Business Model Proposal

Transcription

1 Business Model Proposal Diesel Distribution Venture, Truck Filling Stations Venture & Supplying Waste To Our Company Supplying Bio-Diesel To: -Commercial Farmers, Trucks, Factories, Mines, Resellers, Ships, Construction Companies & -Supplying our company with waste plastic and used tyres Page 1 of 21

2 Index Contents Business Model Index: 1. Introduction 2. Benefits of Bio-Diesel 3. About Us - Company Profile 4. How To Become A Distributor (All Operations, Leasing A Warehouse, Getting Clients, Marketing & Advertising, Start- Up Stock). 5. Revenue & Profit Projections 6. Business And Clientele Projection Growth 7. Regions Available With Clients 8. Distribution Registration Steps, Procedure And Step-By-Step Set-Up Process Guide Page 2 of 21

3 1. Introduction: Our new Biodiesel is renewable fuel made from the process of recycling of Used Tyres and Plastic Waste, Or Sunflower Oil, Vegitable Oil into diesel. With our new Plant, we are going to be converting tons of Used Tyres and Plastic Waste into Biodiesel. This will also give us the market advantage of making cheaper diesel, that is also cleaner and of high quality into the South African market and also expand into Africa. Our diesel will be cheaper than petroleum diesel currently being supplied in South Africa. Biodiesel is already popular in first world countries, and it is also becoming popular in South Africa. We have invested millions in into a high tech biodiesel production line that will be able to produce high quality diesel which we will also be doing testing and certification with every batch we produce. Biodiesel can be used in ANY diesel engine, whether it may be a car, SUV, LDV, truck, ship, industrial machinery, forklift, tractor, generator, boat, mining vehicles & equipment, earth moving vehicle, boiler, construction vehicle & equipment or in a burner for heating. Biodiesel can be used in any diesel engine and is better and cleaner than normal diesel. Whether the engine takes 500 ppm and 50ppm. Our Bio-Diesel blends are for both 500ppm and 50ppm engine. 2. Benefits of Bio-Diesel: It costs less than regular diesel IT IS 30% CHEAPER yet lasts longer! It is CLEANER than petroleum diesel. It contains no or little sulphur It has a higher Cetane (60 Cetane) rating that improves the efficiency of compression ignition than normal diesel making it a much better quality than normal diesel you get from the pump currently NO engine modifications are necessary to use biodiesel on any diesel engine It is non-flammable, non-hazardous, non-toxic & environmentally friendly It has a flash point greater than 120 C while fossil diesel is approx. 70 C Users can switch between biodiesel and regular diesel as they wish It has superior cleaning properties over all other regular diesel It provides much better engine lubrication than regular diesel Page 3 of 21

4 3. About Us We produce and deliver green energy products and services that people around the world need. We are preparing to become the biggest Bio-Diesel producer in South Africa as we have purchased our first Biodiesel Plant in Johannesburg with the aim of producing millions of diesel litres monthly. We are about converting used tyres and waste plastic into diesel supplying our over 2,000 clients who are now on our database wanting to be supplied with diesel on a monthly basis. We are proud to be a new, innovative and fresh concept in South Africa with a product that is very new in the market which we plan to bulk distribute to our already over 2,000 clients wanting to be supplied with Bio-Diesel. In South Africa, there are millions of tons of plastic waste and tyres that are created each month, with our partnering suppliers ranging from: -Municipalities (Municipal Plastic Waste) -Industrial Plastic Waste -Agricultural Plastic Waste Our production and business model will create Jobs, Distribution Opportunities, Transportation Opportunities, Supply Opportunities with our new and innovative product in South Africa and other African countries. Page 4 of 21

