This business revolves around establishing green houses that are cheaper, affordable, long lasting and efficient to the farmers across all the regions.
Our main goal is to facilitate and ensure that there is proper production throughout the year no matter the seasons. Eco planting ltd will ensure proper customer satisfaction at every service delivery and with an objective of being the number one supplier of green houses while providing farmers with unique and modern ways of farming. We also want to ensure that the farming methods used are affordable and practical under the green houses system.
Main reason for coming up with the greenhouses idea was motivated by the current global warming being experienced universally and food shortages all round the country. Severe drought has really affected the nation in the recent years and our government hasn’t found a way to help the poor that are affected by the climate changes and can’t afford the expensive greenhouses being exported from the west. Our target customers will be small scale farmers looking to expand their production most the marginalized one that haven’t ways to improve their farming systems. We will mostly focus on the Eastern side of Kenya at the slopes of Mount Kenya which has the best soil for farming but adverse weather conditions affecting their produce from time to time.
We are aware of our competitors, but they have managed to supply to 15% of the population that can afford the green houses which are over priced and hard to establish. Most green houses are imported and hence making them very expensive and very few farmers know about them and their benefits. We will use our own knowledge and skills to establish well structured and cheap affordable green houses to the common farmer that will enhance good production and will avoid hunger crisis in the country. We will also have a chance to encourage our farmers to export their produce to the regional and international markets and therefore we look forward to partnering with the government of Kenya. Our motivator to start this business was the conditions facing the country yearly on food shortages and hunger issues affecting the people of Kenya.BUSINESS DESCRIPTIONBusiness nameThe name of the business will be Eco planting Ltd. We chose the name because it identifies with the climate and the farmers at the same time, its also easy and simple to remember in the minds of the farmers.
Eco can be identified with the environment planting is in the farming system. Eco planting is also appropriate since its signifies the core operating areas in the green houses business. Our office will be in Nairobi, Biashara Street in a rental space in plazima plaza, 3rd floor. We will have our branch office in Tharaka Nithi, Meru county because of its proximity to the river and will be easy to access most farmers in action in the region, for its irrigation services.Business OwnershipThe owners of the business will be three partners, students at the United States international university-Africa (USIU-A).
The partners have done research, equally contributed and more determined to make the idea practical. The students are of different majors brought together by the urge to be entrepreneurs and make a difference in the society. The financial needs for the starting the business will five hundred thousand Kenya shillings, that’s the start capital, with a loan from the government to be paid yearly and equal contributions from the partners.Name Contribution percentageNancy mugambi50,000 Cherryl Fuasso50,000 Dhruv Amin 50,000 Government loan 300,000 Business location and addressBusiness main offices will be located in Nairobi which will serve as the headquarters, but our operating and hands-on offices will be in Meru county. Address ECOPLANTING,Po box 3434-0200,Nairobi.Telephone +254 8005657.
Email;[email protected]: 07……….Reasons for choosing our offices locationThey are strategically placed close to the town centers.Good infrastructure, good roads for transport.Ready market and labor Ready customersEasy to comply with govern policies.Product and serviceThe product will be the green houses and the service will be installing them on our consumers farms and providing proper education for them.
IndustryOur business idea falls in the production industry, in this sector there is low competition but steady markets. Our target customers are over twenty million located in distinct parts of the country, but we are focusing on a section of them with the intentions of expanding to other regions. Due to unpredictable climate changes we hope to bridge the gap in farming, boost quality farming and lower the cost of farming by providing affordable products to our customers to encourage surplus production. It’s a large market with large consumers but little education about the entire process.Business mission and visionOur mission is to become the premier and primary providers of the green houses to all the able and willing farmers as we provide better farming methods, at a low cost and boost better production.
Our vision Provide sustainability to all the farmers by 2050 and eliminate hunger crisis in the country with our surplus supply to the government and people by our customers.EntryOn entry to the market our operations will be sold though adverts, sales on one on one education, offers, educational training and after sales services. On growth of our business we hope to provide;Open markets for farmers.Expand and spread all the country.Provide employment to the people.And come up with better technology to deal with the products.Business ScreeningBusiness screening is a process used to evaluate innovative product ideas, strategies and marketing trends. Idea screening criteria are used to determine compatibility with overall business objectives and whether the idea would offer a viable return on investment.
Whatever does not meet these criteria is typically discarded.When screening a business, it is done based on objectives, skills and knowledge, interests and passions, financial sources, commitment, and strengths, weaknesses, opportunities, threats.Market FactorsThere is a market for this product.
The available similar products in the market are of similar characteristics and functions. However, this product is a revolutionary change.When considering market factors for a new business, one must ask themselves some questions: Are there potential customers? What kind of competition is out there? How distinct is my product from what is already being offered? Is my business in alignment with the laws of the land? What is the best price for growth and profit?The market for the product is to mainly target farmers or any individual with an interest in planting. Because the product is portable and available in a variety of sizes, it can be used both for large scale planting and small scale. The market range is from farmers to housewives. Its potential is great, seeing as it is malleable in many forms.”It is amazing how many people will spend years and hundreds of thousands of dollars on concepts that people ‘really like’ without ever asking them if they would buy it,” says Matt Ferguson, president and CEO of Progressive Health Innovations. “Even better, also ask the people selling in the space if they could sell it for a certain price.
