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Business Plan - Ent-Assignment
Business Plan - Ent-Assignment
Authors: Onyinge Yusuf, Brave Jacob Nshabohurira, Nyakato Hellen, Akandida Yonah
and Rutikanga Lucky
Email : onyingeyusuf@gmail.com
Contact: +256-778-983-272
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1 EXECUTIVE SUMMARY
After several research conducted on sustainable energy source, Clean Energy Investments is
ready to start manufacturing carbonized charcoal briquettes of the best quality ever making use
of agricultural waste (Biomass) such as maize trash, sugarcane trash, cotton stalks, and banana
peelings as well as charcoal dust from charcoal traders among others leaving the country’s
forests undisturbed.
Biomass briquettes are a form of solid fuel that can be burned for energy. They are created by
compacting loose biomass residues into solid blocks that can replace fossil fuels, charcoal and
natural firewood for domestic and institutional cooking and industrial heating processes.
Briquettes have the potential to be a source of renewable energy if they are made from
sustainably harvested biomass or waste agricultural residues.
Crops grown in Uganda such as maize, cereals, roots, cane sugar and coffee all produce residues
that are suitable for briquetting as does charcoal dust from charcoal traders. Data provided by the
Ugandan government indicates that 1.2 million tonnes of agricultural wastes are available each
year.
Clean Energy Investments looks at converting the natural and available agro waste/biomass
currently being burned, into a useful fuel that can go a long way in alleviating Uganda’s energy
problems and increasing the availability of sustainable cooking fuel to citizens of Uganda.
Clean Energy Investments will be a limited liability company. It will be located in Gulu district
registered through the Registrar General in Kampala. It anticipates producing about 800 tons of
briquettes during the first year of operation, which is an average of 2.2 tons of briquettes per day.
A kilogram of briquettes will be sold at $0.3, thus generating sales’ revenue of $240,000 at the
end of the first year of operation.
The company requires a total of $10,000 as an initial investment capital. A third of this will be
contributed by the founders of the company and will seek for a loan from dfcu Bank to meet the
remaining balance. This will be used to purchase machinery, land and meet the annual costs of
production. The company’s CEO Mr. Onyinge Yusuf is making arrangements to apply for a
business start up loan at dfcu Bank.
The business will have a number of positive impacts as far as development is concerned, it will
aid in the preservation of Uganda’s endangered biodiversity, as well as providing economic
support to rural and urban communities (by creating employment opportunities) and help lower
carbon house gas emissions into the atmosphere which is a great move towards fighting climate
change.
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2 THE BUSINESS
Clean Energy Investments will specialize in the manufacture of carbonized charcoal briquettes.
This is after the founders conducting thorough research on sustainable energy source. The
manufacture will make use of agricultural wastes (Biomass) such as sugarcane trash, maize trash,
cotton stalks, banana peelings, and charcoal dust from charcoal traders among others. The
company will be a limited liability company.
Source: Uganda
Investment Authority
Biomass, an energy-producing source, is used principally in the form of firewood and wood
charcoal. Currently, biomass provides about 93% of Uganda’s consumed energy source. In
agricultural-based countries like Uganda, there is a vast natural supply of biomass found in the
form of agricultural and forest residues. Often these residues are simply burned in the fields.
This practice is not only an unfortunate waste of an energy source, but also a great causer of
air/atmospheric pollution.
Crops grown in Uganda such as maize, cereals, roots, cane sugar and coffee all produce residues
that are suitable for briquetting as does charcoal dust from charcoal traders. Data provided by the
Ugandan government indicates that 1.2 million tonnes of agricultural wastes are available each
year.
Clean Energy Investments looks at converting the natural and available agro waste/biomass
currently being burned, into a useful fuel that can go a long way in alleviating Uganda’s energy
problems and increasing the availability of sustainable cooking fuel to citizens of Uganda.
The company will use simple technology in converting the biomass into good quality charcoal
briquettes. Clean Energy Uganda plans to procure a charcoal briquette making machine from
china at a cost of approximately $2,000.
