Business Plan · 2020. 11. 17. · Business Plan Abdul Rahim Dumbuya ... Miro for instance used their trees to produce Timber, charcoal, and plywood. In order words, the forest they

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Business Plan

Abdul Rahim Dumbuya

Providing Forests and trees through reforestation and Afforestation

programme which is of vital contributions both to people and the planet.

Providing Seed Bank for sustainable Agro-forestry practice.

Providing eco-friendly environs.

A g r i c u l t u r e a n d F o r e s t r y

5 B A I L E Y S T R E E T O F F R A I L W A Y L A N E , B R O O K F I E L D S

2 3 2 8 8 8 7 1 7 3 1

[ T y p e t h e f a x n u m b e r ]

7 / 2 5 / 2 0 2 0

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Table of Content

1 Introduction / Executive Summary ......................................................................................................................................................................................................................... 2

Business idea or concept (including the social mission ......................................................................................................................................................................................... 2

1.2 The Target Market and Size ............................................................................................................................................................................................................................. 2

1.3 The Target Customers (Customers Profile) ...................................................................................................................................................................................................... 2

1.4 Competitive Advantage .................................................................................................................................................................................................................................. 2

1.5 Barriers to Entry ............................................................................................................................................................................................................................................... 3

1.6 Estimated Year of Breakeven Profitability ....................................................................................................................................................................................................... 3

1.7 Estimated Quantitative Social Impact .............................................................................................................................................................................................................. 3

1.8 Three years of Estimated Revenues and Net Income ...................................................................................................................................................................................... 3

1.9 Funding Requirements ..................................................................................................................................................................................................................................... 4

1.10 Risk Mitigation ................................................................................................................................................................................................................................................... 4

1.11 Business Continuity ............................................................................................................................................................................................................................................ 4

2. Business Overview ................................................................................................................................................................................................................................................. 5

2.1 Company Description and Business Model ...................................................................................................................................................................................................... 5

2.2 Value Proposition- Financial and Social Elements ........................................................................................................................................................................................... 5

2.3 Vision ................................................................................................................................................................................................................................................................ 5

2.4 Current Status of Development ....................................................................................................................................................................................................................... 5

2.5 Current or Committed Funding and all Funding Sources ................................................................................................................................................................................. 6

3. The Market Opportunity (the problem, the customer’s pain) ............................................................................................................................................................................... 6

3.1 Why is this great idea? Define the problem, describe the pain....................................................................................................................................................................... 6

3.2 Competitive Analysis (How the Problem is not being solved by Competitors) ............................................................................................................................................. 7

4. Market Solution ..................................................................................................................................................................................................................................................... 8

4.1 Description of a Working model (or Production cycle if Relevant, or Prototype, etc…) ................................................................................................................................. 8

4.2 Ability to Create Barriers to Entry .................................................................................................................................................................................................................... 9

5.1 Market Potential ............................................................................................................................................................................................................................................ 10

5.2 Market Size, Analysis and Forecast ................................................................................................................................................................................................................ 10

5.3 Industry Analysis and Forecast....................................................................................................................................................................................................................... 10

5.4 Marketing Plan ............................................................................................................................................................................................................................................... 11

6. Implementation Roadmap ................................................................................................................................................................................................................................... 12

6.1 Milestones (how long it takes to your project to get off the ground?) ......................................................................................................................................................... 12

7. Management Team .............................................................................................................................................................................................................................................. 13

7.1 Founders and Key Management .................................................................................................................................................................................................................... 13

8. Financial Plan ....................................................................................................................................................................................................................................................... 14

8.1 Outline Overall Financial Model with Detailed Projections through Year 3 including: ................................................................................................................................. 14

8.2 Other Analysis, as Appropriate (i.e. Break Even Analysis) ............................................................................................................................................................................. 17

8.3 Discuss Assumptions and Capital Requirements ........................................................................................................................................................................................... 17

9 Risk Analyses ......................................................................................................................................................................................................................................................... 17

9.1 Limiting factors and obstacles ....................................................................................................................................................................................................................... 17

9.2 Critical success factors ................................................................................................................................................................................................................................... 17

9.3 Specific Risks and Countermeasures .............................................................................................................................................................................................................. 18

10.2 What form of funding are you looking for (equity vs. debt)? ...................................................................................................................................................................... 18

10.3 How will you use that money? ..................................................................................................................................................................................................................... 18

11. Social/Environmental Quantitative Impact Analysis .......................................................................................................................................................................................... 19

11.1 Definition of your Social Value Proposition ................................................................................................................................................................................................. 19

11.2 Quantification of Your Top Three Social Indicators ..................................................................................................................................................................................... 19

List of Prices for Tree Species................................................................................................................................................................................................................................... 21

List of Tables and Diagram Page ..................................................................................... 22

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1 Introduction / Executive Summary

Business idea or concept (including the social mission

FJ Business Solutions SL. Ltd is a social enterprise growing variety of tree species through silvicultural practice. Tree species are

nursed for sales, Technical cooperative programs, landscape beautifications and commercial forestry. Sales are made to a represented

customer segment through wholesale and retail. Most specific, local Agro dealers and local farmers will be of a special target. The

market price of germinated seedlings is Le 70,000 (US$7). Since the company core commitment is on CLIMATE MITIGATION AND

FOOD SECURITY towards SUSTAINABLE DEVELOPMENT PATHWAY, the product will be made available at Le 50,000 (US$5) as

sales value.

Ornamental tree species will also be nursed for Landscape beautification projects. As part of company’s activities, landscaping will

be targeted for high net worth individuals and corporate organizations who wish to extend their Cooperate Social Responsibility (CSR)

on eco-friendly programs.

