Are you about starting a wheat flour mill? If YES, here is a complete sample wheat flour production business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a wheat flour production business. We also took it further by analyzing and drafting a sample wheat flour mill marketing plan template backed up by actionable guerrilla marketing ideas for wheat flour 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 Wheat Flour Mill Business?
As an aspiring entrepreneur who is looking towards starting a business and becoming your own boss, one of the businesses that you can successfully start if you have the financial requirement and of course business expose is to open a wheat flour production mill.
Although this type of business is not a business that you can start making profits from instantly, but a you are sure going to make good profits in the long run if you are determined and proactive in running the business. The reason is not far – fetched; you will require huge capital to set – up a standard wheat flour production mill. This type of business can somewhat be capital intensive.
Beyond every reasonable doubt, wheat flour is consumed in all parts of the world either as flour or the flour is used in the production of bread and other baked foods. This goes to show that there is indeed a large market both locally and internationally for wheat flour production companies. Below is a sample wheat flour production mill business plan template that can help you to successfully write your own.
A Sample Wheat Flour Production Mill Business Plan Template
1. Industry Overview
Wheat flour production companies in basically engaging in milling wheat grains into flour and then package and sell them to wholesale distributors, grocery wholesalers or other food-related business. They purchase wheat grain inputs from wholesalers or directly from growers.
The main fact that wheat flour mills provide goods that are considered diet staples, the industry will remain relevant in the years to come. The revenue and profit generated from this industry will depend on the price and production of wheat. As companies vertically integrate and merge operations to take advantage of economies of scale, revenue will rise.
According to a report released by IBISWORLD, the Flour Milling industry of which Wheat Flour Mill Production line of business is a part of is characterized by a low level of market share concentration. The report stated that in 2016, the top three players are expected to account for less than 31.0 percent of industry revenue.
While the industry exhibits low concentration, the industry is expected to approach moderate concentration over the next five years in line with the entrance of larger flour milling companies. The report also stated that, in 2014, Ardent Mills entered the industry, as a result of ConAgra Mills and Horizon Milling, which is a joint venture between Cargill and CHS, combining their flour milling operations. Overall, larger operations will enable flour milling companies to use their large size to leverage lower costs for input commodities, such as wheat and grains
The Flour Production Mill industry of which wheat flour mill production line of business is subset of is a thriving sector of the economy of the united states of America and they generates a whooping sum of well over billion annually from more than 403 registered and licensed wheat flour mill production companies scattered all around the United States of America.
The industry is responsible for the employment of well over 24,938 people. Experts project the wheat flour mill production industry to grow at a -1.2 percent annual rate. Archer Daniels Midland Company, Ardent Mills, ConAgra Mills and Horizon Milling are the market leaders in the wheat flour production mill industry; they have the lion market share in the United States of America.
With this kind of business, if you want to start on a small scale, you can choose to start servicing your local community. All you would need is contacts, packaging, networking and good marketing and customer service skills. However, if you intend starting it on a large scale, then you should consider spreading beyond your local community to state level and even national level.
Over and above, the wheat flour production mill line of business is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale servicing a community or you can chose to start on a large scale with several distribution outlets in key cities all around the United States of America.
2. Executive Summary
Sammy Jay® Wheat Flour Production Company is a licensed and standard wheat flour mill production company that will be located in an industrial area in Springfield – Illinois. We have been able to secure a long term lease for a facility in a strategic location close to a big wheat farm with an option of a long term renewal on an agreed terms and conditions that is favorable to us.
The facility has government approval for the kind of business we want to run and it is easily accessible and we are deliberate about that to facilitate easy movement of raw materials (wheat grains and packaging materials et al) and finished products (well packaged wheat flour).
We are in the wheat flour mill production business to engage in processing, packaging and retailing wheat flour. We are also in business to make profits at the same to give our customers value for their money; we want to give people and businesses who patronize our well – packaged wheat flour the opportunity to be part of the success story of Sammy Jay® Wheat Flour Production Company.
We are aware that there are several big scale and small scale wheat flour mill production companies scattered all around the United States and Canada whose products can be found in every nooks and crannies of The United States and Canada, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business and also for us to be able offer much more than our competitors will be offering.
We ensured that our facility is easy to locate and we have mapped out plans to develop a wide distribution network for wholesalers all around Springfield – Illinois and throughout the United States of America.
Much more than producing healthy, well processed and well packaged wheat flour, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit purchase our wheat flour warehouse and also to become our loyal customers and ambassadors.
Sammy Jay® Wheat Flour Production Company will ensure that all her customers (wholesale distributors) are given first class treatment whenever they visit our flour mill or warehouse. We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large the numbers of our customer base may grow to. We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.
Sammy Jay® Wheat Flour Production Company is family business that will be owned and managed by Sammy Jay and his immediate family members. Sammy Jay who is the Chief Executive Officer of the Company is Graduate of Micro Biology (B.Sc.) and he holds a Master’s Degree in Business Management (MBA).
