A Sample Mustard Oil Production Company Business Plan Template

Are you about to start a mustard oil company? If yes, here is a complete Mustard Oil Production Business Plan Template Feasibility Report sample that you can use for FREE .

Okay, so we have considered all the requirements to start a mustard oil production company. We also took it further by analyzing and writing a sample mustard oil marketing plan template supported by actionable guerilla marketing ideas for mustard oil production companies. So, let’s move on to the business planning section.

Why start a mustard oil production business?

There is hardly any entrepreneur who wants to go into a business.If they know that the chances of making a profit from the business are slim, hence the need to start a business whose products or services are generally accepted and one of those businesses is the production of mustard oil. . It is a fact that cooking oil is used daily by households and restaurants and hotel-related businesses.

To start a mustard oil producing company, you need to do detailed research to find out what it takes to establish such a company and how to take advantage of the existing market to sell your products and also how to create new market channels.

Starting a mustard oil production business requires a lot of capital, but it is an investment business if you can create a strong distribution network.

So if you have decided to start your own mustard oil production business, then you need to make sure to carry out feasibility studies and also a market survey. The business plan is another very important business document that you should not take for granted when starting your business.

Below is a mustard oil production business plan template that can help you write your own document with little to no success. difficulty.

A Sample Mustard Oil Production Business Plan Template

  • Industry overview

The mustard oil production business is a subset of the margarine and cooking oil processing industry and the players in this industry process a variety of oilseeds, including sunflower, canola, linseed and safflower seeds.

A close observation of developments in this industry shows that the price of oilseeds declined, causing a drop in revenues for the margarine and cooking oil processing industry. . On the other hand, the revenue generated in this industry is expected to recover over the five years to 2022 as oilseed prices stabilize.

Additionally, the growing acceptance and adoption of vegetable oils will continue to help improve US consumer demand. Biofuel production will also increase, which is expected to generate a steady demand for oilseeds as part of the Renewable Fuels Program. Low prices as a result of overproduction in the past will likely make industry operators wary of overseeding in the next five years.

A recent report published by IBISWorld shows that the margarine and cooking oil processing industry experienced significant revenue volatility in the past five years due to fluctuations in the price of inputs such as soybeans, oilseeds and corn. . Producers responded by raising and lowering product prices in line with commodity costs, skewing revenue figures in both directions.

Meanwhile, due to growing health awareness among consumers, the demand for edible vegetable oils strengthened, while the demand for animal derived fats decreased. As a result, producers introduced a greater variety of edible oils that are marketed as healthier alternatives to traditional cooking oil and margarine.

Statistics indicate that in the United States of America alone, there are approximately 344 licensed and registered companies producing margarine and cooking oil (including companies producing mustard oil) responsible for employing about 22,762 employees and the industry raises a totaling $ 61 billion annually with a projected annual growth rate of -4.1 percent in 2012 and 2017. Archer Daniels Midland Company happens to be the company with the most market share available in the industry.

Note that barriers to entry for the cooking oil and margarine processing industry are moderate, with the most important barrier being the ability to raise capital. Capital investments are needed to purchase machinery and equipment and purchase or rent facilities.

While the amount of capital required to enter the industry depends on the scale of operations a participant conducts, even small-scale facilities require significant capital. Other barriers include obtaining supply contracts with suppliers of soybeans, oilseeds, and other ingredients used to produce margarine, cooking oil, and other industry goods.

The well-established position of industry-leading processors can also represent a barrier to entry for potential entrants.

In short, the mustard oil production line of business is profitable and open for any aspiring entrepreneur to enter and establish their business; You can choose to start small by serving a community, or you can choose to start large with multiple distribution points in key cities across the United States of America.

Mustard oil production business Executive Summary of the Plan

The Chef Pro ™ Mustard Oil Production Company is a licensed vegetable oil production company that will be located between a farming community and an industrial estate in Providence – Rhode Island. We have been able to secure a long-term lease for a facility in a strategic location with the option of a long-term renovation on agreed terms and conditions. The facility is approved by the government for the type of business we want to run and is of easy access.