FJ Business Solutions SL. Ltd will offer Technical Corporative Programs (TCP), with support from Government, impact investors and

key partners. Cooperative programs will be developed to needed schools by embarking on schoolyard garden or orchard. Both the

product (seedlings) and after- sales services (to include germination of seedlings and transplanting) will be rendered. Pricing of such

programs will be done based on their volume. The company also offer training in Agribusiness and consultancy service on tree

planting afforestation, Land beautification, all of these at affordable fees

1.2 The Target Market and Size

Our total market size is the total available population in the Northern Area, Southern Area, Eastern Area and Western Area districts.

Thus, the potential market of FJ Business Solutions SL. Ltd is the Western Area districts and the Northern District. These are the

consumers with some level of interest in tree species for agribusiness and environmental protection management. The size of project

potential market gave the company some insights, as to the level of investments necessary for the Market. The qualified potential

market comprises: those people, organizations & businesses who have the money or financial options to buy the product.

1.3 The Target Customers (Customers Profile)

In terms of its customer type, size, and product use; the company actual customers are exclusively determined based on project

proposal designed. For market niche, it will target MDA’s, councils and high net worth individuals located both national and

international with the purchasing power to pay for seedlings on various agendas proposed. These customers/client purchase

seedlings from the business purely for environmental management programs or food sustainability agenda. Tree planting forms over

80% of the required Restoration needed to combat climate change alert (world economic forum 2017). Therefore, market demand for

tree species is in high demand. Hence, the propensity of growth rate in terms of both sales volume and sale value will be projected

on a steady increase by 2028.

1.4 Competitive Advantage

Though there are many competitors in the nursery and forestry industry, the business, identified the following key competitors. They

include:

• MIRO FORESTRY (a company founded by a Ghanaian)

• YOUNG WOMEN AGRICULTURAL COOPERATION

Comparatively, the competitive advantage in the market is because of the project low cost of production with high production quality.

The company is also protected by the local content policy of industrialization. With this, the business position within the market will

be easily identified with a niche from the available market.

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Apart from technical strategic agendas, FJ Business Solutions SL. Ltd will also offer Technical Corporative Programs (TCP), with support

from impact investors and key partners, cooperative programs to needed schools which will provide quality differentiation and display

unique identity to our core value.

Also, in terms of sustainable development pathway (SDG 13), FJ Business Solutions SL. Ltd has a sustainable contribution than its key

competitors. Miro for instance used their trees to produce Timber, charcoal, and plywood. In order words, the forest they have

established for sustainable drive are deforested again. As a company, we consider them to be income driven rather than sustainable

impact driven.

1.5 Barriers to Entry

There are no stringent barriers for new entrants in the forestry industry. The forestry industry has a specific technical requirement

which militates against the growth of many competitors within the industry. The only advantage the firm can occupy rests on its

positioning strategy. The company however hope to develop and acquire some patent rights on its proposed strategic activities.

These proposed strategic activities and programs are a new phenomenon for climate change, SDGs 13 (Climate Action) and we will

follow the policy framework and implementation in West African, Sierra Leone.

The funding for such activities is limited and the culture of the community to grow trees is of a big concern. It cost time to raise

money for periodic research and implementations are professionally not available. With the business team of expert and well design

strategies, we tend to create an edge within the forestry industry.

1.6 Estimated Year of Breakeven Profitability

The company projects to breakeven upon achieving sales volume of 3,030,309 trees species in the fifth year of operations. We intend

increasing our production capacity of tree species and multiple yields to 40% that will enable sales growth and awareness campaign

on the restoration of our environment.

1.7 Estimated Quantitative Social Impact

Embarking on afforestation on coastal restoration program will enhance the preservation of the forest and increase self-created

awareness about climate change and deforestation. Planting 50,000,000 trees species within 10 years we hope to mitigate climate

risk by 20% in 15 years, reduce hunger and poverty index by 30% in 25years, provide a healthy environment for living species by

15% in 20 years, reduce unemployment rate by 5% in 15years, increase industrial innovation and infrastructure of the youth by 40%

in 50years and improve on animal species habitat by 10% in 20years etc.

1.8 Three years of Estimated Revenues and Net Income

We have difficult revenue streams, but the activities on planting forecast a revenue projection amounted to Le 10bn in 6 years

operational period.

FJ BUSINESS SOLUTIONS SL LTD

INCOME STATEMENT (SLL)

LEONES YEAR -1 YEAR -2 YEAR -3

% % Revenue from Customers 25,000,000,000 99% 37,500,000,000 99% 56,250,000,000

Revenue from other sources 200,000,000 1% 240,000,000 1% 288,000,000

Total Revenue 25,200,000,000 100% 37,740,000,000 100% 56,538,000,000

Net Income (Loss)

(21,500,000)

(381,000,000)

(1,494,562,500)

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1.9 Funding Requirements

At this initial startup phase, the company is sourcing Le 40 bn ($ 4M) as a grant from the Government, Venture philanthropist, Impact

investors, partnership, angel investors etc. for the startup and scaling up stage of the business which encompasses (designing,

acquiring land space, purchase of delivery vans, recruitment, and business operations etc.

As a sustainable business, growth is part of the company’s long-term strategic plan. In achieving such, the company have developed

an out-grower scheme as a long-term strategy that will be of futuristic proceeds to FJ Business Solutions SL. Ltd. Agricultural business

has untapped opportunities, so we ought not to relent.

With this, the long-term business requirement specification requires an investment portfolio amounted to Le 160 billion (US$ 16

Million) compare to that of our key competitors’ investment portfolio of US$ 73 Million.

FJ Business Solutions SL. Ltd is also inviting interested investors for an Equity shares with 35% return on investment after 8 years

of investment. We further extend invitations for technical assistance from international organizations on a strategic alignment.

1.10 Risk Mitigation

The company has designed a risk mitigation strategy which will aid in tackling both foreseen and unforeseen risks that will tend to

militate on the proposed sustainable value.

