Business Plan For Soybean Production

In this report we will discuss about business plan and below are the summaries point:- A business called Idi-Best Soybean Food Limited will specialize in producing special soybean products. The business plan is to obtain start-up capital of N6,294,600, with equity of N1,294,600 and a loan of N5,000,000 to cover expenses in the first year of operation. The targeted monthly income is N1,079,000, and the targeted yearly income is N12,948,000. Idi-Best Soybean Food Limited will be incorporated by the Corporate Affairs Commission to avoid double taxation. The company aims to provide quick service using high-quality ingredients in a hygienic environment to meet customer demand for baked products. Target clients include home users, celebrants, and commercial purposes. The company's competitive edge is offering products at a competitive price and offering home services to meet the demand of middle to higher-income local market area residents and tourists. The company is privately owned and operated by Mr. Ezengene Michael Chinemerem as a sole proprietorship business. The company hopes to create a new niche in the market by the end of the first 5 years, leading to a 35% increase in sales. The biggest challenges include expanding the client base and ultimately positioning the firm to have a presence in a larger global market. The motivation of the product is to develop and provide strong quality food with healthy satisfaction for all beings. The vision statement is to improve quality, develop and retain the best food processing talents, and be creative and innovative in delivering products for all.

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BUSINESS PLAN
FOR
SOYBEAN
PRODUCTION

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EXECUTIVE SUMMARY
This intending business shall be called Idi-Best Soybean Food Limited. Idi-Best Soybean Food
Limited shall specialize in the production of special soyabean products. This business plan is prepared
to obtain start-up capital in the amount of N6,294,600, equity = N1,294,600, Loan N5,000,000. The
supplemental financing is required to begin work on the rented shop for preparation and modifications,
equipment purchases, and to cover expenses in the first year of operations. The targeted monthly
income is N1, 079, 000 while the targeted yearly income is N12,948,000. Idi-Best Soybean Food
Limited will be incorporated by Corporate Affairs Commission (CAC). This will shield the
entrepreneur from double taxation. The financing, in addition to the capital contributions from the
owner and friends will allow Idi-Best Soybean Food Limited to successfully open and maintain
operations through year one. We can easily be described as a quick service providing firm as our
customers will be served to their demands effectively and quickly. The firm provides baked products
using high quality products (ingredients), reliable procedure, and in a hygienic environment that will
meet the customers taste. Target Clients include; Home users, celebrants, commercial purposes. Idi-
Best Soybean Food Limited competitive edge is our ability to offer our products at a competitive price
and offer home services to meet the demand of middle to higher- income local market area residents
and tourist. The company is privately owned by Mr. Ezengene Michael Chinemerem and will be
operated as a sole proprietorship business. The company hopes to create a new niche for the company
at the end of the first 5years which will lead to increase in sales to about 35%. The most significant
challenges ahead include expanding the client base and ultimate positioning the firm to have a presence
in a larger global market. This business plan outlines the objectives, focus and implementations of this
start-up firm.
BUSINESS OVERVIEW
Description of the Business
The name of our business is Idi-Best Soybean Food Limited. We will be located at Amaoba junction,
Ikwuano Oboro LGA, Abia State. We specialize in agro allied processing. Mainly soy bean food
processing.
The Motivation
The motivation of our product remains in developing and providing strong quality food with healthy
satisfaction for all beings.

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VISION AND MISSION STATEMENT
Vision Statement:
i) To improve our quality always and maintain accuracy, attracting stronger methods to
always develop and retain the best food processing talents.
ii) To be very much creative and innovative in our various products and services which we
deliver-a product for all.
Mission Statement:
a) To create suitable environment that will help build good healthy living through food processing.
b) To provide suitable and sustainable products and quality standards food ever.
c) To establish accurate management of our products by distributing appropriate individuals’
responsible to members, managers, shareholders, thereby encouraging efficient use of resources
for good stewardship of various materials.
VALUE PROPOSITION
1. The taste company product will be maintained with good standard quality as her priority.
2. The marketing strategy will be effective to reach individual and also to provide good quality
customer loyalty that will be maintained.
CRITICAL SUCCESS FACTORS OF THE BUSINESS
i) Being able to meet customers’ needs at the right time and place.
ii) The ability to apply smartness to all. Leading the nation economy always.
Current Status of the Business
Our business is a start-up venture that will consist of seven workers with good working ability for
greatness.
Business environment measurements
Economy, legal requirement, socio-political factors, serenity, media, change in the market price,
advertisement etc.

