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Feasibility Study On the expansion of a Startup Rice Company in Togo

Austin Cross, Alice Dien, Ziqra Raza. Feasibility Study On the expansion of a Startup Rice Company in Togo. Client’s wishes. Asian rice. -Increase the quality of processing -Business capital of USD 25,000 -Increase her annual production by 10 -Hire more employees for expansion

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Feasibility Study On the expansion of a Startup Rice Company in Togo

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  1. Austin Cross, Alice Dien, Ziqra Raza Feasibility Study On the expansion of a Startup Rice Company in Togo

  2. Client’s wishes Asian rice -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 vs. Prince des Champs rice

  3. Ideal State Current State Business Plan “How do we make the startup more competitive and therefore more profitable? “

  4. Methodology Canvas Business Model Business Plan with Economic Sensitivity Analysis Recommendations

  5. CANVAS BUSINESS MODEL 4 major sectors Source: https://sites.google.com/site/moocmodulesnils/_/rsrc/1472851821761/marketing/the-business-model-canvas/BMC1.jpg

  6. Key Activities Key Partners Business Model Value Proposition Channels

  7. Economic Sensitivity analysis Client’s information 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 • 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

  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

  9. Economic Sensitivity analysis Production rate < 225.000 kg/year NPV < 0$

  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 Selling price 1,5 $/kg 1,20 $/kg 3 employees 100,000 kg rice/year Increase the selling price, reduce production rate, hire less employees

  11. Recommendations • 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).

  12. Austin Cross, Alice Dien, Ziqra Raza Thankyou! AnyQuestions?

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