Ghana Venture Capital Fund

BUSINESS PLAN FOR SUPPORT

THE RISING SUN (VANCE FARM) LTD
P. O. Box 1145 Tema
Ghana.
Tel: +233 24- 3063375
e-mail: rissfam@yahoo.com

1.0 Executive Summary

Introduction

Rising Sun Ltd is being formed as a private company producing horticultural crop to boost the agric industry in Ghana. The Rising sun Ltd is a limited liability company proposed to commence operation on September, 2008.

Rising sun Ltd will produce well improved quality pineapple, mangoes and chilli for both local and foreign market. An opportunity for the company’s success exists because of an increase in the demand of mangoes and pineapple in the international market. Rising Sun (Vance farm) is poised to take advantage of this growth.

The Company

The Rising Sun Ltd is a limited Liability company situated at Sawa- Asesewa Manya upper Klo District in the Eastern Region.

The principle investor and operators will be responsible for all assets acquisitions and company decisions.

The company’s goals over the next three years are;

• Sale of $30,000.00 by three years.
• Maintain margins of 10% on production of horticultural crops in the export market.
• Achieve 15% of sales from the Internet.
• Effect Segmentation and targeting of potential buyers of pineapple, mangoes, and chilli.
• Communicate the differentiation and quality of our produce through personal interaction, media, and regional marketing.
• Develop a repeat-business base of loyal customers in order to create sufficient sales.

Rising Sun Ltd shall be owned and operated by Mr. Peter Asare at Sawa – Asesewa in the Eastern Region of Ghana. The founder and employees of Rising Sun Ltd are experienced professionals and are passionate about producing sufficient, quality and improve pineapples, mangoes and chilli to meet both local and foreign marke

Market

The targeted market for the company is producing to both local and international demands for mangoes, chilli and pineapple producing.

Rising Sun Ltd is researching the market to identify potential opportunities for future sales in this rapidly changing environment. The company’s long-term goal is to establish itself as an internationally recognized producer of quality horticultural crop. This goal does not prohibit the company from participating in additional segment. It does, however, provide a corporate focus and a differentiated offering.
Rising sun Ltd has established relationships with providers of agric extension services at the district. This allows us to capture the 10% margin on sales that was for many years the industry standard. Market research has enabled us to identify and establish working relationships with exporters of such commodities around the world.
Rising Sun Ltd has been able to identify opportunity to capture margins of up to 25% from certain parties. Sourcing will be continuously evaluated. The company will take advantage of trade shows, travel industry publication, and other sources of industry-related information to monitor the quality of its produce.

Rising Sun Ltd pricing strategy will be a major consideration. Much of it will be determined by market standards. Sun rise ltd will attempt to maintain margins of 10% on all sales. Margins on all other product and services vary depending upon the provider but are expected to average 20%.

The company will also pursue an aggressive marketing campaign to stay competitive in the market. With an experienced and professional staff, excellent location, effective management and marketing strategies, the company hopes to be un-top in the horticultural industry.

Specialty, rather than large national publications, will serve as media vehicles for Sun advertising. Local radio station will also be used. Personal advertising will occur, though phone solicitation will be limited.

Management

Rising Sun Ltd will begin operations with four full-time positions. The positions are as follows; general manager and president: Mr. Peter Asare; marketing and advertising director, a supervisor and accountant.

The company does not expect any problems with expenses or cash flow within the next three years. Annual cash flow for the first year of operation becomes positive in the second quarter of operation.

Financial Considerations

Rising Sun Ltd total start-up requirement is approximately $6,500.00.
Start – up capital will be financed through the owner’s personal investment and a long-term loan of $6,500.00 to be secured from any possible source.

The company’s estimated sales for the second year of operations are $10,000.00, increasing 200% annually for the next two years.

Start up- Capital GH¢ $
Clearing of land ………………… 1,000.00 1000.00
Hand Dug well …………………. 1,000.00 1,000.00
Grafted mango seedlings ……….. 1,500.00 1,500.00
Pineapple sucking MD2 variety … 2,000.00 2,000.00
Water pumping machine ………… 1,000.00 1,000.00

Total GH¢ 6,500.00 $6, 500.00

1.1 Objectives

• Sales of $30,000.00 by third year
• Maintain margins of 10% on all rentals.
• Achieve 15% of sales from the Internet.
• Develop strategic alliances with service providers nationally and internationally.

1.2 Mission

The company intend to go into the production of mangoes, chilli and pineapples because of its high demand in both local and international market. It is also to promote the production of horticultural crops in Ghana. It mission is to become the foremost producers of horticultural crops in Ghana.

1.3 Key to success
Effectively segment and target adventure travellers within the larger agric market

Successfully position ourselves as and diving specialists.

Communicate the differentiation and quality of our offering through personal interaction and media.

Develop a repeat- business base of loyal customers.