One way among others is the company effort to build on investor’s confidence. By doing so, the company has created a secured

investment portfolio disbursement platform by allowing credible banks and legal institutions to serve as an investment mediator.

Also, intending investors can inject their technical labor into the company’s operation to aid in achieving their core returns on

investment.

1.11 Business Continuity

As the company’s core value is on climate mitigation and food security, the business contunity plans include among others:

a. Out grower scheme for the establishment of commercial forestry

b. Value addition on agrobusiness products from the forest, etc.

With the company laid down business continuty strategic plans, the company hope to reach a net worth of Le 500,000 Billion

( US$ 50M) within 20 years of activty operation.

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2. Business Overview

2.1 Company Description and Business Model

FJ Business Solutions SL. Ltd is a social enterprise embarking on growing tree species for environmental risk mitigation and source

of food security. We do sales germinated tree seedlings to identified customer segment base on a specific interest. The adaptable

process used by the company is called the SILVI-CUTURAL practice which is basically means the use of local technology.

The company engage in sales at an affordable price model. The marketing strategy does not emphasize sales value but social impact.

It is believed that human existence depends/relies on a better environment and available food for all.

The company’s model intended solution is universal, but we have started by localizing our strategic plan. The company embark on

afforestation and coastal restoration programs. These activities will lead us to the process of replanting lost species that were affected

either by human activities or natural causes.

Similarly, the company shall be carrying out environmental and agribusiness research to further the implementation of our strategic

objectives.

The company shall also be conducting agro-tech business training: as cooperate social responsibility, training for Agro entrepreneurs

will be conducted as an eye-opener to the opportunities in agricultural career path.

2.2 Value Proposition- Financial and Social Elements

Providing trees species that will boost reforestation and afforestation programs that will ultimately be of vital importance/relevance

to both people and the planet, providing seed bank for Agro-Forestry practices and providing eco-friendly environs.

2.3 Vision

To make the world a better place for all living species.

2.4 Current Status of Development

We are on school tree planting programs where we plant trees at various school compounds and carry out training programs for

pupils and student in primary and secondary schools, respectively.

See Picture below

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2.5 Current or Committed Funding and all Funding Sources

The company’s committed as Board of Directors with our saving from current employment to carry out the tree planting program,

and how we can get the required skills needed to nurse quality seedlings. This is basically what is involved in our designing stage.

We have put together Le 150M (US$ 15,000).

3. The Market Opportunity (the problem, the customer’s pain)

3.1 Why is this great idea? Define the problem, describe the pain

Sierra Leone has been labelled an environmental risk country owing to massive deforestation with 70% of its rain forest deforested.

From 2001 to 2017, Sierra Leone lost 1.19Mha (Million Hectare) of tree cover, equivalent to a 21% decrease since 2000, coupled with

96.3Mt (Million tons) of CO2 of emissions into the ozone layer (global climate index). Plants that should absorb the CO2 through

photosynthesis, are destroyed daily through human activities. This is a risk indicator for massive Global challenge. Also, 80% of

terrestrial animals and plants cannot survive the deforestation that destroys their natural habitat. See images of some identified

deforested environment, it current status and risk potential.

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Also, the rapid increase in human population has the propensity to undermine sustainable long term livelihood if solutions to meet

the future burden on society is not meet. As the world population increases on an alarming rate, society will tend to be overburdened

to cater for these increased population. "Life on land will one day greater than the available food to meet its existence" (THOMAS

MALTHUS). Hence food insecurity will be of a futuristic treat.

3.2 Competitive Analysis (How the Problem is not being solved by Competitors)

There are competitors in the nursery and forestry industry, the business, however, identified the following key competitors. They

include:

• MIRO FORESTRY (a company founded by a Ghanaian)

• YOUNG WOMEN AGRICULTURAL COOPERATION

FJBUSINESS SOLUTION has a competitive advantage over the prime competitor (MIRO) when it comes to per unit production cost,

which is, in its own case lower, comparatively. We are practicing a SILVI-CULTURAL system that involves a local technology to nurse

seeds into seedlings.

Due to the huge capital intensity that is required to move the business forward, I will be honest to say MIRO is highly capitalized.

SWOT ANALYSIS

STRENGTH: LOCALIZATION- FJBUSINESS SOLUTION is locally owned and controlled; hereby protected by the local content policy. If we

are to go by such policy, I believe this strength has the propensity to propel us to mass coverage thereby gaining an advantage in

the industry.

Low-cost leader----- The Company’s per-unit cost of production is low as compared to other competitors.

WEAKNESS: Weak technology--- the business technological input is poor, and this had derailed our production capacity and product

uniqueness. It is a strong weakness we aim to address to curtail the edge over us.

Table 1 Show a Competitive Analysis

CHARACTERISTIC FJ BUSINESS SOLUTIONS SL. LTD

MIRO FORESTRY YWAC

Capital Intensive Medium High Low

Technology Low High Low

Production Cost low High Medium

Market Shares Low High Low

Production capacity Low High Low

Reputation Medium High Low

Profitability Low High Low

Website Low High Medium

Characteristics of the leader Medium High Low

Product Uniqueness Medium High Low

STRENGHT 1. Localization and Low-cost leader

1. Skills and Expectation

2. High capital incentives

Creative Leader

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2. High sustainable impact

WEAKNESS 1. Weak technology due to low capital available

1. Cost disadvantage and low sustainable impact

No clear strategic direction

4. Market Solution

The business concept is aimed at tackling climate conditions by providing tree species through silvicultural practices in Bombali,

Port-Loko, and Western Area districts in Sierra Leone. The tree covers forms over 70% of the eco-management. Due to massive

deforestation and unhealthy industrial activities, our planet is in a treat of evolving catastrophic climate conditions.