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Contribution to family, local and national economy
Contribution to the family
i) The Idi-Best Soybean Food Limited will have lots of income to better improve her
operation.
ii) There would be promotion at divers’ levels and employment opportunity to family members
with time.
Contributions to the community
a) Provision of good healthy meals needed for standard living both for all members.
b) Entrepreneurial programs will be fostered with communities to avoid criminal activity and other
unlawful events.
c) It will also better the infrastructure of the economy development within the community.
Contribution to Local, State and National Economy
1. To better improve the growth at various levels.
2. It’s a source of revenue for the government through tax payment.
3. Promoting the industrial cooperation with other industries.
ENVIRONMENTAL IMPACT CONSIDERATION
Considerations will be examined to describe whether or not the planned environment is acceptable or
not. This entails thorough improvements
MARKETING PLAN
DESCRIPTION OF PRODUCT(S) OR SERVICE(S)
The Idi-Best Soybean Food Limited is an agro allied processing ventures aimed at boosting the
economics growth by affording good quality services needed in the economy. The Idi-Best Soybean
Food Limited shall be a fabulous enterprise consisting value addition on soya beans such as; soy Chocó,
soy milk powder, soy pap flakes, soy grit foodie, soy oil, etc. Not all products will begin at the moment.
The company for a start will begin with soy pap known for its high quality which will be maintained.
BENEFITS TO THE CUSTOMER
Benefits of soy foods/soy flour/soy milk to consumer
i) It is a good substitute for milk in infant feeding formula

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ii) It improves intelligence for it contains vital nutrients for the brain
iii) It lowers down blood pressure
iv) It is very rich in vitamin which helps renew dead cells, helps for better vision and free
radicals.
v) This product is a source for protein, fibre and essential minerals too.
HOW AND WHEN THEY WILL USE THE PRODUCTS
The soy pap flakes could be used as a supplement stirred with cold water and then diluted using hot
water as you deserve.
DESCRIPTION OF THE BUSINESS INDUSTRY/INDUSTRY ANALYSIS
 The Idi-Best Soybean Food Limited is aimed always to be loyal, affording the best as always,
in other to live healthier than ever.
 This industry is aimed to boost her nations, her state, community as well as her global world by
all means.
 Equipment Such as; machines, oven, collandia, sealing band, etc. will be made available.
THE BUSINESS OPPORTUNITY
Opportunity shall contribute to providing quality products both locally and internationally with over
10million users within the first ten years of existence.
TARGET MARKET
The industrial target market will be broken into segments consisting of the customers whose needs and
desires most closely match the product offerings. This too helps the industry in providing services as
well as the pricing and distribution for more effective cost.
This include the following:
Gender: Male and female (Boys and girls)
Age bracket: 1-50 years and above
Class: middle, upper and lower socio-economic classes
Geographic location: Nigeria.
Religion: It has no religion.
Relationship: Singles and married
Health status: Diabetic patient, normal patient
Hobbies: reading, eating food, writing, sports, cooking, hair styling etc.

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The life style and attitude of my customers.
They are:
1) students who need the product most preferably as food supplement
2) resellers; market women, wholesalers
3) office workers of different categories
4) For households’ consumption.
5) Hospital; sick patient, etc.
6) government workers who would prefer the bottle for their family
Target market in general shall include:
a) Student
b) Retailers
c) Shops:
d) Household:
e) Hospital:
f) Traders:
RAW MATERIALS FOR EACH PRODUCTS
Soy milk powder
a. Soybean
b. Milk
c. sugar
PROCEDURE FOR ALL PRODUCTS
1. Soy Milk Powder
a. Cleaning process
– De-stone the soy seed
– Wash extensively against dust
– Cook for 30mins(at least)
– Dry thoroughly
b. Frying process
– Soy milk powder does not go this process.

