BUSINESS PLAN

FOR
NERDOS AGRO ALLIED VENTURE

SUBMITTED

BY

KBS/
TO
KADUNA BUSINESS SCHOOL
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF DIPLOMA IN INOVATION AND ENTREPRENEURIAL
FINANCE

Written by:
Email:
Phone :
Date : 2016

TABLE OF CONTENTS
COVER PAGE................................................................................................1
TABLE OF CONTENTS....................................................................................2
CHAPTER 1...................................................................................................3
1.0 Executive Summary...................................................................................................3
1.1 Objectives....................................................................................................................3
1.2 Mission, Vision and value.............................................................................................4
1.3 Key to success..............................................................................................................4
CHAPTER 2...................................................................................................5
2.0 Company Summary....................................................................................................5
2.1 Company Ownership....................................................................................................5
2.2 Start Up Summary.......................................................................................................5
2.3 Start Requirements......................................................................................................6
2.4 Start Up Funding..........................................................................................................6
2.5 Company Location.......................................................................................................7
2.6 Legal Issues..................................................................................................................7
CHAPTER 3....................................................................................................8
4.0 Business Description....................................................................................................8
4.1
Product Description....................................................................................................8
3.1.0 Daily Operations and Production................................................................................8
3.2 Management Controls..................................................................................................9
3.2.0 Order Guide...............................................................................................................9
3.2.1 Weekly Inventory.......................................................................................................9
3.2.2 Daily Inventory Tracking............................................................................................9
3.3 Administrative Systems................................................................................................9
3.3.0 Weekly Prime Cost Report.........................................................................................9
3.3.1Purchasing Records/Payables......................................................................................9
3.3.2 Other Services............................................................................................................10
3.4 Quality Of Product........................................................................................................10
3.5 Affordability Of the product...........................................................................................10
3.6 SWOT Analysis..............................................................................................................10
3.7 Competitive Edge..........................................................................................................11
3.8 Competition and Buying Patterns..................................................................................11
CHAPTER 4.....................................................................................................12
4.0 Market Analysis............................................................................................................12
4.1 Market Segmentation.....................................................................................................12
4.2 Target Market Segment Strategy...................................................................................13
4.3 Positioning.....................................................................................................................13
4.4 Service Business Analysis...............................................................................................13
4.5 Marketing Strategy and Implementation........................................................................13
4.6 Sales Strategy.................................................................................................................14
4.7 Sale Forecast...................................................................................................................14
CHAPTER 5 .....................................................................................................15
5.0 Human Resource...........................................................................................................15
5.1 Organisational Structure.................................................................................................16
6.0
6.1
6.2
6.3
6.4
6.5
6.6

CHAPTER 6.....................................................................................................17
Financial Plan................................................................................................................17
Projected Cash Flow............................................................................................18,19,20
Projected Profit & Loss.................................................................................................21
Projected Balance Sheet..............................................................................................22
Break-even Analysis.....................................................................................................23
Financial Ratio Analysis................................................................................................23
Conclusion....................................................................................................................24

CHAPTER 1
EXECUTIVE SUMMARY
NERDOS AGRO ALLIED VENTURE is a company that is going into production and
selling of coconut products with virgin coconut oil as the major product. The company
will start the business with one product: virgin coconut oil, which is a popular food
supplement product. Virgin coconut oil is a high-value coconut product very much
sought after for its human, nutraceutical benefits and as a functional food. World
demand for virgin coconut is rapidly increasing. Virgin coconut oil production, which at
present is mostly done at household, micro- or village-scale levels, is rising rapidly and
has excellent potential for improving coconut farm incomes by five to eight-folds over
traditional copra production or sale of fresh nuts. The world Coconut Community
countries are strongly promoting Virgin coconut oil for health and improving livelihoods
of smallholder coconut processors. However, one major concern is that unless Virgin
coconut oil is produced correctly under well-managed, hygienic conditions, the poor
quality oil produced will not meet prescribed standards, and may not be suitable for
human consumption.
The fast developing niche and high value markets for Virgin coconut oil as a food
supplement, as a body moisturiser and carrier oil for aromatherapy, as a hair
conditioner and as other applications, is generating a great deal of interest among
coconut farmers and landowners, businessmen and entrepreneurs. The attraction is in
the different processes for producing Virgin coconut oil with the goal being a possible
source for improving livelihoods and incomes.
In terms in this business plan, our company will provide a production on Virgin coconut
oil by industrial scale bit for the starter. This is the starting point to promote our product
to the consumer or customer and established a trust on them. This is also a starting
point to gain their attraction towards our product.
Basically, Virgin coconut oil is defined as Oil obtained from the fresh, mature kernel
(meat) of the coconut by mechanical or natural means, with or without the use of heat,
without undergoing chemical refining, bleaching or de-odorising, and which does not
lead to the alteration of the nature of the oil. Virgin coconut oil is suitable for human
consumption without the need for further processing. It has a fresh coconut aroma that
can be mild to intense depending on the oil extraction process used.