We are in the mustard oil production business to produce healthy edible vegetable / mustard oil in commercial quantities for retail stores, food businesses and households. We are also in business to make a profit while giving our clients value for their money; We want to give the people and companies that sponsor our mustard oil the opportunity to be part of the Chef Pro success story.

We know that there are several mustard oil companies scattered throughout the United States and Canada. Products can be found in grocery stores throughout the United States, so we dedicate time and resources to conduct our feasibility studies and market surveys to enable us to locate the business in an area that supports business growth. We make sure our facilities are easy to locate and have planned plans to develop an extensive distribution network for wholesalers throughout Providence – Rhode Island and the United States of America.

Beyond producing quality, heart-friendly mustard oil in commercial quantities, our customer service will be second to none. We know that our customers are the reason we are in business and that is why we will go the extra mile to satisfy them when they purchase our product.

The Chef Pro ™ Mustard Oil Production Company will ensure that all of our customers (wholesale distributors) receive first class treatment every time they visit our Warehouse / Plant. We have a CRM software that will allow us to manage a one-to-one relationship with our customers (wholesale distributors) no matter how large they may become. We will make sure to involve our clients when making some business decisions that will affect them directly or indirectly.

The Chef Pro ™ Mustard Oil Production Company is a family business that will be owned by Elena Pedro and her immediate family members. . Elena Pedro, who is the CEO of the company, has a bachelor’s degree. in Business Administration from the University of Arkansas; MBA in Finance from the University of Tulsa. Elena, a native of Jonesboro, Arkansas, began her career at Walmart as a summer associate in the company’s distribution center. He was also an assistant manager and a buyer’s apprentice. You will work with a team of professionals to develop the business.

  • Our product offering

Chef Pro ™ Mustard Oil Production The company will operate a licensed and standard mustard oil production company whose product will not only be sold in Providence – Rhode Island, but also in the United States of America.

We are producing mustard oil for profit as well as to give our customers value for their money and we will do whatever the law of the United States of America allows to achieve our corporate goals. We will dedicate ourselves to the production of

  • mustard oil
  • canola oil
  • linseed oil
  • sunflower seed oil
  • Safflower oil
  • Peanut oil
  • Rapeseed oil

Our vision statement

We want to build a company whose products and brands will be accepted in Providence – Rhode Island and also throughout the United States of America.

  • Our mission statement

We want to become the people’s choice when it comes to heart-friendly and healthy oil; We are on a mission to ensure that our mustard oil brand becomes a household name.

  • Our commercial structure

Mustard Chef Pro ™ Oil Production Company was established with the goal of competing favorably with other leading mustard oil brands in the United States of America. That’s why we’ll make sure we put in the right structures that will support the kind of growth we have in mind when setting up the business.

Chef Pro ™ Mustard Oil Production Company will ensure that we only hire qualified, honest, hard-working, customer-focused, and ready-to-work individuals to help us build a thriving business that benefits all stakeholders.

In fact, the profit sharing agreement will be available to all of our senior management and will be based on their performance over a period of five years or more, depending on how quickly we meet our target set. In light of this, we have decided to hire qualified and competent hands to fill the following positions:

  • Executive Director (Owner)
  • Plant manager
  • Human Resources and Administration Manager
  • Marketing Manager
  • Sales and Marketing Manager
  • Information Technologist
  • Accountants / Cashiers
  • Cleaners

Roles and responsibilities

Executive Director – CEO (Owner):

  • Increase management effectiveness by recruiting, selecting, guiding, training, training, advising, and disciplining managers; communicate values, strategies and objectives; assign responsibilities; plan, monitor and evaluate work results
  • Creates, communicates and implements the vision, mission and general direction of the organization, that is, leads the development and implementation of the general strategy of the organization.
  • Responsible for setting prices and signing commercial agreements
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluate the success of the organization

Plant manager

  • Responsible for supervising the smooth running of the mustard oil production plant
  • Part of the equipment that determines the amount of mustard oil to be produced
  • Maps strategies that will lead to efficiency among plant workers
  • Responsible for the training, evaluation and assessment of plant workers
  • Ensures constant flow of both raw materials (mustard seeds) to the plant and easy flow of finished products (mustard oil) through wholesale distributors to the market
  • Ensures equipment operation by completing preventive maintenance requirements; asking for repairs.
  • Ensures that the plant meets the expected health and safety standards at all times.