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c. Grinding process
– Take all material to the mill.
– Break and hull the seed
– Mix and Grind all into powdery form.
– Allow to cool.
d. Packaging Process
o Using your collandia, sieve to remove dirt.
o brand your container
o pour the content to the branded container
o Seal it up.
o Note: your soy is ready to be consumed.
MARKETING STRATEGY
Due to high demand of our products, Idi-Best Soybean Food Limited will reduce the burden of resellers
by providing home delivery services costing nothing across different states.
TABLE2.5.1 MARKET STRATEGY
Advert/Promotional Strategies Budget per annum (N) Details of frequency and
justification of budget
1) Street advertisement: 10,000 twice in a year
2) Tract shows: 15,000 + 56,000 Once every week
3) Internet display 13,600 Everyday
4) Newspaper and magazines 20,000 Every week
Total 99,600
DISTRIBUTION STRATEGIES
Sales methods to be used include;
1) The use of direct sales and subcontracting methods. This helps marketing department have the
sole responsibility of distributing their products.
2) Marketing allied bodies across Lagos is a strategic means that will be fostered. This includes:
fast food ventures: shop rites, retail shops, whole sale ventures would be met.

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COMPETITION ANALYSIS
Location of Competitor Idi-Best Soybean Food
Limited
Gate 6
Pricing strategy Market Price: retail: N450, market
price: N500
What is unique about
each competitor
The mode of branding. The
way of interaction end
addressing customer
(Communication)
The mode of
advertisement and
communication
What are their other
strengths
Fearless; taking lots of risk,
striving so hard to satisfy
customers’ needs at various
levels
standard quality food
and pro-activeness
What are their
weaknesses
mode of advertisement is
poor
no weakness found yet.
How long have they been
in existing
Over 12 years over 15years
STRATEGIC PROFILE AND PRICES TO BE ADOPTED AND WHY IT IS
The following below are the strategic profiles that would be adopted by the Idi-Besy Soybean
Food Limited
1) Technology: the use of this strategy would be rampant to boast production.
2) Maintaining her integrity: the company will strive hard to maintain what she stands for quality.
3) Meeting human satisfaction which is our gain and our set goals will always be achieved at all
times despite what it would cost us.
4) Never to run out of stock; will would be excellent and remarkable by the good implementations
of adequate preparations.
5) Language barrier due to ethnic groups would be tackled. This will help foster communication
by involving hands who could speak well with customers

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PROPOSED PRICE LIST
S/N Products Description/Details Proposed Selling
Price
1 Soy milk powder and soy
flour
Bottle/Sachet 300
2 Soy powder Bottle/sachet 350
PROMOTION/SALES STRATEGY
In other to assist the marketing sales strategy, the plans will be exported to various states.
REVENUE ESTIMATE
Product 1: Revenue estimate
DESCRIPTION OF
PRODUCT
QUANTITY PRICE PER
UNIT.( N)
REVENUE.( N)
Target sales per month 510 bottles per 1bag
(formulated with
crayfish)
400 204,000
500 bottles formulated
with choco
400 200, 000
400 bottles formulated
with unripe plantain and
crayfish
500 200,000
250 bottles formulated
with other food
additives
500 125,000
Others sources of income like
training, hosting of seminars,
talks and sensitization
- 350,000
Total monthly revenue 1, 079, 000
Target sales per year 1, 079, 000 x 12 300 12, 948, 000

