Business plan

Dry Fruit

1. BUSINESS PLAN
DRY FRUIT PRODUCTS

Owners:
Syed Wajahat Ali shah
Waseem Abbas
Hussain Wali
Ashiq Hussain
Mudassir Hussain










MAY 7, 2017
THE DRY FRUIT PRODUCTS

2. 1

Table of Contents
Table of Contents .............................................................................................................................1
Executive Summary ..........................................................................................................................2
General Company Description .........................................................................................................3
Products ...........................................................................................................................................4
Marketing Analysis...........................................................................................................................4
Marketing Plan........................................................................................................................... 5-13
Operational Plan ..................................................................................................................... 14-15
Management and organization .....................................................................................................16
Schedule of startup expense .........................................................................................................17
Projected income statement ..........................................................................................................18
Refining the plan ..................................................................................................................... 19-20

3. 2

2. Executive Summary.
Our company “The Dry fruit products” will be registered under the companies’ ordinance or
act 1984. Development of our seed oils and dry fruit products will began on June 1. The products
are manufactured to improve health and life measures of the citizens of G-B and also the product
offers tremendous uses and advantages to household sectors.
We have focused on the location because we want to be in the perfect manufacturing and
delivering spot because we want to keep out prices low which is possible when our costs will be
low our main purpose is to facilitate and keep our customers happy and satisfied.
It will be positioned as high quality, 100% natural and affordable for our G-B citizens to take
advantage of our products. There are no companies in G-B who offer similar products like us
which give us great opportunity and competitive edge over our competitors.
Our products will be manufactured and delivered through our pre-defined channel of distribution
which will reach our customers by retailers and departmental stores across the G-B map.
We expect G-B to be very productive and potential market for our business in the future and we
expect our sales to increase on good rate and reward us with great return. We also have great
vision for our business as we see it and of course we want to expand it to all national level
around Pakistan and also we want to expand the variety of the products we offer now. Our
purpose of existence is to bring a positive change in our country.
This business will be in form of partnership and we are five partners who will engage in this new
business. To make the business more effective and efficient we have taken strong measures and
we will ourselves control the major positions and also we will hire people if need to advise and
help us to ensure the survival business.
Funds to start the business will be 70% in form of capital and 30% will be in form of loan the
total required budget is $50,000 and the amount of the loan will be repaid in 3 years.
The total net income that we have presumed in year 2017 is expected to be $248,410.
The total required staff will compose of 25 employees who will work in different respective
fields.

4. 3

3. GENERAL COMPANY DESCRIPTION.
We will initiate dry fruit business in Gilgit Baltistan this business exist as a common raw material trading
and dry fruit oil selling.
We want to take it to the next level by producing new products from the same material which will include
different oils and eatables which can have multi uses for household and as well as daily regular use in
offices, schools and different institutions even when you are walking on the streets or celebrating any
event.
Mission Statement.
“Your Health is our Wealth”
Goals.
 To be leading company in our specific field in G-B market.
 To provide Jobs.
 To provide high quality and pure products.
Objectives.
 To increase sales by 10% monthly.
 To hold 30% of the G-B market until the end of the year.
 By increasing product varieties and expansion to new areas in G-B.

As businessmen our concern is not just making money but making better relations with our customers
and delivering them the products that they want not what we want to sell in the market. Our customers
will be mostly from household sector because the products we are offering are mostly used at homes.
We are in the dry fruit industry which has tons of ways to be delivered as a finished product and it is a
growth industry of course as in short term there are no competitors who can threaten us but in long run
there is a good chance of new entrepreneurs emerging and bringing new innovation into the particular
business.
For short term we just need to build a strong and good relation with our customers and for long run we
have to try to be a step ahead from the competitors.
Our strengths are that we have a team of five people who are well educated, can handle technological
gadgets and machineries and also have good experience in the field and also can effectively manage the
company most important thing our company will have is teamwork and a synergetic environment.
We will compete on the delivering high quality and pure products.
The legal form of the ownership will be Partnership because we are five people and on this startup level it
is better to use all your intellectual and working skills to use and also it is a better way to raise funds to
start a business and due to which it brings a positive point to the team because our focus is equality in all
aspects of this business as partners.