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Clean Energy Investments’ particular specialty will be the youths since statistically there is a
very high level of youth unemployment in Uganda today. Clean Energy Investments will as well
works with venerable women groups to enable them earn a living from this business.
Clean energy investments plans to make charcoal briquette using simple technology and this will
ensure products that are not only inexpensive and affordable to its customers, but also of good
quality!
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3 MARKET STRUCTURE AND ANALYSIS
3.1 Target market
Clean Energy Investments is targeting the following market
̶ Households
̶ Restaurants
̶ Hotels
̶ Poultry firms
̶ Pork joints
̶ Chapatti businesses, and
̶ Schools
Out of this population figures, over 95% use firewood and charcoal for their daily cooking and
this is a sizeable and potential market for charcoal briquettes as well.
Charcoal demand is expected to increase with the increasing population of the country. On the
other hand, wood charcoal production is gradually decreasing because trees/forests are being
depleted. Therefore, manufactured charcoal briquettes are the only cheap and affordable
alternative to wood charcoal.
1
Source is from Uganda Bureau Of Statistics
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Liquefied petroleum gas (LPG); very few people also use gas because it is also very
expensive.
Kerosene; kerosene produces a lot of soot which posses health risks to its users and it is also
quite expensive as compared to charcoal briquettes.
Kampala Jellitone Suppliers Ltd; this is a company located in Natete, Kampala, producing
compressed (non-carbonized) charcoal briquettes made from coffee husks and saw-dust.
Non-carbonized briquettes burn slowly and produce smoke which leaves soot on cooking
pots and the smoke posses health risks to the users while carbonized briquettes burn slowly
without producing smoke.
The cost of cooking fuel is one of the most important factors in determining which fuel to use. In
Uganda, people are looking for the cleanest, the most convenient, and the most affordable
cooking fuel. Briquettes have additional benefits, including reduction on deforestation and
carbon emissions in the atmosphere.
Carbonized charcoal briquettes burn without producing any smoke making it more clean than
wood fuels, wood charcoal, and kerosene. Clean Energy Investment will make carbonized
charcoal which will give it a competitive advantage over its competitor.
Clean Energy Investments’ briquettes will be of high quality, yet very affordable by the
customers. This will greatly attract customers to use these briquettes instead of other fuels, since
most people are looking for cleanest, convenient and a cost effective energy source for cooking.
And here comes the solution they have been looking for!
We also plan an aggressive campaign of marketing at and related trade shows. To this course, we
will design and build an attractive display booth that will effectively demonstrate our products.
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In this context, Clean Energy Investments anticipates attending at least ten trade shows each year
for the first three years of operation and will use them as a showcase around which to meet
potential sales representatives, wholesalers, and customers.
Clean Energy Investments plans to hire an experienced media consultant to work with in
developing a press package and arranging for several articles about the carbonized charcoal
briquettes from our company to appear in several popular magazines.
Flyers and posters will also be made. They will have printed instructions for lighting the
briquettes and estimating their burning time. The flyers and posters will be an educational tool,
with both financial and environmental advantage. They will be distributed to the selected
vendors, who will hand them out to clients as they buy the briquettes.
4.3 Planned pricing and marketing strategies for Clean Energy Investments
In the beginning, Clean Energy Investments will team with a limited number of sales
representatives and wholesalers who have proven abilities in successfully introducing new
products in the market.
At first, the emphasis will be on developing market penetration in a few carefully chosen regions
near our manufacturing facility. The reason for this approach is to properly identify effective
pricing techniques and marketing strategies. Information gathered will then be used to fine-tune
stocking requirements, manufacturing rate requirements, etc., for effective distribution.
In other words, we want to be sure we are walking with a firm and steady trend before we begin
to run.
Meanwhile tentatively, the company expects to sell its briquettes at about $0.3 which is an
equivalent of 1,000 Uganda shillings.
