BUSINESS PLAN

TEMPLATE

HARPE
BUSINESS PLAN

Cultivating In All Seasons

With A Drip Irrigation System

Prepared by: Menawati Hutabalian

February, 2020
 Dean Family Fellowship Grant – Stage 2

Table of Contents

Page

Confidentiality Agreement ......................................................................................................... iii

1. Executive Summary ............................................................................................................ 4

2. Company Description ......................................................................................................... 5

Products and services ......................................................................................... 5
Long Term Aim of the Business .......................................................................... 6
Objectives ........................................................................................................... 6
SWOT Analysis and conclusions......................................................................... 7

3. Market Analysis .................................................................................................................. 8

Target Market Analysis....................................................................................... 8
Profile of Competitors ........................................................................................ 8
Competitive Advantage ....................................................................................... 8
Benefits to Clients ............................................................................................... 8

4. Marketing/Sales Strategy .................................................................................................. 10

Marketing Strategy ........................................................................................... 10
Revenue Sources ............................................................................................... 10
Sales Strategy.................................................................................................... 11
Pricing .............................................................................................................. 11
Marketing and Communications Strategy ........................................................ 12

5. Staffing and Operations .................................................................................................... 13

Management (including Board) Organisation Chart ....................................... 13

6. Financial Projections ........................................................................................................ 14

Requirements for Preparation of Projections ................................................... 14
Profit & Loss Accounts ..................................................................................... 15

7. Sales Pipeline .................................................................................................................... 15

8. Funding Requirements ...................................................................................................... 16

APENDICES .............................................................................................................................. 17

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Confidentiality Agreement
The undersigned reader acknowledges that the information provided in this business plan is
confidential; therefore, the reader agrees not to disclose it without the express written
permission of Harpe Company.

It is acknowledged by the reader that information to be furnished in this business plan is in

all respects confidential in nature, other than information that is in the public domain
through other means, and that any disclosure or use of this confidential information by the
reader may cause serious harm or
damage to Harpe Company.

Upon request, this document is to be immediately returned to

Harpe Company.

Signature

Name (printed)

February, 2020
Date

This is a business plan. It does not imply offering of securities.

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1. Executive Summary

Purpose of the plan

Buiding Chili farm as a demonstration farm with drip irrigation system to Introduce
Drip Irrigation System to Farmers who don’t know how to bring water from its source
to the field
Providing irrigation equipments and consultation for farmers who need
Product or service and its advantages
Providing Fresh Chili and Less Pesticides (health) at an affordable price.
Providing Consuntation, seminars and equipments for those who need it.
Market opportunity
Local Market, Super Market (City) Pak Tani Digital Aplication and Food Factories.
Management team
Director-Secretary and Treasurer-Marketing staff and field staff
Financial projections
Here we project a financial highlight. The detail financial projection is in appendices.

Financial Highlights PRICE ($)

Investment 4667
Operational Cost
FixedCost 1750
Variable Cost 1200

Amount Produce 3000 Kg

Price $ 1,5 4500
Services benefit 500
First Revenue ± 18
month
ROI ± 3 Year

Funding requirements
We need a Fund that support society socially and economically and
bringing knowledge to society. The local farmer need more knowledge to improve the
agriculture crops to fulfill human need and also to improve their living need by getting
advantages from the field and services.

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2. Company Description
Products and services

Chili is one of the ingredients that must be present in every Indonesian cuisine. The
price of chili is high during celebrations such as Christmas, Eid and others. We will produce
fresh chili and also with a good price. Not too high and not under the cost. This is the reason
why we grow chili as a crop for the demonstration field to show to our community.

We live in a village. All the people are farmer. They grow plants in a traditional way
without investing technology. They do, but only for tractor and pesticide. They depend on rain
for irrigation. They don’t know how to bring the water from its source to the field. By using
drip irrigation sytem we can grow chili and other crops all the time with a good quality and
fresh.

Most of the farmers are not graduated from middle school so they don’t have enough
knowledge about agriculture. They do believe in a traditional way and don’t want to invest
money and they grow plants without plan. Nowdays, there are also many farmers who use
pesticides in the wrong way. They don't know the dangers of pesticides for health so they
spray as much as possible to ensure pests and plant diseases are destroyed.

We come from farming families who graduated from universities majoring in

agriculture where our parents did not agree if we became farmers. Culturally, it is not good to
be a farmer after graduating from college but must work in a large company in the city or in
the office. We want to prove that we can help them by showing and building a demonstration
farm and we hope that our company's presence will help the local community to increase their
knowledge about agriculture and to apply the drip irrigation system.

Benefits and Features

By using drip irrigation system, we can grow chilli even in dry season. We can
suply all the demand of customers because we will cooperate with the farmers around
us. The land to be planted with chili is located in a very strategic place as an example
land for farmers because it is close to the highway and water sources.

Unique selling points

Bringing the product to customers place, the customers don’t need to come to
the farm/store. We also open to customer responses and suggestions for the services
and products we provide.
 Dean Family Fellowship Grant – Stage 2

Advantages to customers
Consuming healthy food is very important for health and we provide healthy
products for customers. By using drip irrigation system farmers reduce input and
improve the outcome of the farm.

Disadvantages or weak points

Limited access (road). The road from city to the village is not good enough.
Meaning, the product needs more time to distribute. As a woman is not easy to be
accepted by the society and it takes time to convience them.

Future developments
Working together with farmers around us to to create a network among farmers
by holding a meeting to discuss things that need to be done for the advancement of
agriculture and the welfare of farmers is one of our future goals.

Long Term Aim of the Business

Providing devices service by working together with drip irrigation company and
building an agriculture consultant.

Objectives
For the next five years we hope this project can influence community to change
their mindset about agriculture and the benefit of applying science and technology in
agriculture.

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SWOT Analysis and conclusions

Strengths Weaknesses
 Wide market  Road access and transportation
 Available labor  My status ( as a woman) is not
 Enough water accepted by community
 Healthy product (Less Pesticide)  A woman (after getting married) is not
 Available product for services acceptable to stay in a long term in the
village
 Mindset of society
 Limited Transportation
 Distance to the market
Opportunities Threats
 Feast day  Competitor
 Custom Event  Middleman
 Food factories/manufactures  Culture
 Digital Marketing System Aplication
 workinW together with government to
do seminars and event
 Drip Irrigation Companies

Conclusion :
• Road Access : in the second year we will buy a motorbike to reach the farmer
to do consultation.
• My status as a woman : time and hardworking will proof the society that a status
doesn’t matter and it will change their mindset slowly.
• The distance to the market can be overcome by renting a transportation for the
yield.
• Competitor is just for the agriculture product. Building a partnership with the
farmer arround us is a good thing to do.
• Middleman can be overcome by sending our product directly to the market
• Culture (helping each other for free) can be overcome by telling them about the
detail of business
.

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 Dean Family Fellowship Grant – Stage 2

3. Market Analysis
Target Market Analysis

The market is wide. In every village there are a lot of local markets and supermarket in
each small town and city. All of them are growing. Government supports local markets and
build them for society. In every market, customers are looking for a fresh product and this is a
good chance for us to introduce our fresh product. All customers need health food (chili) and
we will provide it for them. There is no drip irrigation company in Indonesia and this is a good
chance for us to start to be the one who provide the devices for farmers and ready to be a
consultant for those who need it.

Profile of Competitors

Most of people (low class economy) in local Market want lower price no matter how
the quality is. Most of them buy lower quality and cheaper. And this a challenge for us to prove
them that good product has a good quality. All collectors/ midlemans agree to set price before
buying product from farmers and before sending them to retailers and it will harm farmers
customers.

The advantages from the competitors for us is we can share our product with them.
Lowering the price more than what we’ve decided and calculate is one of the disadvantages.

Competitive Advantage

We hope potential customers will choose to buy our product in place of those profiled
above because we have adventages and a story/motivation behind it, the price will be
arranged not so high even in a dry season which is usually it happened year by year. We use
new technology (drip irrigation) in order to get better quality and better value to customers
because our product is healthy and less of pesticides.

Benefits to Clients

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Here are the benefits for our Customers/clients

1. Our company provides product in every seasons. It means they don’t need to worry
whether there are enough product or not.
2. Saving money
One of the things that we will do with this bussiness is cutting the middleman in sending
product and services of device, meaning it will reduce the delivery cost.
3. Saving time
The customers are not needed to come to our store or farm, we will send it to them
directly. As a consultant we can reach the farmers who need services.
4. Saving life
Usually farmers don’t cultivate corps in a dry season, by introducing and providing
irrigation system devices we bring them hope to be able to cultivate and to get income.
5. If there is any problem with our product or service, the client can contact us and we will
make sure that we will do the best for them.

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4. Marketing/Sales Strategy
Marketing Strategy

For the first year we are focus in growing chili in our demonstration farm and to sell
the Crops to someone who collect all the crops to know what their weaknesses are (as a
competitor). We will be their customers first.The first targeted market is local market and
traditional market because we will see the different of price after cutting the middleman. After
gaining the trust of community the benefit of applying sience and technology in agriculture we
will do seminars, consultations and provide devices and services to them.

