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A Sustainable Business Collaborative. University of Cincinnati IIT Roorkee Paul Donley Kumar Animesh Paul Gordon Krishna Chaitanya Bandi Claire Haynack Jubin Mohapatra Elana Pentelnik Ashmeet Singh Professor Mentor Ratee Apana Charles O’Neil. BACKGROUND.
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A Sustainable Business Collaborative University of CincinnatiIIT RoorkeePaul Donley Kumar Animesh Paul Gordon Krishna ChaitanyaBandi Claire HaynackJubinMohapatra ElanaPentelnikAshmeet Singh ProfessorMentorRateeApana Charles O’Neil
BACKGROUND Acara Challenge • Focus: FOOD SECURITY • “Food security exists when all people, at all times, have physical and economic access to sufficient safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life. “ 1996 UN World Food Summit
BACKGROUND Problem Statement • Small farmers in India have difficulty in cost effective farming due to small field size. • Crops in India don’t grow to full potential because the soil is depleted from over-farming one type of crop. • Many farmers lack knowledge of more innovative and beneficial ways to maximize crop yields.
BACKGROUND Social Ramifications of Current Farming Methods • Farmers are in substantial debt due to lack of proper crop yield. • Indebted farmers have committed suicide due to the inability to repay their loans. • The practice of raising cash crops has left scarce nutritional resources for the farming families, resulting in hunger and starvation.
SOLUTION Solution – • The practice of the Three Sisters planting method is a traditional farming method rooted in Native American culture. It is common in the United States, is not known on a global scale. • The Three Sisters is a symbiotic grouping of certain plants that maximizes yields while replenishing the soil.
SOLUTION Sister Seeds Plants SisterSeed’s farming method consists of a mound of soil with the follow plants • Corn – provide pole for beans to grow • Beans/Peas – replenish soil • Cucumbers - natural dirt anti-erosion system, and protection (prickly vines) • Onions- deter pests and bugs
CUSTOMERS Charba, India Population:10,000
CUSTOMERS Customer Analysis – Charba • Mostly rural farming village • Average family is 10 people • 5-25 acres of land per family • Average farmer buys 50% of seeds each year
CUSTOMERS Benefits of SisterSeeds for Farmers • Food security and diversification of food source • Ability to keep cash crop along with food crops • Increases crop yield • Replenishes soil for years to come • Save money on fertilizers and pesticides • Less fear of cross-pollination • “Seed loan” option
BUSINESS PLAN Business Summary - Mission To improve the livelihood of farmers in Charba by providing the education and the resources necessary to achieve proper food security. We seek to accomplish this by implementing the “Three Sisters Farming method” and selling quality seeds in the preferred quantities based on farmer’s needs.
BUSINESS PLAN Implementation Plan Trust • PHASE 1: Trial Phase • GOAL: creating buy-in and building seed bank. • PHASE 2: Full Scale Implementation • GOAL: building customer base, creating employment, payback investment • PHASE 3: Expansion • GOAL: maintain customer base, new expansion Loyalty Growth
BUSINESS PLAN Phase 1: Trial Phase • Offer trial packets of seeds to farmers which include educational materials on the three-sisters method • Lease plot of land for seed bank. Create own three-sisters garden on plot of land to demonstrate idea • Employ village worker to maintain seed bank and plot of land • Buy and sell produce for villagers
BUSINESS PLAN Trail Phase - Brochures • Proposed design: a three-fold “brochure”, image based, on the “How To” process of implementing the Three Sisters method. The interior fold-out will feature a step by step illustration that will visually show planting to growing to harvesting and the benefits of each stage.
BUSINESS PLAN Sketch-up of Brochure
BUSINESS PLAN Phase 2 : Implementation • Sell prepackaged packets of the three-sisters seeds (enough for 1000 m2). • Create “seed loans” to farmers by offering seeds at a discounted price in return for seeds after harvest. • Maintain fair pricing structure that benefits both us and farmers (no hidden costs) • Employ worker to run seed bank and increase education
BUSINESS PLAN Phase 3: Future Growth • Expansion into selling other seeds for farmers • Education on other growing methods to increase crop yield • Growth to other cities
FINANCIALS Initial Investment 2,500 USD needed • Cost of trial packets • Machinery for seed conversion • Cost of obtaining a plot of land • Initial seed purchases
FINANCIALS Pricing Structure • Pricing structure incorporates approximately 15% markup on seeds from the purchase price to consumer sale • Achieved through: • Bulk purchasing power • Farmers selling back seeds
FINANCIALS Return on Investment • Break even after year three • Positive cash-flows after year one • Largest threat in sensitivity analysis is customer buy-in
FINAL THOUGHTS SWOT Analysis • STRENGTHS • Increases crop yield • Employment creation • Food security and diversification of food source • Replenishment of soil • Trial opportunity for farmers • WEAKNESSES • Getting buy-in from farmers • Maintaining customer base • Little revenue in first year • OPPORTUNITIES • Loan/Micro-financing • Growth to other cities • Expansion into selling other seeds • Selling produce for farmers • THREATS • Weather patterns and water reliability • Farmers will reuse their own seeds instead of rebuying • Low buy-in from farmers
FINAL THOUGHTS Sustainability • Farmers will need to repurchase at least 50% of their seeds each year to avoid cross-breading (seed depletion). • We can continue to offer competitive pricing through our seed buy-back program • Community presence through seed bank and land lease
FINAL THOUGHTS Conclusion SisterSeedshas the opportunity to improve the quality of life for farmers in India through education and the introduction of more sustainable growing methods. Supporting SisterSeeds will help ensure that food security becomes a reality.
FINAL THOUGHTS THANK YOU • Any Questions?