ApiHoney Business Plan Integra1 PDF

EXECUTIVE SUMMARY
NATURE OF THE BUSINESS

ApiHoney is a commerce and production company, its object being Romanian honeybee products.
We collect, produce, pack, sell and deliver to domestic and external markets high quality honeybee
products. The processes of producing and bottling are conducted in up-to date facilities equipped
with necessary machinery, managed by skilled staff, in compliance with all appropriate sanitary and
health regulations.
Our quality assurance procedure guarantees we only produce and distribute from our partner-
beekeepers, first-class honey. Each type of honey is carefully stored and distributed on the market.
MISSION
ApiHoneys mission is to enable beekeepers in Scornicesti area and Olt County sell their honeybee
production by offering an opportunity to sell it at a fair price. The beekeepers will be encouraged to
continue their activity and grow their production in order to offer them a profitable business.
We are aiming to create wealth for the community we are living in and promote local image on the
national and international markets. We focus on creating jobs for the local inhabitants, especially
youth.
OBJECTIVES
ApiHoneys objectives are:

- to produce and collect quality honeybee products from the Romanian beekeepers,
distributing up to 55 tones in 3 years on domestic and external markets
- to create jobs for Bircii inhabitants
- to breakeven in the 2nd year of activity
OPPORTUNITY
Honey is a healthy product that is used worldwide. Changes in this industry have revealed an
opportunity for Romanian honey producers to deliver high quality products to external markets. The
markets in Western Europe are importing large quantities of honeybee products and lately, large
exporters like China have suffered a decline in their preference due to using pesticides. The
Romanian honeybee products are ecological and well seen on those markets.
On the other hand, we consider theres a good opportunity on the domestic market, as Romanians
are coming to know the benefits of consuming healthy products, such as honey. As the living
standard will hopefully grow in following years, the domestic market will absorb more and more
honeybee products.
The Romanian consume of honey in the last three years1 is very low (100 grams/ inhabitant),
compared to EU Countries (Germany - 1,5kg / inhabitant). Romania exports in EU countries
account for 80% from its honey production.
1
www.google.com
"Honey is not just ApiHoneys business, it is our life and your fulfillment. 1
MARKET
As regression in different markets has shown up, especially where China was exporting, the
potential markets are Great Britain and other European Union countries as well as the domestic one.
We will concentrate on the EU countries. Only the German market accounted for 92,749 tones2, 80
% of it coming from imports. German imports of Romanian honeybee products accounted only for
5.5 %3 of their total imports, in year 2000, 40 % more compared to 1998.
ApiHoneys target market consists of EU honey importing countries, especially Germany which is a
strong and growing market for pure and genuine honey, Great Britain being another targeted market.
MARKETING
ApiHoney will hire a distribution company that will market its products under their brand name, all
over Romania. For exports it will contact several food importers that will market the products under
their brand.
The anticipated production is 3 tones within the first 12 months and further expansion as the number
of customers increases; production in the 3rd year being three times more. During the first 2 years,
emphasis will be given to export sales, which is expected to absorb an increasing proportion of the
companys output.
PRODUCT
ApiHoney will offer to the domestic market and for export high quality honeybee products such as:
honey (extracted, comb and chunk), wax and bee glue.
The products will be packed and delivered in different formats from 200 liters metal drums to 200
ml jars for honey and 25 ml bottles for bee glue. The product we offer, can be used in many ways,
such as: diet supplements, as raw material in the cosmetics industry (lotions, skin creams, lip balms),
furniture industry (polishes) and food industry (cookie recipes), etc.
The main element of the product strategy will be the development of a reliable supply chain and
consistently high quality production. This will sustain our competitive advantage over our local
competitors.
OPERATIONS
Honeybee supplies will be collected from partner beekeepers and produced internally, handled and
packed by professionals, being delivered on time. Exports of honey will be in DDU or ExW terms,
as the external customer requires. On the domestic market a food distributor will be contracted, thus
enabling us to deliver to an increasing number of counties each year.
Our employees will professionally act in order to enable this system to grow profitable from year to
year. The capacity of delivery in the 1st year will be up to 7.5 tones of honey, all three years together
being 52 tones, from which 18 tones from internal production. 80 percent of this will be exports, the
remaining 20 being delivered to the domestic market.
2
Foreign Agricultural Service: www.fas.usda.gov
3
Foreign Agricultural Service: www.fas.usda.gov
FINANCING AND COST
The total investment would be up to 21,000$ and itll breakeven in the 2nd year. The initial cost of
incorporation is 500 USD, in the first year investments of 7,870 USD being made. The two streams
of revenue are the external and the domestic markets. The weight of exports will be 80 %. The first
revenues are expected in 7 months after operations start.
The funds available from Integra will be used as follows. The total need of capital accounts for up to
USD 16,500 in three phases, as follows:
1st phase first month (year I)

