Are you about starting a cooking oil production business? If YES, here is a complete sample groundnut oil production business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a groundnut oil production business.
We also took it further by analyzing and drafting a sample cooking oil production business marketing plan template backed up by actionable guerrilla marketing ideas for groundnut oil production businesses. 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 a Groundnut Oil Production Business?
Groundnut oil is an edible vegetable oil that is produced from seeds that are edible bearing in nature. To get groundnut oil, the seed is usually prepared, pressed and then filtered. Whilst starting this business might be very lucrative, anyone intending to start this business will need to ensure that they have studied the business well. The business is one that would require technical skills, so the entrepreneur must ensure that he gets the right people to handle all the production process of getting refined and high quality groundnut oil.
To start this kind of business, getting a business consultant is very important. The business consultant will offer advice and suggestions to setup the oil production chain, the machines to be bought, run the business and thrive against your competitors in the industry.
Getting a business plan is very important as it allows you understand the business you intend going into. But writing a business plan can be very intimidating so it would be best if you hire a business plan writer or go online to get free business plan samples to help you in writing one. Below is a sample cooking groundnut oil business plan;
A Sample Groundnut Oil Production Business Plan Template
1. Industry Overview
Groundnut oil production is usually done when oil is removed from the groundnut seed. The manufacturing process can either be done on a small or medium scale depending on the cost of the project and desired output. Groundnut oil is not only used for cooking or as a shortening but also as a base for confectioneries or to make peanut butter.
Globally, india ranks amongst the top exporters of cooking groundnut oil, although it is regarded as a premium oil whose cost is very high. Groundnut oil is not only available in filtered forms but also in refined forms as well. In the market, filtered oils are regarded as superior in quality.
Raw materials that are required or producing groundnut oil is the groundnut seed. The seed produces about 50% of oil and 55% of the meal. Producing edible cooking groundnut oil is grouped into two groups, mechanical pressing and solvent extraction.
Groundnuts are oilseeds with high oil content that require mechanical pressing before being extracted. The production process for groundnut can be grouped into three stages such as preparation, pressing and crude oil refining.
2. Executive Summary
McQueen Groundnut Oil Inc is a leading and standard groundnut oil producing company here in Fort Lauderdale – Florida that intends to produce cooking groundnut oil to domestic and commercial customers not only here in the united states of America but also all over the world. We will also engage in offering other services in addition to our core service to our various customers.
Our intention of starting our own groundnut oil producing company is so as to be able to sell highly refined and quality groundnut oil that is cholesterol free to our various customers not only here in Florida or the United States but all over the world as well. Our intention is not only to establish our business for profit making but to also compete favorably with our competitors but nationally and internationally.
Because of the best practices standard we have set for ourselves, we have ensured that we procured the best pressing and refining machineries that will allow us to be able to produce quality and refined groundnut oil. Our packaging methods are also up to standard as we carry out all our activities with hygiene in mind so that we are able to set a standard for our customers.
Getting the best distribution networks are very important for this kind of business and so we have secured the best channels that will see our groundnut oils get to the end users. We will continue to seek for the best means at ensuring that our products get to our consumers at the right time.
We will ensure that we source for our raw materials from reliable vendors and suppliers, who use organic means to grow the crops, so as we will be able to give our customers the organic refined groundnut oil that is part of our corporate identity.
We intend to incorporate good work ethics as our corporate goal and also be renowned for our transparency standards. In order to ensure that we adhere to our corporate culture, we will recruit the best professionals possible that not only understand the industry we are in but also understand our company’s policies and are dedicated to ensuring that we are able to achieve our goals and objectives.
We will ensure that we get our employees to undergo continuous training that will not only enhance their skills but make them increase productivity for our organization. We will also ensure that our employees are well paid and undergo performance appraisals that will make them put in their best.
Finally, our Chief Executive Officer, Ms Laurie McQueen is a topmost entrepreneur who has more than 15 years experience in this industry and also in a managerial role. She knows how best to help us achieve our intended goals and objectives.
3. Our Products and Services
McQueen Groundnut Oil Inc intends to produce and supply highly refined groundnut oil to its various customers here in the United States of America as well as all over the world.
Our aim as a business is to ensure that we not only generate revenue but maximize profit as well and to this end, we intend to create multiple sources of income so as to be able to have a solid bottom line. The ways we will source for extra means of revenue will be according to our ambition and the laws of the United States of America.
