Business Plan –

BioKompost LLC
FARHAD AGHAYEV
SUAD ABBASZADE
MURAD ALADDINZADE
BAYHAN ABDULLAYEV
Link to the Video: https://www.youtube.com/watch?v=GvAywFWv7Uo&feature=youtu.be
 Management team
Chief Executive Officer, Co-founder - Farhad Aghayev
Marketing Manager, Co-founder- Bayhan Abdullayev
Financial Manager, Co-founder- Murad Aladdinzada
Operations Manager, Co-founder- Suad Abbaszada
OUR MISSION

Promoting and
To contribute to the
implementing the practices
environmental care
of environmental protection
Our vision
Our vision is to become the best producer of compost and the one of the main
agents promoting the eco-friendly agriculture and, thereby, contributing to the
environmental care in Azerbaijan.
Our Core Values
Strict policy of
the
Each member environment
should be care during the
involved in the production
process

Having the
transparency at
all the stages of
production and
selling

Values
Industry analysis
Recently our The ecological clean
Waste recycling is in Recycling business has
government has started agriculture has also
pioneering stage in promising future in our
to embrace recycling been started to be
Azerbaijan country
business promoted in Azerbaijan

All food waste is Newly created

burnt which industrial zones
means the loss of such as Balakhani
valuable resources Industrial Park

Actions plan
regarding recycling
approved by our
President
 • Supply of low-cost input
• High quality product with rich nutrients
• Location
Strength • Earlier access to the suppliers as a first-entrant

• The need to promote our company and to build trust

• The need to get leveraged in order to implement the project
Weakness • Less experienced employees in this field

• The interest of our government towards the improvement of the recycling industry
• Increased concern about usage of artificial fertilizers
• Increasing popularity of organic farming
Opportunity • Availability of plenty of input that is needed for our business

• Threat of new entrants to the market

• Going through long procedures in the custom service when we import equipment
Threat • Possibility of increase in utility payments
 Competitive Analysis

• No company producing compost from food waste

• Differentiation our product as an organic in comparison to inorganic
fertilizers
• Only a few compost producers in Azerbaijan which means wide
available market
Physical location

• Balakhani Industrial Park

• 400 m2 Area
• Easy access to Balakhani -
Binagadi highway
Equipment
Trucks
Shredder
Lifting equipments
Waste recycling machine
 Production Process
Then this compost
is held in
Settling up our recycling windrows for 5-7
machines days after which it
Bio organisms should be is ready for sale.
Putting organic waste into added.
the shredder and
simultaneously double To absorb moisture,
checking for unnecessary sawdust should be added
Collecting organic waste
elements which may as well
already separated from
inorganic materials from damage our production The heating system inside
restaurants, cafes and procedures such as the machine provides
Tamiz sheher via our vans plastic, glass and etc. necessary environment
and bring them to our for composting
facility.
Marketing
Product
Targeted for both farmers and households (B2B and
B2C)
Made available in different weights such as 1 kg, 5 kg,
10 kg and 30 kg.
Small sized packaged products for households
Big sized packages for farmers
Can be used simultaneously with other mineral
fertilizers which will boost the productivity of the field
Price
1 kg of organic compost - 1.5 AZN
5 kg of organic compost - 7 AZN
10 kg of organic compost -13 AZN
30 kg of organic compost - 35 AZN
Promotion
Social Media Marketing
Word of Mouth
Website
Attending Tradeshows
Place
We will place our products in retail stores and flower stores for small households
For making our products available to the medium and big scaled businesses, we will establish
B2B relations with them
As our plant located in Balakhani, it will be easier to create connections with farms located in
Absheron Peninsula
Sources of capital - 120000 AZN
Source of Capital

Own Capital (Co-Founders)

30%

Newly Involved Equity (Sold at

60%
commencement stage)
10%

Commercial Loan
FORECASTED START-UP COSTS
TOTAL 120000
CASH FLOW STATEMENT
Liquidity ratios are quite moderate
 PROFIT AND LOSS ACCOUNT
Profit and Loss Account for the Profit and Loss Account for the year Profit and Loss Account for the
year 2019 2020 year 2021
Revenue Revenue from Revenue
from sales 135650 sales 290000 from sales 315000
Cost of goods Cost of
sold 72000 Cost of goods sold 143000
goods sold 160000
Gross Profit 63650 Gross Profit 147000 Gross Profit 155000
Transportatio Transportation Transportati
n Cost 4500 Cost 10000 on Cost 11000
Electricity Electricity
Bills 6000 Electricity Bills 12000
Bills 12000
Rent 13000 Rent 60000 Rent 60000
Depreciation Depreciation Depreciation
costs 5900 costs 10800 costs 10800
Other SG&A Other SG&A 37000
expenses 28000 Other SG&A 35000
Operating
Operating Operating Profit 19200 Profit 15200
Profit 6250
Interest Interest Expenses 4250 Interest
Expenses 2050 Expenses 4250
Taxation 0 Taxation 0 Taxation 0
Net Profit 4200 Net Profit 14950 Net Profit 19950
BALANCE SHEET
 BREAK-EVEN
ANALYSIS
Break-even point (BEP) – 108000
Unit contribution margin – 0.5
𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠
𝑈𝑛𝑖𝑡 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑀𝑎𝑟𝑔𝑖𝑛
= 𝑆𝑎𝑙𝑒𝑠 𝑢𝑛𝑖𝑡𝑠 𝑛𝑒𝑒𝑑𝑒𝑑 𝑡𝑜 𝑏𝑟𝑒𝑎𝑘 − 𝑒𝑣𝑒𝑛