporated milk; milk that has been tested and proven to meet industry requirements, then you should consider launching your own evaporated milk production company. This business is still open for investors to come and compete for the available market in the country you intend launching the business.
If you have decided to start an evaporated milk production company, then you should make sure that you carry out thorough feasibility studies and also market survey. This will enable you locate the business in a community or city with the right demography. Business plan is yet another very important business document that you should not take for granted in the bid to launching your own business.
Below is a sample evaporated milk production company business plan that will help you successfully launch your own business.
A Sample Evaporated Milk Production Company Business Plan Template
1. Industry Overview
Evaporated milk is one commodity that is consumed in all parts of the world and those that are in the business of producing evaporated milk are known to generate sales year in year out if the business is properly managed. Evaporated milk which is known as unsweetened condensed milk in some countries is a shelf-stable canned milk product with about 60 percent of the water removed from the fresh milk. It is different from sweetened condensed milk, which contains added sugar.
Evaporated milk production companies fall under the Dairy Product Production and they are involved in the production of dairy products like pasteurized milk, cream, butter, yogurt, cheese and dry, condensed and evaporated milk. These companies supply these goods to a variety of market segments such as retailers, wholesale and food services amongst others.
The Dairy Product Production industry in the united states of America has achieved strong growth over the years, outperforming other packaged beverage production industries. Dairy producers benefited from increased per capita disposable income, which allowed consumers to continue purchasing industry goods. Going forward, the industry is projected to continue to grow, even though at a slower rate than the previous years.
In the last five years, the industry has experienced a slight decline in revenue primarily driven by decreases in input prices. The price of raw milk most significantly affects industry revenue. Industry operators typically benefit from higher input prices because they can pass the costs to consumers in the form of higher prices. Consumers typically purchase these goods regardless of price hike since dairy products are a staple of the average American diet.
The Dairy Product Production industry that evaporated milk production companies are part of is a thriving sector of the economy of the United States of America and they generate over $105 billion annually from more than 1,250 registered and licensed dairy product production companies scattered all around the United States of America.
The industry is responsible for the employment of over 117,390 people. Experts project the dairy product production industry to grow at -1.2 percent annual rate. The Dean Foods, Nestle and DFA are the market leaders in the industry, they have the lion market share in the United States of America and in most countries of the world.
A report published by IBISWorld shows that over the five years to 2018, industry performance had been volatile, but it eventually experienced steady decline due to large fluctuations in the price of raw (unprocessed) milk. Industry revenue typically benefits from higher input prices as operators pass along costs downstream by charging higher prices for goods. The decline in raw unprocessed milk prices, and, subsequently, finished milk product prices, can largely be attributed to an even larger drop in prices of feed, which is a strong determinant of the input’s demand.
Despite the fact that there are big corporations who are into the production of evaporated milk, the fact remains that starting a small – scale evaporated milk production business has minimal barriers to entry, with relative minimal startup capital.
Some of the factors that encourage aspiring entrepreneurs to start an evaporated milk production company is the fact that the market cuts across people of all races, culture, financial status and age. That makes it easier for entrepreneurs who are interested in the business to come into the industry at any time they desire; the entry barriers are quite affordable and any serious – minded entrepreneur can comfortably raise the startup capital without collecting loan from the bank.
2. Executive Summary
Campos Morgan® Evaporated Milk Production Co, LLC is a licensed dairy product production company that will be located around one of the largest dairy farms in Dallas – Texas. We have been able to secure a long term lease for a facility in a strategic location with an option of a long term renewal on agreed terms and conditions that are favorable to us.
The facility has government approval for the kind of production business we want to run and the facility is easily accessible. We are deliberate about that because we want to facilitate easy movement of raw materials and finished products.
Campos Morgan® Evaporated Milk Production Co, LLC is in the dairy industry to produce widely accepted dry, condensed and evaporated milk products. We are also in business to make profits at the same to give our customers value for their money; we want to give people and businesses that patronize us the opportunity to be part of the success story of our brand.
We are aware that there are several evaporated milk production companies scattered all around the United States whose products can be found in every nooks and crannies of the United States, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that can easily accept our products and brand. We ensured that our facility is easy to locate and we have mapped out plans to develop a far reaching distribution network.
Beyond producing quality products, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they purchase our evaporated milk.
