Calamansi Plantation Business Plan

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  • Topic: Citrus, Marketing, Kumquat
  • Pages : 21 (6438 words )
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  • Published : March 22, 2011
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CHAPTER 2

MANAGEMENT FEASIBILITY

BUSINESS ORGANIZATION

Choosing the form of business organization is one of the important factors to consider when starting a business venture. After deciding on the kind of business venture to pursue, it is important to immediately think about the form the business will take; will it be more efficient and less risky if the owners invite other investors and incorporate themselves or form a partnership? Or is it more convenient and profitable if the business is registered as a sole proprietorship with the owner acting as both the manager and business owner? The proponents of this study have decided that since capitalization is coming from one source only, that is the owner; it is more profitable for him to register the business as a sole proprietorship. Most start-up farms and plantations such as this operate successfully as sole proprietorships even though compared to incorporation and the formation of partnerships it is generally more risky. However, operating a farm especially one that is in its early stages requires expertise and fast decision making. This is the reason why this study’s proponents believe that the owner will to be hands-on in running farm at least during the initial stages of its operation. Operating a farm also requires faster financial and technical decision making, thus, having to answer to a board of incorporators or partners will be counter-productive to a farm that is just starting out. The proponents instead suggest that the owner of the Chinese Orange (Calamansi) Plantation hire personnel to head of certain aspects of business operation while he works as the overall in-charge. As previously mentioned, this move is more risky because it has an unlimited liability and in case the business fails, the owner assumes all financial obligations. All his personal properties, including savings, could be seized and sold to pay creditors. In addition, seeking additional capitalization may also not be easy. Banks and other financial institutions are usually not willing to lend large amounts of money to sole proprietorships. Such disadvantages may prevent the owner from expanding their business operations. However, if the business is successful, the owner has complete financial control over the earnings. He may choose to save it and invest it on other ventures or he may decide to reinvest it into the business in order to expand operations.

BUSINESS STRUCTURE

Coming up with an efficient business structure is essential when establishing a business venture. The preceding section recommends that the owner register the business as a sole proprietorship with him at the helm of the operations. It has also been suggested that there is a need for the owner to hire additional personnel who will be in-charge of specific aspects of operation. Figure 2.0 illustrates the organizational structure of the Chinese Orange (Calamansi) Plantation. The proponents recommend that the owner serve as the overall manager. He makes all the major decisions related to the business. The owner must then hire a technical assistant who will be in-charge of supervising the technical aspects of the operation including propagation, fertilization, pest and disease control as well as harvest. This person will work closely with the owner and the farm workers to ensure a quality produce. The proponents of the study also deemed it necessary for the owner to appoint a sales and marketing supervisor who will be take charge of the farm’s sales and marketing activities. The farm also needs a bookkeeper who will help the owner handle the financial aspects of the business by keeping the necessary records needed by the farm.

FIGURE 2.0 ORGANIZATIONAL CHART

BUSINESS LOCATION
The business’ location is vital to its success. A prime location is a good competitive advantage especially if it contributes to the quality of the end-product. For the propagation of the Chinese Orange (Calamansi), the proponents...
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