In Sierra Leone, reforestation activities are deemed low and seem disinterested by many especially so when the practice of nursery of

seedlings is unattractive and perceived as menial by Sierra Leoneans. Notwithstanding, global acceptability is gradually on the

increase. In 2018, global data report shows that 4.5 million hectares of tree covers were established every year through silvicultural

practices.

On the other hand, tree viability for cash crops consumption has been on the increase both locally and internationally. 1,000,000

cash crop species were demanded in 2018 by the local authority to recover 500 hectares of land in the southern region. In 2015 an

estimated 26,000 tons of ornamental tree species and flowers were exported. These quantities of tree species nursed every year

cannot meet the high demand or need of trees looking at the risk associated with our planet. There are few competitors seriously

involving in an intensive nursery of tree species in the country. These few foresters cannot meet the high demand for trees needed

nationwide. The need for the intensive nursery, promotion, and marketing of tree species for forestry, coastal restoration and

agricultural sustainability cannot be overemphasized and should remain among the topmost considerations for social impact

ventures.

Therefore, the business idea is determined to make use of product characteristics or customers’ benefit as a positioning strategy.

This strategy focuses on the characteristics of the product. The positioning strategy is to provide an improved variety of tree species

with affordable price, stable supply, punctual restoration, good reputation, and sustainable impact on the society.

4.1 Description of a Working model (or Production cycle if Relevant, or Prototype, etc…)

FJ Business Solutions SL. Ltd is engaging on Silvi-cultural Practice as to embark on Afforestation and Coastal restoration programs,

Agricultural Research and Development, Agro- business Training for SME’s Urban and Landscape beatifications through the sales of

nursing seedlings. Sales are made to the entire represented customer segment (wholesale and retail). Most specific are local Agro

dealers, local farmers, and impact customers. They will be of a special target as germinated seeds will be sold to them. The market

price of germinated seedlings is Le 70,000 (US$ 7), but the company intend selling its product for Le 50,000 (US$ 5). This is because

of the company’s core commitment to CLIMATE MITIGATION AND FOOD SECURITY towards SUSTAINABLE DEVELOPMENT

PATHWAYS.

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Ornamental tree species will also be nurse for beautification projects. As stated on the activities, landscaping Ornamental tree

species will also be nursed for beautification projects. As stated on the activities, landscaping will be targeted for high net worth

individuals and corporate organizations who want to extend their CRS on eco-friendly programs, with support from impact investors

and key partners, cooperative programs will be developed to needed schools by embarking on schoolyard garden or orchard. Both

the product (seedlings) sales and after-sales service will be rendered. The pricing model for such programs will be on VOLUME which

will factor our after-sales services that involve the transplanting and germination of seedlings.

4.2 Ability to Create Barriers to Entry

There are no stringent barriers to entry, however, the company have developed strategic industry safety plans that will enable the

business programs and activities to be highly patent. For instance, we are the only forestry business within the industry that target

student and schools in agribusiness training and introducing green classroom project nationwide.

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Furthermore, FJ Business Solutions SL. Ltd is embarking on afforestation and coastal restoration programs which activity will lead us

to the process of replanting lost species that were affected either by human activities or natural causes. The business activities and

program are a new phenomenon for climate change SDGs 13 (Climate Action) and we followed the policy framework and

implementation of forestry infrastructure in West African and Sierra Leone particular.

5.1 Market Potential

The market potential is the valuation of the sales revenue from all the demanding channels in the market. In other words, it is the

potential money-making capability of our firm if it capitalizes on all competitive advantages and business strategies.

FJ Business Solutions SL. Ltd market potential for 500,000 seedlings will worth Le 25 Billion (US$ 2.5 Million) in sales each year, which

is a measure of both sales volume and sales value per year.

5.2 Market Size, Analysis and Forecast

The actual market is made up of the target group who buy and use seedlings. The Actual market is the segment of the industry

qualified potential market that the firm has decided to serve (the server market). The business was able to locate its Actual Market

key customers within its qualified potential market in Western Area district and the Northern area district. These customers/clients

are exclusively derived from our strategic plan with Municipal schools, local organizations, MDA’s, international NGOS, Local NGOS,

impact investors etc. (by mainstreaming their CRS in trade).

However, diagram 1 depicts a further market analysis of my markets base on geographic segmentation.

Diagram 1. Market Analysis

5.3 Industry Analysis and Forecast

The business competitive advantage is a set of unique features of the company and its product perception by the target market is

coupled with our supremacy over some competitors. It is the core reason behind our brand loyalty, and why we prefer one product

or service over another. With this, the business has developed a business strategy that will yield sustainable competitive advantages

for the company and maintain shared positioning.

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Below is a diagram showing the industry analysis and our present market share.

Diagram 2 Industry Analysis

The industry involves high capital requirement. In terms of portfolio investment, Miro Industry was able to secure a portfolio

investment of US$ 73 Million which position them as the topmost competitors in the industry. They have very strong agricultural

methods used for nursery with greenhouse technology and electricity transmission pole treatment for the plant with a capacity to

produce one (2) million tree species per annum.

On the other hand, FJ Business Solutions SL. Ltd has a very low technology and farm input which derail our production capacity and

uniqueness. However, FJ Business is benching its key performance indicators on low-cost strategy as against Miro forestry and related

competitors.

Fundraising is a major problem for FJ Business Solutions SL. Ltd; we cannot raise fund from the government side due to political

pressures and lack of budget funding from the Ministry of Agriculture Forestry and Food Security. However, with the establishment

of the new Ministry of Environment, there is an opportunity for the business to flourish through a program with the ministry to

complement effort in protecting the environment.

The company is on the high demand for funding from any reliable source whose interest directed towards sustainable development.

5.4 Marketing Plan

In marketing planning, market positioning should be a key focus to ascertain the consumers’ perception of our product brand over

related competing brands or product. Our marketing strategies are further broken down into three categories: 1. Product positioning

(for example, seeking to find a unique niche within the market for our product, in which, ideally; addresses a customers’ need over

other product), 2. Brand positioning and 3. Service positioning.