Campos Morgan® Evaporated Milk Production Co, LLC is family business that will be owned by Campos Morgan and her immediate family members. Mr. Campos Morgan who is the Chief Executive Officer of the Company is Graduate of Biochemistry and he holds a Master’s Degree in Business Management (MBA).
He has over 15 years’ experience working in related industry as a senior manager prior to starting Campos Morgan® Evaporated Milk Production Co, LLC. He will be working with a team of professionals to build the business.
3. Our Products and Services
Campos Morgan® Evaporated Milk Production Co, LLC is going to run a standard evaporated milk production company whose products will not only be sold in Dallas – Texas but also throughout the United States of America. We are in the dairy product production industry to make profits and also to give our customers value for their money.
These are some of the products that we will be offering;
- Producing dry, condensed and evaporated milk products
4. Our Mission and Vision Statement
- Our vision is to establish a standard evaporated milk production company whose products will be not only be sold in Dallas – Texas, but also throughout the United States of America.
- Our mission is to establish a world class evaporated milk brand that will favorably compete with leaders in the industry. We want to build a business that will be listed amongst the top 20 evaporated milk brands in the United States of America.
Our Business Structure
Campos Morgan® Evaporated Milk Production Co, LLC is established with the aim of competing favorably with other leading evaporated milk brands in the industry. This is why we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders. 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 ten years or more depending how fast we meet our set target.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Plant Manager
- Human Resources and Admin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Machine Operators
- Distribution Truck Drivers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- 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
- Produces, interconnects, 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
- Liable to 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 the evaporated milk production plant
- Part of the team that determines the quantity and quality of evaporated milk products that are to be produced
- Maps out strategy that will lead to efficiency amongst workers in the plant
- Responsible for training, evaluation and assessment of plant workers
- Ensures the steady flow of raw milk and other raw materials to the plant and easy flow of finished products to the market
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Ensures that the plant meets the expected safety and health standard at all times.
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily office and factory activities.
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Responsible for the purchase of raw milk directly from dairy farms and packaging materials
- In charge of planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- 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
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects
- Responsible for financial forecasting and risks analysis
- Performs cash management, general ledger accounting, and financial reporting
- Answerable to 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
Client Service Executive
- Welcomes guests and clients 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
- 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 the company
- Distributes mails in the organization
- Handles any other duties as assigned by the line manager
Production Workers/Machine Operators:
- Operates industry machines like pasteurizers, evaporating machine/steamer, milk extractor, stirring tank, and bottling/canning machines et al.
- Assists in packaging and loading evaporated milk products into distribution trucks
Distribution Truck Drivers
- Assists in loading and unloading evaporated milk products
- Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
- Assists the transport and logistics manager in planning their route according to a delivery schedule.
- Transports finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
- Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
- Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Reports defects, accidents or violations
6. SWOT Analysis
There are several evaporated milk product manufacturing companies in the United States of America which is why we are following the due process of establishing a business so as to compete favorably with them. 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 equipped to confront our threats.
Campos Morgan® Evaporated Milk Production Co, LLC employed the services of an expert HR and Business Analyst with bias in startup business 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.
This is the summary of the SWOT analysis that was conducted for Campos Morgan® Evaporated Milk Production Co, LLC;
Part of what is going to count as positives for Campos Morgan® Evaporated Milk Production Co, LLC is the vast experience of our management team, we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon. So also our closeness to dairy farms, large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
A major weakness that may count against us is the fact that we are a new evaporated milk production company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like Nestlé USA, Glendale, CA and Dean Foods Co. Dallas, TX. et al are already determining the direction of the market both in the United States and in the global market.
The opportunities available to evaporated milk manufacturing companies are enormous. This is due to the fact that almost all Americans make use of evaporated milk on daily basis. As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market and also to create our own new market. We know that it is going to require hard work, and we are determined to achieve it.
We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new evaporated milk production company or other milk related product manufacturing companies in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with the existing trend in the industry, you will quite agree that there are competitions in different stages of the industry. Most evaporated milk production companies are leveraging on creativity to continue to stay afloat in the industry.
Lastly, the evaporated milk production industry has started adopting eco – friendly approach towards the production and packaging of its products. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.
8. Our Target Market
When it comes to selling evaporated milk, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but to all those who reside in our target market locations. We are in business to engage in wholesale distribution and to retail our evaporated milk to the following groups of people;
- Corporate Executives
- Government Officials
- Business People
- Military Men and Women
- Sports Men and Women
- Everybody in our target market location
Our Competitive Advantage
A quick of the dairy industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are prepared to compete favorably with other evaporated milk production companies in Dallas – Texas and throughout the United States.
