Are you about starting a vegetable export company? If YES, here is a complete sample vegetable export business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a vegetable export business. We also took it further by analyzing and drafting a sample vegetable export business marketing plan template backed up by actionable guerrilla marketing ideas for vegetable export businesses. So let’s proceed to the business planning section.
Why Start a Vegetable Export Business?
Starting a vegetable exporting business can be one of the most lucrative businesses for any entrepreneur in Nigeria and this is because exports are always worth more in the global market than they are locally. This then allows for more opportunities via a larger target market.
However, one thing you would need to understand before going into the exports business in Nigeria is that if you do not carry out adequate research so as to gain enough knowledge about the industry you intend to enter, you might find yourself losing more money than you ordinarily should.
There are certain things you would need to know thoroughly and they range from port procedures, how to source for your products, licensing requirements, working with foreign distributors, to international standard practices and so much more.
If you are going to be selling your veggies, frozen or dried will be another thing to consider, and how you intend to pack the veggies in order to preserve them.
One thing you would require before starting this business is to engage the services of a business consultant to help you look through your business concept and determine if exporting vegetables will be a lucrative business for you. Another important aspect that cannot be overlooked is a business plan.
Writing a business plan is not an easy affair, and while you can hire the services of a business plan writer to help you write one, you can also go online to get a business plan template that would help you in writing yours. Below is a sample vegetable export business plan template for your consumption.
A Sample Vegetable Export Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
According to a research by MarketLine, by 2015, the world fruit and vegetable market is expected to exceed $735 billion.
This amount represents a 25 percent growth in the market over a five year period. By 2015, the market prediction for the volume of tons that will be exported is expected to be over 690 million tons, which is 5 percent higher when compared to the previous five years from 2010.
According to reports from the United Nations, Food and Agriculture Organization (FAO) exports of fruits and vegetables generate about $45 billion globally.
The market has been described as concentrated with only about 50 companies accounting for more than 70 percent revenue of the industry. The industry this talks about includes goods in canned, frozen, concentrated and dehydrated form.
These fruits and vegetables are often processed by the importing countries into jams, juices, pickles, jellies and chutneys. However, vegetables represent nearly 65 percent of the fruits and vegetable industry.
2. Executive Summary
William Vegetable Exporters Inc is a vegetable exporting business that is not only registered with the Corporate Affairs Commission (CAC), it has also been licensed by the National Exports Promotion Council (NEPC) and other regulatory bodies to export vegetables.
The products and services we intend to offer to our various clients include; exporting of fresh vegetables, exporting of frozen vegetables, exporting of mixed vegetables, exporting of dried vegetables, and consultancy and advisory services. These other services we are offering are intended to boost our revenue and sustain our business.
Our vision is to ensure that we set a standard when it comes to vegetable exports and become the go-to brand for our international clients. We intend to become the number one vegetable exporter here in Nigeria.
In order to achieve our vision, we are building a solid business structure that will see us going the extra mile in order to hire only those that are capable of ensuring that we attain all our goals and objectives. Our employees especially our food technologist, marketing executives and purchasing and inventory staff come highly trained and are amongst the best in the industry.
We will ensure that our employees are well paid and have the best welfare package for start-ups such as ours in the industry. This we know will motivate them to put in their best and remain committed to ensuring we attain our goals.
Our Chief Executive Officer and owner, Mr. Bola William is a entrepreneur and business man that has been tested and found worthy. He has over 15 years experience in this industry and has all it takes to ensure we achieve our goals and objectives.
3. Our Products and Services
William Vegetable Exporters Inc is a vegetable exporting business that is fully licensed by the Nigeria Exports Promotion Council (NEPC) and registered by the Corporate Affairs Commission (CAC) to export vegetables and generate the needed revenue that will boost and sustain our business.