5 4. How To Become A Diesel Regional Distributor? As our Regional Distributor & DEPOT, you will be tasked with supplying some of the thousands of subscribed and contracted clients across South Africa and SADAC with our new Bio-Diesel. You will be tasked for a period of 5 years with supplying bio-diesel to a minimum of 50 commercial clients which are our clients around your region from the regions that we have on our regions sheet. The 5 years are renewable based on the good operation of your first 5 years as our Regional Distributor. You will be given 50,000 litres diesel stock and would be allocated the same quantity monthly to supply our clients and your clients in your region. You will earn a profit share of R2.50 per litre from your distribution. We would allocate you more clients in the following months of your operation as we continue to receive new clients signing up on a daily basis via our website These commercial clients would be buying between 2,000 litres to 50,000 litres of diesel from your distribution on a monthly basis. These clients are wanting the diesel for their trucks, machinery, tractors, generators, boilers and vehicles that work on diesel. As a Regional Distributor, you will Warehouse and Distribute our bio-diesel to clients in your region and province that are in a contract and that are ordering bio-diesel from us. You will be able to deal directly with our clients and be able to communicate directly with the senior administrators and managers ordering stock from us on a monthly basis. You will also have the additional opportunity of supplying our company plant with used tyres and plastic waste which we would pay you for at a good rate. Page 5 of 21

6 Our Clients You Would Supply Consist Of: (In the next few pages we unpack the clients you would be supplying with your Diesel Distribution Warehouse Centre & Depot) 4.1 TRUCKING COMPANIES: We supply trucking, logistics, cargo and courier companies with diesel that travel in 26 National Road and that cross 17 border gates to neighbouring countries. The trucking and logistics industry is a very competitive one in South Africa and Africa and as our bio-diesel is at R8.50 per litre, and 30% cheaper than standard diesel this would allow trucking companies using our bio-diesel to make more profit cutting on fuel costs as fuel is the driving factor to running such a business. This would also allow our clients to price their freight services far less than their competitors as well which would increase their customers and client base resulting in rapid growth, revenue increase and a very good profit margins. We also have Truck Contractors and Sub-Contractors transporting for mines and for Petroleum Companies wanting to be supplied with our Bio-Diesel to cut costs. You would be supplying our Trucking Company clients in your province and region who require our diesel weekly and monthly. 4.2 CONSTRUCTION COMPANIES: We deliver bulk diesel to construction sites across South Africa through our Regional Franchise Distribution branches. Construction Company clients would now cut on their diesel costs by 30% which would increase their profits by 30% and be able to run fleet of their construction vehicles, machinery and equipment that is efficient, clean, and cost-conscious on the job site and on deliveries. This would also distinguish their business as a community leader and a green company investing in the future while saving enormously. Cutting costs also contributes to job creation as the company grows and get more projects and gains more assets. You would be supplying our Construction Company clients in your province and region who require our diesel weekly and monthly. Page 6 of 21

7 4.3 FARMERS (Commercial): South Africa & Africa has thousands of farmers that operate with farming vehicles and equipment that runs on diesel. This competitive industry needs one to be able to grow produce at a competitive price for commercial sales. Our system will link up farmers to the closest Distribution Warehouse near them to cater for their farms diesel needs. Whether they have their own diesel storage or need us to provide a supply and storage solution for their farm. You will be tasked with Farmers in your region. You will supply them with diesel stock to cater for their demands, you can either dispatch 200lt drums or a 40,000 litre tanker for those that have diesel storage tanks. 4.4 INDUSTRIAL COMPANIES - (FACTORIES & CHEMICAL PLANTS): We have thousands of Industrial Companies, Factories and Chemical Plants registered as clients wanting to be supplied with our Bio-Diesel. For these clients, switching to a reliable, cleaner-burning fuel is not only good for the communities where they do business, but it s also smart for their bottom line as they are able to cut fuel costs by 30%. They use diesel for their machinery, vehicles (trucks), boilers, generators, power, and equipment. This allows the client to also manage budgets and forecasts and gain a competitive advantage by switching to Bio-Diesel for their machinery, boilers, generators, power and trucks & vehicles as it is costs far less than standard diesel. Our Industrial Clientele also consists of: Agri processing, Chemicals, Automotive, ICT and Electronics, Paper, Metals, Textiles, Clothing and Footwear Companies. You would be supplying our Industrial Company clients in your province and region who require our diesel weekly and monthly. Page 7 of 21

