palm oil plantation business plan pdf

[Pdf Sample] Palm Oil Farming & Production Business Plan Docx

In the journey of palm oil production, starting from the nursery stage all the way to planting, oil extraction, processing, and eventually selling, the palm oil industry has garnered significant attention. Entrepreneurs and investors alike are increasingly drawn to this versatile and widely-used commodity.

By understanding these key elements, you can lay a solid foundation for your palm oil production venture and maximize its potential for success.

[Pdf Sample] Business Plan Proposal  For Palm Oil Production Docx

Table of Contents

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Executive Summary

The executive summary serves as an introduction to your business plan , providing a concise overview of your palm oil production venture. It should highlight the key aspects of your business, such as the mission statement, objectives, target market, competitive advantages, and financial projections.

Company Overview

In this section, provide a detailed description of your palm oil production company. Include information about its legal structure, location, history, key personnel, and any unique features or innovations that set your venture apart from competitors. Emphasize the vision and values that drive your business.

Market Analysis

Conducting a thorough market analysis is crucial to understanding the palm oil industry and identifying opportunities for growth . Assess the demand and supply dynamics of the market, analyze the competitive landscape, and identify key trends and drivers affecting the industry. Additionally, determine your target market segments and outline your marketing strategies to effectively reach and engage customers.

Production Process

Detail the production process involved in palm oil production. Explain the cultivation and harvesting of oil palm trees , the extraction methods used to obtain palm oil, and the processing techniques for refining and packaging the final product. Highlight any sustainable practices or certifications that you plan to incorporate into your production process, as environmental considerations are gaining increasing importance in the industry.

Marketing and Sales Strategy

Developing an effective marketing and sales strategy is crucial for positioning your palm oil brand in the market and attracting customers. Identify your target audience, outline your unique selling propositions, and describe your pricing strategy. Additionally, explore various distribution channels, such as wholesalers, retailers, and online platforms, to reach a wide customer base.

Operational Plan

The operational plan outlines the day-to-day activities and resources required to run your palm oil production venture efficiently. Define the roles and responsibilities of key personnel, describe the equipment and infrastructure needed, and establish quality control measures. It is also essential to consider sustainability practices, waste management , and compliance with local regulations and certifications.

Financial Projections

Provide comprehensive financial projections for your palm oil production business. This section should include income statements, balance sheets, and cash flow forecasts. Highlight the initial investment required, expected revenue streams, production costs, and operating expenses. Conduct a break-even analysis and assess the profitability and return on investment potential of your venture.

Risk Assessment and Mitigation

Here is the Download Link To Business Plan For Palm Oil Farming And Oil Production Proposal Pdf

What are the main components of a business plan for palm oil production?

A business plan for palm oil production typically includes an executive summary, company overview, market analysis, production process, marketing and sales strategy, operational plan, financial projections, and risk assessment.

How can I identify my target market in the palm oil industry?

What certifications are important for sustainable palm oil production.

Certifications such as Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability & Carbon Certification (ISCC) are important for sustainable palm oil production. They demonstrate your commitment to environmental and social responsibility.

How can I mitigate risks in palm oil production?

Where can i find more information about starting a palm oil production venture.

In conclusion, a well-crafted business plan is essential for anyone looking to establish a successful palm oil production venture. It provides a roadmap for your business, ensuring that you have a clear vision, defined strategies, and a thorough understanding of the market and operational requirements. By incorporating sustainable practices, embracing innovation, and addressing potential risks, you can position your palm oil production business for long-term growth and profitability .

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Oil Palm Plantation Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Agriculture Sector

Are you about starting an oil palm plantation? If YES, here’s a complete sample oil palm plantation business plan template & feasibility report you can use for FREE to get started .

Okay, so we have considered all the requirements for starting an oil palm plantation business. We have analyzed and drafted a sample oil palm plantation marketing plan backed up by actionable guerrilla marketing ideas for oil palm plantations. So let’s proceed to the business planning section.

Starting a business in the agribusiness industry is one sure way of making good returns on your investments especially if you live in Nigeria . This is so because players in the agriculture industry are enjoying good support from the federal government of Nigeria and this is also applicable to other countries of the world.

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One of the highly thriving and profitable agribusinesses that an aspiring entrepreneur can successfully start is to go into oil palm plantation business.

