For a business to record desired result, the need for an effective feasibility study is imminent. Before an entrepreneur invests funds to start a desired investment idea,through feasibility studies, the intending entrepreneur shall be able to understand and design many aspects of the business like the nature and size of the proposed business, the competitiveness, financing, possible challenges/success and failure likelihood of the proposed business.
Through feasibility studies, a summary of the operations in the proposed business is conducted with facts and figures obtained in the targeted market area and from identified sources of raw materials. This in a nut-shell encompasses everything needed for the success of the business. In this circumstance, this study intends to explore the feasibility of Refining and bottling of Pure and Natural Honey for homes and other needs.
This business idea has emerged out of the observation of the importance of hone in food, cosmetics and medical needs of humans and with relations to the availability of the product, prevalence of adulterated/sub-standard and very expensive honey in the market especially around Kaduna Metropolis.
This aspect has to do with the pre-birth of the proposed business where, the potential investor needs to define parameters that may pose challenges to the realization of success for the business. Important variables such as scope, sitt ing, funding, Branding, packaging, Target Market, distribution pattern/ agents warehousing. All these are very important to the smooth running of the business.
1. Scope; the scope of the business shall be from small scale to be expanded to medium scale in proportion to periodic growth of six months at instance. This is to enable the business to attain self-sustenance and expansion through reinvestment of profit.
2. Raw Material: local honey collectors have been identified in Kaduna, Katsina, Zamfara and more to be sourced within neighboring states as production increases. However, a study on how to keep honey bees for the project is in progress.
3. Sitting; the business shall be sited at SMC quarters Kaduna metropolis, a part of the private residence of the investor so as to reduce capital expenses and to ensure close monitoring.
4. Financing: among other means, the business shall be financed through National Agricultural and Cooperative Development Bank. Specifically through the banks small and medium scale business development program. This is to ensure funds are managed prudently since it must be repaid.
5. Branding; the proposed brand name for the product is “Nature’s Sweetest” it will be duly registered with corporate Affairs commission forLegitimacy, consumer protection agencies, and standard monitoring agencies such as NAFDAC to guarantee consumer safety.
6. Packaging: The packaging method to be used is a range of disposable plastic temper proof sealed bottles which will be wrapped with beautiful stickers depicting bees hive dripping out clean fresh honey; they will be in a range of sizes and at corresponding prices.As such there will be affordability for all income levels and for specific needs too, either in larger or smaller quantity. Each bottle size shall be packed into a multi bottles pack to ease bulk movement and transportation.
7. Marketing Analysis: as a very critical section of business, the market potential of the product has been surveyed through a direct observation of the available honey in the market, and shop owners, hospitals who uses honey for wounds dressings, beauty specialists who uses honey for skin care and treatment of skin blemishes were interviewed on the availability of good locally refined honey to service the market needs. It was found that there are very few in circulation which the quality has nothing to compare to “Natures Sweetest”. Therefore the market projection possibility is enormous. This gives the business great level of profit potentials.
8. Risk Analysis: honey production is a low risk venture, it has a very long shelf life been a natural antibacterial, the machines to use are simple filters and tanks. The sitting is in-house thereby cutting the possibility of vandals/theft. However, there will be a provision of insurance cover for the business to further guarantee its survival.
9. Distribution: direct wholesales at 2% discount to retailers whom after retails sales to the final consumer shall realize a profit of such discounted rate. In essence, both high demand and the percentage profit allowed will serve as market driving incentive for the product. A total number of 100 shops have been contacted and are willing to receive the product at the commencement of production.
At this stage when the production must have commenced, the need to put in place and sustain the following is of essence:
1. Quality Assurance: honey is a natural self-preserving product, therefore, no additive shall be allowed into the product to avoid contamination or dilution. Also the production room must be sterilized and adequately protected against insects or contaminants.
2. Simple gravity press filters will be used to extract the honey from the honey comb. The collected honey will then be re-filtered to achieve optimum purity before it will be filled into the bottles using a measuring device.
This is the stage at which the product reaches its highest market value. It is expected that 10, 000.00 units can be sold every month, all loaned capital most have been repaid and appreciable profit has been realized. The peak of pure honey is not ascertained. However, history has shown that the product has been in continuous demand for ages, therefore the products life cycle all things been equal is infinite.
In the event of a decision to discontinue the project, the machines have low wear and tear possibilities because of the low energy in their use. An annual maximum of 1% depreciation is estimated on the machinery. Similarly, in consideration of the thriving potentials of the proposed project, chances of selling the plant at an appreciable rate is ascertained.