The business concept is aiming at tackling climate conditions by providing tree species through silvicultural practices in Northern,

Eastern, Southern, and Western Area districts in Sierra Leone. The tree covers forms about 70% of the eco-management in Sierra

Leone. Due to massive deforestation and unhealthy industrial activities, our planet is in a treat of evolving catastrophic climate

conditions.

In Sierra Leone, reforestation activities are deemed low and seem disinterested by many especially so when the practice of nursery of

seedlings is unattractive and perceive as a menial career by Sierra Leoneans. Notwithstanding, global acceptability is gradually on the

increase. In 2018, global data report shows that 4.5 million hectares of tree covers were established every year through silvicultural

practices (World Bank database).

On the other hand, tree viability for cash crops consumption has been on the increase both locally and internationally. 1,000,000

cash crop species were demanded in 2018 by the local authority to recover 50,000 hectares of land in the southern region. In 2015

an estimated 26,000 tons of ornamental tree species and flowers were exported. These quantities of tree species nursed every year

cannot meet the high demand or need of trees considering the risk associated with our planet. There are few local competitors

seriously involving in an intensive nursery of tree species in the country. These few foresters cannot meet the high demand for trees

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needed nationwide. The need for the intensive nursery, promotion, and marketing of tree species for forestry, coastal restoration

and agricultural sustainability cannot be overemphasized and should remain among the topmost considerations for social impact

initiatives.

Therefore, the business idea is determining to make use of product characteristics and customers’ benefit as a positioning

strategy. This strategy focuses on the characteristics of the product: to provide an improved variety of tree species with affordable

price, stable supply, punctual restoration, good reputation, and sustainable impact to the society.

With the above, FJ Business Solutions SL. Ltd will provide quality tree species with reasonable humidity and affordable price

(PENETRATION PRICING). My marketing plan is mainly on social impact amidst the competitive business environment. The idea is

that the business will be able to raise awareness and get people to see the importance of planting trees.

6. Implementation Roadmap

6.1 Milestones (how long it takes to your project to get off the ground?)

Below is a line graph that shows the implementation road map of FJ Business Solutions SL. Ltd.

Diagram 3 Implementation Road Map

0

10,000,000,000

20,000,000,000

30,000,000,000

40,000,000,000

50,000,000,000

60,000,000,000

70,000,000,000

80,000,000,000

LAND LEASE, LICENCES AND PARTNERSHIP

STAFF RECRUITMENT ( 70% LOCAL AND 30% FOREIGN),

PURCHASE OF SILVI-CULTURAL EQUIPMENTS,

NURSURING OF SEEDLINGS AND PROGRAMS

IMPLEMENTATIONS.

MARKETING, RESEARCH, PURCHASING OF FORESTRY

EQUIPMENT AND MACHINERY, LAND

CLEARING, PLAUGHING, PLANTING,WEEDING AND FERTILIZER APPLICATIONS

SALES, OUT-GROWER SCHEME, FORESTRY

INFRASTRUCTURAL DESIGN, IMPACT EXHIBITION

COMPETITIVE STRENGTH, INCREASE IN SALES OUTLED,

SALES PROMOTION AND DISRIBUTIONS( LOCALLY AND INTERNATIONALLY)

RESEARCH AND DEVELOPMENT, IMPROVE

WEAKNESSES AND PREVENT NEW ENTRANT, PRODUCT

REDESIGN FOR CONTINIUOS INCOME FLOW, FORESTRY

MANAGEMENT

CEO CEO AND TEAM CEO AND TEAM CEO, TEAM AND PARTNERS CEO, MANAGEMENT TEAM AND SALES REPRESENTATIVE

CEO, MANAGEMENT AND PARTNERS

1ST HALF OF YEAR 1 SEED FINANCING STAGE 2ND HALF OF YEAR 1

EARLY FINANCING AND DEVELOPMENT STAGE YEAR

2

EXPANSION STAGE, YEAR 3 & 4

GROWTH AND MATURITY, YEAR 5

DECLINE AND RESTRUCTURING, YEAR 6

IMPLEMENTAION ROAD MAP

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7. Management Team

7.1 Founders and Key Management

FJ Business Solutions SL. Ltd has a formidable team with passion to solve environmental prone issues. The company maintain the

best human resource practices and follow the international equal employment opportunity standard. The company is supervised by

a board of directors from selected professionalism. The company intend in promoting youths, hence our human resource planning

will be geared towards youth empowerment.

Below is the company’s management team.

Abdul Rahim Dumbuya

CEO & Co-Founder

Dip Business Management and Entrepreneurship, Dip.in Legal Studies, BSc Hons in Economics, MSc in Development Management. He

has vast knowledge in Silvi-culture, Research and Entrepreneurship. He has got 7 years in forestry Infrastructural business process

and operation with consistent improvement through training in silviculture, management, business strategy, marketing, etc.

Abdul Rahim is an Economist working at the National Revenue Authority. His financial experience built a very strong background to

raise funds for SME’s. He has been engaging successive Governments, INGO’s, Development Organizations to rally around for funding

and investment opportunities for the company.

Furthermore, the CEO and founder is a candidate for the Global MBA in Impact Entrepreneurship from the University of Milan who is

partnering with the University of Makeni.

He is currently taking part in both national and international pitching competition for funding and grant as specified in the

implementation road map.

Saio Yanka

Advisory Board Chair

Holds BSc Hon in Accounting and Finance, MSc Finance, ACCA, MPhil Accounting. Has 6 years of experience in Corporate Finance and

budgetary control.