5. 4

4. PRODUCTS.
 Cooking oils (Seed).
A different variety of oils extracted from dry fruit seeds i.e Almond, apricot and walnut
 Bottled Almonds and Walnuts.
Almonds and walnuts packed in glass jars filled with oils.
 Almond and walnut pudding, cakes, custard and cereals.
Powdered material for cooking at home and fully baked and ready products.
 High quality Dry Fruits Mix.
A mix of different premium quality dry fruits.
 Apricot Pulp and Juice.
Apricot pulp and juices for refreshment.
The raw material to produce these products is easily available in season and we can store the raw
material to use in the winter season so our production is always in process or in shortage problems we
can buy from wholesalers.
Our products focus on delivering better health due to use of our products.
5. Marketing Analysis.
 Analysis of the target market.
Our target market is the household sector.
The market is not saturated with similar businesses because this is a new idea in the Gilgit market.
We know that we will have a warm welcome by the customers because many customers switch to
different products again and again for better results but due to many of the products which are not 100
percent pure have side effects i.e heart disease, sugar, high cholesterol, high blood pressure, but buy
use of our products it will benefit them in controlling these diseases and we know people spend a lot
of money for their health.
 Analysis of the Competition.
Our competitors for the cooking oil products are “italia foods” and “Merhaba
foods”. For jarred almonds and walnuts we don’t have competitor, for pudding,
custard and cereals we have “Rafhan”. For Dry fruit mix those are mostly sold by
common dry fruit dealers and apricot pulp and juice we assume that “Nestle” juices
are our competitors.
Soya supreme and Sufi are also considered reasonable because of good quality and
good price tag.
Rafhan because it has very few competitors and they offer nice variety of products.
Well Nestle as we all know as a company offering great products.
As we know that all companies use Social media, TV advertisement, posters,
panaflexes, sign boards, newspapers, magazines, etc.

6. 5

6. Marketing Plan.
So for the development of marketing plan we have used the primary research and used:-
Focus Group
We conducted a tea party and invited 10 people and we told them about our idea and asked
them few questions to get some feedback.
The questions were:
Do you have health problems?
So out of 10 people 7 people said they have health problems i.e. heart issues, blood pressure
and diabetes.
What are the Precautions you take?
We take medicine and be cautious about their diets.
Effect of these problems on your daily life activities?
The answer was what we expected that they cannot eat things which they want have to deal
with headaches, pain in joints, weakness in health because they cannot take a proper diet.
“What if we tell you we are working on products of cooking oil made from seeds of almond ,
walnut and apricot that will benefit you and will help you control and fight against these
health issues”
And the feedback was good better than what we expected to hear as they said “of course we
know that in early ages when we did not had the market and products we have now our
ancestors used these homemade products, seeds and oils for cooking and eating and due to
which they were healthy and lived a long life and we also want the same for ourselves and
our children and family”
During the conversation 1 person raised a question “Aren’t products like these very
expensive?”
And the answer was simple yes, these products are expensive because companies which
manufacture such products are far from the location of the raw material and that cost them
pretty much but we are producing locally using our local raw material which is a major factor
for us to reduce the cost and enhance the quality”
So we come to a conclusion that yes we can produce these products for the G-B region.

7. 6

 Economics.
The total size of G-B market is approx. more than 20 lac.
We presume that the demand for products that we will produce will have a good
demand because many health cautious people buy very expensive oils from italia and
merhaba but due to high prices not all can afford such expenses due to the life style in
G-B.
A business like ours can greatly grow if done well because we see that it can achieve
a very healthy growth rate and consumers prefer natural products over other products.
A business of our size can grow and has much potential and opportunity is that we
can make products from raw material and also from their bi-products.
 Barriers.
a) High production cost.
There is probability that in the startup we can struggle with high production
problems because it’s a new process that we are undertaking and will take some
time to settle in and reduce the cost as much as we can but keeping the quality of
the products to maximum level.
b) High marketing cost.
We know any new business that is unrecognized has to market its product
foreseeing all aspects and we anticipate that the coast will be high. At start it will
be high but with time we can control it.
c) Consumer acceptance and brand recognition.
We have to work hard in the marketing section in order to gain consumer
acceptance and brand recognition because new products fail due to lack of
advertising and customers don’t know what they are buying. We will have to
spend money in the market area.
d) Training and skills.
Now well trained and skilled employees and workers are the key to business
success in making a perfect product and delivering it in the market. We will need
to hire some well trained employees who can further train new amateurs.

Some factors that can affect the business in future.
 Change in technology can affect the way of production and its speed as
well and also qualitative terms also.
 Change in the government regulations can be countered with good
planning and always keeping track on government institutions.
 Changes in economy i.e projects like CEPEC can influence our business
we need to see it as opportunities and cease it before our competitors can.
 Change in industry can be beneficial if you change with the change which
means change and introduce new products according to the demand.

