A30. Coffee in Uganda – KIMU Coffee
About the business
The purpose of the business proposal. The business is seeking funds to enter new markets and expand our customer base.
Trade Name. KIMU COFFEE INVESTMENTS
Name of Service. Buying, processing and selling coffee beans.
Description. The business engages in the buying ripe/dried coffee berries from small holder coffee farmers. We then process the coffee beans and then sell ready-to-export beans to the large warehouse exporters for a profit. Our business aims to connect smallholder coffee farmers in otherwise hard to reach areas to the market.
Executive Summary of Business Proposal
Our vision is to revive financial sustainability and end subsistence of smallholder coffee farmers in Uganda. Our mission is to provide smallholder farmers access to fair market for their produce. The company is currently located near Katosi, Mukono District in Uganda. It is a partnership between Murungi Moses and Musoke Robert. Mr. Moses contributes to the financial needs of the business whereas Mr. Robert manages the day-to-day running of the business. The company started operation in April 2021 with an initial investment capital of Ugx. 600,000. The company’s capital has grown to Ugx. 1,200,000 in about 4 months. Our services include buying and processing ripe berries and/or dried coffee beans to export quality before selling them to bigger ware housing businesses for export. We are therefore seeking for an investment of Ugx. 6,000,000 in order to enter new markets, increase our customer base, improve some of our processing facility and construct a small warehouse to accommodate the increase in produce.
What makes our products and services unique and what makes them attractive to our customers.
- We provide a fair and competitive price for our customers produce.
- In addition to having an accessible premise in our target area, we can also reach to our customers’ homes and gardens to help them manage the transportation of the produce costs and associated risks.
- We pay our customers cash on demand, unlike some competitors who pay on credit.
- We only buy fully grown and ripened berries and also engage in safe practices in produce processing to ensure and maintain acceptable quality of the produce.
Our sales and marketing strategy
Our marketing strategy will involve ‘door-to-door’ survey of the smallholder farmers in the prospective market. We will also leverage our already existing customer base to share the uniqueness of our services to others by ensuring reliability at all times. Our sales strategy is based on the quality of the product to exporters. We ensure this by only accepting only the ripe berries and always partitioning coffee categories and ensuring to sell at a profitable price.
Expected percentage of market share.
Projected revenue for the 1st year.
UGX 10,800,000 (EUR 2,700)
Our projected gross profit for the 1st year
UGX 3,500,000 (EUR 880)
Gross profit % earmarked for paying loans to business loans to investor on the 1st year.
Estimated total cost/expenses per month for 1st year 1
UGX 500,000 (EUR 130)
A loan of EUR 1,000? was transferred by HR&S external investor in Nov? 2021. The agreement was 10% annual interest.
It was transferred through World Remit who charges 3?% percent. The investor paid the transfer cost, why the actual interest for the investor is 7%.