2Ltn Patricia Iyesatta Saio Sheriff

Board Member

Gender activist and Feminist of Feminist United Sierra Leone. Has strong passion for female agroprenuership and environmental

management. Holds a BA from Fourah Bay College and a master’s in public administration from Njala University. A commissioned

officer of Republic of Sierra Leone Armed Forces. Host of Radio talk show "Talk With Tee" that is aired on AfriRadio 105.3 FM and live

on Facebook. CEO Iyetricia's Touch.

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Sheikh Omaru Jalloh

Board Member

Holds a bachelor’s degree in commerce, Fourah Bay College, MSC Development Management, IPAM, Chartered Project Management

Analysts, Mini Master in Business Administration and ongoing Master in Public Administration, IPAM. He has worked for Sierra Leone

Investment and Export Promotion Agency as Investment Promotion Coordinator in charge of Energy, Fisheries and Agribusiness

sectors between the years 2013 - 2017. Joined Orange Sierra Leone Limited as Mass Marketing, Trade Animation and Communications

Executive in the marketing department from 2017. His expertise in portfolio investment management earned him a global accolades

in public private partnership strategies and investment policies in Dubai, investment promotion expert for African coastal state in

China, investment portfolio negotiation expert in Ivory Coast etc.

Dr. Eugene Pratt

Board Member

Esther Kamara

Director of Human Resource

Holds a bachelor’s degree in Social Work Fourah Bay College, master’s in business administration at Cyprus international University.

Has 8 years’ experience in corporate management and strategy. Has worked for the European Union as a Court Monitor. Has also

worked as a psycho-social coordinator Prison watch Sierra Leone.

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Sahid Saidu Kargbo

Director Cooperate Affairs

Holds LLB, Dip in Leadership, Dip In sustainable Development. He has 6 years’ experience in leadership, sustainable

development and Managing businesses across Sierra Leone.

Peter Kamanda

Project Manager

Holds BSc Hon History and Politic, Msc Development Management. He received training conducted by Miro Industry on

forestry management, nursing research and development. This has improved our project management capabilities that

align with strategic forestry management.

Hussainatu Shaw

Program Outreach

A graduate from IPAM with a bachelor’s degree in Business Administration (first class). A result-oriented person

experience in providing administrative knowledge and expertise towards organizational process and goals. A patient,

polite, well organized, and hardworking person with an excellent communication and writing skills.

Nyakeh Dugba

Field Manager

Holds BSc Hons in forestry and wildlife management. Has vast experience in agricultural and forestry, has also spent 6

years with the Agricultural Research Institute on a study on the deforestation and silvicultural practice in Sierra Leone.

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Below is a table showing Employee Salary

Table 2 Employee Salary

Personnel/Employees Year -1 Year -2 Year -3

Executive Assistant 5 5 7

Monthly Stipend 5,000,000 6,000,000 7,000,000

Working months per year (Seasonality) 12 12 12

Total Stipend for Proprietor

300,000,000.00

360,000,000.00

588,000,000.00

Other Employees

Skilled Labour 150 300 500

Stipend 3,200,000 3,500,000 4,500,000

No. of months (Seasonality) 12 12 12

Total Skilled Labour

5,760,000,000.00

12,600,000,000.00

27,000,000,000.00

Unskilled Labour 100 100 140

Stipend 1,000,000 1,200,000 1,800,000

Total Unskilled Labour

100,000,000.00

120,000,000.00

252,000,000.00

Total Personnel/Employees Cost

6,160,000,000.00

13,080,000,000.00

27,840,000,000.00

8. Financial Plan

8.1 Outline Overall Financial Model with Detailed Projections through Year 3 including:

Pro Forma Income statement


INCOME STATEMENT (SLL)

LEONES YEAR -1 YEAR -2 YEAR -3

% % Revenue from Customers 25,000,000,000 99% 37,500,000,000 99% 56,250,000,000

Revenue from other sources 200,000,000 1% 240,000,000 1% 288,000,000

Total Revenue 25,200,000,000 100% 37,740,000,000 100% 56,538,000,000

Direct Costs/COGs 10,135,000,000 40% 13,675,500,000 36% 18,528,150,000

Gross Margin 15,065,000,000 60% 24,064,500,000 64% 38,009,850,000

Cost of Personnel 6,160,000,000 24% 13,080,000,000 35% 27,840,000,000

General Expenses 2,223,000,000 9% 4,518,000,000 12% 4,889,200,000

Other Cost 544,000,000 2% 612,000,000 2% 668,000,000

CSR 1,000,000,000 1,200,000,000 1,440,000,000

EBITDA 5,138,000,000 20% 4,654,500,000 12% 3,172,650,000 Depreciation 5,150,000,000 5,150,000,000 5,150,000,000

EBIT (12,000,000) (495,500,000) (1,977,350,000)

Financial Income Expenses 9,500,000 12,500,000 15,400,000

Extraordinary Income/Loss - - -

EBT (21,500,000) (508,000,000) (1,992,750,000)

Corporate Taxes @ 25% - (127,000,000) (498,187,500)

Net Income (Loss) (21,500,000) (381,000,000) (1,494,562,500)

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Pro Forma Cash Flow


Statement of Cash Flow

SLL YEAR- 1 YEAR-2 YEAR-3

EBITDA

Increase (Decrease) Intangible Assets

(250,000,000.00)

(250,000,000.00)

(250,000,000.00)

Increase (Decrease) Tangible Assets

(20,600,000,000.00)

(15,450,000,000.00)

(10,300,000,000.00)

Increase (Decrease) Inventory 0 0 0

Increase (Decrease) Payables

10,135,000,000.00

13,675,500,000.00

18,528,150,000.00

Increase (Decrease) Receivables

(25,200,000,000.00)

(37,740,000,000.00)

(56,538,000,000.00)

Cash Flow from Operating Activity

(35,915,000,000.00)

(39,764,500,000.00)

(48,559,850,000.00)