Therefore the products and services we intend to offer at McQueen Groundnut Oil Inc are;
- Sale of processed groundnut oil for domestic and commercial purposes
- Sale of byproduct – groundnut cake
- Sale of groundnut sludge
- Consultancy and Advisory Services
4. Our Mission and Vision Statement
- Our vision is to ensure that we produce highly refined and quality groundnut oil that is cholesterol free for our various customers and also be amongst the top three groundnut oil producers globally.
- In order to ensure that we achieve our vision, we intend to ensure that we get the best equipment and also hire the best employees so that we will be able to achieve our goal of producing highly refined and quality groundnut oil.
Our Business Structure
Building a business structure that will be just right for our groundnut oil business is very important to us, which is why we are making sure that we put in all efforts to recruit the right hands that will help us achieve our goals and objectives.
It is important that our management team understand and identify with our core vision and objectives and as such is able to effectively communicate these policies and goals to the lower end staff and ensure that it is effectively implemented.
Due to the fact that we intend to offer additional services to our core service, we will hire more employees than the conventional groundnut oil producing company. This is so that the different tasks will be effectively handled without pushing too many responsibilities in the hands of a few employees.
Below is the business structure we intend to build for McQueen Groundnut Oil Inc;
- Chief Executive Officer
- Plant Manager
- Purchasing Manager
- Human Resources and Admin Manager
- Marketing Executives
- Truck Drivers
- Customer Care Executives
- Maintenance Team
- Security Guard
5. Job Roles and Responsibilities
Chief Executive Officer
- Creates strategies and policies for the overall direction of the organization
- Responsible for negotiating with high level clients on behalf of the organization
- Ensures that policies created are effectively implemented
- Monitors production processes and ensures that it aligns with both company and industry standard
- Develops and implements budgets for production
- Seeks ways to reduce costs without reducing quality
- Sources for reliable vendors and suppliers of raw materials
- Drafts purchasing contracts and ensures that it is to the benefit of the organization
- Drafts and implements purchasing strategies on behalf of the organization
Human Resources and Admin Manager
- Responsible for recruiting, giving orientation as well as ensuring that customers get attuned to the company’s policies
- Responsible for employee welfare and incentive packages as well as carrying out performance appraisals on behalf of the company
- Ensures that the administrative functions of the organization are carried on smoothly
- Responsible for creating ensuring the implementation of financial statements, records and budget on behalf of the organization
- Prepares tax records and ensures that they are submitted to the right authorities
- Responsible for cash inflow and outflow and petty cash
- Drafts effective marketing strategies and modifies them continuously in order to generate revenue for the organization
- Engages in direct marketing with customers on behalf of the organization
- Manages existing customer relationship in order to help increase customer loyalty and retention on behalf of the organization
- Responsible for delivering products to customers at accurate destinations
- Carry out maintenance on the vehicle when necessary and report major faults to the management
- Keep traffic laws and regulations and also a logbook
Customer Care Executives
- Responsible for taking orders, answering enquiries and providing accurate information to clients
- Ensures that customers’ complaints are readily resolved on behalf of the company
- Keeps an updated customer database on behalf of the company
- In charge of maintaining all the equipment and machineries used by the organization
- Arranges for new parts and replacements for the machineries
- Reports major machinery and equipment faults to the management
- Patrols the facility and its perimeter during work and after work hours to ensure that there is no trespasser
- Monitors incoming and outgoing people and visitor and responsible for surveillance equipment
- Remains updated on security tips and ensures that company staff is aware of security tips as well
6. SWOT Analysis
Due to the fact that we intend to run a standard cooking groundnut oil producing company, we are striving to ensure that we put up processes; plan and structures that will allow us attain this excellence. This is clearly why we have engaged the services of a reputable business consultant here in Fort Lauderdale – Florida, to look through our business concept and determine if the business we are going into is worthwhile and also if we are going to not only thrive in this business, but also compete favorably against our competitors.
In view of our request, the business consultant used four attributes (strengths, weaknesses, opportunities and threats) in order to determine how we are likely to survive and grow as a business. Therefore the SWOT analysis that was conducted on behalf of McQueen Groundnut Oil Inc is as follows;
Our strength lies in the fact that we offer our customers’ high quality processed groundnut oil which is cholesterol free. This means that customers who use other substitutes because they feel those are better for their diet will stick to our own brand of groundnut oil instead. We are in a location that is not only strategic but also convenient for our customers and employees to access.
Our facility is one that is conducive enough for our employees, while also being of high standard hygienically to produce our cooking groundnut oil. Those which we have chosen to work for our company is very competent and experienced especially as regards this industry.