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PRODUCTION PLAN/ OPERATIONAL PLAN
DESCRIPTION OF THE LOCATION/FACTORY
The Idi-Best Soybean Food Limited will operate at Amaoba junction, Ikwuano Oboro LGA, Abia
State. The company will be located at Umuahia; Abia State for easy source of raw materials within the
city. The company will use a five room apartment by lease preferably a downstairs. The first room will
be used for production, the second room as ware housing of processed products, the third for storing
of raw materials, the fourth as the receptionist and main office were customers and external bodies are
liable to and the fifth is a rest room where all workers are liable to. Other electrical utilities with good
power supply or an alternative to a generator set will be needed too.
RAW MATERIAL/ CONSUMABLES
Raw Materials
The raw material for this project is soybeans and it is the main stay of our existence. The soy bean will
be manipulated into unique foods in other to bring out the best.
List of Raw Materials
Materials Description/Uses Key suppliers/Services
Soybean A very rich source of protein, fibre, mineral and
vitamins and the main ingredients responsible for food
processing.
Gotten from Obani Main
Market
Sugar It is a tool to improve appetite and sweetness Gotten from Obani Main
Market
Milk It add taste to it Gotten from Obani Main
Market
LIST OF CONSUMABLES
Materials Description/Uses Key suppliers/Services
Gas refills and petrol It helps activate the working
power of the cylinder for the
cooker to be effective and for the
generator to be powered if no
light
Nearest filling gas station and
petroleum station
Engine Oil To help the generator function
effectively
Nearest filling station
Sticker For easy advertisement, branding
and production details
Nearest filling station

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Salt Add salty taste to help the
product stray hydrated and
promote good vascular healthy
nervous system
Gotten from Obani Market
Lighter For lighting or producing heat
energy in the gas cooker/stove
Gotten from Obani Main Market
Water For easy dilution and meting of
raw materials’
Any water supply within Obani
Kerosene Filling the generator and
producing lights and other
valuable electrical appliances
during power failure
Nearest kerosene filling station
Branded nylons For easy packaging and canning
of products according to her
different sizes
In the market or nearby plastic
company
Sack bags For quick carrying/storing of
materials
In the market around
Soap For proper washing and tidy up
of some equipment
In the market place
List of Capital Equipment
Equipment Description/Uses
Gas cylinder For drying/frying
Grinding engine For proper grinding
Bowls/Business For temporal storage and collection of raw materials
Oven For adequate drying
Tank For proper water storage
Large pots For placing raw materials needed to be fried
Sealing band For proper sealing of products to avoid duplicate/theft
Weighing machine For good calculations/weighing of products produced
Industrial cooker For quick and easy frying large materials as well as cooking
Wheel barrow For easy carriage and distribution
Drum/Gallon For storing kerosene, fuel and water temporarily
Long spoon For frying and removal of ready substances from fire or other materials
Generator For supply of power during power failure
Office equipment For documentation of financial or secretarial records
Tray pan For thorough cleaning of unwanted substances

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Cleaning equipment For thorough clean-up of the unwanted substances as well as dirt’s
Buckets/Large (Iron and
Plastic)
For carriage of some materials like waters, prepared products as well as
dilution and easy mixing of raw materials
PRODUCTION/SERVICE PROCESS/TECHNIQUES
1) The company will involve in effective productivity in other to provide good quality products
for various levels in other to avoid malnutrition.
2) There will be production made available always for public use.
PRODUCT/PRODUCTION COSTING AND CAPACITY DETAILS
Table 3.3.3 Flow product 1: Soy milk
Batch product: Soy milk and flour
S/N Raw
materials
Unit earned Cost per unit Value
1. Soy bean 1 bag 26,000 26,000
2 Sugar 2 paint 1,500 3,000
3 MFR 1 carton 4,000 4,000
4 Plantain 1 bucket 2,000 2,000
Total 35,000
PRODUCTION PLAN
The production plan is a tool that helps the industry utilizes her resource allocation of her materials
needed for production and her activities to the employers.
The guide for our company’s production activities includes:
a) Producing about one and half a bag of soybeans every month. For the first year, the company
would produce 18bags of soybean for her first year.
b) The Estimation for soy pap, a bag and half per month will be produced. It is foreseen that about
total of 1,800 packets will be made available at N550 for each given total of N999, 000 in a
month and about N11, 880,000 within a year approximately.
In determining the resources needed to complete each task, the following below will be considered;
i. The human resource will be considered.
ii. Payments made will be according to their various levels of availability.