Increase (Decrease) Funds 0 0 0

Extraordinary Income(Loss) 0 0 0

Taxes 0 0 0 Cash Flow From Before financing activities

(35,915,000,000.00)

(39,764,500,000.00)

(48,559,850,000.00)

Financing Activities Increase (Decrease) Long Term Borrowing

35,915,000,000.00

39,764,500,000.00

48,559,850,000.00

Increase(Decrease) Equity 10,000,000.00

10,000,000.00

10,000,000.00

Net Cash Flow

35,925,000,000.00

39,774,500,000.00

48,569,850,000.00

Cash and cash equivalent @ start 10,000,000.00

10,000,000.00

10,000,000.00

Cash and cash equivalent @ close 10,000,000.00

10,000,000.00

10,000,000.00

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Pro Forma Balance Sheet


BALANCE SHEET

YEAR -1 YEAR -2 YEAR -3

NON-CURRENT ASSETS TANGIBLE ASSETS

Delivery truck

5,600,000,000.00

4,200,000,000.00

2,800,000,000.00

Planting Tools (sets) 12,000,000,000.00

9,000,000,000.00

6,000,000,000.00

Computer and accessories

1,800,000,000.00

1,350,000,000.00

900,000,000.00

Printer and accessories

1,200,000,000.00

900,000,000.00

600,000,000.00

INTANGIBLE ASSETS

20,600,000,000.00

15,450,000,000.00

10,300,000,000.00

License

250,000,000.00

250,000,000.00

250,000,000.00

TOTAL NON-CURRENT ASSETS 20,850,000,000.00

15,700,000,000.00

10,550,000,000.00

RECEIVABLES 25,200,000,000.00

37,740,000,000.00

56,538,000,000.00

CASH & BANK

10,000,000.00

10,000,000.00 10,000,000.00

INVENTORY 0.00 0.00 0.00

TOTAL CURRENT ASSETS

25,210,000,000.00

37,750,000,000.00

56,548,000,000.00

TOTAL ASSETS

46,060,000,000.00

53,450,000,000.00 67,098,000,000.00

EUITY & LIABILITIES

Share Capital

10,000,000.00

10,000,000.00 10,000,000.00

LIABILITIES NON-CURRENT LIABILITIES

Long term borrowings 35,915,000,000.00

39,764,500,000.00

48,559,850,000.00

CURRENT LIABILITIES

Trade Payables 10,135,000,000.00

13,675,500,000.00

18,528,150,000.00

TOTAL FINANCIAL SOURCES

46,060,000,000.00

53,450,000,000.00 67,098,000,000.00

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8.2 Other Analysis, as Appropriate (i.e. Break Even Analysis)

We are not considering Goods and services tax because of government regulation under the finance Act 2020; exempting

Food and Agricultural activities. Hence, leverage on our fixed and variable cost of production. Notwithstanding, our

compliance desire cannot be overemphasized. Below is a breakeven analysis.

Currency

Leones (000)

Production Unit

Tree Species

Price per Unit

50,000

Variable costs

SEEDS/lb

3,000

POLYTHENE BAGS Rs 125 kg

10,000

Variable costs total

13,000

Margin per unit

37,000

Fixed costs Price Quantity* LifeSpan

Costs subject to depreciation

Years

Delivery truck 350,000,000 20 5 1,400,000,000

Equipments ( varies) 125,000,000 150 5 3,750,000,000

Operating Expenses including HR

Administration expense 2,223,000,000

8 17,784,000,000

Rent 1,230,000,000

8 9,840,000,000

Licenses 750,000,000

8 6,000,000,000

Land Lease 9,795,450,000

1 9,795,450,000

Salary employees 6,160,000,000

10 61,600,000,000

Marketing/ OUTREACH 244,000,000

8 1,952,000,000

Total fixed costs per year

112,121,450,000

Break even

3,030,309

8.3 Discuss Assumptions and Capital Requirements

The company intend to spend projected investment funds of Le 160 billion (US$ 16 Million) as capital requirement. Since

2019 to date we have spent Le150 million (US$ 15,000) from the idea stage to the seed stage financing. There is an

investment potential, so the CEO and founders are lobbying for funding through international organization and impact

communities to expand on the company’s mission and vision by 2030.

9 Risk Analyses

9.1 Limiting factors and obstacles

Access to capital is a limiting factor for FJ Business Solutions SL. Ltd. Commercial Forestry business is highly capital

intensive and requires standard technical practices. If we are to go by the best international practice, the forestry industry

requires standard tools and operational greenhouse technology to enhance quality tree species. Against these

specifications, FJ Business Solutions SL. Ltd is still faced with challenges in meeting the required portfolio investment.

9.2 Critical success factors

The company’s continuous effort has derived us with an establishment of environmental school clubs and green

classroom concept across random municipal schools within Freetown. We intend to translate needful knowledge on

agribusiness opportunities and environmental preservation techniques which most young and ingenious men are

shielding negative perception as a career path. See link: https://youtu.be/0sq0eZBE1cI?t=3

Also, the company has gain international recognition for its social impact contributions. See link:

https://e4impact.org/champions/abdul-rahim-dumbuya/

https://youtu.be/0sq0eZBE1cI?t=3https://e4impact.org/champions/abdul-rahim-dumbuya/

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9.3 Specific Risks and Countermeasures

There is the risk of cutting down of trees on a restored environment. Human activities are ambiguous and cannot be fully

controlled. Hence to mitigate such risk, we are intending to engage in massive publicity and documentation drive to

cushion the implausible human activities posing threat to life and the environment.

Significantly, most biodiversity hot spots in Sierra Leone are contained in what is supposed to be protected areas: forest

reserves; community forests, national parks, game sanctuaries and other proposed protected areas. Alarmingly, because

of lack of government and community controls, these areas had been deforested with the rapid pace of widespread illegal

logging.