Our aim at maximizing profit for our business will see us offering additional products and services in order to create multiple sources of income and immensely grow our business. The products and services that we will offer at William Vegetable Exporters Inc are;
- Exporting of fresh vegetables
- Exporting of frozen vegetables
- Exporting of mixed vegetables
- Exporting of dried vegetables
- Consultancy and advisory services
4. Our Mission and Vision Statement
- Our vision is to ensure that we set a standard when it comes to vegetable exports and become the go-to brand for our international clients. We intend to become the number one vegetable exporter here in Nigeria.
- For us to achieve our intended vision, we will ensure we use the best and hygienic preservation methods according to international standards without compromise. We will also ensure that we hire professionals to source for these vegetables, preserve them and also handle other aspects of our business.
Our Business Structure
Vegetable exporting is one very lucrative business for any entrepreneur who intends to go into the business and make profit. However while this might be a lucrative business, several things are bound to go wrong especially the business structure.
A business structure that is not well built is one that will not allow the business attain all its goals and objectives. Therefore, for us to succeed in this business and be able to compete favorably against our competitors, we intend to build a business structure that is very solid.
We would not mind going the extra mile to ensure that we source for and hire employees that are highly proficient and capable enough to handle the various roles and responsibilities that would crop up from the positions assigned to them.
Our management staff for instance is one that is filled with highly trained professionals and capable individuals that understand the industry we are in as well as our corporate policies and therefore know how best to ensure that we become a force to be reckoned with nationally and internationally.
Due to the fact that we intend to offer other products and services in addition to our core offering, we would be hiring more than the required amount of employees than what a conventional vegetable exporting business would, to handle all the roles and responsibilities that would arise from the new positions here at William Vegetable Exporters Inc.
Therefore the business structure that we intend to build here at William Vegetable Exporters Inc is;
- Chief Executive Officer
- Human Resources Manager
- Administrative Manager
- Marketing Team
- Purchasing and Inventory Officer
- Food Technologist
- Customer Care Executive
- Security Guard
5. Job Roles and Responsibilities
Chief Executive Officer
- Creates policies and strategies that would drive the overall growth of the company
- Sources for and negotiates with foreign distributors on behalf of the organization
- Evaluates the growth and success of the organization and reviews and modifies policies where necessary
- Sources for, interviews, hires, disciplines and fires members of the management team
Human Resources Manager
- Sources for, interviews, hires and conducts orientations for new employees
- Responsible for employees training and seminar attendance aimed at enhancing employee skills
- Performs performance appraisals in order to boost productivity for the organization
- Helps the CEO coordinate members of the management team
- Issues queries and other disciplinary actions when and where necessary
- Ensures that all the administrative functions in the organization are smoothly performed
- In charge of cash inflow and outflow, as well as cash vouchers generated within the organization
- Carries out financial forecasting and risk analysis on behalf of the organization
- Prepares financial information, reports, statements, and budget on behalf of the organization
- Conducts market research in order to determine new target markets for the organization
- Creates effective marketing strategies that would attract customers and generate revenue for the organization
- Scans authentic foreign importers forum in order to bring in more customers for the organization
Purchasing and Inventory Officer
- Sources for reliable vegetable suppliers and farmers on behalf of the organization
- Ensures that only the freshest vegetables arrive at the organization for preservation, packing and onward exports according to company policies and industry standards
- Remains knowledgeable about industry trends and knows the going weight rate as regards packaging the vegetables.
- In charge of using the best preservation ways possible to ensure that the vegetables are in the best condition for exportation
- Carries out quality assurance on each packaged vegetables to ensure that they are in line with international practice
- Checks freshly brought in vegetables and makes sure that they are healthy and washed thoroughly before being preserved
Customer Care Executive
- Attends to all the inquiries and orders politely on behalf of the organization
- Keeps an updated and accurate customer database on behalf of the organization
- Remains updated about industry trends and company policies in order to ensure that customers are offered accurate information
- Ensures that vegetables to be exported are duly delivered at the port of departure at the right time
- Runs official errands on behalf of the organization
- Obeys traffic rules and regulations at all times while with the official vehicle
- Ensures that the premises is cleaned before and during official working hours
- Ensures that convenience is kept clean at all times for employees and guests
- Carries out any other duties as determined by the human resources manager
- Checks all vehicles that come in and go out of the premises
- Ensures that all visitors fill a form indicating time of entry and exit
- Carries out any other duties as determined by the management
6. SWOT Analysis
Due to our intention to build and run a standard and leading vegetable exports business, we have decided to take certain facts into consideration so that we will be able to succeed in this business. We have in this regard, hired the services of a reputable business consultant to help us look at our business concept and determine how much of an impact we would make in this vegetable exports business.