Human Resources and Administration Manager

  • Responsible for supervising the proper functioning of administrative and human resources tasks for the organization
  • Defining jobs for recruiting and managing the interview process
  • Conducting induction for new team members
  • Responsible for the training, evaluation and evaluation of employees
  • Supervise the smooth running of the daily office and factory activities.

Marketing Manager

  • Manages supplier relationships, market visits, and ongoing education and development of organizations’ purchasing teams
  • Helps ensure consistent quality of mustard oil
  • Responsible for the purchase of raw materials and packaging materials (drums, bottles and plastics and others)
  • Responsible for sales planning, inventory control, merchandise selection and drafting and pricing to suppliers

Sales and Marketing Manager

  • Manage external research and coordinate all internal sources of information to retain the best clients of the organization and attract new clients
  • Identify, prioritize and approach new partners, and business opportunities and others
  • Responsible for overseeing implementation, advocating for client needs, and communicating with clients
  • Document all customer information and contacts
  • Represents the company in strategic meetings
  • Helps increase sales and business growth

Accountant / Cashier

  • Responsible for preparing financial reports, budgets and financial statements for the organization
  • Provides administrations with financial analysis, development budgets and accounting reports
  • Responsible for financial forecasts and risk analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for managing payroll
  • Ensures compliance with tax legislation
  • Handles all financial transactions of the organization
  • Serves as internal auditor of the organization

Executive Customer Service

  • Ensures that all customer contacts (email, call center, SMS or phone) provide the customer with a personalized customer service experience of the highest level
  • Through interaction with customers over the phone, he takes every opportunity to increase customer interest in the company’s products and services.
  • Manage the administrative tasks assigned by the store manager in an effective and timely manner
  • Stay constantly up-to-date with any new information about Company products, promotional campaigns, etc. to ensure accurate and useful information is provided to customers when they inquire

Distribution truck drivers

  • Helps load and unload mustard oil for distribution.
  • It maintains a log book of its driving activities to ensure compliance with federal regulations governing rest and work periods for operators.
  • Keeps a record of vehicle inspections and makes sure the truck is equipped with safety equipment
  • Assist the transportation and logistics manager in planning your route according to a delivery schedule.
  • Transport finished products and raw materials to and from manufacturing plants or retail and distribution centers
  • Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
  • Comply with truck driving rules and regulations (size, weight, route designations, parking, rest periods, etc.), as well as company policies and procedures
  • Collect and verify delivery instructions
  • Report defects, accidents or violations

SWOT Analysis of the Mustard Oil Production Business Plan

At Chef Pro ™ Mustard Oil Production Company, we are aware that there are several mustard oil production companies in the United States of America whose products can be found in supermarkets throughout the cities that is why we are following due process of establishing a business to compete favorably with them.

We know that by conducting a proper SWOT analysis for our business, we can position our business to maximize our strength, take advantage of the opportunities that will be available to us, mitigate our risks, and be equipped to deal with our threats.

Chef Pro ™ mustard oil production company employed the services of an expert HR and business analyst biased in startups to help us conduct a thorough SWOT analysis and help us create a business model that will help us achieve our bussines. goals and objectives. This is the summary of the SWOT analysis that was performed for Chef Pro ™ Mustard Oil Production Company;

  • Strength :

The strength we bring to the business is, of course, the vast experience of our management team, we have people on board who have a lot of experience. So will our large national distribution network and, of course, our excellent customer service culture will definitely count as a great strength for the business.

  • Soft spot :

We conclude that one of the main weaknesses that can count against us is the fact that we are a new mustard oil production company and we do not have the financial capacity to take advantage of mass production and also to participate in advertisement. mass of products.

  • Opportunities:

The opportunities in the mustard oil industry are huge. This is due to the fact that there are many wholesalers and retailers that depend on mustard oil supply or as a result of that we were able to conduct a comprehensive market survey and feasibility studies to position our business to take advantage of the existing market and also to create our own. market. We know it is going to take a lot of work, and we are determined to do it.