Objectives
The objectives for the first three years of operation include:

To create a service-based company whose primary goal is to exceed customer's

expectation.

To increase the number of client's served by 20% per year through superior
service.

To develop a sustainable start-up business.

To provide quality Virgin coconut oil at reasonable prices.

To develop enough cash flow to pay all salaries and liabilities as well as grow
the business.

Be one of the top ten Virgin coconut oil producers in Kaduna State.

To create job opportunities to people who is unemployed.

Follows the campaign of government to the Healthy Life.

Mission
Our mission is to manufacture the finest virgin coconut oil and associated products
available on the market today.
We intend to do this operating with honesty and integrity.
We would hope that we can share our success with people who are a lot less fortunate
than ourselves. We will always pay coconut farmers/suppliers a fair price for their
coconuts and we will always pay our employees a fair days pay for a fair days work.
We will never compromise the quality of our oil to increase the yield. Virgin Coconut Oil
is a totally natural product, made using the finest organic coconuts. Nothing will
convince us to alter our production methods.

Vision

We expect, over the next few years, to see virgin coconut oil recognised for the
numerous health benefits it offers, this is happening, but it is happening slowly.
We aim to make Virgin Coconut Oil, the premier brand in the state and beyond.
We aim to sell our oil to as many other states as possible. This amazing oil, with so
many benefits, should be available in stores all over Nigeria.
3 Keys to Success
The key to success is to meet and exceed the customer's needs in terms of quality of
our oil and excellence of customer service.

CHAPTER 2

2.0 COMPANY SUMMARY

NERDOS AGRO ALLIED VENTURE, located in Kaduna, will offer quality Virgin coconut
oil and other coconut products to the Kaduna community and beyond. NERDOS AGRO
ALLIED VENTURE will rent space for the office and factory in an industrial area of
Kaduna. Renting in the industrial area will be advantageous. NERDOS AGRO ALLIED
VENTURE is forecasted to generate over N 10,000,000 in revenues for year three.
2.1 Company Ownership
NERDOS AGRO ALLIED VENTURE is a sole proprietorship owned by
2.1 Start-up Summary
The total funding is N 5,550,000. The majority of the expenses are in furniture fixtures
and equipment totally N 3,500,000 and N 1,500,000 cash working capital. The location
will require some build-out totally N 550,000 and will require approximately 30 days to
complete.
N 550,000 of the start-up costs will be funded by the owners.
NERDOS AGRO ALLIED VENTURE will incur the following start-up costs:
EQUIPMENTS:
Grinder/Pulveriser

N 90,000

Spinner

N 110,000

Dryer

N 580,000

Oil Expeller

N 360,000

Grater

N 90,000

Presser

N 60,000

2 Filtered Oil Tanks

N 280,000

2 Crude coconut oil Tanks

N 280,000

Power Generating Set

N 600,000

Volumetric Filling Machine

N 600,000

FURNITURES AND RENT:

Rent

N 450,000

Furniture

N 450,000

Accreditation and licensing will amount to N 200,000

Please note that the following items which are considered assets to be used for more
than a year will be labelled long-term assets and will be depreciated using approved
straight-line depreciation method.
2.3 Start Up Requirements
Start-up Requirements
Start-up Expenses
Rent
Other
Total Start-up Expenses
Start-up Assets
Cash Required(Working Capital)
Long-term Assets
Total Assets
Total Requirements

N450,000
N100,000
N550,000
N1,500,000
N3,500,000
N5,000,000
N5,550,000

2.4 Start-up Funding

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Cash Balance in Hand
Total Assets
Liabilities and Capital
Long-term Liabilities
Equity
Total Liabilities
Total Planned Investment
Total Funding

N550,000
N5,000,000
N5,550,000
N3,500,000
N1,500,00
N550,000
N5,550,000
N5,000,000
N550,000
N5,550,000
N5,550,000
N5,550,000

2.5 Company Location

NERDOS AGRO ALLIED VENTURE is located along because there is availability of

basic amenities for the company operation. And also a cheap labour and high rate of
customers turn up.
2.6 Legal Issues

The company has obtained the licence to operate from the Corporate Affairs
Commission with number. All the needed documents have been obtained and is
therefore legal to operate.