- USD 5,000 personal investment
- USD 5,000 equity grant offered by Integra (no reimbursement required)
2nd phase fourth month (year I)
- USD 5,000 matching loan offered by Integra (assumed 3 years loan)
3rd phase eight month (year II)

- USD 1,500 bank loan (one year loan)
In this way a smooth running of the business will be provided, detailed calculations are available in
the Appendix.
THE COMPANY
NATURE OF THE BUSINESS
ApiHoney is a specialty honey production, processing company, located in the southwestern part of
Romania. We also deliver carefully selected honey from our partner beekeepers. Our focus is on
providing a high quality natural product, at a fair price, delivered on time. ApiHoneys floral source
specialty honey is sold in consumer-oriented packaging, gift packs and bulk containers.
We will operate on the domestic market and on the external one, too.
COMPANYS MISSION
ApiHoneys mission is to enable beekeepers in Scornicesti area and Olt County sell their honeybee
production by offering an opportunity to sell it at a fair price. The beekeepers will be encouraged to
continue their activity and grow their production in order to offer them a profitable business.
We are aiming to create wealth for the community we are living in and promote local image on the
national and international markets. We focus on creating jobs for the local inhabitants, especially
youth.
COMPANYS OBJECTIVES
In the first year of activity ApiHoney will focus on sales to external customers. Exported quantities
grow from year to year (see the financial forecasts) as we collect and produce more high quality
honeybee products. The productivity growth is a result of our experienced employees dedicated
work.
Another objective is to become profitable in 2 years of activity, the main revenue stream being the
external market. We will operate on the domestic market, also; the quantities delivered encounter a
slow growth as the honey consumption per capita is improving from year to year.
Socially, ApiHoneys objective is to create wealth, and also create jobs for Birciis inhabitants.
During the three years projected up to 5 people will be full time employed and several seasonal.
Another objective is to distribute up to 55 tones of honey in three years, being promoted on the
international and domestic market, under customers brand.
COMPANYS OPPORTUNITY
Honey is a healthy product that is used worldwide. Changes in this industry have revealed an
opportunity for Romanian honey producers to deliver high quality products to external markets. The
markets in Western Europe are importing large quantities of honeybee products and in the last time,
big exporters like China have suffered a decline in their preference due to antibiotics found in the
products composition. The Romanian honeybee products are ecological and well seen on those
markets.
Key markets:
The EU: represents a market of close to 200,000 tones of honey per year, most of which is
supplied by European producers. The EU market will be considered as our main target market.
Germany will be the first to be targeted.
Japan: is also a good market for honey and it is supplied by both local producers and numerous
overseas suppliers. The total market is over 100,000 tones per year, but with a smaller market share
for organic honey. Japans imports4 of honey surged from 30,000 tones in 1998 to 45,000 tones in
2002.
USA: is a larger total market for honey than the EU, but this market is supplied predominantly by
local producers. There would, however, be potential to export into niche markets in the West Coast
where the market for natural organic products is growing rapidly.
The Romanian honeybee products are ecological and well seen on those markets. Romanians know
the benefits of healthy products consumption, such as honey, and as the living standard will
hopefully grow in next years the domestic market will absorb more and more honeybee products.
Another opportunity is the experienced beekeepers that we have. In this way, we cut the training
expenses that we would have had to provide for our employees.
External demand for honey grew lately, and the Romanian potential for exporting honey is
ascendant (only in 2000, were exported 8000 tones of honey.), these becoming other opportunities
for our company.
The Romanian consumption of honey in the last three years5 is very low (100 grams/ inhabitant),
comparing with EU Countries (Germany - 1,5kg / inhabitant). Our countrys exports to EU countries
account for 80% of its honey production.
Existing emailed offers received from German companies such as B & K Agrarmarketing GmbH
and HonigWernet GMBH - consists of honey delivered in DDU terms (see operations). The prices
were considered in the financial calculations. To be noted that from last years offers prices went up
10%. The newest offer is taken into account and calculations are up to date.
4
www.fas.usda.gov/gainfiles/200307/1459853522.pdf
5
www.google.com
MARKET PROFILE
TOTAL MARKET
Worlds honey market production

capacity increased over years, as
observed in the graphic depicted on the
right side. In 2001 it accounted for
1,263,000 tones of honey. The trend is
ascending. Romania produces only
0.8% of the total worlds honey
production.
The European market, especially the EU accounted for 135,000 tones only in imports from different
countries. The biggest EU importer is Germany. German imports rise up to 60 % of all the Unions
imports.
Other big importers of honey are

the United Kingdom, Italy and
Spain. China, Argentina and
Mexico are the main suppliers of
honey supplies, Romania being the
7th in this hierarchy.
Romanian total honey production is

increasing over years as the depicted
graphic shows. In the year 2000
Romanian beekeepers produced
11,746 tones, that represent a 16%
growth compared to 1998.
The southwest region of Romania,

where ApiHoney will be located had
produced 17% of the total honey
production. The number of beehives
in Olt County represents 15 % of the
southwest regions total. Graphics are shown in the Appendix A.
TARGET MARKET
Germany has the biggest imports among all EU countries, approximately 60% of the total EU honey
market. Germany imported in 2000 up to 92,000 tones; Romania provided 5.5% of the honey
supply.
The graph depicted on the right side

shows the sources of honey
Germany imported from, in the year
2000. Argentina is the biggest
exporter to Germany, Romania
being the 4th with up to 7,500 tones,
representing 7.5% of all imports.
The Romanian exporters enjoy a
good position and a large market
share. In the year 2001 the situation
changed, Romania losing some market share. There is a good opportunity to continue exports to
Germany, as the products are perceived as high quality.
Romania has exported honey supplies to Germany in 1999 up to 4,900 tones, the following year
rising up to 7,500 tones, as shown in the graph analysis (Appendix B) utilizing the month periods of
time. The peak is in October, when in only one month Romanian exporters sold honey in quantity
of 1,700 tones.
As for the beginning the German market is targeted and when quantity for export and the skills
increase other markets will be entered, such as UK, which is the second largest European honey
importer.
On the other hand, theres a good opportunity on the domestic market, as Romanians are coming to
know the benefits of consuming healthy products, such as honey, and as the living standard will
hopefully grow in next years the domestic market will absorb more and more honeybee products.
The Romanian consumption of honey in

the last three years6 is very low (100
grams/ inhabitant), comparing with EU
Countries (Germany - 1,5kg / inhabitant).
Romanian export to EU countries
represents 80% of its total honey
production.
The domestic market absorbs

approximate 2,300 tones of honey
annually.
6
www.google.com
COMPETITION
EXISTING COMPETITORS
The market for generic honey is highly competitive. Honey for the most part is marketed as an
undifferentiated product without specific separation, other than the grading required by the Honey
Grading Regulations. For most consumers honey is honey and as a result, price became the most
important issue. However, great potential exists for product identification and differentiation.
For the German market Romanias main competitors are shown in the left table, in the other table
being depicted some Romanian exporting companies, which we consider being our competitors for
external markets.
Competitor country (% of German imports) ApiHoney exporting competitors: County:

Argentina 29.54 3 International B. Investment, Inc. Bucharest
Mexico 11.02 Akybud Prod Ltd. Gorj
China 17.65 Complex Apicol, Inc. Bucharest
Uruguay 3.88 Apis Prod Ltd. Alba
Hungary 7.32 Gicofeny Impex Ltd. Dolj
Cuba 1.84 Golden Nectar Romania Ltd. Bihor
Chile 3.44 Linpan Impex Ltd. Braila
Bulgaria 2.80 Romaca Trading Ltd. Dolj
Turkey 3.86 Zaro International Trading Ltd. Bucharest
Source: FAS Source: Romanian exporters database
ADVANTAGES AND DISADVANTAGES OF EXPORTING
ADVANTAGES
Importers may pay premiums for honey of superior moisture and color
Importers may offer a premium to producers willing to wait for payment as this eases the
buyers cash flow needs
Producers have a sense of accomplishment for having found their own market and negotiated a
settlement price
DISAVANTAGES
If problems arise, it may be too far and/ or expensive to go to sort them out
Paperwork is much greater than any other marketing alternative
Depends on knowledge and skills to market own honey
Requires current knowledge of world honey markets
Freight is typically paid by the seller (prices quoted DDU, buyers location)
COMPETITIVE POSITIONING
Following an appropriate capital injection, ApiHoney will enjoy a number of competitive advantages.
An objective audit of the projects competitive position is as follows in the SWOT analysis:
S TRENGTHS
WEAKNESSES
good linkages with the honey suppliers
consistent supply of good quality
limited contacts outside of the
honey
Romanian market
relatively low prices for the honey
no current local supply of hives, frames
supplies from beekeepers
or foundations
an ideal climate for honey production
inexperienced management team
in the southern regions
inadequate honey supply at present
road access to the key regional markets
(which has constrained the companys
in Europe marketing)
relatively low local labor costs
strong practical experience in bee
keeping and honey production
O PPORTUNITIES THREATS
relatively weak local competition
excellent overseas market potential for
high quality honeybee products CA (Association of apiarists) is
domestic distributors that would market working on disposing comercial honey
the products all over Romania intermediares
ongoing demand from external markets possibility of new, efficient competitor
eagerness of local beekeepers to secure establishing in the Scornicesti area
additional cash income inadequate extension services by
World Bank support for re-launching ApiHoney that leads to inconsistent
the bee raising and honey production supply or disease/pests in the hives
existing German offers to import
ApiHoneys products
On balance, it is seen that the potential strengths of the project are greater than the weaknesses and that
the opportunities outweigh threats.
MARKETING AND SALES STRATEGY
OVERALL OBJECTIVES
ApiHoney will become an important producer and supplier of honeybee products, on the domestic
and external markets. ApiHoney is going to deliver 10 tones of products on the domestic market and
up to 45 tones to external markets in the first three years of existence.
OVERALL STRATEGY
ApiHoney will hire a distribution company that will market its products under their brand name, all
over Romania. For exports it will contact several importers that will market the products under their
brand.
POSITIONING STRATEGY
ApiHoney will position itself towards high quality honeybee products, being perceived as high value
by its customers.
PROMOTION STRATEGY
There will be a requirement for a modest promotional program in both domestic and European markets.
The crucial success factors will be the product and pricing strategy, but the retailers would welcome
some promotional support. The limited program would incorporate:
the preparation of a brochure on the pure nature of the honey