The business consultant made use of our strengths, weaknesses, opportunities and threats to help determine if we were likely to make it in the industry and to be considered a worthy competitor by other similar businesses in the industry.
Therefore the result of the SWOT analysis that was conducted on behalf of William Vegetable Exporters Inc is;
There are several strengths in our favor going forth in our vegetable export business, chief of which is the additional services we are offering to our various customers which has not only allowed us penetrate the market but also gain a large market share and compete favorably against our competitors. We have built a solid business structure as we have hired competent, capable and experienced employees to handle all the various roles and responsibilities in our company in relation to their positions.
Our employees do not only have the necessary experience and expertise, they also understand and are committed to our company policies and objectives and will therefore do all it takes to ensure that we are able to achieve our goals and objectives. Our chief executive office, Mr. Bola Williams is one who has more than 15 years experience in the exports industry and will therefore do all it takes to ensure that we achieve our goals and objectives.
As a new exports business, we are not yet a recognized brand and so will battle with having enough line of credit from our bank to getting the attention of the target market with which we intend to do business with. We however have publicity measures in place that will enable us become more seen by our target market.
There are several opportunities that are available to us in this sector of the industry and that includes the fact that we would be offering several services to our target market which will lead to us not only penetrating the market but getting a large share of the market and boosting our brand.
There are several threats we expect to face during the course of starting and running our vegetable export business and they are; changing government policies as regards exports, vitality of the currency, and having to deal with the arrival of a new competitor. Because we have conducted in-depth research into the business, we are not moved by any threats that we would be facing.
7. MARKET ANALYSIS
- Market Trends
The trend in vegetable exports business first starts from knowing what kinds of produce are classified as fresh. Vegetables that are regarded as fresh are those that haven’t undergone any form of processing, which include heating, preserving or freezing before packing. Fresh vegetables are only washed before packing but they must be exported immediately to be able to retain its freshness before reaching the international market.
In order to export fresh vegetables, one has to know about phytosanitary, quality grade, food safety, labeling requirements any other standard requirement set by the food or other government agencies in the destination country. The requirements might be commercial in nature or set by other regulatory bodies.
8. Our Target Market
Due to the health impact that vegetables bring, there are more than enough people who are now conscious of what they consume and want to take certain vegetables that might not be found in their countries. Even though it might be easy for us to point out whom our target market is, we would need to conduct a market survey in order to know the true situation of things. The market survey that we are conducting will allow us know what to expect from our target market in order to draft better strategies.
From the result of our market survey, we would be exporting our vegetables for the benefit of the following groups of people or individuals; food industries, households, beauty industries, drug industries, supermarkets and grocery stores, wholesalers and distributors.
Our competitive advantage
Even though running a vegetable export business is one sure way of making money for a new business, having a competitive advantage over competitors offering same services with you is very essential. This is why we have set forth strategies that will allow us stand out and have an edge over our competitors.
First advantage we have is our closeness to the source of raw materials. Our location here in Sangotedo – Lagos is very strategic as we are close to the vegetable farmers and suppliers, which is a plus for us over our competitors, especially as the vegetables we source for are organically grown.
The facility we leased for our business is one that is very clean and has lots of vegetables. We were very careful about the facility we needed to lease and this was due to the fact that vegetables are a consumable, and a dirty environment will cause us to lose customers.
We employed capable and professional employees like our food technologist, purchasing and inventory manager, as well as our marketing executives, and they all come with the best training. They are also made to undergo further training any time it becomes necessary.
