The Charms of Dominican Republic

 

Business Presentation.

“The Charms of Dominican Republic”

Business Plan.

 

 

 

 

 

Artur Akhmetov

 

 

 

 

Describing title.

 

1. Why sugar-cane?

  When sugar-cane used properly, this plant almost don’t have waste. Many types of sugar, juice, some products made with sugar, rum, leaves for cigars, some kinds of vodka and gin, all of this have a good demand in the market. Does not require much care and give two crops per year.

 

2. Why Dominican Republic?

  Dominican Republic has wonderful climate and many experts believe that this is one of the best place for planting sugar-cane. Therefore, due to climate care for sugar-cane very simple – dig earth and fertilize every 4 years, all other aspects like watering makes the climate. In addition, very cheap workforce: 3 dollars for collecting of 3 tons of sugar cane because of many immigrants from Haiti. Good transportation to USA and Latin America, where will go our product, so our partners. Never stop production because of all year temperature like at summer.

 

 

Information about my company.

 

1. About us

  Company name is “Charms of the Dominican Republic”. Registration will be in Dominican Republic. The main aim of the business is to grow sugar cane and try to get as much productivity as it possible, also factory of making sugar. Moreover, our product will be transported to Latin America and USA. However, also have customers inside the country.

 

2.  Products.

  The main focus on making sugar and transfer this product. Moreover, products which is had been not used in production of sugar will be sell it to other companies in Dominican Republic. For example, leaves for cigars and juice for rum. However, in the future I want to create my own factories to produce cigars and alcohol drinks such as rum, vodka and gin.

 

3. Mission.

  Charms of the Dominican Republic mission is to provide good quality product and sell it in bulk to the wholesalers in the US and Dominican Republic and to the other factories  which will deliver it to the shops.

 

4.  Company structure.

  Company will start as private limited company because it’s save my real estate. I will be owner and chief of our company. I will also have two sales managers, accounts manager, manager responsible for the transportation of goods, production manager and 50 cheap workers from Haiti who will cut sugar-cane, transported to the factory which is very close to plantation and making sugar.

                                                                                       ME.

 

Sales Manager       Sales Manager       Accounts manager    Manager(trasnportation) Production manager

                                                                       Cheap Workforce

 

5. Target market.

  Our target market is all people in Latin America, USA and Dominican republic because everybody need sugar, yet we will sell it to the wholesalers and something will go to the other factories which also used sugar-cane in production. However, it is different from ours and need another component of sugar-cane, so we use all possibilities to sell product and don’t waste it.

 

6. Financial summary.

One Time Costs

 

• Registration and other activities for starting business                                   £20 000

 

• Purchase of the land                                                                                             £200 000

 

• Inventory                                                                                                                 £150 000

 

• Factory building                                                                                                      £395 000

 

•   Decorating                                                                                                               £50 000

 

Other costs

 

• Salaries for managers for 5 months (waiting for sugar-cane)        £ 30 000

 

• Security                                                                                                    £ 3 000

 

• Telephone                                                                                               £ 2 000

 

                     

Total

• My capital                                                                                                         £ 400 000    

 

• Need                                                                                                                  £ 400 000

 

• Money for startup                                                                                          £ 800 000

 

In overall I have 50% of finance for starting  this business

Interest 10% for 10 years = £80 000

 

 

  SWOT.

   Strengths:

• Cheap workforce

 

• Target market – everybody

 

• Process of growing sugar-cane never stop

 

• Very good location for transfer our product

 

• Good potential to grow

 

• International

 

• High demand of customers

 

• No waste ( leaves for cigars and juice for rum )

 

• Starting business in less developed countries and it is possible to become leaders

 

• Profitable

 

Weaknesses:

• Waiting for crop

 

• Many competitors

 

• Another type of sugar which is also popular between customers

 

Opportunities:

• Good environment

 

• Attractive & flexible employment

 

• Can be raise from sugar factory to alcohol, cigars and sugar production

 

Threats:

• Local factories

 

• New competitors

 

• Price war

 

• Taxation may be introduced on product or service

 

Short term aims.

• Find as many companies that will buy our product. (We have 6 months for doing that)

 

• Establish contacts with the transportation of products.

 

• Build factory.

 

• Train employees.

 

• Wait until the first crop.

 

• Buy special technics for collecting sugar-cane

 

Long term aims.

 

• Take a strong position in the market.

 

• Open manufacture of alcoholic production.

 

• Open cigars fabric and start to grow tabaco.

 

• Buy more land in Dominican Republic.

 

• Raise supply of sugar.

 

 

 

• Price change over the past 12 months: 25.0%
• Price change over the past 5 years: 80.0%
• Price change over the past 10 years: 208.1%

 

 

 

 

More about product and services.

In overall, growing sugar-cane have a good potential to grow, because from this beautiful plant we can produce a lot of other products and sugar has very big demand in the market. Moreover, in 5 years it is possible to make own factory of cigars and alcohol production such as rum, vodka and gin. In addition, company will be international and focus on USA and Latin America, yet products from sugar cane which we cannot rewrite, we will sell inside the country. However, in the future we must reduce this problem. Also many competitors doesn’t mean that , it’s not good idea to open this business. It’s mean sugar production is very profitable and has good demand in the market.

                         

Main competitors.

• Premier Funding

 

• Siena Naturals

 

• INFINIUM Trading Corp

 

• BOLI LLC

 

• MARCOS TAVARES DE SOUZA JUNIOR ME (in Brazil)

 

The main difference between our company and them, they don’t grow their crop, as cheap workforce as ours and cannot work all year. All of this gives us benefits and we can sell our sugar for lower prices.

Questionnaires.

1.Your gender?

a)male b)female                                       a= 70%        b=30%

2.Your age group?

a)16-21 b)21-30 c)30-over                     a= 20%         b= 80%

3.Your occupation

a)student  b)worker c)unemployed      a=20%  b=80% c=0%

4.Do you use sugar in cooking?

a)yes b)no                                                  a=100% b=0%

5.Do you prefer beet or sugar-cane sugar?

a)beet  b)sugar-cane c)don’t care          a= 30% b=20% c=50%

6.How much sugar do you buy monthly?

a)100-500gr b)500gr-1kg c)1kg-over     a=30% b=40%  c=30%

7.Do you buy any special brands of sugar?

a)yes b)no                                                    a=20% b=80%

Reference:

  A lot of information , I have from my experience because I had been in Dominican Republic and at plantation also.

American Sugar Alliance United States World's Second Leading Sugar Net Importer 2007-2010 Average               [ Online ] Available from: http://www.sugaralliance.org/newsroom/united-states-worlds-second-leading-sugar-net-importer-2007-2010-average.html [ Accessed 20 Nov 2011]

American Sugar Alliance U.S. Refined Sugar Prices, 1997-2009 [ Online ] Available from: http://www.sugaralliance.org/newsroom/us-refined-sugar-prices-nominal-and-real-1990-2006.html [Accessed 20 Nov 2011]

Alibaba Suppliers [ Online ] Available from: http://www.alibaba.com/trade/search/2i1ptyf0chms/sugar.html [ Accessed 21 Nov 2011]