  • Threat :

We know that we are likely to be faced with hostile weather conditions and that hostile weather conditions will directly affect crop yields and therefore harvest volumes. The emergence of extreme weather patterns such as floods and droughts significantly lowers oilseed production levels. Furthermore, in the United States of America, the natural disaster index is expected to remain volatile in 2018, presenting the industry with a potential threat.

Mustard Oil Production Business Plan MARKET ANALYSIS

  • Market trends

A notable trend in the margarine and cooking oil production industry reveals that operators are restructuring product lines to better accommodate demand for health, while not ignoring the fact that organic products and growing health concerns have spurred demand. of edible vegetable oils. Regulations will undoubtedly incentivize restaurants and households to use healthier cooking oils.

In fact, the price of oilseed plays a role in determining the value of sales in the local market. An increase in the price of oilseeds positively affects the yields at the farm gate. Higher yields encourage growers to devote more resources to growing oilseeds, thus increasing production. The price of oilseeds is expected to increase in 2018, presenting a potential opportunity for the industry.

Lastly, the price of oilseeds is generally the most reliable driver of performance in the industry. It is important to establish that the part that affects productivity production in this industry is the fact that oilseed cultivation is vulnerable to unpredictable weather conditions, and the demand for high-quality vegetable oil in key foreign markets will drive exports.

  • Our target market

When it comes to selling mustard oil and other healthy vegetable oil, there is a wide range of customers available. In essence, our target market cannot be limited to just one group of people or organizations, but to all of those who reside in our target market locations.

We are in business to engage in the production and wholesale distribution of mustard oil to the following groups of organizations;

  • Households that use healthy edible vegetable oil for cooking
  • Restaurants and canteens that use edible vegetable oil for cooking
  • Small companies that use edible vegetable oil as part of their raw material.

Our competitive advantage

A detailed study of the industry reveals that the market is becoming much more competitive in the last decade. In fact, you must be very creative, customer-focused, and proactive if you are to survive in this industry. We are aware of stiff competition and are prepared to compete favorably with other mustard oil companies in Providence – Rhode Island.

High on the list of competitive advantages we are bringing to the industry are economies of scale, ability to alter produced goods and services in favor of market conditions and appropriate weather conditions.

Chef Pro ™ Mustard Oil Production Company is launching a standard mustard oil production brand that will in fact become the preferred choice for businesses and households using mustard oil in Providence – Rhode Island and other US states of America where we intend to market our oil.

Also, we have people on board who have a lot of experience and understand how to grow the business from scratch to become a national phenomenon. Also, our large national distribution network and, of course, our excellent customer service culture will definitely count as a great strength for our business.

Lastly, our employees will be well looked after and their wellness package will be among the best in our category in the industry, which means they will be more than willing to build the business with us and help deliver our set goals and achieve all of our goals. and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

Mustard Oil Production Business Plan SALES AND MARKETING STRATEGY

  • Sources of Income

The Chef Pro ™ Mustard Oil Production Company was established with the goal of maximizing profits in the industry and we will ensure that we do our best to sell our product to a wide range of customers. The Chef Pro ™ Mustard Oil Production Company will generate income simply by selling;

  • mustard oil
  • canola oil
  • linseed oil
  • Mustard seed oil
  • Safflower oil
  • Peanut oil
  • Rapeseed oil

Sales forecast

One thing is for sure when it comes to the mustard oil production business, if your mustard oil is properly packaged and marked and if your production facility is easily accessible, it will always attract customers to sales.

We are well positioned to take on the available market in Providence – Rhode Island and in all cities where our mustard oil will be sold and we are quite optimistic that we will meet our stated goal of generating sufficient revenue / profit from the first six months of operation and making grow the business and our customer base.

We have been able to examine the mustard oil production industry, we have analyzed our possibilities in the industry and we have been able to come up with an idea. the following sales forecast.

Below are sales projections for Chef Pro ™ Mustard Oil Production Company, based on our business location and other factors related to new and medium-sized mustard oil production companies on a US scale;

  • First fiscal year: $ 250,000
  • Second fiscal year: $ 520,000
  • Third fiscal year: $ 920,000

NB : This projection was made based on w This can be obtained in the industry and with the assumption that there will not be a major economic crisis and that there will be no major competitor offering the same product that we make in the same location. Note that the above projection could be lower and at the same time it could be higher.

