Do you want to start a rice bran oil production company? If YES, here is a sample rice bran oil production business plan template & FREE feasibility report. Rice bran oil (RBO) is a very rich source of bioactive phyto-chemicals, which include tocopherols and γ-oryzanol (an ester of trans-ferulic acid with sterols and triterpenic alcohols, with high antioxidant and radical scavenging properties).
Rice bran oil may be the largest underutilized agricultural commodity in the world. The production and processing of rice bran oil are similar to many other vegetable oils. Rice bran oil (RBO) is gaining popularity among other traditionally used cooking oils due to its better cooking quality, prolonged shelf life and well-balanced fatty acid composition as well as the presence of many antioxidant components.
Table of Content
- Benefits and Uses of Rice Bran Oil
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
Benefits and Uses of Rice Bran Oil
It has lower viscosity and relatively high smoke point, which make it as healthy cooking oil. It is also rich in vitamin E (both tocopherols and tocotrienols) and bioactive phytonutrients, which include phytosterols, γ-oryzanol, squalene and triterpene alcohols.
All of these compounds exhibit high antioxidant, anti-inflammatory, hypocholesterolaemic, anti-diabetic and anticancer activities. According to experts, dietary intake of RBO has been reported to lower the levels of blood cholesterol, blood pressure and blood glucose and can help to reduce inflammation and symptoms of metabolic syndrome.
RBO helps to boost the immune system and prevent the process of premature ageing and age-related neurodegenerative diseases. Due to its cardiac-friendly phytochemicals and antioxidant potentials, RBO has been categorized as healthy edible oil for human consumption.
Coupled with scientific evidences, it is believed that a daily intake of 50 g of RBO besides dietary and lifestyle modifications may be considered enough to attain its beneficial effects in reducing the risk of chronic diseases, in particular the cardiovascular diseases. With the development of rice processing industry and oil extraction technology, starting a bran oil facility is becoming a HOT project with great commercial value to invest in.
A Sample Rice Bran Oil Business Plan Template
1. Industry Overview
In 2018, the bran oil industry was reported at $4.04 billion and projected to show a CAGR of 3.44 percent from 2019 to 2025. Growing health consciousness and demand for fat-free and nutritious food products are the major factors propelling the market growth. Rice bran oil has high antioxidant and low cholesterol content, which will also influence its demand in foods and beverages.
According to the World Health Organization (WHO) and the American Heart Association, the presence of polyunsaturated, monounsaturated, and saturated fats in this oil make it safer to consume than other vegetable oils. It is also used as a salad dressing as it is flavourless and odourless. In addition, it is a rich source of oryzanol, which protects the skin against Ultraviolet (UV) rays, stimulates hair growth, and slows down the process of aging.
These factors are encouraging its demand in the cosmetics and pharmaceutical industries as well. However, high consumption of the oil can cause intestinal gas, unpredictable bowel movements, and stomach discomfort as the fibres present in it might block digestive tract, which might hamper the overall demand.
In terms of application, the bran oil market is segmented into food & beverage, nutraceutical, animal feed, and others. Note that the food & beverage enjoyed the largest market share in 2018 due to high product usage. For example, Asian countries like india, China, and Japan used the oil frequently to prepare everyday dishes.
Moreover, increase popularity of beverages made of cereal has resulted in increased use of rice bran oil in functional beverages. In the nutraceutical segment, rice bran oil is projected to register the fastest CAGR of 5.01 percent from 2019 to 2025.
Growing awareness about the product benefits in the treatment of several chronic disorders. Moreover, Gamma Oryzanol, from the rice bran, is commonly used in medicines for protection against several degenerative diseases. These factors are expected to drive the demand in the nutraceutical segment.
In terms of distribution channels, the offline channel enjoyed the largest market share of 86.72 percent in 2018. Availability of personal store assistants plays a key role in persuading the consumers to try out new products. This makes hypermarkets and supermarkets a prime channel for companies to launch their products in.
Note that the online segment is projected to expand at the highest CAGR of 5.59 percent over the forecast period. In addition, rising consumer disposable income and improved standards of living, especially in emerging regions, will boost product sales through online channels.
2. Executive Summary
With the view of processing rice grains and utilising the by-products of Rice Mills while also improving the overall viability of oil seed processing units, emphasis is being given towards the establishment of Eden Jabez® Rice Bran Oil Production, Inc.