8 4.5 MINING CONTRACTORS: We have hundreds of company clients, that have contracts and tenders with leading mining companies in the country that require thousands of litres a month which we would task with distributors who are closest to the clients in terms of region and province. They want diesel for mining vehicles, trucks and machinery that all run on diesel every day and has costs running to the millions every month. To contractor every cent and cost saved means they can take home a higher profit and are very interested in staying as loyal clients for a very long time as tour service gives them exactly what they want to achieve in profitability. You would be supplying our Mining Contractor clients in your province and region who require our diesel weekly and monthly. 4.6 SHIPPING COMPANIES: Ships are one of the biggest consumers of diesel. With the shipping business becoming more and more competitive with companies and countries trying to get goods at the best price possible the price of shipping become important when they look for a shipping company for the best price and service. Shipping company s fleet of ships can become price effective by switching to Bio-Diesel as they would be cutting fuel costs by 40% and would have the advantage of lowering their transportation prices. This would lead to more customers and more profits for the company and growth of their fleet to becoming a leader in the industry. You would be supplying our Shipping Company clients in the Durban Port, Richards Bay, Cape Town Port and Port Elizabeth who require thousands of litres per month. Page 8 of 21

9 4.7 DEALERS (RESELLERS): As a Regional Distributor, you will also be a supplier to some of our 3,500 registered dealers who are registering to buy our diesel to resell it and advertise it their own way to their clients and customers they would be getting themselves. Dealers like bulk clients get the diesel at R8.50 and resell it at R9,50 to R11.00 per litre. We have other people that don t want to warehouse but have their own clientele and want to promote and sell the diesel their own private way. There is 8,500 that have registered and paid deposits who simply want to buy and sell and run a smaller operation than becoming a Warehouse and DEPOT. Dealers are required to purchase a minimum of 2,000 litres which is litre drums which can be easily even stored a normal home garage. And most of the dealers have placed orders and secured the, with deposits to be first in line. So they are also as good as confirmed clients to supply. Dealers store their stock anywhere they wish, their garage at home or a small business premises. They do their own advertising through thousands of flyers at robot intersections, on newspapers and gumtree ads. And through word of mouth and dropping off flyers and brochures with factories, household postboxes, shopping malls, city centre, industrial parks and office parks. They do a lot of field marketing. As a Distributor, you will also be supplying Dealers around your region. That would each order a minimum order quantity of 2,000 litres per month and do collections and your Warehouse and DEPOT. Dealers have already placed orders. There is a lot of them and they ordering a minimum of 2,000 litres which is a good number of litres. Page 9 of 21

10 6. Invoicing, Orders And Payments: As a distributor, you will get an invoice that would have BIOFUELS branding on it, that you would invoice each of our clients with for the stock they would be ordering, the invoice would have the company bank account on them, the client would pay the money into BIOFUELS bank account (R8,50/litre) and you would invoice us your revenue share of R2,50/litre for the stock taken by the clients from your DEPO. Your revenue share invoices you claim are paid out to you monthly on the 30 th of each month. All invoice claims must be submitted by the 20 th of each month. You may add your own profit or mark-up to clients you get yourself or that are walk in clients. We would invoice you the cost for the stock you have sold that was not taken by our own clients. Stock is at R5 per litre when you are ordering, stock would take 1 week to get to you on each order. 7. Warehouse Leasing & Requirements: You will require a warehouse in order to operate as our regional distributor, we will however deduct the monthly rental from the revenue you will be making with your distribution depo. You will also be required to pay the deposit towards the warehouse but all leases will be in our name and secured by us. The signage and branding will be done by us. The warehouse must be a minimum of 350sqm in size 1. The warehouse must have roller doors that can accommodate a fork-lift coming in and out 2. The height from floor to roof must be more than 5m 3. The warehouse must have a roof 4. The warehouse must be in a 24hour security access controlled premises. The warehouse must be able to accommodate access of a Super-Link truck for delivers. 5. The warehouse must be on the ground floor of the industrial park. 6. You will need a Biofuel Wholesale License but you will be using our license which we will issue after training which will happen after all registration procedures are complete. Page 10 of 21