In as much as people can start this business on a local level and on a small scale, but it will be a wise decision to write a good business plan document especially if you choose to start the business on a large scale and as a standard business that can employ more than a handful of people.

The truth is that business plans are like maps that help businesses to chart a good and profitable course for themselves. These plans have to be thoroughly adhered to in order to make headway in the industry. Below is a sample oil palm plantation business plan template that will help you to successfully launch your own business.

A Sample Oil Palm Plantation Business Plan Template

1. industry overview.

The oil palm processing industry is an industry that thrives in the African continent and in some parts of Asia. Nigeria is one of the countries in Africa that have loads of players in this industry. Although locals in rural communities run this type of business on a small scale, there are medium to large scale investors who also operate standard oil palm plantation and palm oil processing businesses.

These are the organizations that own their own palm tree plantations and also engage in the exportation of palm oil to countries across the world. In most cases, they ensure that they target countries with robust African communities.

Palm kernel is gotten from palm trees and it is the palm kernel that is processed into palm oil. Palm oil is considered to be one of the healthy and vitamin packaged oils that is highly suitable for cooking. In Nigeria, palm oil is used for several delicacies and even for frying.

As a matter of fact, there are no tribes in Nigeria and even in the West African coast that don’t make use of palm oil or red oil as it is popularly called in most quarters. Palm oil is also used in making soap and body creams.

The oil palm plantation line of business is indeed thriving and pretty much active in Africa, Asia and South America (places with god numbers of African communities) and it generates several millions of US dollars annually. This line of business is responsible for the employment loads of people directly and indirectly all around the world.

Any aspiring entrepreneur that is considering starting a oil palm plantation business whether on a small or large scale should ensure that he or she conducts thorough market survey and feasibility studies so as to get it right. The truth is that this type of business does pretty well when it is strategically positioned.

It is important to secure a farmland in a location with soil composition that is highly suitable for the cultivation of palm trees if indeed you want to achieve bumper harvest and maximize profits in this line of business.

In a nutshell, oil palm plantation is a profitable business venture and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale cultivating palm trees on few hectares of land or you can chose to start on a large scale with massive land mass for your oil palm plantation and even running a palm oil processing plant and with robust palm oil and palm kernel distribution networks all across Nigeria, Africa and the global market.

2. Executive Summary

Benson Edosa & Sons Oil Palm Company is a standard oil palm plantation business that will be based in Benin – Edo State, Nigeria.

We are registered under the Nigerian Corporate Affairs Commission (CAC). Although we intend starting out on a small scale by cultivating oil palm on 20 hectares of land, but that will not in any way stop us from maximizing our potential in the oil palm plantation line of business.

We hope to grow the business from cultivating oil palm in 20 hectares of land to 100 hectares of land and also owning our palm oil processing plant and exporting palm oil to other countries in Africa and the world at large.

The overall business goal of Benson Edosa & Sons Oil Palm Company is to become the number one oil palm plantation and palm oil processing plant in Nigeria and other countries of the world where we intend exporting our palm kernel and palm oil.

As a business, we are willing to go the extra mile to invest in effective oil palm cultivation tools and equipment and also to hire efficient and dedicated employees. We have been able to secure permits from all relevant departments both at local and state level in Edo state.

Benson Edosa & Sons Oil Palm Company is set to redefine how oil palm plantation business should be run, not just in Benin City – Edo State, but also in the whole of the Nigeria. It is for these reasons that we have put plans in place for continuous training of all our staff.

The demand for palm kernel, palm oil and other products from the palm tree is not going to plummet any time soon because there will always be people who can’t cook without palm oil and cottage companies who need palm oil as their raw material et al, which is why we have put plans in place to continue to explore all available market around the communities where we intend marketing our produce.

In the nearest future, we will ensure that we create a wide range of distribution channels all across Nigeria, the West African Coats and the World at large.

Benson Edosa & Sons Oil Palm Company will at all times demonstrate her commitment to sustainability, both individually and as a business, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely.

Benson Edosa & Sons Oil Palm Company is a family business that will be owned by Chief Benson Edosa and his immediate family members. Chief Benson Edosa is a farmer par excellence. He has a degree in Agriculture Science from the University of Benin.