Eden Jabez® Rice Bran Oil Production, Inc., which will be a solvent processing and extraction plant for rice bran is a one-of-a-kind facility in Rogers, Arkansas. Aside from being healthy edible oil, rice bran oil extracted from rice bran is a major raw material for soap factories and the de-oiled bran is an important constituent of compound cattle feed. It also has a good export market also.
Our key objective for the establishment of Eden Jabez® Rice Bran Oil Production, Inc. is to promote the economic interests of rice farmers and rice mills all over Arkansas, and particularly to develop the Agro-based industries with a view to securing the advantages of Large-scale agricultural production for our plant.
We propose to acquire and take over an existing rice mill business in Rogers, Arkansas and build upon the business model by introducing new business and marketing strategies, increasing the production by investing in new and additional machinery and equipment, and increasing the turnover and profitability by producing a wide range of by-products.
Eden Jabez® Rice Bran Oil Production, Inc. will be set up with a major participation of the State government and the National Rice Farmers Association. Our plant will be supplied, renovated and commissioned by Mainstream Construction under strict monitoring and guidance from our three founding members.
In Eden Jabez® Rice Bran Oil Production, Inc., many researches will be done by experts every time to determine the best and the cost effective plan based on each clients’ situation and needs. Not only that, we are going to need to work on the best methods to cut short the production time of rice bran oil, to produce the best quality rice bran oil without reducing its nutrition.
Our primary objective involve establishing new and managing existing strong long-term relationships with local Arkansas farmers (with whom we are already in negotiations) to purchase grains for milling on a regular basis. We will then mill the grains to produce rice and other by-products, and then sell the products at a wholesale level to traders in and around a 100-mile radius of the Rogers area.
In addition, we will be setting up a drying facility to offer local farmers and traders a service where we will dry their grain for them at a cost. From our founders experience in the industry, we recognize wet and moist grain as being a large problem in the state of Arkansas that rice farmers find quite hard to overcome.
We already have access to a strong network of traders with whom our management team has been doing business with over the past 8 years. We aim to build on these existing relationships with traders and work towards acquiring new customers in line with our marketing strategies.
3. Our Products and Services
At Eden Jabez® Rice Bran Oil Production, Inc., we will be producing only a single type of edible oil that is Rice bran oil. Our oil will be different from other regular edible oils, as it increases HOL (good) cholesterol and lowers LDL (bad) cholesterol & triglycerides.
It will also contain sequence that improves skin tone, & delay wrinkle formation as it contains vitamin E, which helps in maintaining balance of nervous system. With the new machinery and equipment installed, Eden Jabez® Rice Bran Oil Production, Inc. will produce the following products from the processing of purchased grain:
- Rice Bran
- Cooking Oil
- Broken Rice
In order to differentiate our plan from our competitors we will also offer the following services:
- Delivery (we will offer customers the option of having their orders delivered to them with our delivery truck)
- Drying (with our new state of the art drying facility we will offer a grain drying service whereby farmers and traders will be able to bring their own grain to be dried)
- Storage (depending on our own stock levels, we will also offer storage services within our secure 5,000 square foot storage facility)
4. Our Mission and Vision Statement
- At Eden Jabez® Rice Bran Oil Production, Inc., our vision is to serve rice farmers and traders by exceeding minimum acceptable quality standards and by providing the highest quality product at the lowest possible price.
- We value our relationships with current and future customers and hope to communicate our appreciation to them through our outstanding, guaranteed product quality, personal service, and efficient delivery.
- Eden Jabez® Rice Bran Oil Production, Inc. will become an inspiring and interesting rice processing business.
- Our mission at Eden Jabez® Rice Bran Oil Production, Inc. is to not only offer high quality products but also efficient and superior service.
Our Business Structure
Eden Jabez® Rice Bran Oil Production, Inc. will be an Arkansas registered company made up of a management team that has 15 years of Rice Milling and Trading experience in Texas, 13 years of Food Wholesaling and Restaurant experience in Arkansas, and 10 years of Sales, Marketing and Accounting experience in the California and Arkansas.
We propose to take over and develop a family owned rice milling business that has been functional for over 17 years, milling around 100 x 40kg bags of grain per day. Our plan is to acquire the Rice Mill and upgrade the machinery and equipment to increase productivity and profitability.
