Transcript Our Business Plan Pitch Deck (PPTX)

A S O C I A L B U S I N E S S TO H E L P K E N YA T H R I V E
THROUGH GROWING THE MOST EFFECTIVE FOOD ON THE WORLD:
SPIRULINA
BY ALEXANDER ZACHARUK
& D A N I E L K OTT E R
Table of Contents
1.
Executive Summary
2.
Product
3.
Customers & Market
4.
Business Model
5.
Team
6.
Financials
7.
Targets & Milestones
8.
Current Status
9.
Contact Details
PITCH DECK
THRIVING GREEN
2/17
Executive Summary
The issue at heart:
Turkana Lake, Kenya
Our solution:
Growing Spirulina
• One of the poorest regions
worldwide with a daily income
of $1.66
• Water is too salty & alkaline
for farming, climate too hot
• Massive malnutrition, whole
region dependent on
development aid
• Highly nutritional and caloriedense Superfood
• Efficient growth under
Turkana’s extreme conditions,
cost-effective production
• Using waste as fertilizer, only
natural and local resources
involved in production
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THRIVING GREEN
Our approach:
Social business
• Started in June 2016 by 2
social business experienced
founders
• Strong partner network and
team with highly relevant
experience
• Break-even in the 2nd
operating year, initial
investment of $7,000 needed
3/17
Product – What Spirulina is
Microorganism
• Alga-like microorganism
• Loves high temperatures
• Grows in alkaline and salty
water
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Agricultural
Good
• 10 -25 times higher yield per
km² compared to corn &
vegetables
• Fast growth and short harvest
cycle (25 days)
• Little water is needed
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Superfood
• Supplement in USA and Europe
• Traditional food in Chad and
Mexico
• High protein content with all
essential amino acids
• Rich in vitamins and micro
nutrients
4/17
Product – Why it is the perfect solution
Added Value and benefits for the people in Turkana:
• A new type of food production
• Fighting malnutrition: a healthy source of food is made
available
• Environmental relief through recycling of waste
and fertilizer production
• Economical benefits for local farmers: starting businesses
• Structural development is enabled
Our USP:
• We introduce the world’s most effective food to Kenya
• Kenya’s climate is fatal for conventional agriculture
but ideal for spirulina
• We use waste as a fertilizer (urine, ash, rusty nails)
• We entirely rely on local and natural resources to induce a
life changing alternative source of food
PITCH DECK
THRIVING GREEN
5/17
Customers & Market – What we face
The local food market in the Turkana County, Kenya
• The average
income in Turkana
is $1.66 per day
77k
people
living in
the
Turkana
County
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$37.3M market
size per year
$77.3k
Revenue
2021E
• We assume 80%
of daily income is
spent on food
• We expect a
market share of
0.2% in 2021 (5th
operating year)
THRIVING GREEN
6/17
Customers & Market – How we position
The local food market in the Turkana County, Kenya
Target Group
• All people at Lake
Turkana, starting
off in Nariokotome
• Especially
shepherds &
fishers
• Average income of
$1.66 per day
Competitors
• Local food
producers: fishers
& shepherds
• Available foods:
Fish, milk, meat
and palm fruits
• Problems: Costinefficient and
food shortage
Cost Advantage
• Low-cost & highly
effective spirulina
production
• 25 days harvesting
cycles
• Fertilizers are
made of waste
Nariokotome
our costs $0.02 vs. industry average $0.07
(per 100 kcal unit)
PITCH DECK
THRIVING GREEN
7/17
Customers & Market – How we position
Marketing Strategy
• Catholic Mission of Nariokotome helps to
communicate, integrate spirulina into daily life
• Price per 100g unit: $0.23 vs. $0.56 comparable
competitor food: penetration strategy
Strengths
Weaknesses
• High yields
• High quality nutrient
profile
• Optimal environmental
condition for growth
• Low costs
• Poor network in
Turkana County
SWOT
Analysis
Distribution Strategy
• Sales channels: direct selling to local population
and nomads, market places in Lodwar
• Franchising system: local farmers get coached and
supervised to grow spirulina on their own
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• Little on-site support
possible with current
resources
Opportunities
Threats
• Population growth
• Food shortage
• Climate Change:
Demand for alternative
food sources
• Digitalization
• Dependence on local
partners
• Poor social adaption
THRIVING GREEN
8/17
Business Model – How we make money
Spirulina
Cultivation
Local farmers
& partners
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•
Cultivation of
Spirulina:
growing in watered
pools, drying
•
Distribution:
local market places,
neighbors, nomads
•
Contribution Profit of
$0.06/100 kcal unit
reinvested to scale up
and provide income
for local farmers
Distribution
THRIVING GREEN
9/17
Business Model – Why we scale up fast
Scalability
Our first farm
•
•
•
Area of 1200 m² with
12 cultivation tanks
Enough to provide food
for 400 regular
customers
Step by step we add
more tanks & set up
new farms
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Increasing Production
is easy
•
•
•
Harvest cycles of 25 days:
Fast & regular yields
convince the farmers
Processes and know how
is very easily learned and
applied
Input material consists of
easily accessible goods,
the seeding culture and
waste
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Increasing Distribution
is easy
• Supported by the Church
mission, we can penetrate
the market further to more
and more towns and cities
• Selling in Lodwar (Turkana’s
Capital) at market places
attracts many customers
• The franchising system
enables fast growth
10/17
Team – Who strives to make it happen
Founders
Founders
• Founders unite biological & business
know how
• Extensive experience in social
businesses (vitas attached)
Team
Team
members
• Experienced team members:
successfully integrated solar cookers
in Kisumu, Kenya in 2014
• Team members have knowledge and
practical experience in
microbiology & social businesses
PITCH DECK
THRIVING GREEN
11/17
Partners – Who shares our vision
Strong network
Knowledge & Know how
• Strong network provided
by enactus Germany
• 70,000 active members
worldwide
• Experienced in social
entrepreneurship
• Coaching & mentoring
via our business advisors
• Support by the
university’s chair of
microbiology &
chair of innovations and
technology management
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Support by the city of
Regensburg
• Coaching, relevant
networks
• Land for outdoor testing
THRIVING GREEN
Further Skills & Resources
needed
• Initial investment of
$7,000
• Additional partners in
Nariokotome/Lodwar,
Kenya
• Coaching/Mentoring
12/17
Financials – What we need to succeed
Initial investment of $7,040 to finance the 1st spirulina farm in Kenya
Building the Plant
$2,100
$2,180
Preparing the Product
•
•
•
Development $1,000
Measuring instruments
$800
Seeding Culture $300
$7,040
•
•
•
•
UV resistant polymers
$1,140
Tools & Equipment $500
Chemicals $300
...
Supplying the Squad
•
•
$2,760
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•
•
Flights $1,600
Travel Preparations
$500
Transport $400
...
13/17
Financials – How we scale up
• Except the initial investment
of $7,000, no further
investments needed due to
generated profits
• Investments till today: $461
• Intended sources of financing:
sponsoring, competitions,
foundations, crowd-funding
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$-$10,000
in people
7,200
6,200
5,200
4,200
3,200
2,200
1,200
200
Revenue
2017E
We can easily increase the size of
our farms, empower more farmers
& scale up the business volume
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2018E
Due to strong partners, cheap
construction & simple processes,
new tanks are built within days
THRIVING GREEN
Profits
2019E
Regular Customers
2020E
-800
2021E
We are starting small, but after
the first year we will triple the size
of our farm
14/17
Targets & Milestones – Our critical path
Achieved goals
• Sponsoring of spirulina $300 in June 2016
• Empty 10 x 10 m² in use to grow 5,000l volume for a $150 fee + $500 deposit since July
• Focus project within enactus Regensburg since July 2016
Next Steps
July 2016
August 2016
September 2016
December 2016
June 2017
Breeding of
spirulina under
laboratory
conditions
Outdoor
cultivation,
First
First
harvesting
farm
4 farmers
employed,
First analytic
results
of outdoor
cultivation
in Turkana
County
400 regular
customers
PITCH DECK
THRIVING GREEN
15/17
Current Status – Where we are today
Start-up phase
Legal form
• Elaborated business plan
• Breeding Spirulina under laboratory
conditions
• Outdoor testing for cultivation tanks
• Development of partner network
• Legal form: enactus Regensburg e.V.
• uniregensburg.enactus.de
• Working under the German social
business club enactus Regensburg e.V. for
higher resource effectivity
Key Performance Indicators
• Revenue: $1,700 till June 2017
• Regular customers: 400 till June 2017
• Local farmers employed/in business:
4 till June 2017
PITCH DECK
THRIVING GREEN
16/17
Contact Details – How to get in touch
Alexander Zacharuk
Daniel Kotter
0049 1735987525
0049 15150111999
[email protected]
[email protected]
Simadergasse 4
Vitusstr. 2
93047 Regensburg
93051 Regensburg
Germany
Germany
PITCH DECK
THRIVING GREEN
17/17