They are also dedicated and committed to our corporate goals and philosophy. Finally, our owner and Chief Executive Office, Ms. Laurie McQueen has more than 15 years experience both in groundnut oil processing and in management and will ensure that we are able to achieve our intended goals and objectives.
The groundnut oil processing industry is a saturated one and so would require us to adapt strategies that would allow us to stand out against our competitors. Also, because we are just starting up, we do not yet have the necessary finances and staff strengths as our already established competitors.
There are several opportunities that abound for us in this industry as cooking groundnut oil is widely consumed by a whole lot of people. We are however seeking innovative ways to attract the health conscious customers who have shifted to alternative sources because they feel that groundnut oil isn’t hygienic enough in helping to achieve their fitness goals. Our advisory and consultancy services will serve to open up more opportunities for us in this industry.
Facing threats as a business faces are to be expected if the business is a serious one. The threats that we are likely to face as a business will arise from unfavorable government policies, stiff competition from competitors, as well as customers’ shift to close substitutes on personal preference grounds. We have laid down strategies in place that will enable us handle whatever threats we are likely to face.
7. MARKET ANALYSIS
- Market Trends
Cooking groundnut oil, which is referred to as vegetable oil by some, is one of the oil products in high demand; as a large number of people use it for consumption as well as for commercial purpose. While there are substitutes for groundnut oil, the fact that this oil is cheaper makes it why more people use this oil.
Groundnuts are nuts that can be found at all time and is regarded as highly nutritional, which is why it is amongst the top nuts recommended by doctors for women that are not only pregnant but for those that are also health conscious or going on a diet. Any entrepreneur going into this business will therefore make good money from it.
Starting this business would require ensuring that technical details are being put into place. However, there are few groundnut oils processing businesses here in the United States of America, which makes it very ideal for us to go into this kind of business and make a tidy profit from it. It is also necessary to ensure that professionals are being employed to handle all the technical details.
8. Our Target Market
Cooking groundnut oil is used by a whole lot of people and so this means that there is a lot of demand for this product, and therefore we cannot necessarily limit the target market without making a thorough market research. Our location here in Fort Lauderdale – Florida is one that is strategic and will allow us to map out effective plans in order to serve our numerous clients.
The market research we have conducted from reliable facts and statistics will allow us better understand the characteristics of our target market and the right strategies that we would draft to be able to cater to this market. Therefore from our research, the following groups of people are those that we will be selling our products and offering our services to;
- Soap Manufacturers
- Cosmetic industries
- Food industries
- Grocery Stores and Supermarkets
Our intention of starting a cooking groundnut oil production company is so as to be able to give our various customers not only here in the United States of America but all over the world, quality cooking groundnut oil that is cholesterol free. To be able to achieve this, we have drafted strategies that will allow us have a competitive advantage over that of our competitors.
Our first competitive advantage is in the quality of groundnut oil we are giving our customers all over the world. Because this is oil that is to be consumed, we have taken great care in ensuring that from the raw materials down to the processing all go through a high standard of quality checks. We take great pride in ensuring that our customers can trust our cooking groundnut oil.
We have engaged the services of the best professionals who not only know this industry thoroughly but also understand how best to make a business become the world standard we have intended for it. Our employees also understand our corporate philosophies and goals and are willing and dedicated to ensuring that we achieve it.
We have put in place processes and plans that will ensure that our employees receive trainings as at when due. These trainings will allow them to have enhanced skills that will also improve their productivity for the company. We will also ensure that our employees are well paid and have better welfare packages than that of their counterparts in similar startups such as ours.
Finally, we will ensure that we put our customers first by not only meeting but exceeding their expectations. We will ensure that we take good care of our loyal customers and offer them incentives. We will ensure that we keep an updated customer database so as to keep in touch with our customers and allow them be aware of our products and other services that we might be offering.
9. SALES AND MARKETING STRATEGY
- Sources of Income
McQueen Groundnut Oil Inc is a leading and standard groundnut oil producing business that has been established with the aim of generating revenue and maximizing profit not only here in Fort Lauderdale – Florida, all over the United States of America as well as globally as well.
We intend to make profits from sales of different products and offering of services to our various customers. McQueen Groundnut Oil Inc will generate revenue from the following products and services;
- Sale of processed groundnut oil for domestic and commercial purposes
- Sale of byproduct – groundnut cake
- Sale of groundnut sludge
- Consultancy and Advisory Services
10. Sales Forecast
Groundnut oil is a cooking oil that is being consumed daily by most people and used for domestic and commercial purposes and therefore will always be in demand.
