Nairobi Green Project Proposal essay
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Nairobi Green project aims to tap into the grocery market in Nairobi and its environs by farming and selling green vegetables. These vegetables will include but are not limited to kales, spinach, tomatoes, cucumbers and onions. Unlike ordinary groceries, Green Project will employ use of natural organic fertilizers thus making its products healthy and free from side effects brought about by chemical fertilizers.
Nairobi Green Project will be a privately held business run by the owner. With increased rural-urban migration in Kenya, more and more people are moving into the capital city, Nairobi. This trend increases demand for the green groceries. The Nairobi Green Project therefore seeks to compete effectively in the market by offering competitive prices, high quality products overseen by committed team from production to marketing. As mentioned earlier, the project will focus mainly on Nairobi City and its environs. The project seeks to maximize profits by cutting on the operational costs. The project will start small but eventually gradually grow big, big financed from existing cash flow.
To these ends, we are putting $400 into the business and are seeking $3600 as either a grant or loan from an appropriate and willing partner.
The objectives for the first three years of operation include:
i. To create a product-based group whose goal is to exceed customers' expectations.
ii. To increase efficiency in production by 10% a year.
iii. To develop a sustainable farm, surviving off its own cash flow.
The project’s mission is to provide the highest-quality vegetables. In order to achieve this, the project will employ use of top quality seed in the farming process that has been well researched together with effective and flexible marketing strategies.
2. Start-up Summary
The project’s initial costs will include the construction of the greenhouse and all the necessary equipment, and other essentials for growing. The greenhouse will need the following equipment: a 16m X 8m greenhouse structure made out of light ultra filtration paper, a ventilation system, supplemental lighting, manure, pruners, trays and seeds.
3. Market Analysis Summary
We will be focusing on three distinct users of greens, individual consumers, retailers and restaurants. The consumer and retailer market is seasonal so we will have production shifts during the consumer off-season and most of the production will go toward wholesale restaurant distribution. We will also increase the production of the items in high demand and cut down on those with low demand.
4. Personnel Plan
At any given time, the staff will consist of two of the officials and at least fifteen other team members working full time. This will include managing the operation and attending to the crops. In addition to all of the general management required for the production of the greens, the team leaders will be setting up strategic relationships with local restaurants and ensuring that competent team members run the booth for the consumer selling of the greens.
5. Financial Plan
The following sections will outline the important financial information.
5.1 Important Assumptions
Some of the important financial assumptions made are that:
• Interest rates (current and long-term) will remain constant
• Tax rates will remain constant
5.2 Break-even Analysis
Monthly Revenue Break-even $540
Average Percent Variable cost 12%
Estimated monthly fixed cost $475
5.3 Projected Profit
The following chart indicates projected profit in dollars for the first six months. The low profits at start-up are evident, as is the turn of the corner in months five when production stabilizes.