Entrepreneurship and Innovation: Cement Business Plan Project

This assignment presents a comprehensive business plan for a cement manufacturing startup, focusing on the Australian market. The plan includes an executive summary, introduction, venture description, and a detailed analysis of the legal structure, operational management, and marketing strategies. A key aspect of the venture is the use of innovative materials like carrot extracts to enhance cement quality and reduce CO2 emissions. The plan also features a thorough competitor analysis, financial projections, and a discussion of potential risks and challenges. The financial analysis covers sales, cost of goods sold, operational expenses, and profitability, including return on investment calculations. The assignment aims to establish a socially responsible cement company, targeting the construction and real estate sectors with an emphasis on environmentally friendly practices. References and appendices, including profit and loss statements, business highlights, and balance sheets, are included to support the plan's feasibility.

Running head: BUSINESS PLAN
Business Plan
Name of the Student:
Name of the University:
Author’s Note:

1BUSINESS PLAN
Table of Contents
1.0 Executive Summary.......................................................................................................2
2.0 Introduction....................................................................................................................3
3.0 Venture Description.......................................................................................................3
4.0 Management..................................................................................................................4
Legal Structure.................................................................................................................4
Operational Management.................................................................................................5
5.0 Marketing Plan...............................................................................................................5
6.0 Competitor Analysis......................................................................................................6
7.0 Financial Analysis.........................................................................................................8
8.0 Risks and Challenges.....................................................................................................9
References..........................................................................................................................10
Appendix............................................................................................................................11
1) Profit and Loss Statement..........................................................................................11
2) Business Highlights...................................................................................................12
3) Balance Sheet............................................................................................................13

2BUSINESS PLAN
1.0 Executive Summary
The assignment aims at establishing a venture capital in the Cement Business whereby the new
start-up business would be in manufacturing cement that will be operating in the Australian
Region. Cement is the foundation of construction industry and the growth of this industry is in
turn dependent on the performance of economy. The start-up capital company would be making
cement that would be particularly keeping various social and environmental factors that would
allow it to continue its business in a well responsible manner. The growing concerns about global
CO2 emissions and poor quality cement have been a particular concern in both environmental
and construction terms. The key motive of the business start-up has not only been to establish a
well-defined cement company but also a company that is socially responsible for the various
business operations it undertakes. The company would be operating in the form of private
limited company and would be adhering to Australian Rules and Regulations. The marketing
plan of the company would be specifically focusing and targeting the construction and real estate
companies that are particularly the prime user of the offered products and services. The
competitor analysis would be done for the better analysis of the various operations undertaken by
the company so that it can strategically take decisions. On the other hand, side the designed
financial plan would be guiding the investors about the various financial aspects of the company
including the Return Generated from the business. It is important to note that Risks and
Challenges plays a crucial role in the overall business operations planned and the same would be
helping the company in well defining the various plans and actions that will be taken by the
management of the company.

3BUSINESS PLAN
2.0 Introduction
The new business plan designed for the start-up company is particularly in the field of
Cement Construction Industry whereby the focus is primarily on manufacturing a line of cement
process that is safe for usage and long effective. The manufacturing of cements along with key
raw material component like food items specially carrots provide a good base of mixture to the
cement that strengthen them and cuts the carbon dioxide emissions that is associated with the
construction industry. Increasing the strength of the cement was the key focus and that was well
seen with the help of stronger concrete which was because of the new material introduced. The
addition of vegetable roots and carrots prevented any cracks in the concrete whereby it also
implies that the amount of pure cement which is used also reduces, thereby lowering the
associated Global Carbon Dioxide (CO2) Output (IN 2019). Particularly cement has been
responsible for the global CO2 emission and we would be taking various initiative in order to
reduce the same.
3.0 Venture Description
Business operations are expanding and there are various companies that are currently
taking various initiative and strategies for the purpose of improving the associated business
operations (Mail Online 2018). The business operations that is undertaken by company currently
allows the company to provide a competitive advantage in the market with the help of quality
product which will only be environment friendly but also provide great strength to the concrete
mix that is considered. Business Process have almost shifted from quantity to quality focused
product and with the same aim the Tork Cement will be carrying on its business operations. The