With the new technology installed, Eden Jabez® Rice Bran Oil Production, Inc. will have the capacity to mill 500 x 40kg bags of grain per day plus by-products for the first 3 months, and then approximately 900-1000 x 40kg bags of grain per day plus by-products there afterwards. Below are the portfolios we plan to establish at Eden Jabez® Rice Bran Oil Production, Inc. to help achieve all our goals and visions:
- Chief Executive Officer
- Project Director
- Chief financial officer
- Food Safety Quality and Regulatory Associate
- Director of marketing
- Warehouse manager /store manager
- Customer Service Specialist
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 Eden Jabez® Rice Bran Oil Production, 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 staff
- Makes sure that quality in maintained at all times
- Map out strategies 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
- Collaborate 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.
- 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 as needed. 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
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 Eden Jabez® Rice Bran Oil Production, Inc. in strategic meetings
- Helps increase sales and growth for Eden Jabez® Rice Bran Oil Production, Inc.
- Reprocess edible product by de-boxing and melting the product.
- Maintain a Safe work area.
- Ensure that products are melted into the correct formula at the correct level to avoid quality problems
- 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 CCPs.
- 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; inspecting equipment; issuing work orders for repair and requisitions for replacement
- Completes warehouse operational requirements by scheduling and assigning employees; following up on work results.
- Maintains warehouse staff job results by coaching, counselling, and disciplining employees planning, monitoring, and appraising job results
- 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 Eden Jabez® Rice Bran Oil Production, 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 Eden Jabez® Rice Bran Oil Production, 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
- Any other duty as assigned by the CEO.
6. SWOT Analysis
At Eden Jabez® Rice Bran Oil Production, Inc., we plan to enter into contractual agreements with local farmers (some of which we already have long-term business relationships with) to purchase grain at very competitive rates at the times of harvest (June/July and November/December).
We will also continue to purchase more grain throughout the other months of the year from farmers and storage facilities with which we will have agreements. Then we will mill the grain to produce rice and other by-products.
All our products at Eden Jabez® Rice Bran Oil Production, Inc. will then be sold at a wholesale level within 2-3 days of being produced via local traders with whom we will also have agreements and contracts. All these goes to show how properly we have 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:
- Product Quality
- Demand for rice bran by-products
- Cost Control Focus
- Strong working relationships with local businesses
- Additional Services not offered by our competitors
- Complicated organization of all the people involved in the project.
- Lack of financial resources
- Lack of awareness and insight on rice bran oil
- Growing international demand for healthier edible oil
- Currently supply is insufficient to keep up with it.
- Arkansas ever growing rice industry
- 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
Despite the potential abundance of rice bran oil in world commerce, it is still only a minor player in edible oil applications. Most bran oil produced in much of the world is only suitable for non-edible applications. The oil derived from the bran is often used majorly as soap stock because of the high free fatty acid levels of rice bran that is not stabilized immediately after milling.
Rice bran oil is also added to food systems as a means to increase oxidative stability and at the same time to improve the nutritional/health promotion value of the food. Like the palm fruit, rice bran contains an enzyme that rapidly attacks the oil if it is not heat-deactivated immediately after separation from the crop.
In practice, unrefined rice bran oil often contains high levels of FFA because of delays in processing. The presence of important antioxidants in rice bran oil, ferulic acid esters generally referred to as γ-oryzanols, has recently led to its use as a component of frying oils in order to extend the useful life of industrial frying oils.
It is also a very good source of several micronutrients and natural antioxidants such as γ-oryzanol, sterols, tocopherols, tocotrienols, phospholipids, phytosterols, and squalene. These micronutrients are the bioactive components in RBO, concentrated mainly in the unsaponifiable fraction of the oil.
They are often lost to a large degree in the refining process and concentrated in a number of by-products/residues such as gum and soap stock, deodorizer distillate, and wax from both physical and chemical refining process.
These days RBO producers have paid attention to the recovery of these micronutrients by either avoiding its loss into the by-products or extracting it from the by-products for further applications in food, medicinal, pharmaceutical, or cosmetic industries.
Many methods such as solvent extraction and crystallization, supercritical fluid extraction, saponification, etherification, and molecular distillation are used for their recovery. Rice bran oil (RBO) is not popular worldwide, but its demand is projected by experts to increase globally due to its popularity as“healthy oil” in Asian countries, particularly in Japan, Korea, India, China, and Indonesia.
Note that it is an excellent cooking oil and salad oil due to its high smoke point and delicate flavour. It is unique among edible oils due to its rich source of commercially and nutritionally important phytoceuticals such as oryzanol, lecithin, squalene, phytosterols, polyphenols, tocopherols, tocotrienols, and many more.