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iii. The cost and time of each potential production will include efficient combination of
resources to meet demand. Also, there would be purchase of materials; office rents, payment
of staff salary, leasing, light (NEPA) Bills, advertisements.
iv. Staff will know their various areas of specialization for operation.
v. The monitoring and controlling system will help compare the past with the present to give
good forecasting forth future to avoid or detect any problem or mistakes as soon as possible
as they occur in other to erase mistakes immediately before it is too late.
Table 3.5.2: The value of raw materials (soya milk production)
Raw materials Value (N)
Product 1 190, 000
TOTAL 190,000

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Monthly production plan for all products
Output (Qty) P1 P2 P3 P4 P5 P6 P7 P8 P9 P1
Raw
materials (N)
190,000 190,000 190,000 190,000 190,000 190,000 190,000 190,000 190,000 19
Consumables 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90
Total 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 28

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3.7.0 Preliminary expenses
S/N ITEM DESCRIPTION AMOUNT (N)
1 CAC Registration Corporate Affairs
Commission
6,500
2 LGA Permit Local Govt. Permit 15,000
3 Licencing Given licenses to
beginning cost
30,000
4 Trade association
Requirements
Association of traders
fees
26,5000
5 Consultancy expenses Experts constitutional
charges
50,000
6 Legal fees Fees charged by the
legal counsel
50,000
7 NAFDAC Registration license
number by the country
30,000
8 Skill Acquisition Acquiring knowledge
for good work
5,000
9 Insurance Insurance company 50,000
10 NIS Trade mark of quality 50,000
Total 313,000
ORGANIZATIONAL AND MANAGEMENT PLAN
OWNERSHIP OF THE BUSINESS
The sole proprietorship will be used for my start-up venture because it is a private business that
is yet to grow up to become a corporation on due season.
PROFILE OF THE PROMOTERS
The promoter for this venture is the Dangote family who has being in agro -business field for
over decades with lots of experiences.

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The details of employees
Our management team consists of four men and three women including the general manager
making it a total number of six (6) workers for a start.
KEY MANAGEMENT TEAM
S/N Position Skills, qualification and experiences
required
Functions and
responsibility
1 General manager Holds of entrepreneurship of B.Sc and
other experiences
Overseeing the affairs
of the business working
as the human resource
personnel and seeing
the various needs of the
various other staff
2 Marketing Director A fresh B.Sc holder marketing with
good charisma and experience
He is in-charge of
marketing and also
involved in all
production capacities
3 Customer serve personnel An HND holder of either marketing of
business administration with good
communicating skills and friendliness
She is to be in charge of
the customer care
service altering the
needs of the customers
and also involved in the
production capacity
4 Factory worker One with great experiences of factory
work either an ND holder/HND/WAEC
He is in charge of the
factory works and also
involved in other
production levels
5 Machine operators He is an HND holder of mechanical
operator with great engineering
experience of about 2 years
He is in charge of all
machine tools and also
involved in all
production levels
6 Cleaner A well experienced cleaner with a good
habit and charisma
She is in charge of all
the cleaning tools and
also involved in all
production levels.

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WORKING DAYS AND HOURS
We will operate from Monday to Friday. The resumption period will be by 8am and closing
time will be by 4pm.
Other work conditions
i. punctuality is very vital
ii. Non-challant attitude will be tolerated not.
iii. Break periods will be from 1.00pm-1.50pm.
iv. All workers are allowed to rest for a while before getting back to continue her work.
v. Avoid gossip/back biting during break. Use every period wisely
vi. To be proactive in all we do and be ready to face risk as it occurs.
4.2.3 Details of salary schedule
S/N DESIGNATION MONTHLY
SALARY
Annual Salary (N)
1 General Manager 27,000 324,000
2 Marketing Director 20,000 240,000
3 Customer Service Personnel 16,000 192,000
4 Factory worker 13,000 156,000
5 Machine operator 14,000 168,000
6 Cleaner 10,000 120,000
100,000 1,200,000
Table 4.2.3
ORGANOGRAM OR THE ORGANIZATION STRUCTURE
.
FINANCIAL ASSUMPTIONS
Assumption for Inflation
General Manager
Marketing Director
Customer ServiceMachine Director
CleanerFactory worker

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It is assumed that inflation will be taken at 5% every financial period, I assume that at the pick
period of production, the price of a bottle is expected to decrease, then at the off season it is
assumed that a bottle will double up.
Assumption on Interest rate
Interest rate for the business is assumed to be 9%
Assumption on Tax
TAX deduction is 20% taking advantage of tax incentives for agriculture and agro-allied firms.
Assumption on depreciation
Depreciation is charged on all the tangible capital items on a straight line basis on the
following;
Building 2%,
Plants and Machinery 25%
Assumption on Salary increment
There will be salary increment of 5% after every 3Years.
Assumption on Insurance
An insurance policy with the Nigerian Cooperate Affairs Commission (NCAC) will be needed
to insure that the insurance policy and the limit of coverage for the business will include credit
life insurance. The anticipated cost of insurance coverage will be Health-7.2% value of workers
wage and 4% of individual investment.
Our start up cost will be N6,294,600.
This fund will be primarily used for the following: #
Factory building construction /wiring 1, 600,000
Processing plant (expelling machine) 1,401,600
Storage tanks 140,000
Tank stand 200,000
Raw material (3 months) 570,000
Consumables (3 months) 270,000
Other start up expenses will be include
Furniture 1,500, 000
Other preliminary expenses
(CAC, consultancy, legal fee etc) 313,000
Employees salaries (3 months) 300,000
Total 6,294,600

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5.2 Start-Up Capital (Project Cost)
Item Description/
Details
Amount
Fixed Capital items 4,841,600
Preliminary Expenses 313,000
Working Capital (__12___ months) 1,140,000
Contingency
TOTAL 6,294,600
5.3 Financing Plan
Source Amount %
Equity 1,294,600 20.6%
Term Loan 5,000,000 79.44%
Total Funds 6,294,600 100%
Composition of Equity
Land and factory building =3,001,600
BUSINESS INDUSTRY RISKS AND MITIGATING FACTORS
BUSINESS RISK
This risk factors includes both the internal and external risk
The internal risk factors
a) Technological risk such as: unforeseen changes in the manufacturing or the delivery or
the distribution of our company’s product or service.
b) Physical risk such as: the loss of asset of our company due to theft, war outbreak, the
external risk of the business industry include:
1) The economic risk such as: changes in the market price due to inflation or scarcity of a
product needed.
2) Natural risk factors: due to being natural disasters like heavy rainfall or earthquakes.
3) Political risk changes made in the political environment affects business industry due
to increase in tax rate and other financial issues.
The factors below will be adopted as a strategic means to mitigate risk. This includes:

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1) The internal risk would be forecasted with reliable and trusted means so as to reduce
the chances of industrial risk.
2) The company would be genuine with employees and real as well as opened seeking
needs to be proactive for effective leadership.
3) There will be good technological factor adopted to erase outdated operating systems
and replacing them with good quality materials foe effective work, good delivery and
adequate distribution of our company’s products and services.
4) All necessary payments needed to be made, such as tax rates and other interest rates
fostered by the new political system of government will be abided to all immediately.
5) The company will adequately seek to all level that it maintains high level of capital
structure with lower debt ratio. This will help ensure to meet her financial obligations
as all times.
JUSTIFICATION AND CONCLUSION
Our financial analysis has shown that the interest of the owner and creditors will be taken care
of well. Also, our customers will benefit from the business by getting high quality soy products
at very low prices. The society will benefit from our product as we will be employing five
personnel from our environment at the beginning of the project and even more workers as the
business increases. Therefore, our business is technically productively feasible, environmental
friendly and economically viable and profitable. I hereby appeal to all authorities relevant to
consider my loan application fund and necessary facilities to starting up this business.