Farm Tractor Fund Business Proposal

 Business Proposal Prepared for: Farm Tractor Fund. Prepared by: Taban Julius Henry, Managing Director - Sera Foundation Group, Juba – South Sudan. Contact information: Cell phone #: +211955070161. Email address: [email protected] Description: The Management of Sera Foundation Group is seeking funding from donors and other well-wishers/individuals of goodwill for the purchase of MF-260 60HP 2wheel Brand new Tractor from tractorproviders.comin Japan. The funding request, market analysis and return of investment analysis of this project are included in this proposal. Sera Foundation Group is seeking the flexibility, guidance and funding of 15,000 USD for the growth of this business in order to benefit the people of South Sudan. Executive Summary As you may have known, South Sudan the world's newest country that gained its independence on 09th July 2011 has the most virgin land. Unfortunately, its agriculture potential has largely remained untapped. Since its independence, the country entirely depend on imported food from neigbouring countries like Uganda, Kenya, Ethiopia etc. This has made famine remain a looming threat in South Sudan because everyone has abandoned agriculture in search for the few white collar jobs in the urban centers. Considering the fact that agriculture is the back bone of any economy, Sera Foundation Group is determined and committed to hold the torch and show everyone that famine can become a history in South Sudan if we all make our hands dirty by embracing agriculture so that we can produce our own food. We have a goal to cultivate 100 acres of land in 2015 so that we can grow maize, beans and vegetables on a large scale and start meeting the high market demand for food in South Sudan. We want to become role model by preaching and practicing agriculture in South Sudan. We believe in so doing, others can follow our footsteps and venture into agriculture that has high ROI. We already have got the land along river Nile for this venture. We also have got water pump that we can use to irrigate our crops. We now need a tractor to kick start our project. We have got an invoice to purchase a tractor and its implements from tractorproviders.com in Japan worth USD 15050. We therefore humbly request donors and individuals of goodwill to fund our project so that we can make a difference in the fight against hunger in South Sudan and end the dependency on imported food. We appreciate your contributions very much and will be grateful to provide any additional information you may require from us.  Objective The purpose of this proposal is to forge a strategic relationship between Sera Foundation Group and donors to leverage the customer base for USD 15,000.00’s newly developed business venture. The business has developed a new method of farming which has the following specifications and advantages over similar products in the industry: Sera Foundation Group will use the tractor to open a farm and market its produce at the readily available market in Juba and other state capitals in South Sudan. Local community members can hire the tractor at reasonable and affordable price. The business has a window of opportunity to introduce its products and gain a significant piece of the market share. The new product/service caters for a wide range of customers and is expected to hold a market share of over 80 percent of the local community farming needs. Required Funds: At this time, Sera Foundation Group requires 15,000.00 USD funds as 5000.00 USD has already been provided by the project initiator. Below is a breakdown of how these funds will be used: Description Amount(USD) Tractor 13,650 Implements 1,400 Freight forwarding from Mombasa to Serajale border 1,200 Clearance 1,000 Insurance & Plate number    650 Others 2,000 Total 20,000  Project Description The project will be managed as follows: Sera Foundation Group is planning to use the tractor to establish a group farm and provide hire services to the local community to improve their household food security and raise their standard of living. Sales and Marketing Strategy The main markets for the business include: Juba the national capital city of South Sudan that has a high population of urban working class, among other towns in the country. It is estimated that there are over 1 million potential customers within the Business’s defined trading area that are estimated to spend 500 – 1000 USD per month on food items bought at the target market. To seek the most profitable market segments in the target markets overall, the Business will focus on the following areas within the target market: Production of vegetables such as onions, cabbage, greens, okra and tomatoes Production of cereals such as maize, millet and sorghum Production of legumes such as beans, cowpeas and peas Production of oil seed crops such as simsim and groundnuts Production of root/tuber crops such as cassava, sweet potatoes, Irish potatoes and yams Production of fruits such as bananas, pineapple, Guava, Orange, Papaw and water melon Production of cash crops such as sugar cane, cotton and tobacco. Financial Summary The Business is expected to generate revenue of 120,000 USD in the first year and Net profit before tax is expected to be 45,000 USD. Sera Foundation Group will also get a share of profits generated every year, which shall be determined on a consensual basis. Fixed costs are limited to our market space lease at 500 USD per month. Variable costs include repair and maintenance, sales and marketing expenses. Regular monthly expenses are estimated at 6500 USD for paying the employee salaries and meeting the administrative costs. Closing Section Future growth prospects are extremely positive for the new business venture. The management of Sera Foundation Group will ensure that this business will sustain itself and will be the first of its kind in South Sudan that can inspire others and encourage them to emulate the same. Our goal is to inspire our people of South Sudan to take up farming as a serious business and eliminate the country’s dependency on imported food! We sincerely look forward to your full support to our project and would like to thank you for helping us in making our dream become a reality. Sincerely yours Taban Julius Henry