  • Marketing strategy and sales strategy

Before choosing a location for Chef Pro ™ Mustard Oil Production Company, we conducted a comprehensive market survey and feasibility studies so that we can penetrate the available market at our target market location and also easily access raw materials. We have detailed information and data that we were able to use to structure our business to attract the number of customers we want to attract at one time.

We hire experts who know the industry well to help us develop our marketing. strategies that will help us achieve our business goal of gaining a greater percentage of the available market in Providence – Rhode Island and other cities in the United States of America.

In summary, Chef Pro ™ Mustard Oil Production Company will adopt the following sales and marketing approach to sell our mustard oil;

  • Introduce our brand of mustard oil by sending cover letters to homes, restaurants, mustard oil merchants and other interested parties in Providence – Rhode Island and other cities in the United States of America
  • Participate from time to time in roadshow in selected communities to sell our products
  • Advertise our products in community newspapers, local television and radio stations
  • List our company and products in yellow pages ads (local directories)
  • Take advantage of the Internet to promote our brand mustard oil
  • Participate in direct marketing and sales
  • Encourage the use of word of mouth marketing (referrals)

Mustard oil production business Plan the advertising and publicity strategy

Notwithstanding the fact that our mustard oil production plant is a First, with a wide range of products that can compete favorably with other leading brands, we will continue to intensify the publicity of all our products.

The Chef Pro ™ Mustard Oil Production Company has a long-term plan of distributing our mustard oil in various places in the United States of America and other countries around the world, so we will deliberately build our brand to be well accepted in Providence – Rhode Island before we venture.

These are the platforms that we intend to leverage to promote and advertise Chef Pro ™ Mustard Oil Production Company;

  • Place ads in both print (community newspapers and magazines) and electronic media. platforms
  • Sponsor relevant community programs
  • Leverage on the Internet and social media platforms such as; Instagram, Facebook, Twitter, and others to promote our mustard oil brand
  • Install our billboards in strategic locations in the main cities of the United States of America
  • Participate in roadshow from time to time time in specific communities
  • Distribute our flyers and brochures in specific areas
  • Position our Flexi Banners in strategic positions where we want customers to start sponsoring our products.
  • It ensures that our mustard oil is well marked and that all of our staff members wear our custom clothing, and that all of our official cars and distribution vans are personalized.

Our prices Strategy

Our prices will be adjusted to what can be obtained in the mustard oil production industry, but will ensure that within the first 6 to 12 months, our products sell slightly below the average market prices of mustard oil. . We have implemented trading strategies that will help us to obtain low profits over a period of 6 months; It is a way of encouraging people to buy our brands.

  • Payment options

The payment policy adopted by Chef Pro ™ Mustard Oil Production Company is comprehensive because we are well aware that different customers prefer different payment options as it suits them, but at the same time, we will ensure that we comply with the financial rules and regulations of the States. States of America.

These are the payment options that Chef Pro ™ Mustard Oil Production Company will make available to its customers;

  • Payment by bank transfer
  • Cash payment
  • Payment by online bank transfer
  • Payment by check
  • Payment by bank draft

In view of the above, we have chosen banking platforms that will allow our client to pay for the purchase of the product without any stress on their part. Our bank account numbers will be available on our website and promotional materials

  • Start-up expenses (budget)

We are well informed when it comes to starting a standard mustard oil production company and we know that it is truly a capital intensive business because the amount required to set up a mustard oil production plant is not cheap.