selective advertising in the daily press supported by newspaper articles on its products
promotion in the overseas markets will be the responsibility of the importers and/or retailers who
sell the honey under their brand name
SELLING AND DISTRIBUTION
ApiHoney will empower the distribution company to sell and distribute honeybee products, under their
brand. No agents will be appointed in any region, as access will be achieved through sales to the nation-
wide retailers.
The distribution process that ApiHoney will use is depicted in the Appendix C.
The first approach is to Olt County, which will be the most receptive to a satisfactory locally produced
honey. This area is likely to absorb most of ApiHoneys production over the first nine months.
Ongoing sales support to the customers will be a very important factor in setting the business apart from
the competition. As the customer base expands, the additional sales/administrative staff will be allocated
particular customers to provide effective follow-up service.
The export selling process will involve an initial visit to the target markets to select an appropriate
importer. This will be followed by annual visits to work with the distribution for increased market
penetration.
PRICING STRATEGY
The pricing strategy for the domestic market will be based on offering a quality product at a fair price.
With the improved packaging and labeling, this will be an attractive offer to the supermarket chains.
Honey sales on the domestic market will be quoted at USD 3.50 USD 3.60 per kg.. The packaging
costs are included.
Export sales will be quoted on a different basis. While exports will be in bulk quantities, the overseas
customers would be prepared to pay up to USD 3.40 - USD 3.50 per kg. DDU.
Sales to the importers in Europe will be on a 30 days account basis.
KEY SUCCESS FACTORS
The key success factors, that will ensure a successful expansion of ApiHoneys business in Scornicesti
area and Romania are as follows:
Ensuring increased and reliable supplies of honey through an extension service to the suppliers
Developing increased production facilities and the maintenance of high quality assurance procedures
Introduction of improved retail packaging and labeling
With sufficient financial support and professional management, all of these key success factors can
be assured and a profitable long-term business is developed.
PRODUCT
THE PRODUCT
Bee keeping has been carried out on in Romania for centuries, but the industry still has a high
potential for further development. Initially, honey production was and remains an important source
of revenue. In the most recent times, the pollination of specific fruits and field crops has become
increasingly important; Romania having good locations for maximizing bees production potential.
ApiHoney will offer to the domestic market and for export high quality honeybee products such as:
honey (extracted, comb and chunk), wax and bee glue.
Honey:
extracted honey: bottled, liquid honey that has been extracted from the combs. Extracted honey
can be used as a coloring agent, for example bread, or as a dressings fruit beverages, glazes,
spreads and jellies, frozen deserts, baked goods and low fat snacks.
comb honey: honey still in its natural comb
chunk honey: a bottled combination of extracted and comb.
Wax: can be used for candles, furniture polishes, wood finishes, in cosmetics etc.
Bee glue: is becoming widely known and accepted as an ingredient in cosmetics, body creams, lip
balms, pharmaceutical product and even as a tonic, etc.
PRODUCT STRATEGY
ApiHoneys product strategy will concentrate on the following:
The maintenance of high quality, pure honey

Development of different retail packaging options (including a clear plastic bottle for the smaller
retailers and jars of 200 to 800 ml (350 grams to 1200 grams)
Provision of 300 kg. metal drums for bulk sales to the commercial customers
A better quality retail pack is required to secure volume sales to the distributor; professional labels being
essential and required, too.
The main elements of the product strategy will be the development of a reliable supply chain and
consistently high quality production. This will sustain our competitive advantage over our local
competitors.
Honey is composed primarily of the sugars glucose and fructose; its third greatest component is
water. Honey also contains numerous types of sugars, as well as acids, proteins and minerals.
Carbohydrate Composition of Honey
Carbohydrate in Honey Average Range Standard Deviation

Fructose (%) 38.38 30.91-44.26 1.770
Glucose (%) 30.31 22.89-40.75 3.040
Reducing Sugars (%) 76.65 61.39-83.72 2.760
Sucrose (%) 1.31 0.25-7.57 0.870
Fructose/Glucose Ratio 1.23 0.76-1.86 0.126
www.nhb.org
The U.S. Department of Agriculture classifies honey into seven color categories:
Water white
Extra white
White
Extra light amber
Amber
Dark amber
Color is an important characteristic of which honey is classified by honey producers, packers, and
end-users. As this plan considers natural Romanian honey it was considered that average
calculations would be made, without detailing all types of honey ApiHoney will be operating with.
OPERATIONS
OVERALL OBJECTIVES
ApiHoneys objective is to develop a reliable system that can permit bee-keeping and bee supplies
collection, processing and distribution, enabling Romanian beekeepers market their production and
growing profitable from year to year.
THE STRATEGY
ApiHoney will utilize its own production equipment (pavilions with 40 beehives each, extractors,
facility etc.) controlled by experienced beekeepers. Also we will collect high quality honeybee
supplies from partner beekeepers offering them a fair price. The internal production and the
collected supplies will be delivered to the target markets in the requested forms.
FLOW OF OPERATIONS PROJECTED
The main operations are that of bee keeping, extracting, collecting, processing, packing, distributing
and exporting bee products. A flowchart is depicted in the Appendix.
The products will be packed in the required form (as seen in the products segment). At first no
packing machine is utilized, only when the quantity of products to be packed exceeds 5 tones/year,
such machine will be purchased. Until that quantity is reached, the operations employee will do the
packing manually. He will heat the honey no more than 40 degrees Celsius and then pour it in jars
one by one, weighting them on the electronic scale.
The products already packed or bottled will be deposited in the warehouse.
When term of delivery is due the goods will be delivered to the buyer by the hired truck, either to
the importer in DDU terms or to the domestic wholesaler.
The internal production is described as follows:

the purchased pavilions (40 beehives each) will be placed in strategic locations in Romania, in
order to offer a proper environment to maximize bees potential (areas reach in flowers)
the pavilions will be taken to the desired locations by a hired truck/tractor
the full time employee (experienced beekeeper) will be responsible for the pavilion(s) during its
placement
in the extraction period we will hire one seasonal employee in order to help in the extraction
process
at the end of the first extraction period a hired truck/tractor will take the pavilion(s) to another
location and bring the extracted honey to the facility (in 25 liters drums ~ 37.5 kg each)
at the end of the last extraction and placement, the hired truck will bring the pavilion back and
the extracted honey to the facility
The honey supply collection process is described as follows:
selective advertising in the daily press to promote ApiHoney and its operations
honey supplies will be brought to ApiHoneys facility by its producers in 25 liters drums,
payment being cash or in 30 days
Bottling process:
both internal production and collected supplies will be deposited and bottled at the facility
External market: Domestic market:

- in the first year, honey is exported in 200 - ApiHoney will hire a full time employee
liters metal drums (~ 350 kg.) meeting to prepare and pack the honey in jars
sanitary and export standards (including (200ml, 400ml, 800ml)
labels and export papers) - the contracted distribution company will
- when the quantity requested by the purchase ApiHoneys products EXW,
importer is met, ApiHoney will outsource payment due in 30 days
transportation to a Romanian trucking
company
- the products will be transported to the
customers store, DDU term
- payment due in 30 days
DDU Delivered Duty Unpaid destination ExW Ex Works the customer will get the
customs duty and taxes are paid by the products at the point of origin (facility)
customer
A chart is found in the Appendix C, it shows the main processes utilized in the company.
FACILITY AND EQUIPMENT PROJECTED

ApiHoney will function in its facility, placed in Bircii. The estimated rent is USD 100 per month,
while the set-up for enabling operations will take about 2 months. The operating employee will
work along with the director at the facility. There will be an office with a workstation, fax and
telephone. The costs are up to USD 1,000.
Other equipment required includes 6 equipped pavilions, each having 40 beehives, 2 extractors and
smokers and other bee keeping specific tools. The director will be provided with a mobile phone.
COST OF OPERATIONS
Costs of operation production, collecting and distribution costs - includes:
employees wages for full time beekeepers and seasonal employee as well for the operating
employee
pavilions and beehives
specific equipment
hire of truck/tractor to relocate pavilions
purchase of supplies
packaging, labeling and warehousing
hire transportation to the external customer
Cost of operations is estimated at 61 % of revenues.
HUMAN RESOURCES
STAFFING PROJECTED
ApiHoney will start with only one employee: the director whom will incorporate the company,
locate the facility and purchase equipment along with employing the staff projected. By the end of
the year ApiHoney will have a director, one operating employee and one beekeeper.
Staff will increase to 4 in the second year, at the end of the third year being 5.
NUMBER OF EMPLOYEES PROJECTED
Year I Year II Year III

