Understanding the business plan
The agricultural co-operative societies willing to secure a financing for their productive sub-project under PIDMA shall be required to draw up a business plan to be validated by actors/stakeholders such as PIDMA (which allocates subsidies), Financial institution (which allocates credits), partner agri-business people (who purchase raw materials from the co—operative society). The said strategic and confidential data shall be put at the disposal of experts of the related field who shall be called upon to draw up such a document, for and on behalf of the co-operative society, along with the active involvement of the said co-operative society. With regard to the relevance of such a document, it shall be highly advisable for co-operative society’s members, to have a perfect command of some general principles in order to be able to strongly defend it along with other actors/stakeholders.
A business plan should comprise the main following parts:
- Executive summary;
- Inception of the project
Presentation of the origins of the project and of the background of the founding members;
- The product or service
A full description of your project as well as its progress will be put forward in this part of the business plan. The objective consists of providing a clear definition of the concept;
- The market
The nature and trend of the market, the target clientele and presentation of competitiveness are three indispensable points likely to convince the various investors about the project’s potentials.
- Strategy of the co-operative society to capture the target market
The marketing plan, the pricing policies, the communication and distribution plan to be developed with a view to capturing the market should be drawn up in the same manner as the operational team required for the success of the sub-project. An inventory of the facilities and equipment required for the production, processing, packaging and commercialization should be carried out.
- Legal design
The distribution of the co-operative society’s capital amongst co-operative members should be clearly explained. It is the reason why producers should be encouraged to take part in the capital of their co-operative society in order to get dividends/benefits as a result of the various operations carried out by the organization.