Our location here at Fort Lauderdale – Florida is one that is very strategic and has us very optimistic of being able to not only generate the needed revenue within one year but also one that will allow us maximize our profit, as the forecast has shown that this is highly achievable.
We carried out several researches whilst conducting our sales forecast and used several assumptions and information from similar start-ups such as ours not only here in Florida but also all over the United States of America so as to be able to get accurate data to arrive at the below stated projections.
The stated projections for McQueen Groundnut Oil Inc based on accurate assumptions and data are as follows;
- First Fiscal Year-: $600,000
- Second Fiscal Year-: $1,100,000
- Third Fiscal Year-: $2,000,000
N.B: The above sales projections were done based on certain assumptions and what was obtainable in the industry at the stated period. The assumptions were that there won’t be any stringent government policies, no arrival of a competitor offering same services as we were and also that the economy remains stable. Should there be any change in the above assumptions, our sales projections for the stated period will be affected.
- Marketing Strategy and Sales Strategy
When writing a business plan, one important element that is not usually overlooked is the marketing and sales aspect. Not only are strategies created to better market a product or service, a budget is also created so that strategies can be effectively implemented. Marketing also serves a dual purpose as it not only generates revenue for the company but also creates awareness for the business as well.
Due to how delicate marketing is, we intend to hire reputable marketing experts who understand the nature of our business and the industry we are operating in to help create effective marketing strategies that we will use to be able to compete favorably against our competitors all over the United States of America.
We will not be limiting our marketing efforts to merely just the conventional means. We will be making use of unconventional means via technology to also market and sell our cooking groundnut oil to our target market. Our marketing team will be well versed in handling all our online affairs so as to attract more potential customers to our business from other states and even countries.
We will also empower our marketing team to conduct more market researches in order to be able to determine new target markets for our business. Our marketing team will also monitor marketing strategies and remove or modify those that are thought to be ineffective. We will in fact provide them with all that is necessary to be able to achieve our corporate sales goals and objectives.
Therefore the marketing and sales strategies that we intend to adopt for McQueen Groundnut Oil Inc are;
- Ensure that we introduce our groundnut oil company officially to wholesalers and distributors as well as other industry stakeholders
- Throw a grand opening party so as to create awareness about our business to our target market
- Advertise our cooking groundnut oil business in newspapers (local and national) as well as on radio and television stations
- Ensure that we engage in direct marketing and sales to our various customers
- Use our social media platforms such as Facebook, Twitter, LinkedIn and Google Plus to market our cooking groundnut oil business
- Ensure that our groundnut oil business is listed in local directories (Yellow Pages) and on online directories as well
11. Publicity and Advertising Strategy
Publicity is very important for every business, as it is what allows the target market that consists of both existing and potential customers. This is why even though a business has been established for a long period of time, it still engages in publicity so as to be able to not only retain its customers but also attract new customers to patronize it. The publicity we tend to create for our business is one that will project the image of our business positively.
In a bid to ensure that we create effective publicity strategies, we intend to engage the services of a brand consultant who understands the business and the industry we are in. the brand consultant has been empowered to use conventional and unconventional means to ensure that we get the awareness we need for our business not only here in Fort Lauderdale – Florida but also all over the United State of America.
Below are the platforms we intend to use in creating awareness as well as advertising McQueen Groundnut Oil Inc;
- Create an official website and use this to create awareness about our groundnut oil producing company
- Place adverts in local and national newspapers and on radio and television stations here in Florida and nationally as well
- Participate in and sponsor relevant community programs here in Fort Lauderdale
- Use our social media platforms such as Facebook, Twitter, LinkedIn and Google Plus to promote our groundnut oil producing company
- Place attractive and distinctive bill boards in strategic locations all around Florida and outside its environs
- Write articles and post on different relevant blogs and websites
12. Our Pricing Strategy
Determining what price to set for your products and services is very important and requires making detailed strategies to ensure that one picks just the right price that will not be detrimental to the business or chase customers away. In setting the right price for our business, we will consider our overhead and running costs as well as what our customers are also offering the target market.
However, while we intend to set the right price that will just be right for our business and fair to our customers, we will offer a discount in the first two months of our operations in order to attract customers to our business. After taking a thorough look at this strategy, we are convinced that we will not be running at a loss even though our profit margins might be low for these periods.
- Payment Options
Any smart entrepreneur knows that it is very important for customers to have convenient means by which they pay for products and services. Therefore knowing this, we intend to offer various payment platforms so as to be able to cater to our various clients and their different preferences.