In order to reach the full target market we will do seminar about drip irrigation and
introduce them our product, services and the idea behind it, the danger of pesticides for health
and the benefit of using drip irrigation system.

We guarantee that our products are healthy and less of and our services is avaliable for
those who want to learn about it. “Science and technology in agriculture produce Healthy
product in every seasons”

The potential customers that we have targeted are Customers who care about healthy
product and care for farmers in accordance with this business development background. We
have done a test site in operation. It is not focused on chili, but IT Del, one of the groups in this
proposal, has interviewed the community regarding the availability of agricultural products in
traditional markets that are not fresh and or contain pesticides. They really hope there is a market
that provides fresh agricultural produce and uses little pesticides.

The importance of consuming healthy food and The impact of using pesticides for health
and environment are contacts that can be used to generate market awareness and sales. All the
staff in this company can do marketing and sales but we focus it to the marketing staff to do.

Revenue Sources

Here are the contributions to revenue and profit our business will have have

Irl EU US Rest of
World
 Products Health Chili and
less Pesticides
 Services Drip irrigation
System
 Licences
 After
sales
 Upgrades
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 Dean Family Fellowship Grant – Stage 2

Sales Strategy

Directly
Sales of chillies will be conducted close to agricultural land, so that the
community can see how to cultivate chilies using drip irrigation and using pesticides
appropriately. With affordable prices and useful knowledge, they can become our
customers in services. For services, we can offer the farmers and the benefit of using
drip irrigation system.

Distributor
This method is for Local market and shoping store. Chilli will be packaged more
neatly and conditions that can last longer. Devices and services distribution is depend
on the demans.

Website and Pak Tani Digital Aplication

We will introduce our product in website by describing the company, the
motivation, the idea behind it. Making a short clip so that people will more easy to
know and to understand about it. Through this website and Pak Tani Digital
application, our brand is also more famous because it can be reached by anyone. We
will provide products and services according to customer’s requests.

Pricing

The price of the product will be arranged not so high and not under the cost. We will
make it profitable enough. On feast days the price is higher and it depends on the demand and
product availability in the market. We have many competitors in the market, so we must work
hard in maintaining and guaranteeing quality. Doing the right marketing techniques. Product
quality is directly proportional to price. The better the quality the higher the price.

Production costs will be used as efficiently as possible. It should not be too pressing the
cost of production to get a bigger profit. We do a sensitivity analysis (apendices ii) in order to
know the price limits that benefit company. The buyer can control the price as long as it is still
profitable for us and not under charge/cost. We set the chili price base on sensitivity analysis
and we don’t need to add packaging fee because the products are sold in a big package such as
≥5kg. Chain of distribution is Harvesting-Sorting-Packing and Labeling-Distributing.

For services, price will be adjusted according to customers condition including distance
and number of devices needed,

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 Dean Family Fellowship Grant – Stage 2

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Marketing and Communications Strategy 7
Here are the strategies of marketing:

a. Advertisements
It will be made on social media by designing them as attractive as possible and easily to
understand. This is made for everyone and will start from the planting of chilies.
b. Direct marketing
This is a good way in the beginning by selling our product to the middle man (being their
customer first) to know what their weaknesess are.
c. We will create an official website for the company by including the background of the
business and advantages of the product and services. In Indonesia there is an application for
selling agricultural products called “Pak Tani Digital”. We will introduce the product
through this application.
d. Exhibitions and conferences
These will be held and can be done if there is a conference on agriculture and health held
by the government. we will cooperate with the local government.
e. “Word of mouth” will happen automaticly when we start something new around the farmers.
They will spread it even we don’t ask them to do.

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5. Staffing and Operations
Staffing
In the beginning we need 5 staff and we need 2 people to do irrigation pipe
installation. The bigger this bussiness the more we need staff/employee. We will recruit
employees with a good skill in farming, marketing, and able to manage the product from the
first step until the end of precess (marketing). They can be recruited from farming area and
market area.

Management (including Board) Organisation Chart

The following company struc ture is planned for the next 3 years.

