Startup Rice Company in Togo Austin Cross, Alice Dien, Ziqra Raza - - PowerPoint PPT Presentation

startup rice company in togo
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Startup Rice Company in Togo Austin Cross, Alice Dien, Ziqra Raza - - PowerPoint PPT Presentation

Feasibility Study On the expansion of a Startup Rice Company in Togo Austin Cross, Alice Dien, Ziqra Raza Clients wishes Asian rice -Increase the quality of processing -Business capital of USD 25,000 vs. -Increase her annual production


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SLIDE 1

Feasibility Study

On the expansion of a

Startup Rice Company in Togo

Austin Cross, Alice Dien, Ziqra Raza

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SLIDE 2
  • Increase the quality of processing
  • Business capital of USD 25,000
  • Increase her annual production by 10
  • Hire more employees for expansion
  • Acquire processing equipment
  • Expand market size
  • Have a climate risk strategy

Client’s wishes

vs.

Asian rice Prince des Champs rice

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SLIDE 3

Ideal State Current State

“How do we make the startup more competitive and therefore more profitable? “

Business Plan

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SLIDE 4

Methodology

  • Canvas Business Model
  • Business Plan with Economic Sensitivity Analysis
  • Recommendations
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SLIDE 5

4 major sectors

Source: https://sites.google.com/site/moocmodulesnils/_/rsrc/1472851821761/marketing/the-business-model-canvas/BMC1.jpg

CANVAS BUSINESS MODEL

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SLIDE 6

Key Partners Key Activities Channels Value Proposition

Business Model

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SLIDE 7

Economic Sensitivity analysis

Client’s information

  • 250,000 kg rice/year
  • $25,000 capital
  • Loan interest rate 9%, 3 years
  • 5 employees
  • Selling price: 1.20 $/kg
  • Some of the production costs

ASSUMPTIONS

  • All the rice produced is selled
  • Discount rate of 5%
  • All the investment is used in machines and

equipment

  • Production rate evenly distributed
  • No economic growth
  • Inflation will have the same effect on

revenues and expenses

  • Project’s life: 5 years
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SLIDE 8

Economic Sensitivity analysis

Client’s ideal state

Income from year 1 Net Present Value (NPV) = 46,858$ Internal Rate of Return (IRR) = 27 % Q = 1,87 $/$ invested

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SLIDE 9

Economic Sensitivity analysis

Production rate < 225.000 kg/year NPV < 0$

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SLIDE 10

Economic Sensitivity analysis

Current State Ideal State Production Cost Transportation Cost Selling Price 0,20 $/kg 0,20 $/kg 0,60 $/kg 0,40 $/kg 1,20 $/kg

Increase the selling price, reduce production rate, hire less employees

Selling price 1,5 $/kg 100,000 kg rice/year 3 employees

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SLIDE 11
  • Apply for grants and/or loans using the Business Plan
  • Conduct needs assessment in community (BLUM and PATA grants)
  • Identify (and market) rice quality with IRRI Quality Assessment Kit
  • Marketing recommendations: Website/Facebook/Instagram/Posters
  • Economic Sensitivity Analysis
  • Packaging Design (Potential D-Lab II project)

○ Make the packaging more attractive, safe for rice and cheap (< 0,3$/bag).

Recommendations

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SLIDE 12

Thank you! Any Questions?

Austin Cross, Alice Dien, Ziqra Raza