Sample Business Plan on L-1 Visa Business Plan
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EXECUTIVE SUMMARY
The Business Concept
L-1 VISA Inc. (L-1 VISA or the Company) specializes in reclamation of dairy products. The Company provides a waste removal service to the dairy and grocery industry and then reprocesses that waste into a dry dairy food commodity for livestock feed.
The Company has been successfully operating in COUNTRY since 1986. The owners are now wishing to establish a US entity to perform the same services as in COUNTRY.
L-1 VISA provides a valuable economic service to the industries it serves as well as a great environmental service. It offers:
Ø Cost effective disposal of bad dairy products to the grocery and dairy industries
Ø A cost effective food product to the livestock industry
Ø Elimination of a waste food product away from the environment back into a usable animal food product
Ø A green alternative to waste
Ø Waste destruction services when needed
With these benefits, the Canadian company has secured the market in Ontario, COUNTRY. It has established an excellent reputation for its great customer service.
Excellent Market Opportunity
L-1 VISA will take advantage of several factors to drive its growth. As a waste reclamation service, the Company is able to take waste product from its customers at a lesser cost than a simple waste disposal company, hence saving their customers money. They also need the waste removed promptly and efficiently.
The livestock industry saves money by buying L-1 VISA’s product. The Company’s product, although slightly inconsistent, offers the highest level of butter fat when compared to competing products. Normally, butterfat is too expensive in livestock feed and so is replaced with vegetable fat instead. With L-1 VISA’s product, livestock feed manufacturers receive a food that has a high quality fat at a lower market price.
Since the Company’s opportunities are geographic, it can grow by moving to new geographic areas. L-1 VISA has proven technology along with years of experience on how to run an efficient operation.
Profitable Growth
L-1 VISA expects to gain a profitable market share within a very short period of time. Determinations have been made for the size of the market, amounts of budgeted advertising and promotional dollars, the number and kinds of distribution channels and the competitive landscape.
Projections call for the Company to generate revenues of $500,000 in its next twelve months. L-1 VISA will achieve strong growth over the next several years, reaching $2.5 million in revenues and almost $1.0 million of net income by the fifth year.
The Opportunity
The Company operates a specialized business that it has developed through years of experience. The de-packaging of material is not uncommon, however, L-1 VISA is the only Company drying dairy waste into powder. Normally the dairy waste is fed to hogs or sent to organic digestion. L-1 VISA adds considerable value to either of these practices.
L-1 VISA will be directly marketing to entities that have dairy waste. In some areas the stores are responsible for the waste; in others the dairy manufacturer takes back all unsold product.
The Company is also currently marketing to XYZ Waste. They are handling waste organics and dairy waste for many large grocery chains. Rather than compete directly with them, L-1 VISA may try to sell them its business model to add value to their current waste stream.
There is a large opportunity to build a dominant and respected business in this market space.
Operations of the Business
L-1 VISA will target prospective clients throughout the US. The Company will generate revenues from its removal and destruction services as well as its sales of livestock feed product.
The Company will offer convenient office hours, opening M-F 8:00 AM to 5:00 PM. Of course, business meetings may also be conducted in the evenings and on weekends. This allows busy individuals to select a convenient time.
Product and Service Offerings
L-1 VISA provides a much-needed service to the industries it serves. These include:
Ø Disposal of bad dairy products
Ø Nutritionally better and cost effective livestock food
Ø Waste destruction services if needed
The Company
Mission of the Company
L-1 VISA will become a leading dairy waste removal company for grocery stores, grocery chains and dairy manufacturers in the US. We will also provide the best and highest butterfat content feed product to the livestock industry. Our products and services will be sought after for their reliability and excellence. We will treat each customer with respect and we will be known for our outstanding customer service.
Company Structure
1. Legal Status
L-1 VISA will be a C Corporation organized in 2012. The Company is owned by Mr. John Doe (50%), Mr. Jake Doe (25%) and Ms. Jane Doe (25%).
The COUNTRY Company was formed in 1986. It is owned by Mr. John Doe (50%), Mr. Jake Doe (25%) and Ms. Jane Doe (25%).