11 8. Diesel Storage and Packaging: We Provide You With Stock On Consignment, Stock comes in: litre steel drums for commercial clients, 2. 45,000 Litre Tanker Trucks for massive bulk users that have containers or tanks to store 10,000 litres to 50,000 litres of litre plastic Home-Loader Kit for Motorists & Households and 20 litre safe plastic drums. 8.1 For Commercial Bulk Buyers, these are the self-loader options: The Electronic Portable Transfer PUMP Can Also Be Used On The 200litre Drums As Shown Above And Also Loads 70 Litres Per Minute Into ANY Diesel Vehicle Or Machinery, It Is 12 Volts And Plugged On Electricity Or A Battery To Pump The Pump Also Comes With A Flow Meter To Measure The Number Of Litres Being Pumped In As Shown Above. These Are Marketed To Clients As Well. We Also Offer Bulk Stock In 45,000 Litre Truck Tankers To Clients On Request, Distributors Would Make Arrangement With The Office For Their Clients. Pump Price: The Pumps Range Between R1,500 to R1,900 to Distributors for their clients. Page 11 of 21

12 8.2 For Motorists we have the diesel self-loader options: Home 200 litre Drums For ALL Motorists (Home-Loader Kit): Motorists can store 200 litres of bio-diesel safely in their garage at home with our plastic 200 litre drum they will get on order that comes with a self-loading electronic pump system as seen in the picture above. Motorists will be able to purchase these off the floor from our regional distributions and as a distributor you would arrange delivery of their Home-Loader Kit. As a Regional Distributor, you will arrange to re-fill all the drums of motorists and households in your area, this will be a continued monthly service offered to motorists and household who would be buying 200 litres per month for their cars, bukkies & generators. The motorists can either come collect their refill or you deliver at their door-step. This will insure recurring and business for your distribution in terms of motorists. Roller Drum Kit: We also offer Roller Drums Kits that are on wheels and are easier to move around for motorists as seen in the picture above. Page 12 of 21

13 8.3 Container Tank Storage Option Facilities: We offer our distributors with the below storage facilities that can be easily store and transfer diesel through electronic fuel pumps. You will be able to easily transfer diesel from there storage facilities to the clients storage tank or drum they bring to your Depo for re-filling. We also have the smaller drums with electronic pumps as also an option for storing diesel and easy distribution to clients. These below storage containers can store between 9,000 to 60,000 litres: Page 13 of 21

14 9. Supplying Trucks & Logistics Companies: We have over thousands of trucks from logistics companies that have registered on our website to be supplied with Bio-Diesel that are all sizes and across the country. You can also setup a truck-stop where trucks can fill up Bio- Diesel and as a registered Regional Distributor, we would refer trucks to your Depo or Truck Stop that would fill up diesel on route to their destination. We have thousands of trucks that travel between the N3 Johannesburg to Durban already wanting to be filled up in Johannesburg and Durban with Bio-Diesel as it is a huge save for them. There are many other routes to choose from. You would be on the list of Truck-Stops they can fill up as our Franchisee and supply them every day. 10. Marketing & Advertising To Get Customers: All marketing, branding and advertising will be covered and done from our end. As a Regional Distributor, you will not have to seek for clients as all clients would be coming from us. You will not have to do any advertising or marketing. Advertising and marketing is done from our end and will be centralised. We already have clients who have already signed up through our advertising who wish to be supplied with the diesel as they find it cost effective and cheaper than the current diesel they are using. As a Regional Distribution, you already going to be tasked with a list of clients in your region you would be supplying with diesel or who would do collections from your warehouse or arrangement delivery with you. You simply get between 10 to 50 new clients every month, and 25 to 50 new Dealers as every month. Diesel is advertised at R8,50 to bulk buyers and Dealers. And R8,50 to motorists and small scale users which is still R2,50 cheaper than regular diesel. 11. Start-Up Stock: As a Regional Distribution, you will be getting 50,000 start-up stock on a 30 day credit account. You will be getting a monthly continuous 100,000 litres of diesel stock monthly to be able to supply our clients and your clients in your region and within your province. You will be able to choose how you wish to receive your stock, whether you want it in 200 litre drums or a tanker to transfer to your tanks. Page 14 of 21

