ITHEMBALETFU MULTI-PURPOSE CO-OPERTIVE

Business Idea
MILLING AND TRANSPORTATION

Proposed Business Name

Ithembaletfu Multi-Purpose Co-Operative. (Milling and
Transportation of Maize and Maize Flour).

Proposed Business Location

Manzini – Manzini District
Mbazweni - Mkhulamini

Date

September 23, 2022

Table of Contents

1. Executive summary/introduction.
 The proposed business name
 Background information
  Data collection
2. Description of the business.
 Mission statement
 Vision
 Objectives/target/goals
 List of product offered
 Nature of the industry
 opportunities
3. Market segmentation/consideration.
 Current and potential demand
 Industrial use of the product
 Societal and economic characteristics (population size)
4. Management team.
 Key management team
 Their duties and responsibilities
 Organizational structure
 Skills of the business and experience
 Profile of the key management

5. Technical specifications.
 Specialized skills
 Overheads
6. Marketing plan.
 Reading final consumers
 Strategies involved in influencing potential buyers
 Intermediaries
 Channel of distribution
7. Examinations of critical risks and problems.
 Financial risk
 Competitors
 Market failure caused by uncontrollable factors
8. Financial and economic plan.
 Source of fund
 Equipment and assets management
 Capital involved
 Financial estimate
9. Evaluation/conclusion.
 EXECUTIVE SUMMARY/INTRODUCTION

Milling business in the kingdom of Eswatini or probably one of the most lucrative
especially when it is set up and managed properly with its support infrastructure.
This aspect of business presents one of the finest opportunity for us as
entrepreneurs to generate good income at Eswatini within the shortest period of
time possible due to the dynamics that this industry offer and the staple diet in the
kingdom of Eswatini, for our population produces maize, legumes, pod products
and vegetables, however mille-mille is the dominant staple food for the majority
of Emaswati.

Also the important fact we consider in this industry is that travelling is as basic
as food to human need and a great necessity for human life and this variable plays
a major role in the mobility of the population, with current economic global trends
that most countries experience of commodities price hikes, this factor does not
spare the smaller economies as ours. In the Kingdom of Eswatini we have over
1.3 million people to which a vast majority of them do travel to the different cities
of the kingdom and neighboring countries for business or leisure, notwithstanding
the ever escalating the price hike of petrol and food staff commodities our
business a mounted a strategy to meet the client’s need at his/her’s foot hold,
whereby the cost of transportation is slashed at an exponential percentage of 80%,

We collect the maize at his site and deliver it back after processing as a final
product.

After conducting an effective external environment evaluation, in studding the

mobility of people who flock cities like Manzini and Matsapha, we found a great
niche that we could explore and take advantage of it and set-out shuttle business
that will ferry our client’s products to and fro, Transportation is one of measure
contributors on the GDP of the Kingdom of Eswatini, the Kingdom has on it’s
road network infrastructure that make the haulage and traveling business a viable
concern for the benefit of the kingdom.

Considering all these factors, this makes our idea viable and feasible. In the same
vain, the multifaceted business cycle that involves preparation of plans, strategies,
logistics and financial estimation that shields the activities of the business from
any risk or threat. The business is set to involve the capital investment of about
E500,000.00 including the assets (motor Vehicles), expenditure and other
expenses involved in running the business over the period of three years to 5 years
from the start of the project.

DESCRIPTION OF THE BUSINESS

 This enterprise is designed to produce and offer first class products to our
rural area communities, this will help our customers to cut the ever
escalating prices in general. However, our business is set-up to provide
our client with a variety of choices while enjoying their products, be it on
simple travelling to neighboring cities, or enjoying the services that our
business offers, ie: collect, process and deliver.

The Uniqueness of the Product

Thought, the existing Milling product in market do prevail, the products of this
industry will be an excellent choice of the consumers due to it;

i. We have continuous and regular provision of the service which may not
be the same with the far away industries that provide the product in a
black and white manner i.e. They have the product in the distribution
channels, but don’t deliver directly to the consumer.
ii. Maintaining a constant high standard business practice and hygienic
ethics, our customer are satisfied unique price to both product and
delivery that our business offers on constant basis.