Many studies on humans and animals have shown that RBO is as effective as some other vegetable oils that are rich in polyunsaturated fatty acids in lowering plasma cholesterol levels and lipoprotein profiles. In some cases, this oil was discovered to lower plasma cholesterol more effectively, and this effect can be attributed to the occurrence of these other specific components in RBO.
8. Our Target Market
Arkansas has historically been the largest rice producer in the entire united states, and accounted for nearly 45 percent of U.S. rice production in 2001, as well as just less than half of the total number of acres of rice harvested nationwide.
We believe there is definitely room in the Arkansas market for our business because of our competitive pricing, extensive range of by-products and offering of services that appear to be rare to come by. Instead of building a business around a preconceived concept, we conducted market research and built a concept around the needs of the market. Our potential target market at Eden Jabez® Rice Bran Oil Production, Inc. are;
- Cosmetic and food industry
- Rice Traders within a 100 mile radius
- Local Farmers that require the use of our grain drying facility
- Local Farmers that require the use of our storage facilities
- Cooking Oil Traders within a 100 mile radius
- Rice Traders within a 100 mile radius
- Broken Rice Markets
To successfully differentiate ourselves from our competitors, we plan to make use of our various resources to give us the following unique advantages:
- Consistent Supply/Stock
At Eden Jabez® Rice Bran Oil Production, Inc., we will be setting up agreements and contracts with local Arkansas farmers for the supply of grain to ensure that we have a consistent supply all year round.
- Competitive Pricing
By initiating contractual agreements with our farmers, we will ensure that we are purchasing the grain at competitive rates, and also maximizing production and utilizing every aspect of the grain to produce by products that will also result in the products costing us less, allowing us to pass savings onto the traders.
- Grain Drying Facility
We plan to establish a state of the art grain drying facility that will ensure all grains are very dry before being processed and thus ensuring high quality. In addition, we will offer the drying service to other farmers and traders where we will dry their grain at a cost.
We plan to satisfy all of our customers (traders) needs by offering all required products ‘under one roof’ and giving them the opportunity to expand their businesses and increase turnover & profitability by offering their customers other by-products.
9. SALES AND MARKETING STRATEGY
Notably, very little or no marketing and advertising is required in the rice milling industry aside from word-of-mouth. At Eden Jabez® Rice Bran Oil Production, Inc. however, we plan to exhibit the vast sales and marketing knowledge and experience we have amongst our founding members. Our management team boost of over 10 years experience in Global Marketing, and we believe that despite the success of any business, Marketing is crucial.
To grow our business, we will be setting up a dedicated team of Sales Agents whose duties will be to embark on the road-visiting farmers, traders, and wholesalers, and building new and managing existing relationships with them, and continually looking for new clients and business opportunities.
We strongly emphasize that this will strengthen our relationships. However, we will be doing leaflet drops within a 100-mile radius of our base, and doing targeted advertising campaigns in the form of eye-catching boards.
10. Sales Forecast
We strongly 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. 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 $1,991,000 rising to $3,082,000 in year three. Net profit is projected to be 6.34 percent for year two and will jump to 8.09 percent in year three
11. Publicity and Advertising strategies
At Eden Jabez® Rice Bran Oil Production, Inc., we will also be promoting our business and products by creating occasional open days at our premises where local traders and potential customers will be invited to visit the plant and all our sampled products. We believe such activities will ensure we build and strengthen our relationships with our customers.
Coupled with this, we will also be initiating promotional campaigns through our team of sales agents to get our brand well known and become established. We plan to employ three different marketing tactics to increase customer awareness for our plant: In-house Marketing, Public Relations Marketing, and Media Marketing.
Howbeit, we still believe that our most important tactic will be word-of-mouth/in-house marketing. This will be by far the cheapest and most effective of our marketing programs.
- Sources of Income
At Eden Jabez® Rice Bran Oil Production, Inc., we will generate revenue by providing Arkansas rice farmers with the means and platform to make profits out of their rice grains. Eden Jabez® Rice Bran Oil Production, Inc. will also make revenue by offering a really good-looking rice bran oil to the cosmetics industry. For the food industry, our bran oil will be sold as culinary oil for use on salads and for cooking.
12. Our Pricing Strategy
Our plan at Eden Jabez® Rice Bran Oil Production, Inc. is to enter the market with a very competitive pricing strategy.