8. 7

 Products.
Features and Benefits.

Cooking oils (Seed).
Features: 100% pure, healthy, friendly packaging, best taste, no artificial preservatives.
Benefits: Low cholesterol, improves metabolism, makes your body healthy and strong to
fight sicknesses, Reduces Risk of Heart Disease, Protects against Diabetes, Promotes Healthy
Weight.

Bottled Almonds and Walnuts.
Features: packed in Glass bottles (jars), long life product, natural and premium Taste.
Benefits: : Low cholesterol, improves metabolism, makes your body healthy and strong to
fight sicknesses, Reduces Risk of Heart Disease, Protects against Diabetes, Promotes Healthy
Weight, can be used anywhere any time.

Almond and walnut pudding, cakes, custard.
Features: different varieties and flavors for different customer choices. Wide range of
pudding cakes and custards.
Benefits: ready and baked or mixed materials ready to cook when you want to have the taste
of homemade cakes, puddings and custards.

High quality Dry Fruits Mix.
Features: high quality of different dry fruits mixed together also in powdered form.
Benefits: can be used for preparation of different sweet dishes to give it a beautiful touch and
taste.

Apricot Pulp and Juice.
Features: Fresh and natural.
Benefits: gives you great taste and boost of energy, blast of refreshment and joy.
 Customers.
Demographic profile of customers:
Consumer Demographics Details
Age From 15 years to below 70
Gender Male and female
Location Across G-B
Income level Average income (above 30,000)
Social class and occupation For middle and upper class
Education Educated and uneducated



Business Demographics Details
Industry Manufacturing
Location Gilgit
Size of firm Small
Technology Advance

9. 8


 SWOT ANALYSIS.
Strengths.
Good variety of products.
High quality products.
Lower prices.
Perfect location for manufacturing.
No local competitors.
Weaknesses.
Might require more capabilities.
Finding loyal employees.
Seasonal shortages.
Opportunities.
Identifying new markets and potential customers.
Advantage from CEPEC.
Business expansion from local to national level.
Threats.
Change in market demand.
Emerging of copycats.
Technological changes.
Loss of key staff.


 Competition.
The products that will compete with us are cooking oil products, cakes, puddings,
custards and juices.
Our main Competitors are:
Italia foods Pakistan.
Merhaba foods.
Rafhan.

And we assume that indirect competitors for cooking oils can also affect our business
who are Soya supreme, Sufi and canola.
For juices Nestle and Shezan can be our indirect competitor.

To compare our products with the competitors we will use competitive analysis table
on the next page: (1=crucial and 5= to not so important)

10. 9

Factors Me Strength Weakness Competitor
A
Competitor
B
Importance to
customer
Products Seed oil Italia foods Merhaba
foods
5
Price 2000-2500 low prices
compared
to our
competitors
3000-4000 3000-4000 1
Quality high Pure and
natural
High High 2
Reliability Good Long life 2
Expertise Moderate Lack in
team work
and
experienc
e
High High 5
Comp.
reputation
It is our
weakness
because
we are
new in
market
Good Good 2
Location Perfect We are
near to our
customers
than
competitors
.
poor Poor 5
Appearance Good Might
need
developm
ent
Great Good 3
Advertising Good We cover
more
advertising
than our
competitors
Poor Poor 1


 Competitive Matrix
Factors Dry Fruit products Italia foods Merhaba Foods
Weight Rating Weighted
score
Rating Weighted
score
Rating Weighted
Score
Quality 0.25 4 1 4 1 4 1
Customer
retention
0.15 3 0.45 3 0.45 3 0.45
Location 0.25 4 1 1 0.25 1 0.25
Perception of
Value
0.20 4 0.80 2 0.40 3 0.60
Cost Control 0.15 3 0.45 4 0.60 3 0.45
Total 1 3.70 2.70 2.75

11. 10


 Niche.
Most of the products are made for specific groups and for our products we have
targeted the household section and the people who cannot enjoy the taste of all foods
due to their health issues i.e. diabetes and blood pressure issues
 Strategy.
Our marketing strategy will be “Micro-marketing” which will further be on local
and individual marketing, in local specific for the needs and wants of specific groups
e.g. households and individuals according to their needs and wants e.g. people with
health issues.
 Promotion.
We will use the local television which is a very effective medium in G-B and also
will use other different mediums because we want to create customer awareness as
much as we can which will be through News, sign boards for shops, and also
conducting an event concerned to health where we will explain our products and what
they can do for our customers and of course we want it to be telecasted on local
cables across G-B.
Promotional Budget.
We have estimated a promotional budget of 1 lac rupees.

