1.Refine the detailed income statement for your venture for two years (at six month intervals) or a more appropriate time scale. Explicitly state the assumptions that underlie your financial model. (https://docs.google.com/spreadsheets/d/1-WIxZ3CC9vYgOMTpigO463_WqpJ4y-VNHmjukTpSUmM/edit#gid=576516736)
2.
Partner network
- Shipping/Transportation services
PCA
- UPD
Key Activities
Processing Copra to create value added products
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Coconut Milk, Flour, Oil, Vinegar, Wine
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etc.
Offer
Increase the income of smallholder filipino coconut farmers by providing them with faster, efficient, and value-added drying systems for their copra.
Key Resources
- Engineers and employees to operate the machinery
- Machinery required to process coconuts
- Money to fund R&D
Customer Relationship
- Personal Assistance with technology use and finances
- User Communities
Distribution Channels
- Local processing plants
- Farmers
Customer Segments
- Filipino Entrepreneurs
- Low Income Coconut Farmers
Cost structure
- Fixed Costs: Communications, Utilities, Transportation, Marketing/Managing Staff
- Variable Costs: Raw Materials for machinery / value-added product, Shipping, Production costs of product
- Economies of Scale: Reduce average cost/unit with increased sales due to lower fixed costs.
- Economies of Scope: Leverage resources for more operations, Ex. Make more profits by using same machinery for two different value added products, instead of two different machines
Revenue Streams
- Asset sales from selling the machine to entrepreneurs in the Philippines (2 Options: $23,999.95 upfront or payback option of $2000 every 2 months over 24 months)
- Maintenance Contract (entrepreneurs only), $2799.95 for an annual subscription
- Develop an M&E plan for your venture.
- Clearly list all assumptions.
+Assume that our venture will be launched in 2 years from now
+Assume that the cost of production is $17,000 per machine
+Assume that we will be able to sell our product at a price of ~$24,000
+Assume that we will be able to scale production
+Assume that 1 machine can impact 100 coconut farmers (entrepreneurs will be able to network to this amount of farmers)
+Assume the copra farmers will want to use our technology
+As of right now we are assuming exponential growth of overhead costs
- Identify short-term and long-term success metrics.
Short-term
- Total number of machines sold
- Efficiency of the machine (ie. Quality of copra, value-added products produced, robustness)
- Net profit after one year (*MOST IMPORTANT)
Long-term
- Percent increase in average income of copra farmers (*MOST IMPORTANT)
- Total number of coconut farmers that use the machine
- Steady growth in number of machines manufactured and sold
- Identify specific methods to measure the metrics.
- Track additional income generated for smallholder farmers (method to be determined)
- Track additional income generated for local entrepreneurs (method to be determined)
- Track number of machines sold annually
- Consumer input (from both the entrepreneur and customers of the entrepreneur)
- Measure volume of products produced