Business Toolkit For Biogas Construction Enterprises

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1.

0 Introduction
This Handbook could not have been developed without the financial and
technical support and cooperation of SNV Netherlands development
organization, particularly the Biogas sector team who include Peace Kansiime,
Sylvia Namara and Joyce De Mucci. The hand book is a product of a collective
partnership of SNV and Biogas Solutions Uganda (BSU), and its development
was guided by the overall objective of strengthening the capacity of Biogas
Construction Enterprises to disseminate biogas technology in rural and
peri-urban areas with the ultimate goal of establishing a sustainable and
commercially viable biogas sector in Uganda.

It is hoped that the hand book will guide Biogas Construction Enterprises
(BCEs) in developing appropriate business and marketing plans in order to
increase the revenue as well as guiding BCEs in management and operational
issues. The Hand Book will guide BCEs on key issues of financial procedures
and internal controls. The Hand Book will also serve as a guide for any small
to medium size enterprise to develop an effective biogas business.

These modules are also split into a


series of sessions for easy management
of information dissemination and also
The Hand Book is maintaining focus. The Hand Book may
structured in 5 modules; be used in conjunction with other existing
• Biogas as A profitable materials on entrepreneurship, enterprise
Business.
development, construction operation &
• Enterprise
maintenance manual.
Development.
• Product Marketing
and Promotion.
• Managing Finances.
• Governance.
Module 1
Biogas as a
Profitable Business

Objectives and outcomes


of the module:
In this module the learner will be able to
• Improve his/her attitude towards biogas as a
business.
• Think strategically as they run biogas as a
business.
Session 1
Visioning in
Biogas as a
Business

In this session, the learners will:


• Be able to develop a vision and think about biogas as a business that can
fulfill their personal ambitions.
• Change their mind set and look at biogas as a profitable business.

Obstacles to Developing a Vision


The following are the obstacles of BCEs that hinder from developing a
vision;
• Mindset or mental attitude that biogas services are donor driven.
• “Dependency on subsidy” syndrome.
• Lack of self-confidence and business management skills for the
biogas enterprises.
• Lack of information on the opportunities that exist in biogas
business.

Changing the Mindset


The following are the steps that can be taken by the entrepreneurs to change their mindset;
• Identify a coach and mentor to support biogas enterprise development and appreciate biogas as a
profitable business.
• Develop entrepreneurship and business management skills.
• Identify biogas business opportunities set goals and work hard to achieve those goals.

Biogas Entrepreneurs with Positive mind Set


Biogas entrepreneurs with positive mindset usually do the following;
• Specialise and love biogas as a profitable business.
• Acquire knowledge on entrepreneurship and business management skills.
• Hard working, Focused, Persistent and always stay committed.
• Identify market opportunities and potential customers all the time.
• Work well with and through teams of mansions and promoters.
• They are passionate about biogas as a renewable energy product.

Reflection
“Today you are known as the owner of a small biogas construction enterprise in your village,
tomorrow you can be known as an owner of a successful biogas construction enterprise covering the
entire region. This can happen if you make a commitment that you can make it through biogas as a
business”
Session 2
Entrepreneurship
in Biogas

In this session, the learners will:


• Be able to identify who an entrepreneur is and, reflect to see if they can as
well be entrepreneurs.
• Relate other businesses with biogas.

Description of Biogas Entrepreneurs


An entrepreneur doing biogas business is described as one who;
• Is willing to take risks.
• Is creative and innovative.
• Operates biogas business with a passion.
• Is willing to work for long hours
• Closely supervises his team for quality service delivery.
• Always thinks of new ways of doing their business.
• Identifies biogas business opportunities and seizes them.
• Is accountable and transparent to their teams.
• Understands the income potential of biogas business.

Entrepreneurial Business
An entrepreneurial business is described as one which involves;
• Making profits while taking risk.
• Buying inputs that are used to develop a product and deliver quality product to clients.
• In the biogas case employing mansions, promoters and administrators and motivate and
remunerate them in time.
• Selling, Marketing and Promotion.
• Regularity of activity.
• Personal strategy.
• Designing a business plan.
• Setting up clear governance structures.
• Delivering a quality product to the client.
Session 3
Goal Setting
in Biogas as a
business

In this session, the learners will:


• Be able to identify and set SMART goals.

Description of a Goal
A goal may be described as;
• Something that somebody wants to achieve. Summary
• End towards which an effort is directed.
• An ambition. “The trouble with not having a goal is
• A score. that you can spend your life running up
• A target areas. and down the field and never score.” –
Bill Copeland.
Rationale for Setting Goals
• Goals give you focus. Entrepreneur Self-Assessment Tool-
• Goals provide clarity on the end vision. Guiding Questions
• Goals make you accountable.
• Goals help you to spend time wisely. i. In terms of vision, where do you see
• Goals help you measure progress. your business in two years’ time?
• Goals prevent distractions. …………………………………………………………………
• Goals give you motivation. ………………………………………………………….......

Characteristics of SMART Goals ii. How will you move from where
• Specific- Biogas construction business. you are to where you want see your
• Measurable- Number, sizes or income from business in two years’ time?
digesters to be constructed. …………………………………………………………………
• Achievable- Numbers of digesters that can be ………………………………………………………….......
constructed in relation to existing resources.
• Realistic-Represents substantial progress. iii. Why have you chosen to set up and
• Time Bound- By end of the month, quarter or run a biogas Business enterprise?
year. …………………………………………………………………
………………………………………………………….......
An Example of a Goal and how it can be
achieved iv. What goals do you want to achieve?
Possible Goals:- …………………………………………………………………
• 100 Biogas Digesters Constructed, will enable ………………………………………………………….......
me achieve net income of 20,000,000/= by end
of the year. v. What are you going to do differently
• By end of 2015 increase income by 50% through to develop a successful biogas business?
construction of 500 biogas digesters. Such goals …………………………………………………………………
may be achieved through; ………………………………………………………….......
• Promoting Biogas as a business.
• Conducting after Sales Services.
• Promote hire purchase arrangement.
• Having records and a Business plan.
• Remunerate and Motivate Staff in time.
Module 2
Biogas Business
Development

Objectives and outcomes


of the module:
• In this module,the learner will be able to
learn the enterprise development process,
product development and productivity
analysis.
Session 1
Enterprise
Development

In this session, the learners will be:


• Able to explain enterprise development.
• Able to explain enterprise development process.
Description of Enterprise Development.
Enterprise development may be described as a process of creating, improving and expanding business
operations in order to make a profit. It aims at identifying, developing and promoting business
initiatives that generate income and thus make them profitable.

• An example is “identifying a dairy farming community, persuade the community to demand for
biogas digesters because of the value proposition and sign contract to deliver the digesters for a
profit”.

What can be done to develop a Biogas Business?


In order to develop a biogas business, biogas entrepreneurs should;
• Involve mansion, promoters and administrators in planning in order to identify potentially profitable
business leads.
• Consult knowledge experts.
• Identify constraints to biogas business such as;
o Competition from other sources of energy
o High initial cost of digester
o Water Stress areas.
o Theft of animals
o Price fluctuations.
• Identify opportunities that can lead to development of successful biogas business such as;
o Growing farming population
o World reduced fuels.
o Environment protection
o Need for increased organic agriculture.

Biogas as Business
Biogas as a business should encampus the following:
• Value proposition for biogas
• Profitability analysis
• Promotion and marketing strategy with unique selling point for biogas lighting and bioslurry.
• A business plan
• Clear governance structures
• Right teams employed and motiving them in time
• Quality should be a major factor in the delivery of the product.
• Provide after sales services
Session 2
Product Development
and
Profitability Analysis

In this session, the learners will:


• Be able to identify the core product and the embedded services.
• Be able to understand the cost structure of their product and the
profitability analysis.

The Core Business of Biogas and its Costing


A core product is a product or a service which is directly related to the core competence of the Biogas
Construction Enterprise. It’s the use, the benefit or the problem solving that the consumer buys when
purchasing the product. A core product is;
• The main source of income for the business.
• What the business stands for.
• Where all resources and efforts are directed towards producing the product.

Biogas Business has the following core products;


• Construction of Biogas Digesters.
• Other Services that can be embedded.
• After sales service when 6 months elapses. ( Guarantee)
• Sell and Distribute parts / Appliances
• Pipes
• Lumps
• Stoves
• Sell and distribute quality construction materials to ensure quality of their product.
• Extension services in bio slurry management, use and application.

Cost Structure (Cost Benefit Analysis)


Entrepreneur Self-Assessment
Item Amounts Amount Amount Tool- Guiding Questions
(6m3) (9M3) (13m3) i. What biogas products range do you
propose to offer to the market?
Materials
………………………………………………………………………
• Bulk
………………………………………………………………………
• Appliances
ii. What opportunities do you want to
Labour exploit in your market area?
• Excavation ………………………………………………………………………
• Mansionary ………………………………………………………………………
• Supervision iii. What is your commitment toward
Overheads providing quality to customers?
• Office and Admin ………………………………………………………………………
• Quality ………………………………………………………………………
Assurances
• Miscellaneous iv. What profit do you project per month or
per quarter?
Production Cost ………………………………………………………………………
Mark up/Profit/Margin ………………………………………………………………………
v. How many digesters do you need to
Total Cost
construct per month in order to break even?
………………………………………………………………………
Figures are for illustration purposes only.
………………………………………………………………………
Module 3
Marketing and
Promotional

Objectives and outcomes


of the module:
• In this module the learner will be able
to understand the concept of and the
importance of marketing and promotional
strategies. Learners will be more focused on
the potential market segments.
Session 1
Marketing-
An overview

In this session, the learners will be:


• Able to explain marketing and the key factors for successful marketing.

Description Of Marketing
Lecture/or documentary:
The heart of your business success lies in its marketing. Most aspects of your business depend on
successful marketing. The overall marketing umbrella covers advertising, public relations, promotions
and sales. Marketing is a process by which a product or service is introduced and promoted to potential
customers. Without marketing, your business may offer the best products or services in your industry,
but none of your potential customers would know about it. Without marketing, sales may crash and
companies may have to close.

For a business to succeed, the product or service it provides must be known to potential buyers.
Unless your business is known in the community and are has communication with your customers
readily available, you have to use marketing strategies to create product or service awareness.
Without marketing, your potential customers may never be aware of your business offerings and your
business may not be given the opportunity to progress and succeed. Using marketing to promote your
product, service and company provides your business with a chance of being discovered by prospective
customers.

Key factors for developing a successful marketing strategy

• A good biogas marketing message should be driven by customers needs. An example is the need to;
• Save on cost of buying fuel every day
• To have clean and convenient cooking
• Support increase in organic agriculture production.
• A good marketing strategy should be driven by the unique selling proposition.
• A customer Driven Marketing strategy should highlight information on the Product, Price,
Promotion and Place (4Ps)
• Product: Users are looking for a product that responds to their needs.
• Is it a 6, 9 or 13m3 sizes of a digester?
• What is the key selling product is it light, gas or organic fertility?
• Is it effective to construct a large size digester verses a small depending on the dung
availability and the ability to feed the size of plant.
• Price: Effective demand is backed by ability to pay.
• Is the cost of digester with in the ability?
• If a customer cannot afford a 13m3, what other options are available?
• Can you offer credit terms?(think through partnerships with cooperatives and negotiate a
check off system with their farmers)
• Promotion / Sales: Sales and promotional effort should be a bottom line for any marketing
strategy. All Information necessary for decision making should be included. Promotion involves
communicating through various media the benefits of biogas services.
• Place: Biogas enterprises should be as conveniently located as possible for easy access of
customers and staff. Visual impression is the first step to winning a customer.
Session 2
Marketing and Promotional
Strategies for Biogas Digester
Construction Services

In this session, the learners will:


• Be able to understand the marketing environment in which they operate.
• Be able to understand how to promote the biogas business.

Threats and Opportunities to Biogas Business Environment


Threats Opportunities
 Price fluctuations of construction  Increasing fuel prices
materials.
 Subsidies to biogas users.  Wood stressed communities hence high costs of
buying firewood and charcoal
 A few companies are active in the sector.  Robust support (by government) to Promotion
dairy production among farmers
 Limited awareness of biogas solutions to  Ability to produce large tonnes of organic
communities. manure in a short time.
 Initial cost of a digester is above what  Promotion of bio slurry application to key
most households can afford. export crops like coffee
 Quality of digesters sometimes is  Coordination between extension
questioned.
 Lack of national standards.  Potential linkage to financial institutions.
 Existence of trained mansions.

Possible Marketing and Promotional Campaign Key Questions


Marketing Campaign Promotional Campaign
 What specific segment of the market is  Are marketing and promotion efforts honest
the business serving? and straight forward?
 Why do customers buy its products or  Are all aspects of marketing and promotion
services as opposed to those that can coordinated with production planning and
act as substitutes i.e. for lighting -solar scheduling?
and for gas -firewood, cooking stoves, for
bioslury - chemical fertilisers
 What are the unique selling points for  Are marketing and promotion efforts controlled
biogas compared to substitutes above? by budgets that are changed only for
compelling reasons?
 Does the enterprise and its products or  What is the BCE approach to advertising,
services have a good reputation amongst promotions, and branding?
customers?
 How does the business track customer
satisfaction?
 What is the strategy for acquiring new
customers?
Practical Marketing and Promotions Campaign.

The following are the practical marketing and promotional campaign strategies that may increase the
sales of biogas digesters;
 Partnership with DVOs and Animal Drug Stores. These will provide profile of customers in their
working area.
 Subscribe to Dairy Cooperatives as Members. This will give you an opportunity to know who
wants what and who can afford what.
 Make use of Community Radios to create awareness on the biogas technology and services
offered by the BCEs. .
 Advertise in Focused Agriculture newspapers like Seed of Gold for Monitor and Harvest money
for New vision.
 Strategic citing of the office and an impressive poster.
 Delivering Quality Work to existing customers to secure references.
 Prospect development partners in the area of nature conservation and develop partnerships with
these
 Partnerships with SACCOs /Cooperatives so that these are linked to customers who may want a
digester but are an able to raise all the funds at once.

Entrepreneur Self-Assessment Tool- Guiding


Questions

i. What marketing and promotional strategies


will you adopt to increase sales of biogas
digesters?

………………………………………………………………………………
………………………………………................................…

ii. What will be the practical steps you will take


to implement the strategies?

………………………………………………………………………………
………………………………………………………………………………
Module 4
Managing
Finances

Objectives and outcomes


of the module:
• In this module the learner will be able to
understand the importance of records and
record keeping in biogas as a business.
Participants will be able to learn how to keep
records and how to use records for decision
making and bargaining for good prices.
Session 1
Financial Records
and Book keeping

In this session, the learners will:


• Be able to explain record keeping and the importance of record keeping,
management of cash and basic internal control system.
Records for Business Transactions
The following are some of the basic records for any business;
• Transactional books of accounts.
• Receipts.
• Invoices.
• Payment vouchers.
• Cash Book.
• Bank Statements
• Period statements
• Income statement.
• Balance sheet.
• Cash flow statement
• Planning records
• Strategic Plan
• Business plan.
• Work plan.

Record Keeping
Record Keeping may be described in business as;
• Recording all transactions as and when they occur.
• Writing down all receipts and payments made during production/Construction.
• Writing down all the people who supplied you inputs on credit.
• The activity or occupation of keeping records or accounts:

Importance of Record Keeping


It is important for any business to maintain records because of the following importance;
• They Aid memory.
• They help the business to understand cost of production.
• Used as a point of reference.
• Source of information that helps in decision making.
• Acts as a tool of management and control from the information provided by the books.
Entrepreneurs can make good decisions concerned with the development of the business.
• It acts as a ready reference wherever information is required.
• It provides information on which one can determine whether the business is making profits or not.
• It also acts as ready reference whenever sales or purchases are made in the business.
• It helps in easy dealing with creditors and debtors.
• Helps potential investors in analyzing the financial position of the business so as to make decisions
on whether to join or invest in it.
• It facilitates easy access to loans from financial institutions as they will insist on looking at the
records to verify the performance of the business
Weaknesses of Internal Controls for Cash Management in SMEs
Cash internal controls are aimed at making sure that the business uses money more efficient and
effective. Many small businesses use simple cash based systems. It is important to be aware that;

• Simple cash-based systems, despite their simplicity, have many inherent weaknesses such as
Inadequate monitoring systems, management failure, defective controls, fraud, and/or risk of
human error.
• The risk of theft or error is very high with cash-based systems; therefore, internal controls over
cash management are essential.