5 MANAGEMENT
5.1 Management team
Clean Energy Investments’ founders and Management are Onyinge Yusuf, Akandida Yonah,
Nyakato Hellen, Rutikanga Lucky, and Brave Jacob .N
The company will be headed by the CEO who will oversee the entire activities of the company.
Four departments will be created, these are;
Finance
Human resource
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Marketing, sales, demand and supply department
Production and Quality Assurance
Mr. Onyinge Yusuf will be the CEO of Clean Energy Investments; reports from all the various
departments will be submitted to his office regularly. He will oversee all the activities of the
company. Personal skills and values include;
̶ High integrity
̶ Excellent leadership skills
̶ Efficient, meticulous and dependable
̶ Adaptable and
̶ Very resilient
Head of Finance department should posses the following qualities;
̶ Integrity, should be trust worthy
̶ Responsible and accountable
̶ Should have accounting skills
̶ Business Computing skills
Rutikanganga Lucky will be the head of Finance department. He will be in charge of all the
finances of the company.
Human resource and finance department managers should have the following skills;
̶ Interview skills
̶ Good communication skills and conflict management
̶ Employee document
̶ Computer skills
̶ Must know English language both written and spoken
Nyakato Hellen, female will be in charge of Human Resource department. She will manage all
recruitments of new employees and oversee their performances.
Marketing, sales, demand and supply manager should have the following skills;
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Production and Quality Assurrance Manager should have the following skills;
̶ Management skills
̶ Team work and good leadership skills
̶ Good communication skills
Akandida Yonah will be the Production and Quality Assurrance Manager of Clean Energy
Investments given his proven abilities. He will ensure continuous production to meet targeted
output levels without a change in the quality of the products. He will also be in charge of
packaging of the products.
(Refer to the Annexure 10.1 for more details about the management team)
As a partnership deal, Clean Energy Investments anticipates to incorporate itself under the Clean
Development Mechanism (CDM) for Uganda. The CEO is planning to have an in-depth
discussion with the Kampala based Uganda Carbon Bureau on this issue. This will be of great
aid to the company as far as financing issues are concerned as a well as providing a platform for
our products.
6 OPERATION PLAN
Clean Energy Investments’ Briquette production will use Agricultural Waste (field residues and
process residues like; sugar cane trash, maize waste, cotton stalks; and charcoal dust which are
small particles of charcoal lost during retail and distribution. These will be supplied by local
farmers, charcoal dust collectors hired by the company.
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Carbonization; this will be done to drive out volatile compounds and moisture from the biomass,
leaving a fuel with a higher proportion of carbon remaining (char). The carbonization will be
done in a brick or steel kilns as a carbonizing unit.
Preparation of feedstock; Before compacting into a briquette, the feedstock is crushed into
powder form by use of a mechanized milling machine. After which it is sieved to ensure
consistency in the powder. This will also be part of our quality control measures.
Binding; binding is the process of ‘sticking together’ the compacted material. If there’s need for
a binder, we will be binding using cassava flour.
Compaction or molding will be done using a briquette making machine from China. The
company CEO, Mr. Onyinge Yusuf is planning to place a quotation for the briquette making
machine from China.
Drying; Clean Energy Investments will in its first three years of operation use the sun drying
method for drying its briquettes though this is a slow process which takes between 4-5 days for
the briquettes to dry. Sun drying will be done on a raised wire mess for a faster drying.
In the subsequent years, the company anticipates acquiring a Tunnel Drier for briquettes and a
Flash Drier for feedstock.
Lastly, Clean Energy Investments will package its briquettes in polythene bags in various
quantities for its customers starting from 1kg. The polythene bags will be printed with the
company’s name and logo.
Also the company intends to hire people who will collect charcoal dust from market places to be
used as raw materials for making the charcoal briquettes. Or alternatively buy the charcoal dust
directly from charcoal traders in different markets.
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6.4 Legal status
̶ Clean Energy Investments will be Limited Liability Company and will be registered through
the Registrar General in Kampala.