Opportunities:

The main igniting behind the establishment of the competent and prestigious
business organization is the lucrative opportunities that do prevail in the area,
which include;

1. High demands of reliable and provision of our services for our customers.
2. Availability service requirement to destination areas; coupled with the
cost of transportation which are abased in favor or the clients throughout
all seasons.
3. Rapid growth of population; continually increasing number of consumers
and new schools, business fraternities increases too, but our targeted
market that can support the business even in the future will also grow
exponentially give our modus operandi.
4. Absence of youth entrepreneurs that venture into this sector through
divers concerns with mostly current trends related to know-how and to
financing, is a great opportunity for our business growth and market
capture.
5. Increased awareness of health and safety in the consumption of our
product as well as transportation is positing our business to the market.
Nature of the Industry

The business we operate; is a type of a business that is designed to satisfy the

individual customer in the rural communities, without one having to migrate
to the city to look for the product we offer, our business is designed first to
meet the individual client and thereafter the group client.

1. The immediate population around the chiefdoms in the kingdom of

Eswatini are a major concern for our business model followed by our
neighboring chiefdom were most of our clients mostly reside.
2. After early operation of the business, a great number of families in four
chiefdoms, utilize our services consistently without fail.
3. The kingdom of Eswatini; milling and transportation is at the level of
development. Our enterprise is planning to extend its marketing strategies
to all part of the country, and this plan will be in 5-10 years of
establishment.

List of Chiefdoms that uses our Product continually

a. Manzini - Embazweni
b. Chief Malunge II
c. Inkundla - Ekukhanyeni
d. Maliyaduma
e. Nyakeni
f. Vusweni
g. Maduzane
h. Mkhulamini
 i. Mshayankhono
j. Mbuluzane

NEW PROSPECTS

a. Mbhekelweni

Objectives, Target and Goals

The objectives, targets and goals of this business are;

i. Income generation and self-reliance for economic independence.

ii. Provision for decent and healthy methods of transportation of goods to
meet the demands of our people.
iii. To reduce the economic expenditure of the consumers thereby offering
products of affordable and favorable price.
iv. To contribute to the growth of service provision and reliance, security
and trust in the industry for the Kingdom of Eswatini.
v. To reduce the transportation costs borne by the consumers when
traveling for shopping.

Vision of the Business

The business is set in a way that in 5-10 years to come, the whole of the
country will engage the services of our business through the competitive
advantage that it offers.

Firstly, the first bullet is to capture Manzini & Hhohho and Lubombo
chiefdoms and the sugar belt areas.
 Secondly, is to capture and cover rural areas special those that
surround the urban zones around the big cities with our products and
service.

Thirdly, is to extend the distribution of the products and services to

all parts of the kingdom of Eswatini.

Mission Statement and Purpose

To establish the ultimate and nationwide Service provision business that can
mitigate and solve and meet the needs of rural area people and bring about
sustainable development of creating employment opportunities for the
Members and immediate families and help to stimulate economic growth in
the country as a whole.

MARKET CONSIDERATION

Any Business industry, be it a small or large scale is finally at a bottle neck with
the market. Market is a medium that allows the buyers and sellers to interact in
order to facilitate exchange, is the target point of any trader.

Our business is not an exception. Some factors will be taken into consideration
in regard to where we intend to sell our products. The proximity of market, in
relation to other factors of production was put in place. The following are factors
we consider in relation to the market of our products. Thus;

i. The location of the business: the business main unit is located in Manzini
district in the heart of the chiefdom. The location significantly makes the
business near its first target market. More also, in the future development,
the good road network that links most areas of the kingdom specially
Manzini which is the heart of the kingdom. The other towns are even more
accessible through-out the Kingdom and this offers a good opportunity to
be used to reach the second target market and likewise the target/consumers
who wish to use our products and services
ii. Current and potential demand: the residents of the entire kingdom of
Eswatini have a high demand of Millie- folour as a staple food, because of
the economic dynamics that links the country and it’s neighbors or even
for health and recreation needs. Furthermore, the rapid increase in the
population is a gift that our business will have tremendous support for the
future development of the business notwithstanding the so many industries
that produce and compete for the market share, our business model is built
on the premises of direct interaction with our customer which cuts all the
business expenses of marketing and advertising cost..
iii. Societal characteristics or culture: the religions, the beliefs, the norms and
all ethical phenomena of the immediate community, secondary community
and the tertiary community do not prohibit or exempt people from
consuming millies, and this is a positive niche to be captured by our
business for neither cultural nor religious beliefs do not prohibit the
consumption of millie-flour
iv. External economy benefit: since the bases of our business is in processing
and service provision, and our economy is fully dependent on agriculture,
, trade and tourism the majority of communities rely on agriculture for
 subsistence, hence the location of our business in an area which is
dominated by maize producers, the other products that form the basis of
our domestic use, have to be sourced from our neighbors, Furthermore our
country is land locked without the sea, of which the surrounding countries
have vibrant economies that produces, packages and distribute the same
product, with a higher marginal expense than ours.

MANAGEMENT TEAM

THE management team is a team of individuals at higher level of organization

management who have the day- to- day responsibilities of managing an industry,
company or cooperation. The management are individuals who are responsible
for day- to- day running of the business which include organizing, delegating,
monitoring and evaluating all aspects of the business thereof.

The key management team are as follows;

i. Chairman
Jeremiah Manhatsi
ii. Vice-Chairman
Thabitha Malaza
iii. Secretary
Lindiwe Dlamini
iv. Treasurer
Fikile Sukati
 v. Members
Mamane Sukati
Thembie Manhatsi
Mbongeni Manyatsi
Samaria Manyatsi
Alice Manyaztsi
Tozi Thwala
Vuyisile Hlophe
Petty Gadlela
Betty Zwane
Mazoco Bhembe

Responsibilities and Others

The executive committee is responsible for planning, organizing and managing

monitoring and evaluating all the activities of the business.

Duties;

 Planning finance and maintain all process against budgets and parameters.
 Planning activities, coordinating, monitoring and evaluating all processes
and business decisions`

Some other duties of the executive committee include

 To be in charge of all business negotiations.

 Maintenance and extension of sales territory and advertising the business
 Delegation of duties and responsibilities in the business
 Negotiating business deals
  Setting schedules for deliveries and collection.
 Increasing sales line, image, and building and developing product
knowledge.

Vice-chairman to assistant the chairman in the management of the business. This

will means responsibility for health, welfare and the performance of the business.
This will include insuring that schedule are kept, customer are contacted on
frequent intervals and that all logistics are provided before action is taken.

To fill in the gape in the absence of the chairman.

Skills and Experience of the Executive Committee

The management team are individual of high skills due to undergoing training on
how to handle the business, to ensure the progress of the business by minimizing
cost and maximizing profit. These will be also individuals, who have experience
because they may have been engaged in the business several time before they
have experience of how to run the business and prevent it from uncontrollable
factors which may harm and affect the progress of the business negatively.

TECHINCAL SPECIFICATIONS AND EXPERIENCEs

This industry is covered by hazardous risks such as droughts heavy rains and crop
disease outbreak which if not handled properly can bring danger and threats to
the whole industry and subsequently to the whole community and country and
this can affect the revenues of the business.

With the high growing danger of the COVID-19 epidemic condition, all
over the world and global concern about food security, related diseases to
humans, it is a must to establish a decent business environment that will be free
from any intimidation to health by adhering to prescribed health conditions.

Our business has designed some pre-causative strategies that will serve as a shield
that prevents or set the organization under the reliable protection against any
threat of public health. The key points competently planned are as follows;

1) Employing specialized skilled employees

2) Good management

3) Checking thealth immunity approvals and health status properly and timely by
designated health professionals.

3) Encouraging our prospective clients to need to adherence to health and

medical standards prescribed by health professionals

Employing Specialized Employees: The labor force of any business,

industry/organization has a great impact on the operations of that very business
and it is one of the factors that occur within the organization internal control
factors.

OUR business organization has set a plan in which specialized and competent
manager and other workers will be employed.

6
MARKETING PLAN

Our business is a production and service oriented in it’s nature, therefore

marketing the business is a major concern for our survival as an entity..
Marketing Promotion Plan

Our business will maintain an intensive technique. Below is an overview of the

marketing techniques and goals of the company.

Promotion Objectives

We plan to establish connections with entrance and exit points of the chiefdom
since our business focus is the rural communities, that will capture the focus on
target audience in the chiefdom we plan to provide our product and service.

 Implement a regional technique with the business national radio,

newspaper ads, and testimonials advertising.
 Develop an online business by developing a website and placing the
business name and get in touch with details with online directories.