CHAPTER 3
3.0 BUSINESS DESCRIPTION

NERDOS AGRO ALLIED VENTURE aims to capitalize on the growing population of

Kaduna state and beyond through the provision and promotion of high quality Virgin
coconut oil. Located in Kaduna, the company will become highly profitable through the
sale of quality virgin coconut oil and offer of quality customer services NERDOS AGRO
ALLIED VENTURE will own and control the affairs of the company and its product,
which will enable NERDOS AGRO ALLIED VENTURE to create immediate revenue
streams while growing its customer base into a large income generator.
Products & Services
The company will mainly be focused on provision of high quality Virgin coconut oil
NERDOS AGRO ALLIED VENTURE has compiled an exciting and diverse roster of
goal setting activities as to enable NERDOS AGRO ALLIED VENTURE to quickly
penetrate the marketplace. And also provide other coconut products in the long run.
PRODUCT DESCRIPTION
Product definition Oil obtained from the fresh, mature kernel (meat) of the coconut by
mechanical or natural means, with or without the use of heat, without undergoing
chemical refining, bleaching or de-odorising, and which does not lead to the alteration of
the nature of the oil. Virgin coconut oil is suitable for human consumption without the
need for further processing.

Virgin coconut oil consists mainly of medium-chain triglycerides, which are

resistant to per oxidation. The saturated fatty acids in Virgin coconut oil are
distinct from animal fats, the latter consisting mainly of long-chain saturated fatty
acids.

Virgin coconut oil is the purest form of coconut oil, essentially water clear or
colourless. It contains natural Vitamin E and has not undergone any hydrolytic
and atmospheric oxidation as demonstrated by its very low, free fatty acid (FFA)
content (even without refining) and low peroxide value. It has a fresh coconut
aroma that can be mild to intense depending on the oil extraction process used.

Virgin coconut oil differs greatly from traditionally produced, copra derived
coconut oil, which must undergo chemical refining, bleaching and deodourisation processes to make it suitable for human consumption. RBD
(refined, bleached and de-odorised) coconut oil made from copra, is yellow in
colour, odourless, tasteless and does not contain natural Vitamin E, since this is
removed when the oil is subjected to high temperature and various chemical
processes.

Product characteristics and uses

The degree of saturation and length of the carbon chain of the fatty acids comprising a

particular fat or oil determines its properties, corresponding uses and its effects on
human health. The more saturated the fat and the longer the chain, the harder the fat
and the higher the melting point (Fife, 2001).
Coconut oil is unique amid fats and oils, as it contains the highest percentage of
medium-chain fatty acids (MCFA) with a carbon-chain length of 8 to 12 carbon atoms.
VCO behaves and metabolises differently in the human body to other saturated and
unsaturated fats or oils. MCFA in coconut oil is about 64%, with lauric fatty acid (C12)
as the highest ranging from 47 to 53% depending on the coconut variety.
For edible purposes, coconut oil is generally used as frying and cooking oil because of
its excellent resistance to rancidity development. It is also used as a substitute for
expensive butterfat in filled milk, filled cheese and ice cream making these products
cheaper without changing their palatability. When hydrogenated, coconut oil is used as
margarine, shortening and baking fat. Other edible applications of coconut oil are:

As a source of fat in infant formulas and baby foods because of its easy
digestibility and absorbability;

As a spray oil for crackers, cookies and cereals to enhance flavour, increase
shelf-life and impart a glossy appearance;

As an ingredient in confectionaries such as candy bars, toffee, caramels, etc

The Spectrum of Coconut Products states that in food preparations and in diet,
coconut oil performs the following functions.

It serves as an important source of energy in the diet.

It supplies specific nutritional requirements.

It provides a lubricating action in dressings or leavening effect in baked items.

It acts as carrier and protective agent for fat-soluble vitamins.

