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Author
Participant
 
Business start-up

Terra Endeavors

Building very low cost algae & biodigester units to produce nutritional supplements, ethanol cooking fuel & village electrification

Community-owned, managed & operated renewable energy business utilizing very low cost algae & biodigester units to produce 1) nutritional supplements (for local consumption, food-aid orgs & export to US/EU/Australia), 2) ethanol cooking fuel, 3) animal feed, 4) biodiesel, 5) hand-made soap, 6) organic fertilizer & 7) village electrification, plus rainwater harvesting & numerous employment opportunities for over 60 rural villages over 10 years.

Facts

Legal status business
Formally registered
Year of establishment

2010

Sales (US$)
Two years ago:
Last year:
This year (forecast): 34,500
Year 2 (forecast): 716,100
Year 3 (forecast): 2,266,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): -220200
Year 2 (forecast): -304100
Year 3 (forecast): 137,700
Total number of Employees
Two years ago:
Last year:
This year (forecast): 15
Year 2 (forecast): 71
Year 3 (forecast): 115

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 93,700
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 186,300
Total finance needed (US$) 280,000

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 5,000
Loans (debt) 0
Share capital that you seek from investors (equity) 137,500
Other sources 137,500
Total finance needed (US$) 280,000

The Business

What is your product/service?

Products for rural village use:

Ethanol cooking fuel (for use in alcohol-burning stoves)
Mini-Grid village electrification
Algae biodiesel
Spirulina & Chlorella nutritional supplements
High-protein animal feed
Glycerin soap
Organic fertilizer

We will also be producing several other products:

Spirulina & Chlorella nutritional supplements (for food-aid orgs & for export)
DHA (ingredient for cosmetics & nutritional supplement)

What customer need/problem do your products/services satisfy?

1) Ethanol cooking fuel avoids health risk & deforestation with wood & charcoal

2) Nutritional supplements combat malnutrition & generate export revenues

3) Overcome lack of electricity & fertilizer

How will you make the product/service?

1) Build algae growth units & biodigester on non-arable land provided by village using local materials & labor.

2) Grow, harvest & dewater algae.

3) Ferment/Distill wild indigenous algae into ethanol cooking fuel & animal feed. Dry & package Spirulina/Chlorella for food-aid orgs and for export.

4) Install engine-genset & distribute electricity to schools, local businesses, clinics & homes. Residual byproduct is organic fertilizer.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

Cooking fuel, biodiesel, soap, animal feed, electricity & fertilizer will be distributed to local villagers.

Spirulina, Chlorella & DHA nutritional supplements will be:

1) distributed to food-aid orgs

2) exported to US/EU/Australia/Asia and distributed via health/social-cause retailers (such as Essential Living Foods, Whole Foods, Henry's Markets, in the US)

Electricity distributed to local village & to nat'l grid where feasible

To whom are you selling, what is your market?

Cooking fuel, biodiesel, soap, animal feed, electricity & fertilizer sold at very low price to local villagers

Spirulina, Chlorella & DHA nutritional supplements will be:

1) distributed to food-aid orgs

2) exported to US/EU/Australia/Asia and distributed via health/social-cause retailers (such as Essential Living Foods, Whole Foods, Henry's Markets, in the US)

Electricity distributed to local village & to nat'l grid where feasible

Describe your competitors?

Cooking Fuel: Waste wood & charcoal, liquid propane gas, solar cookers & improved cookstoves

Animal Feed: Native vegetation, animal feed crops

Nutritional Supplements: ADM, BASF, Cargill, Unilever, DSM Nutritional Products, Solae, NBTY & Natrol

Organic Fertilizer: Animal manure & chemical fertilizer

Electricity: Distributed solar, wind, hydro and national grids

What makes your business different/better than your competitors (competitive advantage)?

Local villagers will own, manage & operate our facilities. Low cost systems produce very clean energy & other outputs, require no arable land, offer substantial revenues from the sale of nutritional supplements

What makes your business, your product or service innovative?

Collaboration ensures that villagers produce & get access to low priced outputs, employment opportunities & participate directly in our financial success

Utilize low-cost, algae growth units on non-arable land to collect rainwater and produce cooking fuel, biodiesel, animal feed, nutritional supplements, soap

Biodigesters to provide villages with electricity & organic fertilizer

Export high-margin branded Spirulina/Chlorella to US/EU

How will you ensure the growth of your business?

Exporting high-value Spirulina, Chlorella & DHA nutritional supplements to the US/EU will generate high revenues & profitability, allowing us to offer rural villagers much needed products & electricity at affordable prices and internally fund expansion of facilities to over 60 villages over our 10 yr planning horizon

By structuring the business as a co-operative, local villages benefit directly from Terra Endeavors' success & growth

The Entrepreneur & Management

Describe the entrepreneur & management

My background is in energy consulting, finance & marketing. I'm a Univ of Chicago MBA & PhD from Univ of Calif, Irvine. Committed to utilizing innovative biotechnology solutions and providing access to wealthier markets to benefit those living in rural East Africa & the enviornment

My partners David Sieg, Rex Zietsman, Vikram Pattarkine are experts in renewable energy, algae growth system, biodigesters, biodiesel & wastewater treatment.

What specifically makes you and (if relevant) your management team most qualified to build this business?

Our knowledge of renewable energy technologies, how they can best be utilized & implemented in a sustainable, low-cost way

Our commitment to ensuring that the rural population not only benefits from, but participates in, our operations - their finances, their health & their standard of living should all improve

My knowledge of marketing/branding to create & gain distribution for a brand of high-value Spirulina, Chlorella & DHA

How much time do/will you expect to spend per week in the business?

Initially, we'll be spending roughly 60-80 hrs/wk as we get the business up & running, and then fully operational.

We have a number of systems & outputs, plus very aggressive expansion strategy in place.

Development

How does your business improve the local living standards (social and environmental)?

Low-cost, readily available outputs, including high protein/nutrient supplements, electricity & improved access to freshwater, plus the income villagers will share in from our overseas exports.

Environment improved by removing CO2 from the atmosphere, reducing deforestation by providing readily available, much cleaner-burning cooking fuel/stoves, much cleaner burning biodiesel and organic fertilizer to replenish the soil.

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