Biodiesel Business Production Plan

There are several steps that a biodiesel company must take so that they can produce and run efficiently. They must write out their own business plan, form a boad or group of business people, solicit financing, hire an engineering company, develop their markets, and then finally build their plant and business.

For example the business plan for Clean Fuel of Future (CFF) a company based out of the Ukraine is goes as follows. The company has limited liability and offers 80% shares or outside investors. The other 20% is owned by the founder of the company who is Spivak Mykhaylo. Money allocated to the start-up costs that go a long with legal expenses, maintaining the office and facilities employees salaries, are by the direct owner Spivak Mykhaylo.

He expects the other investors to put money towards the purchase of machinery, equipment, chemicals and fuel. Their mission statement is “CFF is a manufacturing company dedicated to developing better energy solutions for benefit of a whole society. We bring innovative technologies and unlimited supply of energy sources without damaging and polluting environment.”

Their product replaces conventional diesel and becomes the most perspective fuel of the twenty first century due to its environmental friendliness, renew ability and low costs. They intend to make lucrative profit to generate a fair return for their investors and to finance continued growth and continued development in a high quality product. They also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas, and hard work.”

They believe that it is important to have competitive prices because of the fact that people are not fully aware of it and do not fully understand they cannot sell it above market price. Their marketing strategy which should be the same marketing strategy of all biodiesel production companies is to have a strong emphasis on the quality and focus on their target markets.

Companies must differentiate biodiesel from other fuels that are on the market. They need to establish clearly why their product is better than others. Produce high quality fuel and offer it at a competitive price due to the fact that fuel is already expensive people will certainly not purchase it if they have it for a higher rate. Make sure that the way they distribute is stable because if consumers can not get to it or purchase it then they will purchase something else. They also must build long term relationships to ensure the companies survival and have loyal long term customers.

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