It enhances the flavour of food.

Virgin coconut oil can also be used in all applications where crude, cochin and refined,
bleached, de-odorised (RBD) coconut oils are normally used, and would be a much
better alternative if it could be made available in large volumes at affordable prices.
In the manufacture of oleo chemicals reserved for cosmetic applications, the use of
Virgin coconut oil instead of copra-derived oil will enhance the quality of the final
product because of its hypoallergenic properties. One interesting development to note,
is that Virgin coconut oil is being focused on specific applications distinct from the
traditional uses of coconut oil listed above.
The current emerging major uses of Virgin coconut oil are as:

a hair and skin conditioner;

an oil base for various cosmetic and skin care products;

a carrier oil for aromatherapy and massage oils;

a nutraceutical and functional food.

Simply put, nutraceutical are substances that not only nourish but also heal. Virgin
coconut oil is considered a nutraceutical because studies have shown the following
facts.
The medium chain (C8 C12) fats in coconut oil are similar in structure to the fats in
mothers milk that gives babies immunity to disease.
Colour, odour and taste
Virgin coconut oil shall be colourless, sediment free, with natural fresh coconut aroma
and free from rancid odours or taste
Specifications
Virgin coconut oil shall conform to the requirements specified in the table below
Table 2: Virgin coconut oil property requirements
Properties

Specification

Moisture and volatile content

0.20% max.

Free fatty acids (expressed as lauric acid) 0.20% max.

Peroxide value

3.0 meq/kg oil max.

Food additives

None permitted

Contaminants

0.20% max.

Matter volatile at 105C

Heavy metal

Mg/kg max.

Iron (Fe)

5.0

Copper (Cu)

0.40

Lead (Pb)

0.10

Arsenic (As)

0.10

In the absence of a laboratory analysis report, the quality of Virgin coconut oil can be
assessed through sensory evaluation by testing the following attributes:
Colour: Virgin coconut oil has a clear water appearance.
Aroma: A good quality Virgin coconut oil does not have any rancid smell. It has a sweet
coconut aroma which may range from mild to intense depending on the process used for
extraction.
Taste: A good quality Virgin coconut oil should not have off-flavours or a sour taste. It
should not cause any itchiness in the throat when ingested as this is an indication that the
free fatty acid content is already higher than the prescribed standard.
COMPETITIVE ANALYSIS
The main competitors are competitors that produce same or likely product and market
their product at the same place. The main competitors our business are farmers that
practice same or likely method that we use that is chemical free and market their product
near or in same place we market our product.

SWOT Analysis
NERDOS AGRO ALLIED VENTURE considered the following in preparing themselves to
take on long awaited life mantle of formalising its business.
Strengths

Weaknesses

Good knowledge of oil processing.

Financial constraints.

Quality assurance-core value

Recruiting and retaining quality employees

Great commitment and drive from team

Tight margins will allow little wiggle room for

error

Responsive to market trends

No Side effects
Long life shelf

Threats
Opportunities
Continued increase in population.
Little barriers to entry allows for immediate
business opportunities
Offer additional products
Healthy Lifestyle

Volatile political area.

Government policies.
Rising operating costs
New competitors

MARKETING SUMMARY
In consumer needs and wants, there are some factors that make NERDOS AGRO
ALLIED VENTURE Virgin coconut oil become a demand for customers. The factor that
influences the customers to buy the product is because giving healthiness for everyone.
This is because NERDOS AGRO ALLIED VENTURE virgin coconut oil provide varies of
benefit such as Lowers cholesterol and blood pressure levels, cancer fighting, natural
antibiotic and etc. This means that it make human become healthy and prevent human for
causing obesity and have a strong immune system.
For the marketing plan conclusion, the most important thing that influence our strategies
in winning the customers heart and also compete with other company is our promotion
concept that acting more friendly to the customer beside we supplying the best product for
them. Also providing a high quality product will fulfil the customers need and wants
nowadays. When the customers are satisfied and trust our product that we provide, they
will be our fix customers and will buy our product when needs. For the increasing our sale,
we offered confidence work strategies that is also to fulfil the customer need and want.
They are, pricing strategies, distribution strategies and product strategies that is the main
scope in marketing plan. All of the strategies that have being mentioned are important in
achieving the marketing objective.
Marketing Objectives

Generate a 5-10% yearly increase in sales.