He has well over 10 years of experience working in related industry as a senior manager prior to starting Sammy Jay® Wheat Flour Production Company. He will be working with a team of professionals to build the business and grow it to enviably height.
3. Our Products and Services
Sammy Jay® Wheat Flour Production Company is going to operate a standard and licensed wheat flour mill production company whose products will not only be sold in Springfield – Illinois but also throughout the United States of America. We are in this line of business to make profits and also to give our customers value for their money.
We are going to do all that is permitted by the law of the United States to achieve our business aim and ambition. Our product offering will be;
- Processing, packaging and retailing wheat flour in commercial quantities
4. Our Mission and Vision Statement
- Our vision is to establish standard Wheat Flour Production Company whose products will not only be sold in Springfield – Illinois, but also throughout the United States of America and Canada.
- Our mission is to establish a standard and world class Wheat Flour Mill Production Company that in our own capacity will favorably compete with leaders in the industry. We want to build a wheat flour mill production business that will be listed amongst the top 10 wheat flour mill brands in the United States of America and Canada
Our Business Structure
Sammy Jay® Wheat Flour Production Company is a business that is established with the aim of competing favorably with other leading wheat flour brands in the United States of America and Canada. This is why we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Plant Manager
- Human Resources and Admin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Machine Operators
- Accountants / Cashiers
- Distribution Truck Drivers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for overseeing the smooth running of the wheat flour mill
- Part of the team that determines the quantity of wheat flour bags that are to be produced
- Maps out strategy that will lead to efficiency amongst workers in the plant
- Responsible for training, evaluation and assessment of plant workers
- Ensures that the steady flow of both raw materials to the plant and easy flow of finished products through wholesale distributors to the market
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Ensures that the plant meets the expected safety and health standard at all times.
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily office and factory activities.
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Helps to ensure consistent quality of wheat grains and packaging materials are purchased
- Responsible for the purchase of raw materials and packaging materials (wheat grains and packaging materials et al)
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Accountant / Cashier
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with customer (e-mail, walk-In center, 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 the company’s products and services
- Manages administrative duties assigned by the store manager in an effective and timely manner
- Consistently stays abreast of any new information on Sammy Jay® Wheat Flour Production Company products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
Production Workers / Machine Operators:
- Responsible for processing and packaging (bagging) wheat flour
- Assists in packaging and loading wheat flour (bags) into distribution trucks
- Any other duty as assigned by the plant manager.
Distribution Truck Drivers
- Assists in loading and unloading wheat grains and wheat flour (bags)
- Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
- Assists the transport and logistics manager in planning their route according to a delivery schedule.
- Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
- Transports finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
- Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
- Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collects and verifies delivery instructions
- Reports defects, accidents or violations
6. SWOT Analysis
We are well informed that there are several wheat flour mill production companies both large and small in the United States of America and Canada which is why we are following the due process of establishing a business so as to compete favorable with them.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.
Sammy Jay® Wheat Flour Production Company employed the services of an expert HR and Business Analyst with bias in start – up business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Sammy Jay® Wheat Flour Production Company;
Part of what is going to count as positives for Sammy Jay® Wheat Flour Production Company is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.
So also, proximity to one of the largest wheat grain farms in Springfield – Illinois, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
A major weakness that may count against us is the fact that we are a new wheat flour mill production company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business.
The fact that wheat flour is stable food in the United States and in all the countries of the world means that the opportunity available to us is enormous. As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to enable us properly position our business to take advantage of the existing market for wheat flour and also to create our own new market. We know that it is going to requires hard work, and we are well prepared to achieve it.
We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new wheat flour mill production company in same location where ours is located. Changing diet preference may also pose a threat to wheat flour mill production companies.
7. MARKET ANALYSIS
- Market Trends
IBISWORLD published a report that stated that the Flour Milling industry of which Wheat Flour Mill Production line of business is a part of is characterized by a low level of market share concentration. The report stated that in 2016, the top three players are expected to account for less than 31.0 percent of industry revenue.
While the industry exhibits low concentration, the industry is expected to approach moderate concentration over the next five years in line with the entrance of larger flour milling companies. The report also stated that, in 2014, Ardent Mills entered the industry, as a result of ConAgra Mills and Horizon Milling, which is a joint venture between Cargill and CHS, combining their flour milling operations. Overall, larger operations will enable flour milling companies to use their large size to leverage lower costs for input commodities, such as wheat and grains.
If you are conversant with the trends in amongst wheat flour mill production companies, you will realize that in the bid to expanding their brand and generate enough income, they do not just settle for just the production of wheat flour, they also engage in related activities such as producing flour from corn, producing flour mixes from a variety of grain crops, milling rough rice, producing malt from a variety of cereal grains, and producing meal and animal feed
They are able to achieve this because the processes and machine involved are same as that required for milling wheat grains into fine wheat flour. With this, they are able to maximize their capacity and make good profits from the business.
8. Our Target Market
When it comes to selling wheat flour, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who resides in our target market locations. In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us.