̶ The company will be located in Gulu, Eastern Uganda. I will apply for a trading license
through the Gulu Municipal council.
̶ The team of founders of this company is still working on the company’s logo. The logo will
be registered as a trade mark; thereafter it becomes a label on all products manufactured by
Clean Energy Investments.
̶ The company will carry out an Environmental Impact Assessment (EPA). This is in
conformity with the National Environment Management Authority (NEMA) mandate
Vision:
The company’s Vision is ‘To be the leading producer and supplier of high quality carbonized
charcoal briquettes in Uganda.’
Goals:
Clean Energy Investments is yet to be established and it’s not yet incorporated; however,
thorough and detailed research has been and the possibilities of achieving these goals are viable.
8 FINANCIAL FORECASTS
Clean Energy Investment is still in the start-up phase, we have yet to develop positive cash flow.
As the profit and loss projection and cash flow forecast indicate, however, we expect the
company to begin to generate a positive cash flow and profit before the end of the first year of
operation. To accomplish this, the company requires a total infusion of $10,000 as an initial
starting capital (equity capital).
The founders will contribute a third of that amount from their personal savings and will seek for
a loan to meet the remaining balance.
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8.1 Cash flows
Below is the cash flow projection for Clean Energy Investments for the first three years of
operation.
Finance OUT:
Loan repayment 1,666.67 1,666.67 1,666.67
Interest on loan 666.67 500.00 375.00
Payment of dividends - - -
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8.2 Profit and loss
Below are the profit and loss projections for Clean Energy Investments during the first three
years of operation.
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8.3 Balance sheet
Current Assets:
Cash 10,000.00 15,000.00 21,000.00
Equity:
External share capital - 5,000.00 8,670.00
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9 RISKS ANALYSIS/SWOT ANALYSIS
Every business faces risks. Clean Energy Investments is not an exception. However, we strongly
believe that the risks which will face this business will be manageable and we see nothing that
will seriously threaten the business. However, below are some the risks that the business is
doomed facing and how we anticipate and plan to deal with. They have been categorized as
SWOT (Strengths, Weakness, Opportunity, and Threats as shown in the table below;
Low cost of raw Staff may quit to setup rival Use of distributors, sales
materials. companies representatives,
High demand for Lack of financial support wholesalers, etc.
charcoal Agricultural waste/charcoal Ensure proper and timely
Unused agricultural dust demand may increase, pay of workers to
waste/charcoal dust. thus increasing the price or a motivate them to work for
Diminishing wood fuel decline supply the company.
supply. Suppliers' failure to meet Working with partner
Briquettes will be less deadlines organizations such as
expensive than wood OXFAM, etc.
charcoal
No rival firm
Producing briquettes in
Gulu.
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10 ANNEXURE
10.1 Resume
ACADEMIC TRAINING
Kyambogo University, Kampala, Uganda
PROFESSIONAL EXPERIENCE
Researcher – Research on Briquettes as a sustainable energy source for
cooking in Uganda (April 2018 to date) this has been done on a personal level,
no paper is published yet.
Data analyst – Cipla Quality Chemicals (June 2018 to August 2018)
Casual labor coordinator – Amathon Agri Uganda Ltd (November 2015 to
February 2016)
CERTIFICATIONS
Training in Briquette making technology and how to market them, biogas Technology and
Improved cooking stoves, Oxfam Uganda (July, 2019).
Career Expo-2018 held at Kyambogo University. Trained on entrepreneurship skills and ways of
managing finances. (March 2019)
SERVICE ACTIVITIES
General Secretary Kyambogo University Environmental Management Association
(KUEMA) from (April 2019 to date).
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References
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10.2 Photo gallery
Figure 1 Briquette making machine Figure 2A carbonizing Unit Figure 3 Carbonizing Biomass
Figure 4 Molding using a simple Figure 5 1kg packaged Figure 6 Carbonized charcoal
briquette machine briquette in a polythene bag briquettes
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