Increase market penetration every year

To conquer and dominate in local market

Expand the business and open more outlets in Kaduna and beyond.

Marketing concept
NERDOS AGRO ALLIED VENTURE marketing concept is production orientation. The
focus of the business is not only the needs of the customer, but also reducing costs by
mass production. Therefore, we will sell with lower price and can compete with others.
Marketing strategy
Target market
Our target market mainly focus in housewife and company who used virgin coconut oil to
produce shampoos, conditioners, moisturizers, health supplements, massage oils.
Although coconut oil can be modified and use in others way but we will focus it as cooking
oil and our target is housewife.

Table: Target Market Analysis

Percentage
Target Market(s)

(%)

Moderate and high income

45%

Retailer

30%

High education

15%

Others

10%

Market segmentation
Geographic Segmentation
We will act as supplier and wholesaler. Our product will sales in varies mini market and
hypermarket. The entire place we will sell is the hot spot place since we are new company
cannot just simply send our product to vary place. At the early stage, we will focus in hot
spot to make our company name become familiar first. So we will focus on the area that
people will go everyday to buy daily need product.
Demographic segmentation
In market segmentation, that is demographic aspect; NERDOS AGRO ALLIED VENTURE
main target is for the moderate and high income. We also focused on high educated
person. The reason why we focused on this group is because they can think wisely before
buying a product. Not only high educated people, we also focus our product as raw
material for big company to produce shampoos, conditioners, moisturizers, health
supplements, massage oils.
Marketing Mix
As a new business, we must give full concentration in marketing strategies and efficient,
systematic administration and management must be done. Our marketing strategies
consist of 6Ps indicate for aspect:

Product or service strategy

Price strategy

Distribution strategy

Process strategy

People strategy

Physical environment

1. Product or Services Strategy

NERDOS AGRO ALLIED VENTURE business focuses on marketing strategy in the
market aspect. The purpose of this marketing strategy is to fulfil needs and wants and
make them satisfy with it. The product strategies are as follow:

Quality
Due proper sales technique, complete and high quality of product is very
importance to avoid the product from the defect during store delivery process. We
also will make sure the concentration of the virgin coconut oil is 100% without
adding others oil. We also will apply HALAL certificate to convince Muslim.

Packaging
For packaging aspect, NERDOS AGRO ALLIED VENTURE will focus on 100%
closed of the cap. This can make sure our product do not change or spoiled
because of the leaking. The design of our product is unique, clean and clear to
looking on. The benefit of the product will mention clearly to attract the customer.
The attractive design packaging will convince the customer to try on our product.

2. Price strategy
The price strategies is main target is to achieve our business objectives or goals. The
price of the virgin coconut oil will be provided with a similar and suitable price according to
the cost of production. We offered the high quality of product and cheapest compared
competitor. It is to attract more customers and get them to trust our business. This is
because we produce high volume of product. This allows us can put a low price compare
to competitor. This is penetration strategy. To determine the price, we consider all cost
involve in production. We need to make sure our business is able to get return from sales,
first we compared with competitor price in the market to make sure our product price is
not too cheap or expensive and then we analyze what is the price that the customer
willing to pay.
3. Place or Distribution Strategy
Our product located in varies mini market and hypermarket. For the companies that want
to buy the product with us can buy contact us. They can buy from our company. If the
quantities that buy from them are higher, we will provide delivery service. For the mini
market and hyper market we will send to their place.

Distribution Strategies
Distribution strategy is aimed at establishing a structured and controllable distribution
system to ensure the product offered reached the target customer. A distribution channel
moves goods from producers to consumers. The most common form of distribution is:

1) Manufacturer

Customers

Customer can get lower price if they buy NERDOS AGRO ALLIED VENTURE Virgin
coconut oil direct from manufacturer compared they buy at hypermarket because the
retailer will eat up mark up to make profit. So, the price will be higher
2) Manufacturer

Retailer

Customer

4. Process strategy
For the process strategy we are using pilot plant scale because we dont have enough
models. By using pilot plant scale we can produce enough production for sales.
5. People strategy
We will provide a hotline to allow customer to call when they face a problem after
consuming our product.
6. Physical environment
The product will be good looking and the design is a modern style. The oil that produces
will be clear and the customer can see it clearly.
Promotion Strategy
Promotion is important in order to get the product well known by public. Good promotion
strategies will attract people to buy our product and it will increase our sales. We will
organize many promotion methods in introducing our product to the customer and in local
market. The promotion that will be done by us is like:1) Advertisement
Advertisement is a very important way to promote our product. We need to promote our
product in news paper, magazine and internet. Nowadays internet already becomes a
very important pathway to provide information to customer. We can record a video to
promote our company.
2) Sign Board
This method is very important to make people know about our product. Sign board will be
put near the Hot spot in the city or in highway. It makes the customer familiar with our
product.