Finally, we pay our employees the best salary and wages and also have the best welfare package that is the best across start-ups such as ours not only here in Sangotedo but all over the city of Lagos. We know that paying our employees well will allow them remain motivated and dedicated to ensuring we attain our goals and objectives and compete favorably against our competitors.
9. SALES AND MARKETING STRATEGY
- Sources of Income
William Vegetable Exporters Inc is a standard vegetable exporting business that has been established just like any other profit making business. Our intention is to generate as much revenue as is legally possible and covered under our memorandum here in Sangotedo –Lagos. We would ensure that we go all the way to make as much profit that will sustain and grow our business;
Therefore, the products and services that we will offer at William Vegetable Exporters Inc are;
- Exporting of fresh vegetables
- Exporting of frozen vegetables
- Exporting of mixed vegetables
- Exporting of dried vegetables
- Consultancy and advisory services
10. Sales Forecast
Vegetables are a power food that is demanded by almost everyone and this is due to the fact that people are getting more conscious of what they consume either to stay fit, healthy or for other purposes entirely.
Our location here in Sangotedo – Lagos is one that is very strategic as we are close to the source of most of the vegetables that are demanded by our clients. This has seen us spending less in getting the vegetables we need and given us an advantage over our competitors.
However, in order to determine our chances of succeeding in the industry, we have conducted a critical examination and have used various data and assumptions. The data and assumptions used for our sales forecast were gotten from start-ups similar to ours not only here in Sangotedo but in the whole of Lagos State.
Therefore, the results that were gotten on behalf William Vegetable Exporters Inc based on certain facts and assumptions from similar businesses such as ours here in Lagos and all over Nigeria are as follows;
- First Fiscal Year-: N2,500,000
- Second Fiscal Year-: N4,000,000
- Third Fiscal Year-: N8,000,000
N.B: It should be noted that the above sales projections were gotten based on what is obtainable in the industry. It should also be noted that several assumptions and data were used and these assumptions were that there won’t be an economic downturn globally, and that the value of the dollar won’t fall. Should there be any change in any of the assumptions, it will lead to an increase or decrease in the figures stated above.
- Marketing Strategy and Sales Strategy
Marketing is an aspect of a business that cannot be ignored and this is because not only is revenue generated that will help grow and sustain the business but awareness is also increased for the business as well. It is in this regard that we have decided to conduct a market survey that will not only allow us understand the business we are going into, but it will also help define our target market and what strategies we would need to not only penetrate the target market but get a large share of the market that will allow us to compete favorably against our competitors.
Our bid to ensure that we get it right in marketing and selling our vegetable exports to our potential clients has seen us engage the services of a reputable marketing consulting firm in Ikeja – Lagos to help create effective marketing strategies that will allow us have a fair share of the target market.
The marketing firm is not only known for its many years of experience in handling businesses such as ours, they have been known to use both conventional and unconventional means to ensure that clients are able to attain their corporate sales goals and thrive in the market place.
Similarly, we have also empowered our marketing team to ensure that they are well trained in using technology to market our vegetable export business. Our marketing team has the power to modify or review existing marketing strategies and determine how effective they are in helping attain the goals and objectives of the company.
In view of that, the following are the marketing and sales strategies that we intend to adopt at William Vegetable Exporters Inc.
- Ensure that we formally introduce our vegetable exports company and the various services we offer to intending international customers and target market.
- Engage in vigorous online adverts by focusing on foreign food blogs and websites.
- Use our social media platforms such as Facebook, Twitter and Linkedin in order to connect with our international audience.
- Ensure that we are listed in online directories.
- Use the email blast approach to penetrate our target market.
- Create a website and employ the services of one who is experienced with Search Engine Optimization (SEOs) so as to ensure that our blog ranks top in search engines.
11. Publicity and Advertising Strategy
Ensuring that our business receives the right publicity is a must because we understand that this is the way to gain the recognition that will allow our vegetable exporting business to be able to compete favorably against its competitors. Publicity is a two-edge sword because not only does it ensure that a business gains more awareness, but it also leads to revenue generation for the business.
