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Business start-up

A MILLION TREES

Planting trees for Carbon Sequestration (CO2 compensation), fruit, timber, firewood and medicinal purposes

Kakua Educative Tree Seed Orchard (KETSO) in Sierra Leone aims at planting tree for carbon sequestration (CO2 compensation), fruit, timber, firewood and medicinal purposes. KETSO aspires to become a leading agro-forestry company for the West Africa region with sales value of over $ 1 million.

Facts

Year of establishment

2008

Sales (US$)
Two years ago:
Last year:
This year (forecast): 600,000
Year 2 (forecast): 650,000
Year 3 (forecast): 700,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 25,000
Year 2 (forecast): 337,500
Year 3 (forecast): 337,500
Total number of Employees
Two years ago:
Last year:
This year (forecast): 109
Year 2 (forecast): 130
Year 3 (forecast): 171

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 10,000
Loans (debt)
Share capital that you seek from investors (equity)
Other sources
Total finance needed (US$) 10,000

The Business

What is your product/service?

KETSO plants trees for the following purposes:
- carbon sequestration (compensation)
- timber
- fuel
- fruit
- medicine
- nitrogen fixing
- wind shields, fire belts and living fences

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

The products will be marketed internationally by approaching companies that require carbon compensation according to the Kyoto protocol. A partner organisation in Europe will be responsible for upholding these contacts. The current market value of 1 tree is 1 euro. We intend to offer a million trees at 0.75 euro each year. The internet will be used to offer products and provide customers the opportunity to monitor developments on the farm.
Selling trees at 0,75 euro per tree is extremely low and is only possible due to the tax free investment stimulating conditions for forestry companies in Sierra Leone as well as the low costs of labor. Competitors will not easily be able to provide trees at the same costs. Additionally, my dual Netherlands-Sierra Leonean citizenship makes gives KETSO a competitive edge in communications and negotiations (in both countries) that is not easily met.

What makes your business different/better than your competitors (competitive advantage)?

The product is environmentally friendly since it combats greenhouse gasses. It produces job opportunities for over 1000 Sierra Leonean youths and women. KETSO provides access to lands and cheap labor for emerging European companies.

The Entrepreneur & Management

Describe the entrepreneur & management

- Project Management (10 years) in the Netherlands and Sierra Leone (NLR and CARE International).
- Research: PhD Psychology at Utrecht University (1993-2000)
- Communications including Management Information Systems and IT (web design)
- Agro-forestry (4 years): Adviser of KETSO. Training and supervising domestic staff in nursing + planting techniques as well as project management.

Development

How does your business improve the local living standards (social and environmental)?

The long term and far reaching impact of our business plan is as follows:
1) Employment for over 1000 persons (partly seasonal) in a developing country,
2) Education in tree planting and composting techniques for largely illiterate local community,
3) Medical benefits for employees increases the quality of living of the involved communities,
4) Urban movement of village youths will be minimized and KETSO presence already attracts other investments (both private and commercial) in the local community.
5) Re-forestation will have both a local (and hopefully) global impact.