3) Business Card
The business card will be given to the target customer such as the company that use
virgin coconut oil as raw material so that they can easily contact us.

Management Team and Responsibilities

POSITION

TASK AND RESPONSIBILITIES

Chief Executive Officer

The decision maker of this company

Serves as a peacemaker if disputes arises between the
employees
Instructs and coordinates employees
Manages all the human resources and administrative works

Production Supervisor

Coordinate most day to day production

Report to the CEO/Manager

Labourer

Engage in day to day production

Labourer

Engage in day to day production

Labourer

Engage in day to day production

Organization Chart

CEO/MANAGER

PRODUCTION
SUPERVISOR

LABOURER

LABOURER

LABOURER

FINANCIALS
The following sections outline our financial plan:

Projected Cash Flow

Projected Profit and Loss

Projected Balance Sheet

Breakeven Analysis

Financial Ratios

Financial Objectives

Decrease customer acquisition costs by every purchase

Holding spending, as a percentage of sales, at a steady rate.
Achieve positive net worth by years two.

Our initial capital funding for this business is from BOI (Bank of Industry)
that amount to N 5,000,000 with N550, 000 equity. We estimated our
return of investment is shown below:

NERDOS AGRO ALLIED VENTURE PROJECTED PROFIT AND LOSS

Profit and Loss
Year 1 (N)
6,130,000
1,285,000
4,845,000

Sales
Direct Cost of Sales
Gross Profit
Expenses
Salaries
972,000
Depreciation
12,500
Utilities
105,000
Rent
300,000
Other
1,312,250
Total Operating Expenses
2,701,500
Profit Before Interest and
Taxes
2,143,500
Interest Expense
40,002
Taxes Incurred (16%)
342,960
Net Profit
1,760,538

Year 2 (N)
8,046,000
1,904,000
6,142,000

Year 3 (N)
10,470,000
2,840,000
7,630,000

1,161,996
74,625
84,000
350,000
801,000
2,471,621

1,161,996
120,644
83,000
350,000
855,000
2,570,640

3,670,379
200,004
587,261
2,883,114

5,059,360
200,004
809,498
4,049,858

NERDOS AGRO ALLIED PROJECTED BALANCE SHEET

Pro Forma Balance Sheet
Year 1 (N) Year 2 ( N) Year 3 (N)
Current Assets
Cash
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Interest Payable
Long-term Liabilities (Loan)
Retained Earnings
Total Liabilities and Capital

2,305,250
2,305,250

2,566,466
2,566,466

4,351,067
4,351,067

3,500,000
12,500
3,487,500
5,792,750
Year 1
49,998
1,000,002
4,742,750
5,792,750

3,487,500
74,625
3,412,875
5,979,341
Year 2
200,004
2,000,004
3,779,333
5,979,341

3,412,875
120,644
3,292,231
7,643,298
Year 3
200,004
2,000,004
5,443,290
7,643,298

Breakeven Analysis
NERDOS AGRO ALLIED VENTURES is expected to reach break even in the
second month of the first year of operations. With the sales of 1,480 bottles of
Virgin coconut oil.

6.5 Financial Ratios Analysis

Ratios
Main Ratios
Current
Gross Margin
Equity Ratio
Debt to asset Ratio

Year 1

Year 2

Year 3

2.16% 2.80% 4.60%

79%
76%
73%
10.5%
9%
6.4%
45.54% 85.72% 50.56%

NOTE
At the end of year three NERDOS AGRO ALLIED VENTURE tend to hold more
cash so as to diversify its business

CONCLUSION
To have a successful business there are a couple of methods that the business
must consider first.
(1) They must know their target market and by knowing this they have a
competitive advantage that allows them to have an edge on the competitors.
(2) They must also know their value chain which is a series of transactions
between all participants that influences the final product. The value chain is a
place where the businesses need to be in order to identify the needs of its target
market.