4BUSINESS PLAN
demand for the cement as a product has particularly increased in the Australian economy with
the rise in the Real estate and construction industry (Akpomi 2018).
4.0 Management
Legal Structure
The most important thing or a key decision that a entrepreneur would be making is
selecting a type of legal structure within which the company would be operating. It is
consecutively important that the legal structure selected by the company for the purpose of
carrying on the business operations well define structure and the various legal rules that the
business needs to comply with (Author 2018). There are various aspects that Torq Cement would
need to consider while deciding upon the legal structure of the business:
1) Exposure of Personal Liability
2) Various costs and administrative expenses
3) Inclusion of key partners and investors.
4) Tax Compliances
5) Manpower Recruitment.
Torq Cement would be operating as a Proprietary Ltd Company (PTY Limited)
within the Australian Region. The structure offers the owner from personal asset protection or
from various other liability or debt, reflecting that the only risk run by company would be in case
of any legal actions taken up against the company. The initial set-up and administrative costs for
the company may be higher but the same would be providing a much larger degree of flexibility

5BUSINESS PLAN
for obtaining various capital for meeting the various expansion operations. Compliances with
Australian Securities and Investment Commission (ASIC), Australian Securities and Investment
Commission (ASIC) and Register for goods & services tax (GST) would be some of the key
regulations that the company would be adhering with.
Operational Management
The new venture business Tork Cement will be managed by the founder of the company
whereby all the important and managerial actions and decisions will be taken by the owner of the
company. The operations of the company would be better managed with the help of various
business roles that would be defined to the management of the company so that they can
accordingly undertake various roles and duties for fulfilling the daily business activities (Watson,
McGowan and Cunningham 2018).
5.0 Marketing Plan
The business of Tork cement would be aiming to enhance the quality of products which
is being offered by the business. In addition to this, the management of the company would be
formulating plans so that the management is able to properly market the cement bags. The
management of the company intends to formulate strategies which can help in properly
promoting the products of the business (Globalcement.com. 2019). The target audience of the
business would be contractors who are engaged in development projects. In addition to this, the
management of the company would also be entering into a tie up agreement with residential
property developers so that the business is able to expand the revenue of the business. The
business would be targeting mainly contactors and builders who will be the main customers of
the business.

6BUSINESS PLAN
Communication Strategies
The communication strategies of the business are important for promoting the operations
of the business and thereby spreading an awareness in the business. The management of the
company would be focusing on advertisement on all three media so that the business is able to
get the attention of potential contractors. In addition to this, the emphasis on television
advertisement and social media advertisement would be more so that the business is able to
promote the products of the business in an appropriate manner. In addition to this, the business
also aims to enter into a tie up agreement for a reputed residential property developer as the same
would also promote the name of the business in the market (Barcelo et al.,2014).
6.0 Competitor Analysis
The cement and lime manufacturing industry play a vital role in development of other
major industries which are operating in Australia. The business of Real Estate, mineral
processing and other manufacturing industries are dependent on cement and lime manufacturing
industry. There has been a decline in the demand for cement products which can mainly due to
decline in construction businesses (Nakamura 2018). However, the competitiveness among the
big players is still strong. However, the market condition shows a decline in the growth rate of
the industry. The chart which is presented below shows a similar position:

7BUSINESS PLAN
Figure 1: (Growth trends in Cement Consumption in Australia)
Source: (Statista. 2019)
The competitors of the business are offering similar products in the market which the
management of Tork Cement intends to offer. Therefore, the management intends to apply
innovative procedures so that the products which are offered by the business can be
differentiated from its competitors (Kurdowski 2014). The business would be offering concrete
mixtures which are strengthen by the use of nanoparticles extracted from carrots. As per research
such particles can make the cement stronger and thereby contribute to the structure of the
building. The use of carrot is cement production makes the final cement product more effective
(Aouf 2018). The new formula would be providing competitive advantage to the business and
therefore would help the management to generate more revenues in the long-run of the business.

