If you are determined to start your pellet business, or when you try to open a wood pellet plant, to have a complete pellet plant business plan will definitely guide the way to construct and manage the pellet plant.
As the expansion of wood pellet market, there are many turnkey pellet plant service providers global wide. Most of the pellet plant providers promise to provide a complete pellet plant business plan for their clients.
Actually, the turnkey pellet plant provider is a company which builds the pellet plant for you based on your requirements, such as the capacity, electric system. But, a pellet plant business plan is more than the purchase of the pellet plant machinery. It contains many different parts which should be known only by the pellet plant owners, especially the cost of building a complete pellet plant. In the following parts, we will show you the important information a pellet plant business plan contains. Hope that it could help the pellet plant investors to establish their own pellet plant business plan.
A Sample of Pellet Plant Business Plan
Normally, a pellet plant business plan should contain several parts:
An Executive Summary
The executive summary contains the general information about many different parts of the pellet plant. A basic executive summary includes the information about the products & services, financing, the mission statement of the pellet plant, the pellet plant management team, your sales forecast, and the pellet plant expansion plan when the business goes well.
You may think this is too much. Because some of the parts contains many detail information, and if you want to determined all the details, it may take such a long time. In the executive summary, all the information are just general information. For example, in products & services, you should know what kinds of pellet you are making, and what is your pellet used for. Is it used for home furnaces? Is it used for power generation? Is it used for animal bedding? This will help you determine the sales market for your products.
A Company & Financing Summary
The company & financing summary includes the detail information about the finance program of the pellet plant. About the company part, the company name used for registration should be mentioned. Also, the general company structure should be confirmed. Talk about the financing part, the first thing should be mentioned in the company & financing summary is the required funds. In the summary, you must carefully describe the debt funds you need, and the exact usage of the funds.
Despite the debt funds, the summary must contain the investor equity, management equity which will help you explore the investment from a third party. If possible, the company & financing summary may also talk about the exit strategies whether the business is successful or not.
A Market Analysis
A normal market analysis contains the economic outlook, wood pellet industry analysis, customer profile and competitive analysis. This is the section gives you the background knowledge before you establish the marketing plan for your wood pellet plant. Especially for the competitive analysis, you must do your own research. Based on your business type and sales market, find out your competitors. And then compare your products and services with theirs, find out the advantages and disadvantages of your products and services.
A Marketing Plan
The reason to build a wood pellet plant is to make profit. So with the above information, the next part of your pellet plant business plan is to establish your marketing plan. A mature marketing plan contains several parts, the marketing objectives, your marketing strategies and the pricing for your products and services.
The whole marketing plan starts with the marketing objectives. You have to determine the customers of your products first, and then you can find out the wood pellet wholesalers and distributors, or some power plant, and try to establish a connection with them. The question of how to establish connection with them is called the marketing strategies, such as how to impress the power plant and wholesalers, what do you need to help you impress them. One of the most important elements to earn the customers is the price. So in the marketing plan, you must talk about the pricing of the wood pellet.
An Organizational Plan
The organizational plan is the design of the layers of management for the wood pellet plant. To have an efficient management team is one of the key elements that can achieve the final success of the wood pellet plant.
In this section, you should build a sample of your corporate organization first. And then, make sure what kinds of pellet plant jobs you need, and how many staffs you need on each job. After you have a clear vision of the layers of management of your wood pellet plant, you can calculate the organizational budget of your wood pellet plant.
Above are the things a wood pellet plant business plan must contains. If you are familiar with the wood pellet manufacture industry, you can write the business plan all by yourself. But if you are an investor who’s intended to invest in the wood pellet manufacture industry, you can ask the wood pellet plant you are interested in to show you their business plan. Moreover, if you want to start your own pellet plant, but you have little knowledge about the industry, you can ask some industrial service organizations or your pellet plant manager to write a pellet plant business plan for you.