Basic control concepts that can strengthen a cash-based system


In order to improve a simple cash based control system, the entrepreneur should observe the
following;
• A good audit trail – a good system has an audit trail that makes it easy to trace a transaction
from beginning to end. For example, the flow of a cash receipt from the time it is collected,
deposited into the bank, and recorded in the entity’s books and records should be supported by
internal and third party documents (e.g. cash sale receipt and bank deposit slip), accounting
system entries, and bank reconciliation statements. A good audit trail makes it easy for a manager
to detect errors and irregularities and correct them promptly.
• Written policies and procedures – Every entity, no matter the size, should have a basic set of
policies and procedures that explain each employee’s role in the financial management process.
Management is responsible for ensuring that employees understand and follow the policies and
procedures.
• Proper separation of duties – A key cash control is segregating duties so that no one person has
control over any transaction process from beginning to end. There are three functions thatshould be
performed as much as possible by different people:
• Authorizing transactions – this person has the ability to approve transactions. Forexample, a
person who approves payment to a vendor has this function.
• Recording transactions - this person documents a transaction in the books and records. For
example, the person who records the payment to a vendor authorized by someone else has this
function.
• Maintaining custody - this person has physical control over cash or stocks or other assets. For
example, the person who prepares the payment to the vendor (cash or check) has this function. In
the ideal system, there are three different people performing each of the three functions.

In this session, the learners will:


• Understand sources to explore to obtain
funds for biogas digester construction

Session 2 business

Source of Practical Sources of Business Funds/Working


Capital

Business Funds
The practical sources of finance for a biogas
construction enterprise include but not limited to;
• Inputs(materials and labour ) received on credit
from hardware stores.
• Savings of profits from previous months.
• Loan from village bank
• Loan from bank/SACCO
• Advance from customer/clients.
• Check off system with a dairy cooperative or any
other functional cooperative.
Session 3
Business
Planning

In this session, the learners will:


• Be able to know the basic elements of a business plan
• Be able to know importance of a simple business plan.
• Develop a simple business plan.

Business Planning
Business Planning may be described as;
• A strategy of how a business can move from where it is currently to where it wants to be in the
future.
• A written summary of entrepreneur’s proposed business, its operations, financial details, its
opportunities, strategies and the background of entrepreneur himself.

Importance of Business Plan


Planning is one of the most important parts of running a business, no matter the size.It is easy to start
a business, but without careful planning it is like setting off on a journey to an unknown destination
without a roadmap. You might manage to make it to your destination eventually, but don’t be surprised
if you get really lost on the way! Planning can be time-consuming but the benefits of good planning will
far outweigh the cost. The following are some of the importance of a business plan.
• It forces an entrepreneur to think and plan the startup of the business.
• It helps one determine the major direction of the business which serves as a road map for
launching of an enterprise.
• It provides details of resources required.
• It indicates feasibility and viability of the business in terms of its profits and market.
• It serves as an important tool in helping to obtain financing

Elements of a Business Plan


There is no standard format for a business plan. Many times the user determines what it should
communicate. Below is a common outline of presentation of a business plan;
• Executive Summary
• Business Description
• Environmental Analysis (SWOT)
• Operations Plan (Products and Services)
• Market Analysis and Marketing Plan
• Business Organization
• Financial Plan
• Support Services from Other Organisation
• Proposed Implementation Plan.
Simple Business Profile Template-

Name of BCE
Address
Products
Goal (Objective)
Potential Market
Inputs Required
Business Contribution
Loan Funding Required

Projected Sales and sales volumes

Projected Profits

Projected Cash Feb 15 March 15 Apr 15 May 15 June 15 Total


Flow Plan
Payments

Total Payment
Receipts/Sales

Total Sales.
Profit BIT

Entrepreneur Self-Assessment Tool- Guiding Questions

i. What records will you maintain for effective running of the business?
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………

ii. What internal controls will you put in place for effective management
of the business resources?
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………

iii. Which areas of your business do you think will require funding?
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………

iv. What sources of funds will you approach for such a funding?
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………

v. Do you have a business plan in place? If yes above how are you
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………

vi. What business management skills are missing in your management


team?
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………
Module 4
Corporate
Governance

Objectives and outcomes


of the module:
Time: 2 hrs
• In this module the learner will be able to
learn how corporate governance may help
the BCE to be profitable and attractive to
other stakeholders
Session 1
Corporate
Governance

In this session, the learners will be:


• Able to explain key elements of Corporate Governance.
• Able to assess the quality of corporate Governance in a business.
• Able to Identify the benefits of corporate governance.