3. Our Products and Services

Benson Edosa & Sons Oil Palm Company is a world class commercial farm that is committed to cultivating organic and non – organic oil palm trees for both the Nigeria’s market and the global market. We are in business to produce both food and raw materials for people and industries in commercial quantities.

We are in this line of business to make profits, and we will ensure that we do all that is allowed by the law of Nigeria to achieve our business goals and objectives. These are the areas we will concentrate on in our oil palm plantation and if need arises we will definitely cultivate related crops;

• Cultivation of variety of oil palm trees (organic and non – organic)
• Production of palm oil

4. Our Mission and Vision Statement

• Our vision is to own the largest private palm tree plantation in the whole of Africa and to engage in wholesale distribution of palm oil and related products all across Nigeria and to export palm oil to other countries of the world.
• Our mission is to establish a world class oil palm plantation and palm oil processing business that in our own capacity will favorably compete with leaders in the industry. We want to build a business that will be listed amongst the top performing businesses in the Nigeria Stock Exchange.

Our Business Structure

As part of our plan to build a top flight oil palm plantation business in Benin City – Edo State, we have perfected plans to get it right from the onset which is why we are going the extra mile to ensure that we have competent employees to occupy all the available positions in our company.

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 stakeholders. 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.

The picture of the kind of oil palm plantation business we intend building and the goals we want to achieve is what informed the amount we are ready to pay for the best hands available in the crop cultivation industry as long as they are willing to work with us to achieve our business goals and objectives.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions at Benson Edosa & Sons Oil Palm Company;

• Chief Executive Officer (Owner)

General Farm Manager

Human Resources and Admin Manager

• Sales and Marketing Officer
• Accountants / Cashiers
• Field Workers

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.
• 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
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for the planning, managing and coordinating all farm activities across the various sections on behalf of the organization
• Ensures compliance during farming project executions
• Provides advice on the management of farming activities across all sections
• Responsible for carrying out risk assessment on the plantation
• Represents the organization’s interest at various stakeholders’ meetings
• Ensures that farming goals are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied.
• Oversees the smooth running of the daily farming activities across the various farming sections.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily business activities.

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, prioritize, and reach out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with customers
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Helps to increase sales and growth for the company

Palm Oil Processing Plant Casual Workers

• Responsible for operating palm oil processing equipment
• Responsible for measuring and filling palm oil into various containers as demanded by clients
• Responsible for carrying out all casual or unskilled jobs in the palm oil processing plant
• Assists in loading and unloading of palm kernels and processed palm oil
• Handles any other duty as assigned by the palm oil processing plant manager

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
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Field Workers/Contract Staff

• Responsible for preparing farm lands for oil palm cultivation
• Responsible for watering the palm trees
• Applies weed or pest control chemicals
• Handles farm implements and machines as instructed by the section manager/supervisor
• Assists in handling the harvest of palm kernels
• Carries out task in line with the stated job description
• Assists in transporting work tools and equipment to the farm and back to the designated store room
• Handles any other duties as assigned by the line manager

6. SWOT Analysis

Because of our drive for excellence, we were able to engage some of the finest business consultants in Edo State – Nigeria to look through our business concept and together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard oil palm plantation business that can compete favorably in the oil palm plantation line of business.

In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in Nigeria. Here is a of what we got from the critically conducted SWOT Analysis Benson Edosa & Sons Oil Palm Company;

Our strength lies in the fact that we own are going to be cultivating our oil palm in a very fertile land. We have state of the art palm oil processing facility that has positioned us to meet the demand of palm oil in Nigeria and the world at large even if the demand tripled overnight or if we have a massive order to meet and emergency need.

Another factor that counts to our advantage is the background of our Chief Executive Office; he has a robust experience in the industry and also a pretty good academic qualification to match the experience. We are not ignoring the fact that our team of highly qualified and dedicated workers will also serve as a strength for our organization.

We do not take for granted the fact that we have weaknesses. The fact that we are cultivating oil palm and also setting up a palm oil processing business in a city with other palm oil processing businesses might likely pose a challenge for us in breaking into the already saturated market in Nigeria.