Every business whether new or already established engages in publicity and we do not intend to be left out especially as our customers are not local and will therefore need to know of our existence which can only come about through publicity and advertising.
We have therefore engaged the services of a reputable publicity and advertising firm in Ikeja – Lagos to help us come up with creative publicity strategies that would allow us to be seen by our clients and also ensure that our business thrives.
The platforms that we therefore intend to use in publicizing and advertising our vegetable export business are;
- Ensure that our vegetable export business is listed in online directories
- Use our social media platforms such as Facebook, Linkedin and Twitter to actively increase awareness about our vegetable exports business
- Participate actively in popular blogs and websites by writing articles about our kind of business
- Ensuring that we place adverts on popular online blogs and websites that get huge traffic so as to create awareness for our business
- Join exports platforms online in order to network with other exporters
- Create an interactive website and ensure that we promote it
12. Our Pricing Strategy
Determining what prices we would set for our vegetable exports business is not what would require us to conduct extensive deliberations on. However, this does not mean that we won’t consider certain factors when determining how much we would sell our preserved vegetables to our international clients.
The factors we would be considering when setting our prices are, how much we paid for the vegetables at source, the costs of transporting, washing, sorting, preserving and then packaging would also be taken into consideration.
Due to the fact that we would be dealing with international clients, we are mindful of the fact that stated prices would thoroughly depend on the weight for each product to be packed. We have taken this into consideration as well and would set our weights accordingly.
However, as we are relatively a new product, we intend to offer other complimentary services such as consultancy and advisory services to our clients.
- Payment Options
The fact that our clients are not locally based has informed our need to come up with various payment options that will be able to not only suit our customers but meet their various preferences as well. It should however be noted that as this is the international market, payment options would be obviously limited as compared to the local market.
The payment options that we therefore intend to make available to all our various customers here at William Vegetables Export Inc are;
- Payment via online bank transfer
- Payment via online payment portal
- Payment via PayPal
- Payment via Payoneer
- Payment via bank to bank transfer
The above payment options were ones that were carefully chosen by our bank on our behalf to help ease transaction for our business. We have also been assured by our bank that these are standard payment options and that they would be very convenient for our clients as well.
13. Startup Expenditure (Budget)
There are several requirements that are usually required from an exports business that would need a bit of finance in order to get the business up and running before revenue is generated. Starting this business would require paying port authorities certain monies, paying your suppliers and vegetable farmers, and also getting the necessary licensing requirements that will ensure that the business is off to a smooth start.
We would also be paying to secure a place to store both the fresh vegetables from farmers and packaged vegetables for foreign distributors. Also, a truck will be needed to move our vegetables from point of source to warehouse and then port of departure. This is asides the salaries that we would be paying our employees and operational activities we would be involved in to ensure that our business keeps running.
However, it should be noted that the start-up capital we would use in starting our business will be one that will determine the scale at which we would be running our business. There are other things that we would be taken into consideration when starting this business such as running and overhead costs plus the cost of doing business in Sangotedo – Lagos.
Therefore, below are the requirements that we would need to look at and fulfill when starting our vegetables export business;
- Total fee for registering our vegetable export business here in Lagos State, Nigeria – N25,000
- Obtaining of the necessary exporting licenses and permits, accounting and inventory software as well as other legal expenses – N20,000
- Cost of hiring a business consultant – N30,000
- Insurance coverage (General liability, workers’ compensation, transportation insurance, and property insurance) – N25,000
- Marketing expenses for the promotion of the grand launching of William vegetable Exporters Inc as well as general marketing promotion expenses for at least a year – N30,000
- Cost of renting a facility for use for at least two years and carrying out the necessary renovations, including agent and lawyer fees – N300,000
- Operational cost for the first three months (salaries of employees as well as payment of bills) – N250,000
- Cost of purchasing a truck for use for picking up the vegetables from various sources to our company and delivering packaged vegetables to the ports – N500,000
- Cost of preserving the vegetables (refrigerator, generating set and local dehydrator) – N300,000
- Cost of packaging the vegetables (shelves, racks, cartons, labeling and wrappers) – N100,000
- Other start-up expenses (furniture, computers, printers, signage, cash register, security and phones) – N100,000
- Cost of launching a website – N20,000
- Cost of throwing a launching party – N20,000
- Miscellaneous – N50,000
From the above analytical break down, it is evident that we would require the sum of $1,770,000 to be able to successfully start up and run our vegetables exports business here in Sangotedo – Lagos. The capital we have generated will cover our leasing of a facility, purchasing a pick-up and delivery truck, paying the salaries of our employees for at least three months, sourcing for, preserving and packaging the vegetables.