We will be able to do this because our initial investment in new machinery & equipment will not only let us produce maximum output at reduced costs, but also allow us to ensure that all elements of the grain are utilized by producing by-products. At Eden Jabez® Rice Bran Oil Production, Inc., we plan to produce high quality rice and by-products and sell them at a low price to increase and establish our market share.
Note: What we will be paying for the grain to local farmers fluctuates throughout the year (usually between $94 – $113 per 40kg bag), depending on the Season, so for the purposes of these calculations we have based the workings on an average rate of $103 per 40kg bag when purchasing grain from farmers.
- Payment Options
At Eden Jabez® Rice Bran Oil Production, 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)
Our plan at Eden Jabez® Rice Bran Oil Production, Inc. is to borrow $1,200,000 now as a long-term loan from Wellsfargo, at an interest rate of 18 percent along with a capital of $870,000 to purchase machineries and extend our current building to suit our needs.
We plan repay this loan within five years from the cash flow of the business. We expect to have a cash flow from the very 1st month of the business operation. Since there is a lack of edible oil in the United States market, the sales is related to production assuming that 100 percent of production will be sold.
Meanwhile, since we plan to expand our capacity on the 4th month of our business operation, we expect to gain more revenue afterward. Therefore, we can say that revenue is related to production capacity. Therefore, the revenue is expected to grow massively in the 4th month and remain stable afterward.
From the very beginning, management in will start building the business and taking it to the highest level. We believe there is a huge demand of edible oil in the United States, and other than that, the export opportunity is huge, so it is expected that the management will experience good time in the recent years. Our aim is to become the market leader in the United States.
Generating Funding/Start up Capital for Eden Jabez® Rice Bran Oil Production, Inc.
Eden Jabez® Rice Bran Oil Production, Inc. will be structured as a Limited Liability Company and registered for Business in the state of Arkansas. The management will be composed of a three members (Lambert Foster, Martin Thomas, and Smith Lance) for the time being. 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 $720,000 from the personal savings of our founders, $165,000 from soft loans from family members and friends, and we are almost at the verge of completing the money needed as capital from our banking partner.
14. Sustainability and Expansion Strategy
At Eden Jabez® Rice Bran Oil Production, Inc., our founding members have a vested stake and financial commitment in the success of this business. Our intent is to have a definitive business, financial, and marketing plan that not only serves our need for capital financing, but also is utilized as our daily business roadmap.
Employee welfare, participation, and training are equally important to our success. We will make sure everyone is treated fairly and with the utmost respect.
We also aim to offer fair profits for the owners, and a rewarding place to work for the employees. We hope to increase production from milling 100 x 40kg bags of grain per day to 500 x 40kg of grain per day for the first 3 months and then 900-1000 x 40kg bags of grain per day afterwards by investing in new and additional machinery and introducing new quality control and production standards.
We will maximise production (and profitability) and utilize all aspects of the grain by producing by-products such as rice, rice bran oil, husk, and broken rice. Unlike traditional rice mill businesses that depend purely on word-of-mouth marketing, we at Eden Jabez® Rice Bran Oil Production, Inc. will always strive to conduct many marketing activities to bring new business.
Our plant is ideally situated in an area where we already have strong relationships with local farmers and traders with whom we will be signing contracts to purchase their grain at competitive rates, and to support them with labour and financial issues when needed.
All contracts will be secured six months in advance of harvest. Improvements in technology are crucial to our Business model at Eden Jabez® Rice Bran Oil Production, Inc.. New machinery and equipment will allow us to have an advantage over our competitors, maximise production, reduce costs, increase profitability, and expand the business in terms of products, services, sales and turnover.
We plan to stay one-step ahead of our competitors by continually meeting customer’s need through the consistent supply of rice all year round. We recognize that the main months for the purchase of grain are the harvest months of June/July and November/December.
Whilst most mills tend to be low on stock for the rest of the year, we hope to tackle this issue by having contractual agreements with local farmers whereby we are able to purchase surplus grain either which can be stored by the farmers for a cost, or which can be stored in our in-house storage facilities.
Note that this allows us to have a constant supply of rice and by-products all through the year, and not just at periods of harvest. We will also be using our newly purchased truck to transport our rice and other by-products to the markets, as well as offering our customers the option of collecting it from our premises, or getting it delivered by us at an additional cost.
- 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 Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the startup 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 Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of 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