Position
Q1 Q2 Q3 Q4 H1 H2 H1 H2
Director 1 1 1 1 1 1 1 1
Operating - - 1 1 1 1 1 1
Beekeeper - 1 1 1 2 2 3 3
Seasonal - 1 1 - 2 2 3 3
Total full time 1 2 3 3 4 4 5 5
Total seasonal - 1 1 - 2 2 3 3
JOB DESCRIPTIONS
We will hire only suitable employees. In the following tables we describe the responsibilities and
what is considered when hiring.
The director
The director may well be a management graduate in Griffiths Management School. It is required of
him to have demonstrated that he/she has the ability to incorporate, start the business up and run it
with dedication. The graduate should be self-motivating, task and people oriented with abilities in
marketing, communication, accounting, finance and management. Emanuel University of Oradea
have produced successful future business leaders.
To be considered when hiring:
economics graduate or 3 years

administrative experience Responsibilities:
good relational skills
economic thinking
PC literate run the business
Driving license B take care of all economics and legal issues
Basic accounting, public relations implement marketing strategy
knowledge manage the employees and facility
Strong marketing, HR and finance
knowledge
The beekeepers
To be considered when hiring: Responsibilities:
bee keeping experience take good care of beehives and bees

passionate in bee keeping collect honey from beehives
able to lift up to 50 kilograms deposit the honey and deliver
available to be away from home up to 4 direct seasonal employees
months yearly be away with the pavilion for up to 4
trustworthy months yearly
proactive attitude and decision making
The operations employee
clean and careful with fragile things run day to day activity
able to lift up to 50 kilograms melt honey + fill jars up + put labels +
trustworthy deposit
able to make tests help downloading the supplies from the
decision making truck
proactive attitude packing and depositing
The seasonal employees
able to lift up to 50 kilograms help beekeepers extract honey

trustworthy be available for the extraction period
some experience in bee keeping upload and download supplies
eager to succeed
FINANCE
GENERAL ASSUMPTIONS
ApiHoneys financial projections assume a 3 years growth plan, the first revenue stream coming in
at the end of the first half of the first year of activity. Sales are constantly growing as the production
capacity and the quantity collected increase.
The total investment would be up to 21,000$ and itll breakeven in the 2nd year. The initial cost of
incorporation is 500 USD, in the first year investments of 7,870 USD being made. The two streams
of revenue are the external and the domestic markets. The weight of exports will be 80 %. The first
revenues are expected in 7 months after operations start.
ApiHoney will continually invest in production capacity, the second year doubling it and in the third
year the increase would be 50 % of the seconds year capacity.
The domestic honey market will gradually come closer to its potential and the external market will
continue importing high quality honeybee products from other countries, Romania being one
example.
The purchase price of the honey from partner beekeepers over the first three years will be around 2
to 2.2 USD/kg.
Bulk purchases of packaging and labels will be required, enabling the company to meet the
projected expenses in packaging.
NEED AND USE OF FUNDS
ApiHoney Ltd. will spend approximately USD 152,000 over the first three years of activity, phased
in USD 27,000 for the first year, USD 49,000 for the second and USD 76,000 for the third year.
Funds will be used in different destinations:

purchase of equipment
expansion of the production capacity
administrative functioning of the facility and equipment
marketing implementation strategy
The table depicted shows the capital goods and operating capital expenses divided by years:
Category I II III
Capital Goods Expenses 2,341 3,983 4,517
Operating Capital Expenses 24,519 44,925 71,071
Total Expenses 26,859 48,908 75,587
The need for financing is as follows: a total of USD 16,500 would insure the smooth running of the
company. The need for capital will be phased in three:
1st phase first month (year I)
- USD 5,000 personal investment
- USD 5,000 equity grant offered by Integra (no reimbursement required)
2nd phase fourth month (year I)
- USD 5,000 matching loan offered by Integra (assumed 3 years loan)
3rd phase eight month (year II)
- USD 1,500 bank loan (one year loan, interest 10%)
Revenue taxes are paid on a quarterly basis, they account for 1,5% of revenues, due to the fact that
ApiHoney in its first three year of activity will be considered a micro-enterprise. Starting with its
fourth year of activity (supposedly revenues exceed the 100,000 Euro limit) it will be considered a
regular enterprise7, thus the way taxes are imposed will change.
REVENUE ASSUMPTIONS
Revenues expected in the first three years account for USD 184,500, estimations yearly being, USD
25,800 in the first year, USD 56,000 in the second one and USD 102,700 in the last year of
estimates.
The external distribution prices will be USD 3.48 per kg., growing to 3.5 in the third year of activity.
On the domestic market, as the honey consumption increases and the market approaches its potential
the prices will slightly increase from USD 3.5 per kg to USD 3.6 in the third year.
Quantities will increase due to increasingly production capacity and to increasing demand as the per
capita consumption increase from the present 100 gr./ inhabitant to a higher one, this being very
low. As the standard of living is improving the Romanian people will increase their consumption of
honey, due to its benefits for the human body.
The table depicted below shows the streams of revenues spread on years:
Revenues - USD Year I Year II Year III