Procedure: To understand corporate governance, the following questions may


be asked;

a) What comes in your mind when we talk about corporate governance?


b) What are the key elements of Corporate Governance?
c) What are the key questions we can ask to assess if the BCE conforms to
sound governance?
d) What are the Benefits of Corporate governance?
Corporate Governance: An overview
Corporate governance simply means the management techniques or processes by which a company is
managed.

• Most SMEs are run by owner-managers.


• The combined ownership management function has a positive side.
• Accountability to owners and empowerment of managers are embedded in the organizational
structure.
• The negative side of the combined ownership-management function is that SME owners may not
wish to have formal boards or may not wish to bring in outsiders to act as directors on their boards.
• SME owners would thus be well advised to direct more attention and resources towards fulfilling
their responsibilities and improve relationships with, all stakeholders of the business, and not just
their co-owners.

Elements of Good Corporate Governance


In order for a business to have a good corporate governance and image, it should observe the
principles of;
• Accountability
• Proper Decision Making
• Equity
• Transparency

Key Questions in assessing the quality of governance in an SME.


• Is the enterprise legally registered and incorporated? What type of entity is it?
• Who are the shareholders (or other stakeholders) in the enterprise and how committed are they to
its success?
• Does the enterprise have a board of directors? What is the caliber of directors and advisors of the
enterprise? Who advises the business apart from the manager or manager/owner?
• What is the organization structure of the enterprise? How well are responsibilities defined?
• What policy are documented to promote corporate governance in an SME.
Important of Governance

• Good governance leads to a well-managed and coordinated company


• Roles and duties are clarified.
• Easier access to finance
• Financial awareness and the ability to respond quickly
• Significant reduction in business risk and corporate failure
• Increase in monetary value of the firm

Entrepreneur Self-Assessment Tool- Guiding Questions

i. Is corporate governance any relevant to a biogas


enterprise?
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………

ii. What value does it add to the image of the business?


…………………………………………………………………………………………………………
…………………………………………………………………………………………………………

iii. What is your commitment to have good corporate


governance to your enterprise?
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
Appendices;
(i) Biogas Construction Enterprise and Their Value Preposition

Key Partners Key Activities


• Manage Customer Relationships.
DLG/Production Department/DVO.
• Sensitization/Marketing and Promotion.
• Deliver on their mandate. • Construction (visits, Citing, BOQ, Contracting,
• Custodian of info that BCEs need. Excavation & Construction)
• Issues of regulations. • Construction- Rain water Harvesting.
• Quality Assurance and consumer protection. • Construction- General.
• Monitoring and evaluations. • User trainings & Staff refresher Training.
Dairy Farmers/ Dairy Cooperatives/Institutions.
• Mentor and Coach Staff.
• For Existing Customers, They are promoters. • Quality Assurance.
• For New Customers, they provide market to BCEs. • Networking.
The Executive and management of the BCE.
• Provide leadership.
• Technical expertise.
Veterinary Drug Shops Value Proposition
• Provides information /profile of Potential Customers. • Clean/Stress Free Cooking & Lighting.
• Development Partners (SNV and BSU.) • Addresses Sanitation Concerns.
• Technical support. • Addresses Healthy Concerns.
• Direct/Indirect Financial Support • Supports Agriculture Production(Crop&
Animal)
• Addresses Environment degradation
Concerns.
• Saves time and Money.
Key Resources
• Improves gender relationships in a home.
• Time
• Technical staff
• Operations Budget. Distribution
Channels. Customer Relationship
• Toolkits.
• Through Promoters • Customer Advance/Scheduled payments.
• Through Existing • Contribution of Materials.
Users • Extension, After Sales Support & User Trainings.
• Direct Contracts with • Linkage to alternative finance options (SACCO)
BCEs.
Customer Segments
• Dairy Cooperatives.
Industrial and Competitive analysis • Individual Diary Farmers and other Individuals.
• Rural Electrification and Petroleum Gas. • Institutions (Schools, health centers, Churches)
• Improved Cook Stoves & Charcoal Briquettes. • Development Partners.
• Agro-input Dealers/Artificial fertilizers.
• Cultural Mind Set- Use of toilet.
Threats and Opportunities
Threats
• Competition.
Cost Structure Revenue Stream • High Initial cost of a plant.
Fixed Costs • Revenue from Contracts. • Customer Delayed Decisions and
• Rental Charges. • Revenue from repairs. Price fluctuations.
• Managerial Costs • Water Stressed Areas.
• Livestock Diseases and theft.
Variable Costs Opportunities
• Technical staff Commissions • VAT on Agro-inputs/Fertilizers.
• Promoters Commisions • World Concern for Environment Conservation.
• Transport Costs. • Generation Agriprenuers and Operation Wealthy Creation.
• Materials Costs. • Growing Population
• Maintenance Costs • World reduced fuel.