Promotion Strategies

We plan on using a variety of selling techniques that will allow our business to
easily focus on consumers within the focus audience. These techniques consist of
traditional print ads and ads placed on Google on the internet. Below is
information on how the organization plans to promote its solution to the
community. The business will also use online techniques. This is very important
as many people looking for affordable products deals, services in the internet
searches. We will register the business with online portals so that prospective
client can easily reach the organization. The company will also create its own
website show casing, the service, outlining it’s service details. Finally we will
create ongoing recommendation connections with he health establishments as a
mean to establish our health standards. As time advance, these recommendation,
connections will become a valuable source of income for the organization.
 7

RISK MANAGEMENT AND CONTROL

All businesses are surrounded by risks all over, which affect both small and large
scale operators.

Along this line, we have foreseen, forecast and predict some possibly occurring
risk that our business and or industry may face and we carefully provide
matching solutions to the risks and dangers.

The risks might include:

1) Personal risks.
2) Operational risk.
3) Financial risk.

PERSONAL RISKS:

Personal risks arise from events affecting the personal lives of the individual
owner of the business and or his partners which may in turn affect the operation
of the business.
In this instance we predict some personal risks (catastrophic events) such as fire,
accidents, flood or death. It can also include variation of goals and objectives
between the high desk and the low desk.
Control and Management
 In the first instance of fire, flood, accidents and death the business
organization has planned to register all its assets to the insurance services, in
order to minimize or even obliterate some risks that might be faced in that regard.
 Establishing a common understanding of the business goals among the
employees and stack-holders.

OPERATIONAL RISK:

Many factor from outside of the business environment and from inside as in (1)
above are likely to put the industry and the whole of its operation in risk. Our
business environment has sensitive risks to weather conditions that form part
environment e.g. sunlight, rainfall, humidity, temperature and others can include
floods and natural disasters

Control and Management

 We intend to grow and operate a world class business that is efficient,

reliable and free of contagious diseases.
 We intend to use preventive means of disease control by embarking only
safe and products.
 We intend to supply health and safe products and first class mode of
transport that will deliver our product to the best comfort of our clients and
enhance the image of our organization.
FINANCIAL RISK:

Most risks that are related to finance result from inadequate cash flow to meet
obligations which may in turn cause shut-down of the business. It may be caused
by high mortgage payments and assets or as a result of personal or managerial
problems.

Control and Management

In order not to fall in trap of financial risk, we plan the following ways:
 Diversification of the business: we planned to engage in different niche of
business, so as to escape the misfortune. When someone have two niche involve,
when one collapsed 50% of the business fail, but if you have ten niche involved
and one happen to have problem, it will be only 10% that will be affected.
 Acquiring assets,: due to expensiveness of some assets, for the business.
Nevertheless, we planned not to tie our capital on equipment that will have a low
of usage.
 We plan not to buy things until when the need arise.
 Saving in the bank: since keeping money at home or in business place is so
risky we plan to equip our business with banking (e-banking in particular). So
also, the revenue earned will be saved in the bank where, the interest will be an
add-up benefit to our activities.
 8

FINANCIAL AND ECONOMIC PLAN

Sources of Capital;

The business will source its capital through;

i. Grant; the grant will be pursued in the Regional Development Fund

(RDF) where the 100% of the capital involved will be secured.
ii. Contribution from the founder; since the business is an Co-Operative
entrepreneurship oriented business; the partners have contributed about
10% of the capital involved.

Equipment and Assets Management

In order to minimize the risk of damaging and vandalizing the organization

owned assets, skills workers are employed and the following measures will be
taking;

1. Acquiring all equipment needed for the business

2. Safe-guarding of all assets belonging to the business as to avoid abuse
3. Timeous servicing repairing of the assets.
4. Maintenance of all areas of interest including the transportation used to
ferry the clients products
FISCAL ANALYSIS OF THE EQUIPMENT

Loan Interest 17,792.00

Tuck Vehicle 568,058.00
Wages & 5,837.00
Salaries
Fuel Expenses 195.00
Electricity & 1,700.00
Water
ENPF 385.00
Stetionery 74.00

ASSETS AND MANAGEMENT:

CONCLUSION

From the above business plan we are confident that Ithembaletfu Multi-Purpose
co-operative is a viable and feasible business in the Kingdom of Eswatini at
large and it is also beneficial to the whole country.

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Jeremiah Manyatsi (Chairman)