In essence our chosen location might be our weakness. But nevertheless, we have plans to launch out with a big bang. We know with that, we will be able to create a positive impression and we have a proper handle when it comes to building on already gathered momentum.

• Opportunities:

The opportunities available to us are unlimited. Loads of people make use of palm oil on a daily basis and all what we are going to do to push our palm kernel, palm oil and byproducts to them is already perfected. Benin in Edo state is just ideal for our oil palm plantation business because the land is ideal for farming palm trees, plus there is a large market for palm kernels in Edo State.

The threat that is likely going to confront us is the fact that we are competing with already established oil palm plantations and palm oil processing businesses in Edo State and also there are other entrepreneurs who are likely going to launch similar business within the location of our business.

Another threat that we are likely going to face is unfavorable government policies and economic downturn. Usually economic downturn affects purchasing / spending powers and unfavorable government policies can hinder exporting of palm products to other countries of the world.

7. MARKET ANALYSIS

• Market Trends

It is a common trend in this business to find oil palm plantations positioning their business in locations and communities where they can have access to arable farmland and cheap labor. If you make the mistake of positioning this type of business in a location where you would have to pay huge amount to secure good farm land, then you would have to struggle to make profits and maintain your overhead and logistics.

So also, another trend in this line of business is that most oil palm plantation businesses also run palm oil processing plant and they look beyond the market within their locations or even Nigeria. They are involved in packaging and exporting palm oil to communities abroad with robust Nigerian or African communities. united states of America, Canada and most countries in Europe are their major targets.

In the bid to stay afloat and continue to make profits from this line of business, most standard oil palm plantation businesses tend to work hard to ensure that they get grants and support from the federal government. With that, it is easier for them to maximize profits and grow the business.

8. Our Target Market

When it comes to retailing palm oil and its byproducts, 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 to all those who make use of palm oil for cooking and also all those who make use of palm kernel and palm oil as raw materials in their cottage industries .

The target market for palm products is wide and far reaching, you can create your own niche yourself to serve a specific purpose. 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 retailing and wholesale distribution cum exporting of palm products to the following groups of people;

• Palm oil processing plants who don’t own their own oil palm plantation
• Households who make use of palm oil for cooking
• Restaurants and canteens that make use of palm oil for cooking
• Nigerian cum African communities in the united states of America, Canada, and Europe
• Small scale businesses that make use of oil palm byproducts as part of their raw materials.

Our Competitive Advantage

The fact that the government of Nigeria is willing to support entrepreneurs who are into crop cultivation cum oil palm cultivation means that the business is open to all and sundry hence it is expected that there will be high – level competition in the industry. There is hardly any community where palm trees can easily be cultivated that you won’t find several oil palm plantations and oil processing businesses especially on a small scale.

As a standard oil palm plantation business, we know that gaining a competitive edge requires a detailed analysis of the demographics of the surrounding area and the nature of existing competitors. And even if you are successful at first, new competitors could enter your market at any time to steal your regular customers; hence we will not hesitate to adopt successful and workable strategies from our competitors.

We are going to be one of the very few oil palm plantations with a standard palm oil processing plant in State – Edo State that will also engage in wholesale distribution of oil palm byproducts across Nigeria and also export palm oil to other countries of the world.

Another competitive advantage that we have is the vast experience of our management team, we have people on board who understand how to grow a business from scratch to profitability. Our robust distribution network, latest oil palm cultivation and processing tools 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 in the industry, meaning that they will be more than willing to build the business with us and help deliver our 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

Benson Edosa & Sons Oil Palm Company is established with the aim of maximizing profits in the oil palm plantation line of business both in Edo State and Nigeria and of course in some countries of the world. Benson Edosa & Sons Oil Palm Company will generate income by simply selling and exporting;

• Palm kernel
• Palm tree byproducts

10. Sales Forecast

One thing is certain when it comes to oil palm plantation business, if your business 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 Nigeria and every other countries of the world where we intend exporting our palm byproducts to and we are quite optimistic that we will meet our set target of generating enough profits from the first few years.

We have been able to critically examine the oil palm plantation line of business, 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 Edo State – Nigeria.

• First Fiscal Year: N750, 000
• Second Fiscal Year: N2 Million
• Third Fiscal Year: N3.5 Million

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 product 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 to launch Benson Edosa & Sons Oil Palm Company, we conducted a thorough market survey and feasibility studies in order to be able to penetrate the available market in Nigeria and the international market. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the oil palm plantation line of business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market for our products.

