Biodiesel Plant Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Biodiesel Plant Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Biodiesel Plant business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready
- Complete Industry Research for the Industry
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Marketing Plan (24 to 28 pages)
- 425+ Page Funding Directory
- PowerPoint Presentation
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- How to Start a Guide
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PowerPoint Format
- Meets SBA Requirements
Biodiesel has rapidly become one of the interchangeable fuels that can be used for a number of different purposes. Primarily, most biodiesel is produced with the intent to have this fuel used in diesel engines. There is next to nothing that needs to be done in regards to changing a diesel engine into something that can run these types of fuels. As such, biodiesel production plants have become very popular over the past 10 years. This trend is expected to continue as the demand for ecologically friendly fuels increases. Additionally, there have been a number of tax credits that have been provided to producers of biodiesel so that they can effectively provide their products to the market at a very reasonable price. It should be noted that many of these tax credits will most likely decline over the next 10 years as the production and distribution of biofuel becomes more ubiquitous. The startup cost for a new biodiesel plant are significant. For a company that intends to distribute several thousand gallons per day of biofuel it can be expected that the cost of this development will be approximately $1 million to $5 million depending on the location and the amount of equipment that will be used in the course of business operations.
The gross margins from biodiesel sales typically ranges anywhere from 10% to 20% of each dollar of revenue generated. While the gross margins associated with this type of business are considered to be low it is important to note that the volume always makes up for this low gross margin business. Additionally, there are a number of tax abatements and tax credits that will continue to be available even once federal subsidies decline. The demand for biodiesel is expected to grow at a rate of 7% per year over the next 10 years.
Most financial institutions will provide a significant amount of capital as it relates to the acquisition of land, biodiesel production equipment, and for the acquisition of waste oil inventories that are used to produce biodiesel. Of course, a biodiesel plant business plan is going to be required. This business plan should feature a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page features industry standard figures. It is important to note that the business plan should also include a full amount of industry research as it relates to market trends within this industry.
As it relates to the demographic profiles of biofuel purchasers, this can be kept relatively small. Typically, the purchasers of biofuel consists of local fueling stations as well as energy wholesalers. It is important that an entrepreneur that is getting into the biofuel industry have significant contacts on hand as it relates to working with biofuel wholesalers that will acquire inventories in bulk from the business on an ongoing basis. Even prior to raising capital, most entrepreneurs looking to get into this industry will call on existing contracts to place an initial purchase orders with the business so the inventories can be divested as their produced.
It is also important within the business plan to note that the bio diesel plant will also generate income from the sales of byproducts that are created during the course of the production of biofuel. These ancillary revenue streams can substantially boost the revenues of the business given that the waste products from biofuel production have a number of other chemical uses.
Within any documentation that is going to be submitted to a financial institution, a heavy focus on the amount of tangible furniture, fixtures, and equipment should be discussed. Almost all financial institutions want to see that their investment is going to be fully collateralized – and as such, it is important to provide them with the full list of the equipment that we purchased and could ultimately be used as collateral for the loan. Generally, most financial institutions and banks will put up 80% of the needed capital to launch this type of business. The remaining 20% needs to be provided by the owner or from a third-party investor. Generally, the equity capital infusion is used as a down payment for certain pieces of tangible furniture, fixtures, and equipment as well as for working capital purposes.
A biodiesel marketing plan should be developed as well and included as part of the overall business planning package. One of the nice things about this aspect of the planning phase is a very little needs to be done in regards to the marketing efforts required by a biodiesel plant. This is primarily due to the fact that these companies do not do business with the general public but rather with local and regional fueling stations as well as energy product wholesalers. Of course, as with any business these days, a biodiesel plant should maintain a website that showcases the operations of the business, amount of fuel produced on a yearly basis, how to become a partner with the company, as well as other relevant information. In lieu of maintaining a large marketing budget, many biodiesel plant businesses will provide ongoing donations to third-party lobbying firms that focus on improving the environment by using alternative energy means.
A biodiesel plant SWOT analysis should be produce as well. As it relates to strengths, biodiesel plants are able to generate a substantial amount revenue although the margins generated are considered to be moderately low. However, biodiesel is a commodity and it is very easy to divest inventories once they have been created and meet ISO standards. For weaknesses, the cost of electricity is declining due to the fact that wind and solar are now becoming prominent forms of energy within the United States and abroad. As such, the demand for biodiesel may wane over the next 20 years as electric vehicles, electric trucks, and other vehicles begin to work on electricity rather than through internal combustion. As such, it is important that the biodiesel plant owner have an understanding of this industry and help in changing energy grid landscape may impact the way that these companies do business. For opportunities, most biodiesel plants will seek to increase their production by developing additional on-site facilities that can increase the number of gallons and barrels of biodiesel produced on a daily basis. Additionally, many of these businesses will seek to acquire third-party firms in order to increase their size through nonorganic means. For threats, the energy landscape within the United States and abroad is constantly changing and a shift in the way that tax policy operates or political policy operates can have a negative effect on how a biodiesel plant conducted conduct its business operations. However, at least for the next five years, the demand for biofuel is expected to increase and as such they these businesses can be highly lucrative.
The next major gold rush within the United States is going to be the update of the energy grid and how energy is produced. As such, a biodiesel plant can be a highly lucrative investment provided that the owner maintains a strict cost control policy while concurrently understanding the ongoing changing landscape as it relates to energy use and energy production in the United States.