DIRECTUR

SECRETARY
MARKETING AND
TREASURER

SALES/MARKET FIELD STAFF

STAFF

Job Descriptions of Staff

a. Directure
- Leader
- Responsible for the running of the business
- Coordinating, supervising, and directing all activities
- Decision maker
- Quality control
b. Secretary and Treasurer
- Managing the demands,
- Making bookkeeping about the company’s income and managing the empolyee’s
salary
c. Marketing Section
- Head of marketing section has a responsibility to maintain the sales staff and field staff
to work according to their job requirements.
- Sales staff responsible to sale, promote, and distribute the product and services
- Field staff responsible to do the field job.
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6. Financial Projections
Requirements for Preparation of Projections

1. Opening figures included based on latest Mgmt/Audited accounts

2. Shareholders Fund analysed into Share Capital, Share Premium and Retained
Profits

3. Sales Assumptions provided by unit, price segment & geography and reconciled to
pipeline
4. Expenditure categorised into R&D, Admin and Overheads and Promoters / key
managers salaries
5. Identification of monthly and cumulative company operational deficits
6. Sensitivity analysis may be required, detailing strategies to be implemented if sales
or expenditure targets are not met.

Financial Highlights PRICE ($)

Investment 4667
Operational Cost
Fixed Cost 1750
Variable Cost 1200

Amount Produce 3000 Kg

Price $ 1,5 4500
Services benefit 500
First Revenue ± 18
month
ROI ± 3 Year

Further detail these items are placed in the Appendices.

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Profit & Loss Accounts

INCOME Year I Year II Year III

Product sales 4500 4500 4500
Other Income (Services) 250 500
Total Income 4500 4750 5000

EXPENSES
Advertising, Web 75 75 75
R&D 200 200 200
Materials (seeds, compos, fertilizer,
750 750 750
pesticides, packaging)
Equipments 3067 1600 -
Professionals fee / Employee 2400 2400 2400
Electricity 100 100 100
Storage Rent 25 25 25
Tax 100 100 100
Miscellaneous 500
Total Expenses 7217 5250 3650
NET INCOME -2717 -500 1350

Chili planting season can be done two times in one year and this profit and loss
account is made for 1 season in one year, meaning we can get profit more than on that table in
second and third year. Further detail these items are placed in the Appendices as a Sensitivity
Analisys.

7. Sales Pipeline
Table as follows:

Name of Customer Size of Deal Date PO expected Probability % of

Getting Sale
NICO 200 kg One week before delivery 95
Budi 100 kg One week before delivery 95
EKA 20 kg One week before delivery 95
Etc.

The product is not provided in small package such as 1 kg and 2 kg. By selling in a big
package we reduce the packaging fee. We only need sacks or baskets made of bamboo.

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8. Funding Requirements

Sources:

Promoters’ funds

The total funding we need is Investment + Variable cost + Fixed Cost

= 4667+ 1350+ 2375
= $ 8392
. It will be spent to buy the equipments as an investment and salary for employees in
the first season. Further detail items we need and the total area of demonstration field are
placed in the Appendices.

The fund is required for:

Equipment
R&D
Marketing
Staffing

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APENDICES
a. Field Description

Total Area 1000 m2

No. of Shed 14
Plants Distance 0,3 m
No of Plants 4445
Mulch 667 m

b. Investment

No Description Price ($)

1. Drip Line 667
2. Pump 300
3. Pipe 500
4. Water Tank 200
5. Sprayer 25
6. Construction (metal) 650
7. Net 175
8. Motorbike 1600
9. Hand Tractor 500
10. Hoe, Scop, Harvesting equipments, etc 50
Total 4667

c. Variable Cost

No Description Price ($)

1. Seeds 150
2. Fertilizer 250
3. Compos 50
4. Pesticide 100
5. Packaging 100
6. R&D 200
7. Miscellaneous 500
Total 1350

d. Fixed Cost
Total
No Description Number Price
($)
1. Electricity 100
2. Employee's Sallary 5 400 2000
3. Adverticement 25
4. Website 50
Product
5. 75
Transportation
6. Storage Rent 25
Tax 100
Total 2375

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Sensitivity Analysis = What If Analisys

Total expenses for field are
Total expenses-expenses for services
= 7767-1600-500
= $6167
Assuming yield is 3000 Kg for 2 season
Assuming price per kg is $1, 5

5000 4000 3000 2000 1000 5667

-3167 -3667 -4167 -4667 -5167 0,5
-1917 -2667 -3417 -4167 -4917 0,75
-667 -1667 -2667 -3667 -4667 1
583 -667 -1917 -3167 -4417 1,25
1833 333 -1167 -2667 -4167 1,5
3083 1333 -417 -2167 -3917 1,75
4333 2333 333 -1667 -3667 2
5583 3333 1083 -1167 -3417 2,25

Red = Loss
Black = Profit

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