We are in business to engage in wholesale distribution and to retail well – packaged wheat flour in different sizes to the following groups of people;
- Restaurants and Canteens
- Event Planners and Caterers
- Everybody in our target market location
A close study of the wheat flour mill production industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.
We are aware of the stiffer competition and we are well prepared to compete favorably with other wheat flour mill production companies in Springfield – Illinois and throughout the United States and Canada.
Sammy Jay® Wheat Flour Production Company is launching a standard wheat flour brand that will indeed become the preferred choice of residence of Springfield – Illinois and every city where our well – packaged wheat flour will be distributed and retailed.
Part of what is going to count as competitive advantage for Sammy Jay® Wheat Flour Production Company is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.
So also proximity to one of the largest wheat grain farms in Springfield – Illinois, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups wheat flour mill production companies) in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Sammy Jay® Wheat Flour Production Company is established with the aim of maximizing profits in the wheat flour mill production industry in both the United States of America and Canada and we are going to go all the way to ensure that we do all it takes to sell our well processed and well – bagged wheat flour to a wide range of customers.
Sammy Jay® Wheat Flour Production Company will generate income by processing, packaging, distributing and retailing wheat flour.
10. Sales Forecast
One thing is certain when it comes to wheat flour production business, if your wheat flour are well – packaged and branded and if your production mill is centrally positioned and easily accessible, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Springfield – Illinois and every city where our well processed and well – packaged wheat flour will be distributed and retailed and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.
We have been able to critically examine the wheat flour mill production industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Springfield – Illinois.
Below are the sales projection for Sammy Jay® Wheat Flour Production Company, it is based on the location of our business and other factors as it relates to small scale and medium scale wheat flour production company start – ups in the United States;
- First Fiscal Year-: $240,000
- Second Fiscal Year-: $450,000
- Third Fiscal Year-: $950,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Sammy Jay® Wheat Flour Production Company we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in our target market locations.
We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and also for our products to favorable compete with other leading wheat flour brands in the United States of America and Canada.
We hired experts who have good understanding of the wheat flour production industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Springfield – Illinois and other cities in the United States of America and Canada.
In other to continue to be in business and grow, we must continue to sell our well – bagged wheat flour to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals.
In summary, Sammy Jay® Wheat Flour Production Company will adopt the following sales and marketing approach to sell our wheat flour;
- Introduce our wheat flour brand by sending introductory letters to residence, wheat flour merchants and other stakeholders in Springfield – Illinois and other cities both in the United States of America and Canada
- Open our wheat flour production company with a party so as to capture the attention of residence who are our first targets
- Engage in road show in targeted communities from time to time to sell our wheat flour
- Advertise our wheat flour in community based newspapers, local TV and radio stations
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our wheat flour brands
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
In as much as our wheat flour mill is a standard one with well processed and well packaged wheat flour that can favorably compete with other leading brands, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Sammy Jay® Wheat Flour Production Company.
Sammy Jay® Wheat Flour Production Company has a long term plan of distributing our wheat flour in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted in Springfield – Illinois before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Sammy Jay® Wheat Flour Production Company;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our wheat flour brand
- Install our Bill Boards on strategic locations all around major cities in the United States of America and Canada
- Engage in road show from time to time in targeted communities
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
- Ensure that our wheat flour bags are well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.
12. Our Pricing Strategy
When it comes to pricing for products such as wheat flour, there are two sides to the coin. We are aware of the pricing trend in the wheat flour mill production industry which is why we have decided to produce various bags – sizes of wheat flour.
In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various wheat flour brands in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our wheat flour brands.
- Payment Options
The payment policy adopted by Sammy Jay® Wheat Flour Production Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Sammy Jay® Wheat Flour Production Company will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via Point of Sale Machine (POS)
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of our products.
13. Startup Expenditure (Budget)
Starting a standard wheat flour mill production company is indeed a capital intensive business. This is so because the amount required setting – up a flour mill is not a piecemeal. The bulk of the start – up capital will be spent on leasing or acquiring a facility and also in purchasing grain milling machines, and packaging equipment.
Aside from that, you are not expected to spend much except for purchase and servicing of distribution trucks, paying of your employees and utility bills. This is the key areas where we will spend our start – up capital;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand opening of Sammy Jay® Wheat Flour Production Company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- Cost for hiring Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
- Cost for construction of a standard wheat flour mill – $100,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for Start-up inventory (raw materials and packaging materials et al) – $80,000
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- Cost for grain milling machines and packaging equipment – $100,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Cost of purchase of 3 distribution vans – $30,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600
- The cost for our opening party – $10,000
- Miscellaneous – $10,000
We would need an estimate of $500,000 to successfully set up our wheat flour mill in Springfield – Illinois. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.
Generating Funds / Startup Sammy Jay® Wheat Flour Production Company
Sammy Jay® Wheat Flour Production Company is a family business that is owned and financed by Sammy Jay and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Sammy Jay® Wheat Flour Production Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail our well processed and well bagged wheat flour a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Sammy Jay® Wheat Flour Production Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
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
- Leasing of facility and construction of standard wheat flour mill: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members and friends: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- 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.
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