Most of the initial capital will be sent when leasing or acquiring a facility and also purchasing oil extraction and processing machines. These are the key areas in which we will spend our initial capital;

  • The total fee to register the business in the United States of America $ 750.
  • Legal expenses to obtain licenses and permits, as well as accounting services (software, POS machines and other software) $ 1,300.
  • Marketing promotion expenses for Chef Pro ™ Grand Opening Mustard Oil Production Company in the amount of $ 3,500 and flyer printing (2,000 flyers at $ 0.04 per copy) in the total amount of $ 3,580.
  • The total cost of hiring a business consultant – $ 2,500.
  • Insurance coverage (general liability, workers’ compensation, and property accidents) with a total premium of $ 2,400.
  • The total cost for paying rent for 12 months at $ 1.76 per square foot in the total amount of $ 95,400.
  • The total cost for the construction of the mustard oil production plant is $ 100,000.
  • Other initial expenses including stationery ( $ 500 ) and telephone and utility deposits ( $ 2,500).
  • Operating cost for the first 3 months (employee salaries, bill payments and others) $ 100,000
  • The cost of the initial inventory (raw materials, drums, bottles and packaging materials and others) $ 80,000
  • The total cost of purchasing oilseed oil extraction and packaging equipment $ 100,000
  • Total cost of store equipment (cash register, security, ventilation, signage) $ 13,750
  • The total purchase cost of distribution trucks $ 100,000
  • The cost of purchasing furniture and appliances (computers, printers, telephones, fax machines, tables and chairs, etc.) $ 4,000.
  • The cost of launching a website $ 600
  • Miscellaneous $ 10,000

We would need an estimate of $ 500,000 to successfully establish a standard mustard oil production facility in Providence – Rhode Is

Generating Startup Capital for Chef Pro ™ Mustard Oil Production Company

The Chef Pro ™ Mustard Oil Production Company is a family business owned and financed by Elena Pedro and her immediate family members. They do not intend to welcome any outside business partners, which is why she has decided to restrict seed capital sourcing to 3 main sources.

  • Generate part of the initial capital from personal savings and sale of shares
  • Source of soft loans from family and friends
  • Apply for a bank loan

NB: We have been able to generate about $ 200,000 ( Personal Savings $ 150,000 and Soft Loan from Family Members $ 50,000 ) and we are in the final stages of obtaining a $ 300,000 loanfrom our bank. All documents and documents have been signed and presented, the loan has been approved and at any time our account will be credited with the amount.

Mustard Oil Production Business Plan Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers it has, the capacity and competence of its employees, its investment strategy and the structure of the business. If all of these factors are missing in a business, it won’t be long before the business closes store.

One of our main goals in starting Chef Pro ™ Mustard Oil Production Company is to build a business that will outlive its own cash flow without the need to inject financing from outside sources once the business is officially up and running.

We know that one of the ways to get approved and win over customers is to sell our brand name mustard oil a little cheaper than what you can get on the market and we are poised to survive on a lower profit margin for a while.

The Chef Pro ™ Mustard Oil Production Company will ensure that the correct foundations, structures and processes are in place to ensure the well-being of our staff. Our company’s corporate culture is designed to drive our business to greater heights, and training and retraining of our workforce are paramount.

We know that if that is implemented, we will be able to hire and retain the best hands we can get in the industry; they will be more committed to helping us build the business of our dreams.

Checklist / milestone

  • Business name availability check: Completed
  • Business registration: Completed
  • Opening of corporate bank accounts: Completed
  • Securing Point of Sale (POS) Machines: Completed
  • Open mobile money accounts: Completed
  • Open online payment platforms: Completed
  • Request and Obtain Taxpayer Identification: In progress
  • Business Permit and License Application: Completed
  • Business Insurance Purchase: Completed
  • Leasing of facilities and construction of a standard mustard oil processing plant: In progress
  • Conduct of feasibility studies: Completed
  • Generating capital from family and friends: Completed
  • Bank Loan Applications: In progress
  • Drafting the business plan: Completed
  • Drafting the employee handbook: Completed
  • Drafting of contractual documents and other relevant legal documents: In progress
  • Company Logo Design: Completed
  • Promotional materials printing: In progress
  • Employee hiring: In progress
  • Purchase of necessary furniture, racks, shelves, computers, appliances, electrical appliances and CCTV: In progress
  • Creation of an official website for the company: In Progress
  • Raise awareness for the business both online and around the community: In progress
  • Health and Safety and Fire Safety Agreement (License): Segured
  • Establishment of commercial relationships with suppliers – suppliers / wholesalers: In progress.

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