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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Oct. 31


Custom Business Plan
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2014
Free Biodiesel Plant Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!


Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below. This free business plan demonstration purposes only. If you are interested in purchasing the completed editable MS Word and Excel documents for this business plan, please click the button below! Also, the text of the business plan is formatted with a fully automated table of contents.



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It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

  • Excecutive Summary
  • Company and Financing Summary
  • Products and Services Overview
  • Strategic Analysis with current research!
  • Marketing Plan
  • Personnel Plan
  • 3 Year Advanced Financial Plan
  • Expanded Financial Plan with Monthly Financials
  • FREE 30 Page Sample Private Placement Memorandum
  • FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

 

1.0 Executive Summary

The purpose of this business plan is to raise $1,000,000 for the development of a Biodiesel production facility while showcasing the expected financials and operations over the next three years. The Biodiesel Plant, Inc. (“the Company”) is a New York based corporation that will produce and distribute Biodiesel made from waste vegetable oils to its customers in its targeted market. The Company was founded in 2008 by John Doe.

1.1 Products and Services

As stated above, the Company will operate among two primary alternative energy units: biofuel production and delivery. The first aspect of the business’ operation, biofuel production, is readily becoming the number one alternative to standard diesel in the United States. Within many parts of the world, biofuel (also known as Biodiesel) is a readily available diesel alternative that has gained wide acceptance. It is no secret that the world is facing an impending energy crisis, and now more than ever, it is imperative for countries and for-profit enterprises to develop methods for converting useable vegetables, oils, and feedstock for the production of usable (and easily transmittable) energies. With the capital sought in this business plan, the Biodiesel Plant will be able to develop its production and distribution capabilities with an expected monthly output of 140,000 gallons per month. The third section of the business plan will further describe the services offered by the Biodiesel Plant.

1.2 The Financing

Mr. Doe is seeking to raise $1,000,000 from an investor for the development of the Biodiesel Plant. On a preliminary basis, the investor will receive a 40% equity interest in the business along with a seat on the board of directors and regular dividend disbursements.

1.3 Mission Statement

The Company’s goal is to develop and establish the methodology, technology and physical plant required to process and convert large quantities of used oil into Biodiesel. The Company is dedicated to providing the open market with a clean alternative form of energy for daily use among consumers.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the alternative energy industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals (that use diesel engines) and companies with large diesel fuel needs within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Biodiesel Plant, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Biodiesel Plant requires $1,000,000 of equity funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

At this time, Mr. Doe is seeking to sell a 40% equity stake in exchange for the capital sought in this business plan. The investor will also receive a regular stream of dividends and a seat on the board of directors.

2.4 Management Equity

John Doe currently owns 100% of the Biodiesel Plant, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Biodiesel Plant. Based on historical numbers, the business could fetch a sales premium of up to 10 times earnings.

3.0 Products and Services

Below is a description of the Biodiesel products offered by the Biodiesel Plant.

3.1 Production of Biodiesel

After acquiring the input materials for Biodiesel production, Management’s plant employees will place them into a large reactor tank that is heated to 150 degrees Fahrenheit. Once the mixture of oil has been heated, it is transferred to a second reactor unit where the introduction of methanol occurs. These chemical injections are remotely controlled by the process computer. Methanol is added to the mix as a catalyst. Once the catalyst process is complete, glycerin is a gradually removed from the bottom of the tank while the Biodiesel is allowed to react for two hours. From there, the final sediment is released.

3.2 Distribution of Biodiesel Products

The secondary source of revenue will come from the distribution of Biodiesel to farmers, government agencies, and businesses that have large diesel fuel needs. The Company will work with a contractor to deliver these products to their customers. The business will earn contribution margins of 20% on this aspect of the Company’s distribution and logistics operations.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the alternative fuel production industry, the customer profile, and the competition that the business will face as it progresses through its business operations. The current geopolitical environment has led Management to believe that energy prices will continue to increase in the near future. The war in Iraq, faltering nuclear production talks with Iran, and general Middle Eastern instability has led many economists to believe that there is a fifteen to twenty percent risk premium now associated with the price of crude oil. While these issues bring worry to the general economy, Management sees a significant opportunity to enter the market with a source of alternative energy. Many politicians and special interest groups have promoted the development of alterative energy solutions to combat the continually increasing energy prices in the United States. As of July 2008, the cost of energy products has have reached all-time highs (not adjusted for inflation). Additionally, the fast growth of Asian nations (namely India and China) has prompted further increases in the global demand for energy. This trend is expected to continue in perpetuity.

4.2 Industry Analysis

The industry research for the Biodiesl Plant Business Plan is available in the paid version.

4.3 Customer Profile

In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

4.4 Competitive Analysis

At present time, Biodiesel is available in the United States in limited quantities. However, several large oil refining and oil producing companies are beginning to enter the market with the development of expansive Biodiesel production capabilities. As more agents enter the market, the Company anticipates that pricing competition may occur. Additional competition will stem from smaller farmers that intend to make moderate capital investments into developing small scale Biodiesel production capabilities. However, many of these competitors will provide a very limited quantity of Biodiesel, and they will not be able to benefit from the economies of scale that will be implemented by the Company. This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

The Biodiesel Plant intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Biodiesel Plant.

5.1 Marketing Objectives

  • • Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.

  • • Develop ongoing purchase order relationships with companies and government agencies that have large diesel fuel needs.

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5.2 Marketing Strategies

Currently, there are a number of organizations, including the National Biodiesel Board, that are pushing initiatives, lobbying legislatures, and informing the general public about the benefits about alternative biofuel based energy products. Management feels that it is important to invest in these public relations campaigns (even though they will not effect direct sales) because in the future, the Company may develop distribution networks that provide Biodiesel directly to end users. Additionally, the increased awareness of Biodiesel, its lower emissions, and ability to wean the United States off of foreign energy sources may prompt consumers and lawmakers to further expand the rebates, tax credits, and other incentive programs available for making Biodiesel an economy viable energy product now and in the future. Approximately $10,000 per year will be spent to support these causes.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget



6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

  • • The Biodiesel Plant will have an annual revenue growth rate of 16% per year.

  • • The Owner will acquire $1,000,000 to develop the business.

  • • The Investor(s) will receive a 40% equity interest in the business.

7.2 Sensitivity Analysis

The Company’s revenues are moderately sensitive to changes in the general economy. Biodiesel products are comparatively priced with their petroleum based counterparts, and in the event that oil prices decline, the Company may have issues divesting its inventory of Biodiesel products. However, the price of oil is expected to continue to climb as reserves are limited and the price of oil has increased significantly over the last two years. Only in the event of a steep drop in the price of petrol based energy products does Management anticipate that the Company will have issues regarding top line income.

7.3 Source of Funds


7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis

 

7.7 Balance Sheet

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7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis