Development of a business plan for the elevator complex
Specialists of the company Quality Guaranteed together with consultants in the construction of elevators, have developed a business plan for an investment project for the construction of an elevator complex for 30,000 tons of grain storage.
The task of the project is to effectively use the already existing land with a convenient traffic intersection and suitable railway tracks.
Solution of the project: based on one of the possible options for solving the use of land – the construction of elevator complex. The business plan describes an elevator complex with a one-time storage of cereals for 30,000 tons, as well as installation of equipment for drying and cleaning grain.
Location of the land plot – Mykolaiv region, Ukraine.
The development of the business plan of the elevator complex took into account that the main activities of the project will be:
- Services for cleaning grain crops;
- Drying services for cereals;
- Services for storage of grain crops;
- Services on sending and logistics of grain crops.
During the development of the business plan of the elevator complex, such analytical studies were carried out:
- Analysis of acreage of grain crops in Ukraine;
- Specific gravity of the main grain crops in the structure of the sown areas of the Mykolayiv region;
- Harvesting in the Mykolayiv region;
- Analysis of granaries in the Mykolayiv region: by type, by volume and by method of storage of grain;
- Analysis of competitors’ prices for storage, drying, cleaning and transportation of grain crops.
The main conclusions of the market analysis:
– a deficit of grain storage capacities is observed in all regions. The least provided are four areas. In particular, elevators in the Donetsk region cover only 24.3% of the total needs of the region, Zakarpatskiy region- 25.9%, Ivano-Frankivsk – 27.2%, Lviv – 30.1%. The best situation with respect to the ratio of grain production to grain storage in the Odessa region is 69.3%, taking into account the turnover ratio of 1.2, Zhitomir – 65.2%, Nikolayev – 63.9%, Poltava – 60.6% and Kherson – 57 9%.
– the acreage for wheat in 2017 in Ukraine increased compared to the previous year;
– Considering the growth rates of grain production, in the coming years Ukraine will need another 10 million tons of elevator capacity.
Based on the basic studies, the following were carried out and planned:
- Calculation of the number of elevator tanks for storage and transshipment of grain crops;
- possible volumes of storage and acceptance for cleaning and drying of grain crops;
- Calculations for the planned loading of the elevator complex by months;
- developed a price list for the services of the complex.
In accordance with the needs of the region and the financial capabilities of the initiator of the project, negotiations were held with equipment suppliers and companies that are engaged in the construction of elevators. As a result of the negotiations, a commercial offer was received from the leading company in Ukraine “Organization of the elevator complex” on a turn-key basis “with all necessary equipment.” The construction period is 8 months.
As a result, the business plan of the elevator complex was worked out in detail. As a result, the following was done and compiled:
- The analysis of the market and the analysis of competitors. The conclusions are drawn and the SWOT-analysis is made;
- The marketing plan of the project, which includes the pricing policy of the elevator complex, the plan for working with clients. A forecast sales plan has been made taking into account seasonality.
- Organizational plan of the project. The organizational plan is divided into 2 stages: the first stage is the period of construction and installation works; The second stage is the period from the beginning of putting the elevator complex into operation and for the period of forecasting. The plan outlines the priorities. A plan for hiring employees, their qualifications and job descriptions has been drawn up. The labor costs are calculated.
- The project’s investment plan and financial plan are calculated. Data on income and losses of the project are given.
- Analysis of the effectiveness of the project was able to clearly demonstrate the return on investment and the profitability of these investments.
- The risks and ways of their minimization are described.
The business plan of the investment project was prepared in accordance with UNIDO standards, but took into account deeper analysis and data mining.
Adhering to the rules of confidentiality, we can not disclose details of the business plan of the elevator complex, as well as conclusions on the results of calculations. Development of the business plan of the elevator complex took 2 weeks, but this information had a significant impact on the decision-making by the investor.