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Business Toolkit For Biogas Construction Enterprises
Business Toolkit For Biogas Construction Enterprises
Business Toolkit For Biogas Construction Enterprises
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.
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
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
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
• 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”.
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
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.
• 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
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.
………………………………………………………………………………
………………………………………................................…
………………………………………………………………………………
………………………………………………………………………………
Module 4
Managing
Finances
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:
• 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.
Session 2 business
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
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.
Name of BCE
Address
Products
Goal (Objective)
Potential Market
Inputs Required
Business Contribution
Loan Funding Required
Projected Profits
Total Payment
Receipts/Sales
Total Sales.
Profit BIT
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
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………
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