The company therefore aim to establish large forestry covers for sustainable biodiversity. We are looking at a funding

request of Le 160 billion for the entire forestry project. As a sustainable business, growth is part of our long-term

strategic plan. In achieving such, we have developed our out-grower scheme and strategies that will be of futuristic

proceeds to FJ Business Solutions SL. Ltd. Nursery business has untapped opportunities, so we ought not to relent on

improving on the corporate image once the investment portfolio is sourced.

10.2 What form of funding are you looking for (equity vs. debt)?

FJ Business Solutions SL. Ltd is looking for a strong partnership with the government of Sierra Leone to aid in

implementing government policy on the environment. We are also focusing on grants, venture philanthropy, venture

capital, equity funding (35% return on investment), and international Non-Governmental Organization working to

promote local solutions for a sustainable environment. Impact investors are also a consideration for the company at

this moment of financial needs.

Over the last two decade, UNDP has awarded over 4,500 grants; supporting the community-based initiative through

ministries and agencies that have entrepreneurs that can implement initiatives gear towards achieving global

environmental benefit in Biodiversity Conservation, Climate Change Mitigation, International Water Protection,

Sustainable Land Management and Sound Chemical Management. The company hope to integrate technical cooperative

programs with UNDP and any other organization that intend to mainstream it cooperate social responsibility on Climate

mitigation and Food security.

10.3 How will you use that money?

We shall be using monies generated from funding requirement for nursery, business operations, research, and

business development. The quality of seedlings output from nurseries will continue to increase over the years to come,

most importantly with mere optimal specification seedlings being ready, available (according to the plans), and

dispatched for planting only within proposed boundaries.

The funding expected will be put into further use through full participation in the R&D collective, from which the company

will receive improved varieties. This is expected to yield very positive results in the medium term.

Furthermore, monies will be used for plantation and forestry infrastructural improvement in silviculture, management

competencies and tooling; most significantly the quality of the seedlings being planted.

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11. Social/Environmental Quantitative Impact Analysis

11.1 Definition of your Social Value Proposition

The company will try to maintain its operations towards a high environmental and social standard. This choice of business

is in line with our objective to establish environmental friendliness and food security gearing toward sustainable

development goals.

11.2 Quantification of Your Top Three Social Indicators

FJ Business Solutions SL. Ltd.’s direct impact on sustainable reforestation and food security help to achieve sustainable

development goals which are:

These form the priority of the company and we are working towards achieving that by 2030.

The planting of tree species will improve the life on land with ventilation and evaporation of fresh air into the ozone

layer. Currently, we have 15 staff members inclusive of agricultural extension workers and university interns. As the

company move towards addressing a positive climate change, the focus is directing on tree planting and restoration

programs in the environment.

Table 3: Impact Chain Assessment

INPUT (COST) OUTPUT OUTCOME IMPACT Nursing Variety of Seedlings.

Eg. Neem Tree, Caranbola, Baji tree, Tombi tree, Guava tree,

Almon tree, Mango tree, Orange tree, Cocoa tree etc.

50,000,000 Tree Species. Retore 0.67 hectares of deforested lands, sustainable forest and reduce 0.92

metric tons of CO2 in 15 years.

Mitigate climate risk by 20% in 15years.

Double the agricultural productivity in tree planting and afforestation by 20% in

2028.

Reduce food insecurity by 10% in

25years.

Reduce hunger and poverty index by 30% in

25years.

Increase in the number of households with trees

planted in their backyards by 40% in 2024.

Increase in Agricultural practice

of household and eco-friendly

environment by 30% in 20years.

Provide health environment for living

species by 15% in 20years.

Staffing Jobs creation

Employ 5000 youths in 15years

Reduce unemployment rate by 5% in 15years

Trained 80,000 youths on

agroprenuership by 50years

Increase Industry Innovation and

Infrastructure of the youths by 40% in

50years

Forestry management 30,000,000 Variety of tree

species

Establish 0.35 ha forestry cover by

20years

Improve on animal species habitat by 10%

in 20years

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11.3 Discuss Key assumptions throughout the analysis

FJ Business Solutions SL. Ltd though a regulatory compliant company will assume government relief from paying GST

because we are carrying out agricultural activities and supporting government initiative for climate change and food

insecurity. We shall be engaging in capacity building programs, training, and development of the human capital through

school planting program and land beautification. We shall also engage government economic inclusion programs on

research and development on agribusiness opportunities. This will also support the Sustainable Development Goal 10

Reduced Inequality and Goal 1 No Poverty.

The company is in full support to fight climate change through skills and leadership development, environmental

protection sustainable sources and social well-being. “The company sells not the products but the solutions”.

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List of Prices for Tree Species

TREE SPECIES COST IMAGE

GUAVA 40,000

MANGO TREE 30,000

ALMOND TREE 35,000

ORANGE TREE 30,000

TOMBI TREE 35,000

AVOCADO TREE 40,000

BAJI TREE 50,000

NEEM TREE 30,000

CARAMBOLA TREE 35,000

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List of Tables and Diagram Page Table 1: Show Completive Analysis……………………………………………………………………………………………………………………………………………………………………………………6

DIAGRAM 1: Market Analysis ………………………………………………………………………………………………………………………………………………………………………………….9

Diagram 2: Industry Analysis ………………………………………………………………………………………………………………………………………………………………………………………9

Diagram3: Implementation Road Map……………………………………………………………………………………………………………………………………………………………………………..11

Table 2: Employee Salary ………………………………………………………………………………………………………………………………………………………………………………………14

Table 4: Impact Chain ……………………………………………………………………………………………………………………………………………………………………………………..26

Documents

Business Plan · 2020. 11. 17. · Business Plan Abdul Rahim Dumbuya ... Miro for instance used their trees to produce Timber, charcoal, and plywood. In order words, the forest they