The different payment options that we therefore intend to make available are;
- Payment via cash
- Payment via checks
- Payment via bank draft
- Payment via online payment portal
It should be noted that the above payment options were carefully chosen by us to make payments not only easier for our clients but also to ensure that we are able to run our business without hitches.
13. Startup Expenditure (Budget)
Starting a cooking groundnut oil production business can be capital intensive especially as this business is one that needs equipment in order to be able to produce the groundnut oil for consumption. We therefore intend to use the bulk of capital to procure equipment, get a truck for delivery, get raw materials and also pay the salaries of our employees and utility bills for at least 6 months.
The major areas where we therefore intend to spend our start-up capital include;
- Total fee for registering our groundnut oil producing business in the United States of America – $750
- Obtaining of licenses and permits, accounting software and other legal expenses – $3,250
- Marketing budget and promotion expenses for the grand opening of Queens Groundnut Oil Inc. as well as for general promotional activities for the business – $10,000
- Cost of hiring business consultant – $3,000
- Operational cost for the first 6 months (which includes employees salaries and utilities bills) – $150,000
- Insurance (general liability, workers’ compensation, and equipment insurance) – $2,000
- Cost of groundnut oil machines (separating machines, pressing machines, processing and refining machines) – $70,000
- Cost of leasing a facility for 2 years and carrying out renovations – $100,000
- Purchase of truck for distribution and delivery of groundnut oil – $50,000
- Raw materials (groundnuts) and packaging materials – $20,000
- Other start-up expenses (stationery, computer, printer, phones, furniture) – $10,000
- Storage equipment (shelves, bins, racks) – $5,000
- Cost of launching an official website – $1,000
- Cost of throwing a party to launch our business – $5,000
- Miscellaneous – $10,000
From the above estimate, it is apparent that we would need the amount of $440,000 in order to successfully start and run our groundnut oil processing to a certain standard here in Fort Lauderdale – Florida. It should be noted that the bulk of the capital will go into procuring equipment, renting a facility for at least two years, procuring a vehicle and also paying the salaries of employees and utility bills for at least 6 months.
Generating Funding / Startup Capital for Queen’s Groundnut Oil Inc Business
Queen’s Groundnut Oil Inc is a cholesterol free cooking groundnut oil that is owned and managed by Ms. Laurie McQueen. Ms. McQueen who intends to grow this business into one that is of international standard intends to approach external investors with vision that aligns with hers, whilst seeking other means of sourcing for capital.
Therefore, Ms. McQueen will seek for her start-up capital from the following sources. Below, therefore are the sources where we intend to generate our start-up capital from;
- Generate part capital from sale of stocks of personal property
- Source for loan from commercial bank
- Generate capital from external private investors
N.B: From sale of stock and some private property, Ms. McQueen has been able to generate $140,000. She has gotten a loan of $150,000 from the bank that will be repaid in 7 years time at an interest rate of 2.4% annually; all the approving documents have been signed and the money will soon be credited into the company’s account before the end of the week.
She is also currently in the final stages of obtaining a loan of $150,000 from a private investor in exchange for an equity of 5%. All the terms have been discussed and signed on, and the lawyers are going through the documents to get it ready for signing.
14. Sustainability and Expansion Strategy
The way a business is structured determines how long the business will remain in existence. We are willing to go the extra mile to ensure that we hire competent professionals who understand the way our kind of business is run and how best to ensure that our kind of business becomes one that is a force to be reckoned with nationally and internationally.
The professionals we intend to hire will be one that also understand our ideology as a business and will remain committed to this ideology and ensure that it is well communicated to all stakeholders. We will also ensure that we have laid down processes that will allow for the environment to be conducive work-wise for our employees.
We will pay our employees well and provide them better welfare and incentive packages better than their counterparts in similar start-ups such as our across the country. We will also ensure that our employees undergo training so that they will have better skills that will not only see them enhanced in the industry but will also ensure better productivity for our business as well.
As much as we intend to generate as much revenue as we can, we will make sure that we retain at last 30% of our earnings back into our business. This is to ensure that we do not have to go externally to seek for funds all the time. Also, putting back our earnings into our business will allow us to be able to not only grow and sustain the business but also expand it as well.
Check List / Milestone
- 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
- Conducting feasibility studies: Completed
- Generating capital from family members: 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
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: 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 – wholesale suppliers / merchants: In Progress
- Purchase of trucks: Completed
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