15 12. Rotation of Empty Drums On Each Order: The drums will rotate between your Distribution Ware, The Client & Our Production Plant. What this means is every time you place a new order, the old empty drums from the previous stock delivery would be collected on delivery of the filled drums. Your responsibility would be to also collect empty drums from clients when you deliver their new order. 13. Transportation of Stock: Transportation of stock from our plant to your DEPOT is on our account. Transportation from you to the client is on the clients account. We do have transporters who transport to clients on the clients account. However, some of our clients have stated that they will collect with their own transport. 14. Training: After registration procedures are complete, we will be scheduling all distributors for training on how to run and operate your distribution, handle clients, and paper work. We will be monitoring ALL our distributors as you will not be operating independently but as our branch in your region. Regular visits to your distribution and support will be made and given to ensure you keep up to our service delivery objectives to our clients. 15. Wholesale Trading License: We will be issuing you with our Biodiesel Wholesale License after training which is the document you will need to operate and distribute Biodiesel to clients. You do not need to apply for this as we will be sorting this for you. 16. Sales & Profit Share Summary: -Price to bulk buyers and dealers is: R8,50 per litre -Your Profit Share is: R2.50 per litre -Current MARKET PRICE R14.50 per litre Page 15 of 21

16 17. Supplying Waste Plastic to our Company: ADDITIONAL OPPORTUNITY We are requiring more plastic waste for our Plant for phase 2 and we will be offering the opportunity for our distribution depot s to also be collecting plastic waste from communities near them to supply us and be paid by our company. We require ALL TYPES of plastics and we require a minimum of 100tons per month to those that wish to participate in also having their distribution depot s as plastic waste collection points that will transfer plastic waste collected to our company. We will do the collection of the waste. This project will also ensure in creating a clearer environment and communities and contributing to a green South Africa. We urge distributors to also participate in this additional project using the same premises they will be distributing our biodiesel from. The rate and specifications are below: Rate Per Ton: R600 Minimum Tonnage Per Month: 100tons Plastic Waste Type: ALL TYPES Page 16 of 21

17 18. Supplying Used Tyres & Rubber Waste to our Company: ADDITIONAL OPPORTUNITY We also require the supply of rubber waste such as used tyres and other forms of rubber waste which we are offering to our distributors as our first preference to supply us monthly and be paid monthly. We require ALL TYPES of rubber waste such as used tyres of all sorts and kind and vehicles and rubber waste of all sorts The rate and specifications are below: Rate Per Ton: R500 Minimum Tonnage Per Month: 100tons Plastic Waste Type: ALL TYPES Page 17 of 21

18 Business Opportunity to Supply Carbon Black for: Your Distribution Centre will also be distributing Carbon Black which is used an additive in all the products and manufacturers listed below: -Cement Manufacturers and Producers -Tire Producers and Manufacturers -Rubber Producers and Manufacturers -Road Tar Producers and Construction Companies -Ink Producers and Manufacturers -Paint Producers -Shoe sole Producers and manufacturers -Concrete, Decorative Bricks and Mortar Producers and Manufacturers -Plastic Producers and Manufacturers -NUMBER OF TONS OF CARBON BLACK AVAILABLE: 5,000TONS MONTHLY -MINIMUM ORDER QUANTITY: 5TONS -PRICE PER TON: R4,650 PER TON -Market Price: R9,500 -Your Selling PRICE PER TON: R8,500 PER TON -PROFIT PER TON: R3,850 PER TON Page 18 of 21