Pricing.
We will use “Cost-based” pricing because it involves setting prices based on the
costs for producing, distributing, and selling the product plus a fair rate of return for
its effort and risk which is better for us at the initial stage of our business and it fits
properly with the competitive analysis because most of the companies charge high for
such premium products because they grow in specific places and are purchased on
high prices but we have the upper hand as we can buy the material on low cost and
hence we can reduce our cost and increase the quality to optimum level which means
we are doing cost-based pricing and as well as penetrating the market with low prices
than our respected competitors.
In many regions people are price cautious because they ask for the price first and they
make their mind to buy a product or they switch to products that are cheap so keeping
the price low and delivering a premium quality product can give us upper hand than
our competitors.

12. 11

Proposed location.
The location of production is very crucial for us because we can minimize cost of
delivering the product in Gilgit but for other regions of G-B like Skardu, Ghizer and
Hunza which will cause us cost of shipping the product.
And also it is important for us to have space for meetings and planning for which we
will develop an area and also some interior spaces for our customers along with car
parking on the front area because we want to facilitate our customers in every way we
can which is the key to loyalty and success.
Our competitors are located in other cities of Pakistan i.e Karachi and Lahore and it is
not important for us to be near them if we are competing on local level and it is better
for us now to be near our potential customers rather than our competitors.
Distribution Channels.
We have constructed a customized traditional distribution channel shown as below:




As we can see above we have a simple channel of distribution because according to
our level at this stage it will be more efficient and effective way of getting our
product to the market.






















Manufacturing
Local
distributor
Retailer Customer

13. 12

14. 13

15. 14

7. Operating Plan.
 Production.
Production Techniques.
Flow production (Process Production) is also a very common method of production.
Flow production is when the product is built up through many segregated stages; the
product is built upon at each stage and then passed directly to the next stage where it
is built upon again. The production method is financially the most efficient and
effective because there is less of a need for skilled workers.
Quality Control.
After a product is finished it will be evaluated by a quality inspector who will ensure
that there are no defects in the products and if passed it can further proceed to the
next area.
Customer services.
We will have services like money refunding if the product is defective or we are also
planning on launching an online website for online or telephonic ordering of our
products.
Inventory control.
For inventory control we will us “First in First out” accounting method.
Product Development.
For the development of the product in future we will analyze our performance in the
market and use customer feedback on how we are doing and if we need any changes
or new to introduce new variety or flavor of products for the batch of customers we
have targeted.
 Location.
The physical requirements:
The total amount of space should be at least a 2 kanal plot.
The building should be warehouse type with several compartments for different
stages of production and also a separate warehousing facility.
Zoning of the business should be in Gilgit Jutial area.
A proper place with availability of water, three phase electricity and roads for
transportation.
Our business hours will be 8:00 ‘o’clock in morning to 3:00 ‘o’clock in evening.
 Legal Environment.
Our company will be registered under the companies’ ordinance 1984.
We will not compromise our health and safety precautions of our employees for
which we will conduct meetings and develop some safety measures and criteria’s.

16. 15

 Personnel.
The total number of employees will be 25 who will work on daily basis in the
company.


Employees No of employees Salaries for each
employee (PKR)
Workers(labors) 10 15,000
Sales manager 1 25,000
Accountants 3 20,000
Material purchasers 6 15,000
Security Guards 2 15,000
Quality inspectors 2 20,000
Reception(Facilitator) 1 15,000

 Inventory.
In our inventory we will have different raw materials of different dry fruit seeds and
the packaging stuff that we will require to produce a finished product.
We will have to sections for our inventory:
1- Will be for storing the raw material
2- For storing the finished goods.
 Suppliers.
As we analyzed the market for potential suppliers for the raw material we come to see
that purchasing the material in Hunza and Nagar is much cheaper than purchasing
from the local whole sale market in gilgit and after several meeting we come to an
agreement that we will have our own team of representatives who will buy the
material for us from specific areas which will reduce much cost on the material we
will purchase and also we have selected one supplier in case of any uncertainty.
Who is Nizam Dry fruits and wholesalers situated near the NATCO office Aliabad
Hunza.
 Credit Policies.
We have not considered credit polices at this stage but will try to accumulate it also if
needed.

17. 16

8. Management and organization.
As board of directors we will hire 25 employees and also each partner will take over the
below departments.


















 Professional and Advisory support.
Board of Directors.
We ourselves as the true owners of the company will be the board of directors our
names are respectively as below:
Syed Wajahat Ali shah.
Waseem Abbas.
Ashique Hussain.
Hussain Wali.
Mudassir Hussain.
Mentors and Key Advisors.
They will we family and friends from whom we can seek help if in need.





Board of Directors
Production
Department
Investment
department
Technical
Department
Marketing
Department
HR
Department

18. 17

9. Schedule of Startup Expense.
Dry Friut Products
Schedule of Startup Funds Required
Prepared by the owner, Syed Wajahat Ali Shah

Startup funds available:

$50,000.00

Equipment Required: Price Ea. Qty. Needed Total

Seed cleaner machine $1,000.00 1.00 $1,000.00
Oil extracting machine $4,000.00 1.00 $4,000.00
Oil filtration machine $1,500.00 2.00 $3,000.00
Labeling machine $800.00 1.00 $800.00
Furniture $500.00 2.00 $1,000.00
Technological Gadgets $2,000.00 1.00 $2,000.00
Others $1,000.00 1.00 $1,000.00

Materials and Supplies:


Almond seeds $2.50 3125.00 $7,812.50
Walnut seeds $1.50 1300.00 $1,950.00
Apricot seeds $2.00 1200.00 $2,400.00
Dry Apricot $1.00 200.00 $200.00

Advertising:


Local Cabel $100.00 5.00 $500.00
Others $100.00 5.00 $500.00

Total Startup Funds Required:

$25,162.50

Startup Funds Left Over:

$24,837.50

19. 18

10.Projected Income Statement.
Dry Fruit Products
Projected Income Statement - 2017
Prepared by the owner, Syed Wajahat Ali Shah

REVENUE:


Sales: Customers Price Totals
Almond oil 27750 $22.67 $629,092.50
Walnut oil 12930 $9.54 $123,352.20
Apricot oil 11130 $11.45 $127,438.50
Bottled almonds 7180 $5.15 $36,977.00
Bottled walnuts 7250 $1.91 $13,847.50
Apricot pulp and juices 20000 $0.38 $7,600.00
Dry fruit Mix 10800 $0.48 $5,184.00
Total Sales: $943,491.70

Less Packaging and Labeling $20,000.00
Total Net Sales: $923,491.70

LESS COST OF GOODS SOLD:

Item Estimate Qty. Price Ea. Totals
Almond seeds 170000 $2.50 $425,000.00
Walnut seeds 55000 $1.50 $82,500.00
Apricot seeds 44000 $2.00 $88,000.00
Dry Apricot 5000 $1.00 $5,000.00

Total Cost of Goods Sold: $600,500.00

Gross Profit: $322,991.70

OPERATING EXPENSES:


Item Expense

Totals
Rent expense 5726.56

$5,726.56
Salaries 41803.9

$41,803.90
Utilities 11453.12

$11,453.12
Transportation 6871.87

$6,871.87
Repair and Maintainance 5726.56

$5,726.56
Others 3000

$3,000.00




Total Operating Expenses: $74,582.01

Net Income: $248,409.69

20. 19


11. Refining the plan.
For Raising Capital.
For bankers.
The amount of the loan that we will require will be 20 lac Pakistani rupees because we
already have personal capital of 30 lac which will be invested by all the partners and the total
capital required to initialize the business is 50 lac.
The funds will be used in manufacturing dry fruit products and selling them across the G-B
market.
Through this investment we can create a new venture which will not only be a role model in
the G-B but also will bring new investment opportunities for the Gilgit Baltistan citizens as
the business will expand in future as we expect.
For Type of business
Manufacturing.
 Planned production levels.
















Seed Cleaner
Seed Crusher
Oil Filtering
Packing
Labeling

21. 20


 Prices per-Product lines.
Products Average prices(PKR)
Almond Cooking oil 3.ltr 2375
Walnut Cooking oil 2.ltr 1000
Apricot Cooking oil 2.ltr 1200
Bottled Almonds 500g 540
Bottled Walnuts 500g 200
Apricot pulp and Juice 500ml 40
Dry Fruit mix 250g 50

 Production Capacity of Equipment.
Equipment Capacity/Limit
Seed cleaner 5-10 tons per hour
Oil extractor 8 tons per hour
Oil Filterer 8 tons per hour
Labeling machine 100 units per hour


 Purchasing and Inventory management procedure.
The raw material will be purchased on huge amount and will be stored in our
warehouse and for inventory as we already mentioned before will have a separate
compartment where the product will be stored and for which we will use FIFO
method.