“The market growth rate can be promising. If the launch of the product is successful, its growth and popularity will increase, and eventually, new customers will purchase the product.Industry FactorsPorter’s 5 forces include: Competition in the industryPotential of new entrants in the industryPower of suppliers Power of customersThreat of substitute customersThese forces aid businesses in understanding its competitive business environment, and identifying its strategies potential development.The business will have to consider the number of competitors there are currently.
How much of an influence will they have on the business? How can you improve your business in terms of competition? Will the price of the product have to be lowered because of the competition? In this case, the competition is minimal, so the business therefore is likely to have tremendous strength and healthy profit.A business should have power over the suppliers. Considering the uniqueness of the products being supplied, are they accessible elsewhere? You have to ensure the supplier will deliver on time and at affordable rates.Power of buyers means being able to have the upperhand over the customers. How often are they going to buy the product? How quickly can they switch to another company, and what kind of impact will it have on the business? In this case, because the business idea is fairly new, the customers are more likely to stick to the business. The impact if the customers switch will be minimal.Because of the unique abilities of the product, it will take some time before the product is duplicated or substitute means are found to offer similar results. This means that buyers will not have much option in purchasing the product if it is what they need.
The company could get it’s foothold on the market by giving the product a name that will only be associated with the product and the company.Economic FactorsWhen starting a business, economic factors must be considered when making certain decisions in the business start-up process. Most of these economic factors will be external.
Access to credit/finance. Because this business is new, it may lack sufficient funds required or collateral to take loans due to lack of substantial fixed assets. Favorable conditions will include: low cost and ease of obtaining credit and availability of credit.Another factor which may be overlooked or deemed irrelevant depending on the business, is the economic conditions abroad. Why? If the company wants to export their products, they must watch out for sudden downturns in demand in target destinations. When making imports of resources and inputs should watch out for developments that might hinder or obstruct their supply chain. Likewise, businesses solely local and dependent on local suppliers should also watch out, because economic factors abroad can still affect the business.
For example, fluctuations in oil prices tend to significantly impact a wide range of industries. It affects transport which in turn can affect the various supply-chain associated expenses.The laws and the governing authorities of the land are put into consideration when starting the business. Resource FactorsThe resources required are all available and accessible. The resources required are accounted for in the budget. These include: equipment to build the product and put it together, the technology that will be needed, raw materials, finances from investors/loans/capital, and labor. Personal FactorsThese are the personal goals and standards set by the owner/founder of the business.
The goals and objectives must be in play, in order to ensure that once the company is up and running, it is in alignment. Since it is interest and passion that drives an individual, it must also be put into consideration. The time that will be set aside and dedicated to the business determines the commitment that the workers have for the business. Another factor at hand is capacity: how well do the workers know what is entailed in their business, and how to be competent in their work? They should have the skills to work with efficiency and not make amateur mistakes. Meaning they will require a certain level of knowledge and expertise in that area. Research must be done and knowledge applied in the job. Seeing as this a new business venture, certain entrepreneurial characteristics must be involved.
Ability to take risks knowing the advantages and disadvantages of doing so. Experience as an entrepreneur. Networking and social skills. Personality traits such as independence, self-efficacy, and people handling skills. The strengths, weaknesses, opportunities and threats must be effectualized. With better understanding the above, it will increase all round self-productivity, eventually leading to business growth.EFFECTS OF MARKET FACTORS These factors help those involved to come up with new releases on earnings and profits, and future estimated earnings.
It enables entrepreneurs to secure a new large contract. It enables authorities to account for errors or scandals related with the business. It leads to the announcement of dividents. EFFECTS OF INDUSTRY FACTORS Increased goods and services supply. It helps to save energy. For example water as a raw material is used to cool machines thus reducing heat discharge. EFFECTS OF ECONOMIC FACTORS For example in Kenya, when a loan is borrowed from a bank, the interest rates are high and you start paying back the loan whether your business is taking off or not. Local boom or bust.
Factors that affect the local economy such as environmental and political issues, can drastically impact a starting business. EFFECTS OF RESOURCE FACTORS Increased production of goods and services to the community. Better quality of goods and services. We have possessed the capacity to fundamentally inspect the horticulture business cum aquaponics business to cultivate our business and we have investigated our odds in the business and we have possessed the capacity to concoct the accompanying deals figure. The business projection depends on data assembled on the field and some workable suppositions also concerning the idea of nursery business cultivate that we run. The following are the projections that we could consider for the initial three years of runningReferences:: http://www.businessdictionary.com/definition/idea-screening.html:https://www.inc.com/guides/201109/how-to-assess-the-market-potential-of-your-new-business-idea.htmlhttps://www.mindtools.com/pages/article/newTMC_08.htmhttp://foundersguide.com/global-economic-factors-for-startups/