19 19. Clients Saving Chart: Clients will enjoy great savings in revenue using Bio-Diesel as our Bio-Diesel will always be kept at 30% less than normal diesel no matter what increases we may apply in future. We ensure our clients 30% discount than normal diesel Savings Example: If a client is currently spending R50,000 per month on bulk diesel buying, we would save them R20,000 per month as our Bio-Diesel is 40% less than normal diesel yet it is SAFER, CLEANER, BETTER for the engine! Expanding on the above example a client previously spending R20,000 per month on bulk diesel would save the R100,000 in 6 months, R200,000 in 12: Months Saving Per Month Total Savings Month 1 R20,000 R20,000 Month 2 R20,000 R40,000 Month 3 R20,000 R60,000 Month 4 R20,000 R80,000 Month 5 R20,000 R100,000 Month 6 R20,000 R100,000 in month Costs Projection: Below are the costs you can expect in the set-up of your Distribution Centre: 1. You will need a Deposit for you warehouse space or premises of operation. You look for Warehouse space that you will be able to raise and save a deposit for. Deposits will be payable to the Landlord (the owner of the property you find) 2. You will also need a fork-lift, you can either rent one which will cost around R3,800 per month or you can buy a second-hand one or new one. Second-hands cost from R15,000 up, and a new one costs from R70,000 or you go with the R3,800 monthly rental. 3. NO NEED TO PAY FOR STOCK - You will not need any capital for start-up stock as we will stock up the Warehouse for you as we will be referring our clients in your region and province to your Distribution Centre for stock. Page 19 of 21

20 After your registration payment, the next will be to save up for the Warehouse Deposit and first months rental for the Warehouse. The fork-lift you can always get on a rental basis which is what we advise as a start to give you space to earn your revenue income and be able to buy one when you have saved up enough as you operate your Distribution Centre. 21. Clients Signed-Up In Each Region To Be Supplied: Please refer to Annexure A of the Province you are in to check which part of your province does each of the below regions cover for better understanding. Annexure A is Regions Map that shows which part of the province does each region cover. Each province has its own Annexure A (Regions Map Sheet) 22. Distribution Fee, Registration And Set-up : 22.1 Requirements For Registration: 1. Must be over the age of 18 years. 2. Must pay R2,500 Application Fee. After approval and appointment, you will be required to pay our R15,000 Registration Fee. 3. Must have a registered CC, Pty or Trust company registered in South Africa, if you do not have any of these registered we can assist to have one registered at a cost of R1,200 once-off and it will take 2 weeks to register it (this is optional you may register your company yourself) Distribution Package Includes: 1. 50,000 litres of START-UP Stock 2. Branding and Signage 3. Brochures and Marketing Material 4. Our clients allocated that have orders totalling 50,000 litres in your Region and Province 5. Software for your Administration, Stock Control and Invoices 6. Training 7. Wholesale Permit Certificate of Bio-diesel to be able to distribute legally in your region. 8. Full-Time Support and Monitoring Page 20 of 21

21 22.4 Registration Procedure & Process: Step 1: - Registering As A Regional Distributor: We require all applicants to fill in our Application E-102 Form and pay the Reservation Deposit. Consultation will be then scheduled physically at our Factory in Germiston or telephonically for those who can not make it. Registration Fee will then be payable after consultation and we will issue the Contract. Step 2: - Finding A Place To Operate In Your Region: We will send you the Warehouse requirement sheet, and a list of clients in the region you have reserved that are already registered that you would be supplying once you are setup and have started distribution. You will be able to get the Managers contact details or person in charge to discuss order quantities and so to build a relationship with the client and to get an idea. Page 21 of 21