8BUSINESS PLAN
7.0 Financial Analysis
The financial analysis has been done for the company in order to well project the
financial resources that the company would be requiring in terms of well operating there
business. Business operations that the company would be undertaking will be involving various
financial resources in terms of operational, fixed and capital expenses that the company would be
incurring in the due course of business. The initial starting capital that the company would be
introducing in the form of owner’s capital would be around $700,000 and the amount that would
be borrowed form debt sources will be around $300,000 (Liu 2019).
Sales and Cost of Goods Sold: It is expected that the sales that would be generated by the
company in the operational year will be around $750,000 and the same is well expected to
increase as the market penetration rate increases for the offered products and services. The direct
cost of goods sold for the company would be around 65% of the revenue or sales done by the
company.
Operational Expenses: The operational expenses that would be incurred by the company for the
financial year will be primarily in the form of salary, wages, rents, rates, taxes, sales &
marketing, postage telephone and various other lease expenses that the company would be
incurring in the form of operational expenses (Appendix 2).
Net profit and Return on Investment: The key financial performance measure that will be
undertaken into analysis will be around $67,200 will be the net profit, stating that the return on
investment from the business will be around 9.61%.

9BUSINESS PLAN
8.0 Risks and Challenges
The key risks and challenges that the company would be facing will be in the field of
technological advancement in the construction industry and the associated technological
equipment’s that the company has deployed for the purpose of carrying on with the business
operations. It is crucial to note that while external risks like changing market demand, laws, rules
and regulation with the product affect the business. At the same time internal factors like the
operational efficiency in the business is some of the prime aspects that the owner of the company
should be taking into consideration for the purpose of stabilized and effective business
operations.

10BUSINESS PLAN
References
Akpomi, M.E., 2018. DEVELOPING FINANCIAL SUPPORT MODEL FOR
ENTREPRENEURSHIP EDUCATION IN UNIVERSITIES IN NIGERIA. Nigerian Journal of
Business Education (NIGJBED), 4(1), pp.146-155.
Author, N. 2018. Carrot nanomaterial found to make cement stronger and greener | The Japan
Times. [online] The Japan Times. Available at:
https://www.japantimes.co.jp/news/2018/10/20/world/offbeat-world/carrot-nanomaterial-found-
make-cement-stronger-greener/#.XZZc00YzbIV [Accessed 3 Oct. 2019].
IN. 2019. Carrots could be key to making greener buildings, say researchers. [online] Available
at: https://in.reuters.com/article/environment-concrete-carrot/carrots-could-be-key-to-making-
greener-buildings-say-researchers-idINKCN1MT1VW [Accessed 3 Oct. 2019].
Liu, J., 2019. An Analysis of Financial Business Integration and Financial Management Function
Transition of Enterprises Based on Value Creation.
Mail Online. 2018. Carrot extract could make concrete stronger, slash carbon emissions.
[online] Available at: https://www.dailymail.co.uk/sciencetech/article-6294849/Carrots-key-
making-greener-buildings-say-researchers.html [Accessed 3 Oct. 2019].
Nakamura, E., 2018. On the Optimal Funding under the Financial Regulations (Doctoral
dissertation, TOKYO METROPOLITAN UNIVERSITY).

11BUSINESS PLAN
Watson, K., McGowan, P. and Cunningham, J.A., 2018. An exploration of the Business Plan
Competition as a methodology for effective nascent entrepreneurial learning. International
Journal of Entrepreneurial Behavior & Research, 24(1), pp.121-146.
Appendix
1) Profit and Loss Statement

12BUSINESS PLAN
2) Business Highlights

13BUSINESS PLAN
3) Balance Sheet