Profits / Dividends Actions Losses/No Dividends


• Increase
When Cost Structure is • Develop Business Plan. When Cost Structure is
lower that Revenue Stream • Marketing and Promotion. higher than revenue Streams
• Meeting to review Performance
(Cost < Revenue) • Product Diversification. (Costs > Revenue)
COST OF BIOGAS PLANTS
COST OF BIOGAS PLANTS Biogas Plant Size
ITEM 6m3 9m3 13m3
1.0 General Bulk Materials
Sand (plaster) 1 Trip (Elf) 1 Trip (Elf) 1 Trip (Elf)
Gravel 1/4 " 6 w/b 8 w/b 10 w/b
Cement 8 bags 12 Bags 16 bags
Bricks 700 900 1200
Acrylic emulsion paint 2 litres 3 litres 4 litres
Welded/Square mesh 1 piece 1 piece 1 piece
Twisted bar ( Y-12) 1 piece 1 piece 1 piece
PVC pipe 4'', 10 feet(MEDIUM) 1 piece 1 piece 1 piece
PVC pipe1/2'' (Vary with
distance) 5 pieces 5 pieces 5 pieces
Pressure gauge with 1 piece 1 piece 1 piece
Ring wire (6 mm) 1/2 piece 1/2 piece 1/2 piece
2.0 Biogas Materials &
Excava on
Dome gas pipe + valve 1 piece 1 piece 1 piece
Single biogas stove + tap with 2 pieces
accessories 1 piece 2 Pieces
Water drain valve(Varies) 1 piece 1 piece 1 piece
Fi ng material and sundry Varies with distance
Excava on, site prepara on -
nego able To be provided by the bene ciary
3.0 Company Services & Fee
Labour fee 350,000 450,000 550,000
Accommoda on To be provided by the bene ciary
Meals for masons To be provided by the bene ciary
Quality control To be provided by the BCE
Helpers/porters To be provided by the bene ciary
Annual maintenance fee
(once a year) To be provided by the BSU
GRAND TOTAL 1,500,000 1,800,000 2,200,000
Hours of cooking per unit size 4 hours of 6 hours of 7 hours of
(approx) cooking cooking cooking
Hours of ligh ng per unit size 4 hours of 5 hours of 5 hours of
(approx) ligh ng ligh ng ligh ng
Daily Feeding Requirements 45kgs 75 kgs 105kgs
SNV Uganda Offices
Country Office
Plot 36, Luthuli Rise, Bugolobi
P.O Box 8339 Kampala, Uganda
Tel: +256 (0)414 563 200
+256 (0)312 260 058
Email: uganda@snvworld.org
www.snvworld.org/uganda

Lira Office
Plot 3 Kabalega Road, Yodev Plaza,
Lira, Uganda
Tel: +256 (0)758 260 050

Kabarole Office
Plot 2/4 Rwenzori Road
P.O Box 78,
Fort Portal, Uganda
Tel: +256 (0)758 200 778
+256 (0)392 200 778

Arua Office
Plot 10A, Bwana Volla Road
Arua, Uganda
Tel: +256 (0)758 200 781
+256 (0)476 420 623

Mbarara Office
Plot 10, Haji Kasaka Road
Tel: +256 (0)758 200 781
+256 (0)476 420 623

Nurturing the Biogas Sector

Do you want to start enjoying


the benefits of biogas?

Please contact us...


Plot 36, Luthuli Rise, Bugolobi
P.O Box 8339, Kamapala,
Toll Free Tel: 0800 399236 Uganda.
E: info@biogassolutions.co.ug
W: www.biogassolutions.co.ug

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