In summary, Benson Edosa & Sons Oil Palm Company will adopt the following sales and marketing approach to sell our produce;

• Introduce our oil palm plantation business by sending introductory letters to residents, merchants and other stakeholders both in Nigeria and abroad.
• Advertise our products 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 product cum business
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Notwithstanding the fact that our oil palm plantation business is a standard one that can favorably compete with other leading oil palm businesses in Nigeria and in any part of the world, we will still go ahead to intensify publicity for all our brand. We are going to explore all available means to promote Benson Edosa & Sons Oil Palm Company.

Benson Edosa & Sons Oil Palm Company has a long term plan of opening our own oil palm plantation across the southern part of Nigeria and export to our product all across the world. This is why we will deliberately build our brand to be well accepted in Benin City – Edo State before venturing out to other cities in Nigeria and the world.

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 Benson Edosa & Sons Oil Palm 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 brand
• Install our billboards on strategic locations all around major communities in Nigeria
• 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 palm oil.
• Ensure that all our staff members wear our customized clothes, and all our official cars and distribution trucks are customized and well branded.

12. Our Pricing Strategy

Our pricing system will conform to what is obtainable in the industry but we will ensure that within the first few years, our palm tree byproducts will be sold a little bit below the average prices when compared to other palm oil retailing businesses in Nigeria.

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 brand.

• Payment Options

The payment policy adopted by Benson Edosa & Sons Oil Palm 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 Federal Republic of Nigeria.

Here are the payment options that Benson Edosa & Sons Oil Palm Company will make available to her clients;

• Payment via bank transfer
• Payment with cash
• 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 clients make payment for farm produce purchased 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 palm tree byproducts.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget for achieving our aim of establishing a standard and highly competitive oil palm plantation business in Benin City – Edo State. We know that no matter where we intend starting our oil palm plantation business, we would be required to fulfill most of the items listed below;

• The Fee for registering the business (venture) in Nigeria – N15,000
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – N30,000
• Marketing promotion expenses for the grand opening of Benson Edosa & Sons Oil Palm Company – N45,000
• The cost for hiring Business Consultant – N50,000
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – N30,000
• The amount needed to acquire / lease a farm land – N100,000
• The amount required for preparing the farm land – N80,000
• The cost for acquiring the required working tools and equipment / machines / fencing et al – N30,000
• The amount required for purchase of the first set of palm kernel seedlings et al – N50,000
• The amount required to set up a standard palm oil processing plant within the farm facility – N100,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – N200,000
• The cost for Start-up inventory (palm kernel supply, storage tanks, drums, bottles and packaging materials et al) – N220,000
• The cost of purchase of distribution trucks / lorry – N1.2 million
• The cost of launching a website – N25,000
• The cost for our opening party – N30,000
• Miscellaneous – N30,000

We would need an estimate of 3million Naira to successfully set up a standard palm plantation with palm oil processing plant in Edo State. Please note that this amount includes the salaries of all the staff for the first 3 months of operation.

Generating Startup Capital for Benson Edosa & Sons Oil Palm Company

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting an oil palm plantation business.

No doubt raising startup capital for a business might not come cheap, but it is a task that an entrepreneur must go through.

Benson Edosa & Sons Oil Palm Company is a family business that is owned and financed by Chief Benson Edosa and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources. These are the areas we intend generating our startup capital;

• Generate part of the startup 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 1 million Naira ( Personal savings N800,000 and soft loan from family members N200,000 ) and we are at the final stages of obtaining a loan facility of 2 million Naira from our bank. All the papers and documents 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 number of loyal customers that they have, the capacity and competence of their employees, their investment strategies and business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Benson Edosa & Sons Oil Palm 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 palm products 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.

Benson Edosa & Sons Oil Palm 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 retraining of our workforce is at the top burner.

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 a farmland and facility for processing and storing palm oil 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
• Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed oil palm cultivation tools and equipment, palm oil processing equipment, 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
• Establishing business relationship with vendors – wholesale suppliers / merchants of palm oil: In Progress
• Purchase of delivery trucks: Completed