Part of what is going to count as competitive advantage for Campos Morgan® Evaporated Milk Production Co, LLC is the vast experience of our management team, we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon.
So also closeness to some of the largest dairy farms, our large and far reaching national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the dairy product production 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 objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Campos Morgan® Evaporated Milk Production Co, LLC is established with the aim of maximizing profits in the dairy farm production industry in the United States of America and we are going to go all the way to ensure that we do all it takes to sell our evaporated milk to a wide range of customers.
10. Sales Forecast
One thing is certain when it comes to evaporated milk production company, if your products are well – packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Dallas – Texas and every city where our evaporated milk will be sold and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow the business and our clientele base.
We have been able to examine the dairy products production industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Dallas – Texas.
- First Fiscal Year: $350,000
- Second Fiscal Year: $550,000
- Third Fiscal Year: $950,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location to start Campos Morgan® Evaporated Milk Production Co, LLC and also the kind of evaporated milk products we produce, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market in our target market locations.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time and also for our products to favorable compete with other leading evaporated milk brands in the United States of America.
We hired experts who have good understanding of the dairy industry to help us develop marketing strategies that will help us achieve our business goal of winning a large percentage of the available market in Dallas – Texas and other cities in the United States of America.
In summary, Campos Morgan® Evaporated Milk Production Co, LLC will adopt the following sales and marketing approach to sell our evaporated milk;
- Introduce our evaporated milk brand by sending introductory letters to residents, merchants, retailers and other stakeholders in Dallas – Texas and other cities in the United States of America
- Engage in roadshows in targeted communities from time to time to sell our products
- Advertise our products in community based newspapers, local TV and radio stations
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our evaporated milk brand
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Campos Morgan® Evaporated Milk Production Co, LLC has a long term plan of distributing our evaporated milk in various locations all around the United States of America which is why we will deliberately build our brand to be well accepted first in Dallas – Texas before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Campos Morgan® Evaporated Milk Production Co, LLC;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our evaporated milk brand
- Install our Billboards in strategic locations all around major cities in the United States of America
- Engage in roadshows from time to time in targeted communities
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
- Ensure that our products are well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.
12. Our Pricing Strategy
Our prices will conform to what is obtainable in the industry but we will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various evaporated milk brands in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our evaporated milk brand.
- Payment Options
The payment policy adopted by Campos Morgan® Evaporated Milk Production Co, LLC 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 Campos Morgan® Evaporated Milk Production Co, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- 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 for their purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
Starting a standard evaporated milk production company is indeed a capital intensive business. The bulk of the startup capital will be spent on leasing or acquiring a facility and also in purchasing refrigerated tank trucks, pasteurizers, evaporating machine/steamer, milk extractor, stirring tank, bottling/canning machines, a mini lab and good drainage system.
These are the key areas where we will spend our startup capital;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand opening of Campos Morgan® Evaporated Milk Production Co, LLC in the amount of $3,500, as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- The cost for hiring Business Consultant – $2,500.
- The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
- The cost for construction of a standard evaporated milk production plant – $100,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for Start-up inventory (refrigerated tank trucks, pasteurizers, evaporating machine/steamer, milk extractor, stirring tank, bottling / canning machines, a mini lab and good drainage system, supply of fresh milk, and packaging materials et al) – $80,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Cost of purchase of distribution vans – $60,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- The cost for our opening party – $10,000
- Miscellaneous – $10,000
We would need an estimate of $500,000 to successfully set up our evaporated milk production plant in Dallas – Texas.
Generating Startup Capital for Campos Morgan® Evaporated Milk Production Co, LLC
Campos Morgan® Evaporated Milk Production Co, LLC is a family business that is owned and financed by Campos Morgan and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of startup capital to 3 major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of any business lies in the number of loyal customers that they have, the capacity and competence of their 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 closes shop.
One of our major goals of starting Campos Morgan® Evaporated Milk Production Co, LLC 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 retail our evaporated milk a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Campos Morgan® Evaporated Milk Production Co, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
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 Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money 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 Insurance for the Business: Completed
- Leasing of facility and construction of standard evaporated milk production plant: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members and friends: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of the Company’s Logo: Completed
- Printing of Packaging Marketing/Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Establishing business relationship with vendors – wholesalers, dairy farmers, suppliers and merchants: In Progress