Domestic revenue 5,250 14,200 18,000
External revenue 20,611 41,826 84,647
TOTAL 25,861 56,026 102,647
Annual sales dynamics for the first three years of activity:
7
Law # 111/ April 2003, www.cnipmmr.ro/legislatie/lg111.htm
8
HonigWernet GMBH emailed offer for ApiHoney, nov. 2003
COST ASSUMPTIONS
The costs incurred in running the business are as follow:
operations expenses are estimated at 61 % of total revenues

marketing expenses are estimated at 4.5 % of total expenses
administrative expenses are estimated at 4 % of total revenues
taxes are 1.5 % of the total revenues, regardless of profit or loss
A graphical analysis of the outcomes and results of ApiHoney is depicted below.
SOURCES OF INFORMATION
Internet:
www.google.com
www.honey.com
www.fas.usda.gov
http://www.fao.org/docrep/V9631e/V9631e04.htm#a
www.beemaid.com
www.agric.gov.ab.ca
www.beekeeping.com
www.bloombiz.ro
www.cnipmmr.ro/legislatie
Other sources:
Romanian Statistical Book 2001

National Board of Small and Medium Size Enterprises of Romania (CNIPMMR)
Discussions with several Romanian beekeepers
Discussions with one honey collector
Bircii market research
Romanian Exporters Database
Emailed offers from two German honey importers
Apicultura Magazine
APPENDIX
Appendix A
Appendix B

ApiHoney Business Plan Integra1 PDF

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EXECUTIVE SUMMARY

NATURE OF THE BUSINESS

ApiHoneys objectives are:

1st phase first month (year I)

3rd phase eight month (year II)

Worlds honey market production

Other big importers of honey are

Romanian total honey production is

The southwest region of Romania,

The graph depicted on the right side

The Romanian consumption of honey in

The domestic market absorbs

Competitor country (% of German imports) ApiHoney exporting competitors: County:

ADVANTAGES AND DISADVANTAGES OF EXPORTING

the preparation of a brochure on the pure nature of the honey

SELLING AND DISTRIBUTION

Sales to the importers in Europe will be on a 30 days account basis.

KEY SUCCESS FACTORS

ApiHoneys product strategy will concentrate on the following:

The maintenance of high quality, pure honey

Carbohydrate Composition of Honey

Carbohydrate in Honey Average Range Standard Deviation

FLOW OF OPERATIONS PROJECTED

The internal production is described as follows:

External market: Domestic market:

FACILITY AND EQUIPMENT PROJECTED

NUMBER OF EMPLOYEES PROJECTED

Year I Year II Year III

To be considered when hiring:

economics graduate or 3 years

To be considered when hiring: Responsibilities:

bee keeping experience take good care of beehives and bees

The operations employee

To be considered when hiring: Responsibilities:

The seasonal employees

To be considered when hiring: Responsibilities:

able to lift up to 50 kilograms help beekeepers extract honey

Funds will be used in different destinations:

Revenues - USD Year I Year II Year III

Annual sales dynamics for the first three years of activity:

The costs incurred in running the business are as follow:

operations expenses are estimated at 61 % of total revenues

A graphical analysis of the outcomes and results of ApiHoney is depicted below.

Romanian Statistical Book 2001

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