Are you interested in starting a biodiesel business?
Are you thinking of starting a biodiesel business? As a consequence of growing environmental awareness, the use of biodiesel has increased considerably in recent years. Furthermore, since it is very ecologically friendly and produces less emissions than petroleum-derived diesel, it is predicted to increase gradually. As a consequence, if all goes according to plan, this business might be very profitable.
The first stage is to write a comprehensive business plan that includes all aspects of your firm. To spare you the trouble of writing one yourself, we’ve produced a business plan for a biodiesel company named ‘Austin Biodiesel,’ which will be distributed soon.
The Company
Austin Biodiesel will be a recognized and insured biodiesel manufacturer headquartered in the industrial zone of Austin, Texas. The company will be housed in a structure that was formerly used by a small petrochemical company.
Management
Roni Clark, who has over 20 years of experience in the petroleum industry, will be the sole owner and operator of Austin Biodiesel. Clark knows all there is to know about starting a biodiesel firm since he has done it before.
Customers
Our target customers include manufacturers, enterprises, industrial units, government offices, gas stations, and farmers in Austin and the surrounding areas. We’ll produce and distribute high-quality biodiesel, as well as by-products including biogas, organic acids, and glycerol.
The Company’s Objective
Our mission is to produce high-quality, cost-effective biodiesel using ecologically responsible methods. The graph below depicts the company’s success over the last three years, as predicted by experts:
Owner of a business
Roni Clark, a petroleum engineer with over 20 years of experience in the industry and seven years as the production manager for ‘Sinopec,’ will be the only owner and operator of Austin Biodiesel.
Why is the company being established?
Austin Biodiesel’s goal is to produce cost-effective biodiesel from organic waste and vegetable oils using ecologically friendly methods. Our efficient method will generate a little amount of non-toxic trash that can be easily handled afterwards. Because he has worked in the industry previously, Clark knows how to start a biofuel firm in an ecologically friendly way.
How will the company get started?
The company will be based in an existing facility that was formerly used as a small petrochemical firm, so the bulk of the equipment will already be in place. The most costly aspect of the launch will be the digesters and transportation vehicles. The following expenses have been estimated by the company for the start-up:
Customers’ services
You can earn a lot of money if you understand the biodiesel production process and the by-products that emerge from side reactions. As a consequence, you should do extensive research before deciding how to start a biodiesel firm.
Austin Biodiesel will aim to commercialize high-quality, natural biodiesel production and distribution. Although our primary product is biodiesel, we will collect, filter, and sell by-products generated during biodiesel production to increase operational efficiency and earn revenue.
Our major product is biodiesel, which is manufactured in an ecologically sustainable way from organic wastes, canola, soybean oil, palm oil, and other oils.
Biogas is created as a by-product.
Organic acids are created as a by-product.
The food industry produces glycerol as a by-product.
Marketing study of the biodiesel industry
Clark contacted marketing gurus and business advisers to aid him at this stage since marketing analysis is such an important aspect of a successful biodiesel manufacturing firm plan. After examining industry trends and prospective customers, the marketing professionals supported him in designing an effective biodiesel marketing strategy. This biodiesel business plan sample may be useful if you’re confused how to do a marketing research for your biodiesel company.
Market Developments
The biodiesel industry is growing at a fast rate because to its efficiency and environmental friendliness. Biodiesel also reduces greenhouse gas emissions by 57-86 percent, according to the EPA, which is why it is gaining popularity day by day. Biodiesel production in the United States more than doubled between 2011 and 2015, from 1 billion gallons to 2 billion gallons. In 2016, the Environmental Protection Agency reported that 2.8 billion gallons of biodiesel were produced. According to a recent study, the company employed over 64,000 individuals throughout the nation. These data show that a biodiesel business may be very profitable if properly designed and performed.
Segmentation of the Market
The business sector in Austin’s industrial zone will be our primary focus. Our marketing experts have identified the following target demographic as potential customers for our products.
Factories & Industries:
The biodiesel produced by Austin Biodiesel will primarily be supplied to companies and factories in the Austin and nearby regions. Because the majority of firms and product manufacturers, both private and government institutions, rely on diesel to power their heavy equipment, this target group will be the main buyer of our products. We’ll also deliver our items to them, as well as other businesses in the area.
Stations that sell diesel and gasoline:
Our biodiesel and biogas will be delivered to Austin’s hundreds of gasoline and gas stations. Based on their fuel needs, these stations will be our second biggest customer of our products.
Farmers:
Farmers and agricultural enterprises in Austin’s rural districts and nearby regions will be able to purchase Austin Biodiesel’s products. Farmers are becoming more mechanized, necessitating the usage of diesel for their machines in order to provide large-scale and effective agricultural production.
A complete market analysis of our potential clients may be seen in the table below:
Business Objective
We seek to produce biofuels that are both economical and ecologically friendly. Our key business goals are as follows:
We expect a net profit margin of $10k per month at the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year.
The startup’s initial expenses should be matched with generated revenues by the end of the first year.
Pricing of Products
Because our essential ingredients for biodiesel manufacture will be waste oils, and we will collect every single by-product generated in the manufacturing process, we can set our biodiesel cost lower than our competitors. Our biodiesel will be 5% cheaper than rival biofuels on the market, at $0.95 per liter, while retaining the same high quality.
Strategy
After marketing analysis, sales strategic planning is the second most important part of a company’s strategy. As a consequence, because of its importance, you must construct it before selecting how to start a biodiesel business.
Analysis of Competitors
Despite the fact that Austin Biodiesel will compete against a wide range of competitors, from small businesses to multinational organizations, we expect a large number of sales due to three competitive characteristics. Our biodiesel will be of high quality, cheap cost, and produced in an ecologically friendly manner.
Strategy for Selling
To promote awareness about the importance of fuels generated in ecologically friendly methods, we’ll offer seminars, webinars, and conferences. We’ll also market ourselves via publications, newspapers, television stations, and social media.
Personnel Strategy
A personnel strategy is an important component of a biodiesel business plan since it forecasts the amount of workers required and their compensation over the next several years.
Employees of the company
The company’s Chief Executive Officer will be Clark. Initially, the company will hire the following people:
1 General Manager to manage the overall operations of the manufacturing facility
2 Accountants/Administrators to maintain accurate financial records
The plant’s functioning will be overseen by two petroleum engineers.
4 sales executives to establish a brand identity and seek for new business possibilities
There will be 20 field staff to operate and maintain the production facilities.
Transporting goods to businesses, industries, stations, and farms necessitates the use of eight drivers.
Plan your finances
The financial plan is the most important aspect of a biofuel business plan since it clearly illustrates the beginning expenses.