The business plan was developed to assess the profitability of sales and service business of a new brand of feed wagons on the Polish market, when this moment of profitability from this activity is achieved, and to define investment needs and their structure.

The main elements of this business plan are:
1. External analysis (economy, market of new and used mixing trailers, machine base, competition and customers)
2. Internal company analysis (organization, human resources, financing, sales and service)
3. SWOT analysis, conclusions and new goals of the company.
4. The financial part

Mixing trailers are operated by livestock farmers. It is a very specific sector of the agricultural market that poses many challenges for suppliers.
Mixing trailers are usually attached to farm tractors, however there is also a small segment of self-propelled mixing trailers. Usually, these machines are equipped with a mixing system, which is the most important element of this device. The offer includes a horizontal and vertical system with a different number of so-called augers usually from 1 to 4.

Polish market size of mixing trailers

During our work, we faced the difficult task of assessing the size of the market for these devices. They are not registered, so there is no such data in the CEPiK database. It turned out, however, that there are other sources of information that allow to determine the sales volume of mixing trailers. In the case of used equipment, monitoring of offers in sales web portals and managerial evaluation was used. The market share of suppliers of mixing trailers in Poland in the selected segment of the horizontal system, 1-3 augers, was interesting. The data was based on 2016-2018 sales. On the other hand, mixing trailers with a vertical system have the highest share in sales on the Polish market. The leading suppliers include companies such as: Euromilk, A-Lima-Bis, Strautmann, Kongskilde, Metal-Fach and 20 other suppliers. There are no significant differences in market share in this segment of vehicles.
It was of great importance to determine regions in Poland with the highest sales potential. This is due to the fact that sales is concentrated in the regions with the biggest number and the largest cattle breeders. They have dominant position in the north-eastern part of Poland. The developed segmentation of the customer market with the specification of their number and the average size of the machine park indicated the potential of individual customer groups and determined the necessary measures and the methods of reaching them with an appropriately adjusted product and service offer.

The photo comes from the website

The analysis of the competition focused on showing the strengths, weaknesses, potential and developed competitive advantages. It gave extensive knowledge on how to implement your own sales strategy that distinguishes the client’s product and service offer.

Internal analysis of the company

An important feature of a business plan is not only to look at the company’s environment, but also an in-depth analysis of the company’s resources, its method of operation, management style, available staff and development potential.

The main scopes of the analysis include:

⦁ Organizational and legal structure
⦁ Location
⦁ Facilities and equipment owned
⦁ Organization and human resources
⦁ Available sources of funding
⦁ Products and services offered
⦁ Service and spare parts policy
⦁ SWOT analysis, i.e. strengths, weaknesses, opportunities and threats

The summary of the overall look at the company’s environment and its own functioning is to assess the current situation, develop conclusions and translate them into short and long-term goals.
The effect of this is then the preparation of activities and sub-measures corresponding to the individual objectives.

Financial analysis

The summary of the overall look at the company’s environment and its own functioning is the visualization of assumptions and planned activities in the form of financial data in the period that allows the financial assessment of the investment or business activity.

In this case, we determined the forecast for the next five years, looking for the moment when the undertaken investments and plans will bring real profit for the company. Due to the method used, we can very precisely define the most key elements affecting the achievement of the intended results and assess the risk of delay or failure to implement them.

The financial analysis of the project consisted of the following elements:

⦁ Mixing trailers analysis
⦁ Total sales
⦁ Parts sales
⦁ Workshop
⦁ Selling costs
⦁ Personnel costs
⦁ Expenses & Cost Allocation
⦁ Investments, depreciation and provisions
⦁ Financing needs
⦁ Sources of funding
⦁ The result of individual activities
⦁ Business analysis
⦁ Profit and Loss Account
⦁ Balance sheet – Assets
⦁ Balance sheet – Liabilities
⦁ Ratio analysis