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Business plan completed with Olivia Abrams

Business Model:


For One Acre Fund, they have three main targets.

Partner Network

  • The first of which is farmers who are both their clients and their main target market. The farmers have to purchase (seeds, fertilizer, knowledge) from One Acre Fund, but they are also being invested back into by the nonprofit, making them partners and customers.
  • The second of which is outside donors. The Fund claims to have 75% of their financing comes from the farmers and the other 25 % is from donors. They are well aware of the fact that the donations are not stable and can stop at anytime, so they are prioritizing that in their expansion strategy.
  • Another important partner for the fund is donors. Even though this is only responsible for a quarter of the expenses, this is a quarter they do not have to worry about otherwise. They should focus on more advertising of their product/services at a larger level for more efficient expansion and scaling to be possible.

Key Activities

  • Financing – the nonprofit uses asset based loans with the farmers where they give farmers the means to do their work such as seeds and fertilizer and require the money back during the flexible payback period
  • Distribution- OAF deliver the previously listed inputs to locations that are able to be conveniently accessed by all of the farmers
  • Training- Since they are very committed to the farmers in every way, they also train them on agricultural techniques and methods for better harvesting
  • Market facilitation: This part of the operations is dedicated to making the farmers aware and prepared for crop cycles and how to stay on top of them financially

Customer Segments

  • The customers that the nonprofit is targeting is farmers in Africa. In a more specific manner, they have made headway in Burundi, Kenya, Mawali, Rwanda, Tanzania, Uganda. As they scale, they will make traction in more countries.

Cost Structure

  • Money is used for purchasing the seeds and fertilizer that is given to the farmers, this is a variable expense depending on the amount of customers they have in each area
  • For the central locations for the farmers, the costs of transportation are included, this is a fixed expense
  • Training for the farmers on better agricultural techniques for the knowledge that is being used for it is a variable expense as it will always change with the amount of farmers they are supplying.

Value Proposition

  • It is very clear that their main focus is farmers. They say it explicitly on their website as well as structuring their daily activities around putting farmers first. One Acre Fund offers 4 different types of services, which differentiates them from similar nonprofits that only offer one or two services.

Customer Relationship

  • There are two types of customers that One Acre Fund serves. The first customer is those that donate to the organization and the other customer is the farmers that they serve.

Distribution Channels

  • One Acre Fund has four distribution channels that serve their customers including asset-based loans, delivery, training, and market facilitation

source: https://oneacrefund.org/what-we-do/countries-we-serve/

~ by Anique Groce on April 23, 2019 .

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