Generating Funding/Startup Capital for William Vegetable Exporters Business
We know that every business requires capital to start up and run and our vegetable exporting business is no different. Sourcing for funds as an entrepreneur is not an easy task but it is not something one can avoid, much less a serious entrepreneur. We would therefore need to source for funds in order for our business to become a reality, and in order for us to attain all our intended goals and objectives.
William Vegetable Exporters Inc is a vegetable exporting business that is 100 percent owned and run by Mr. Bola William and his immediate family. Mr. William does not intend to seek external partners for his vegetable exporting business, and for this reason, he has decided to restrict the sourcing of his start-up capital to just three sources.
Therefore the areas where we intend to source for our start-up capital is;
- Generate part of the start-up capital from personal savings
- Source for soft loans from family members
- Apply for loan from the bank
N.B: We were able to generate the sum of N500,000 from personal savings and the sum of N270,000 from family members. We approached the bank for a loan of N1 million that will be repaid in 7 years and at a 4 percent interest rate.
All the documents approving the loan has been signed and we have been told that our business account will be duly credited with the amount by the end of the week. Also, the agreement includes the bank representing us internationally to our international clients. This means that the bank will handle all our transactions and pay the rates due and also receive all monies on our behalf, at which the loan raiment would be gradually taken off till we have fully repaid our loans.
14. Sustainability and Expansion Strategy
Ensuring that the future of our business is secure is a must for us and due to this we have rolled out sustainability and expansion strategies that would enable our business thrive and stand out in the exports industry. There are certain factors that we are looking to consider and some of them are; ensuring that we retain a huge percent of our clients; increase our publicity strategy as well as build a business structure.
Getting a large share of the target market might be an easy feat for many businesses; however, it is retaining a huge percentage of the acquired clients that becomes difficult for most businesses. Due to several researches that have pointed out the costs of acquiring clients as opposed to retaining them, we have created several strategies that will ensure that we retain at least 80 percent of our clients.
Our customer care approach is top-notch and all our employees understand that they need to positively project the image of the company at all times when dealing with clients. Another thing we have done for our customers is to ensure that they receive incentives, for instance, our loyal customers, especially those who refer us to other paying customers usually get complimentary gifts once in a while from us.
Because we are not dealing with local customers, there is a need for us to deploy several strategies intended at keeping our brand in the full view of our target market and so we have engaged the services of a publicity and social media consultant who fully understands this industry, to help us draft the right strategies that would not only positively communicate our brand to our target customers but that will also see us compete favorably against our competitors.
Building a solid business structure is a must for us as we intend to make sure that we go the extra mile in employing only capable and experienced employees to work with us in attaining our corporate goals and objectives. Our management team for instance, is filled with individuals who fully understand the industry and know how best to ensure that a new company like ours can become a force to reckon with nationally and internationally.
We would ensure that employees that require training, get it when due so that they would be able to engage in practices that are of international standard. Our facility is one that will be very conducive, environmentally friendly and easily accessible to all our employees. Finally, we would ensure that our employees are well paid and receive welfare and incentive packages that are better than what their counterparts in similar start-ups such as ours are receiving.
- 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 a facility and renovating the facility as well: In Progress
- 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
- 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 – wholesale suppliers/merchants: In Progress
- Purchase of delivery truck: Completed