Sospancrops

(Solidary Spanish Crops)

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Content

1. Your business and you

2. The Business
3. About You
4. The Products and Services
5. The Market
6. Start Up Costs
7. Break even
8. Cash flow
9. The Competition
10. Marketing mix
11. Back Up Plan
12. Total capital requested (Loan request)
13. Appendices (Questionnaires, charts etc.)

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 1. Your Business and you

1.1. Business Name:

- SospanCrops (Solidary Spanish Crops)

1.2. We are a team of students who have worked on the project from the very
beginning:
● Nacho Ortiz
● Carmen Lopez
● Carolina Sanchez
● Guillermo Plaza
● Jaime Lorenzale
● Jorge Ruiz
● Lucia Dell Olmo
● Lucia Recio
● Marco Lopez
● Marina Sanchez
● Paula Mayor
● Rolando Lopez
● Alvaro Melero
● Matias Toril
● Simon Sanchez
● Belen Escobar
● Marta Bolin
● Pilar Lopez.
Our students’ team is supervised by our school Erasmus+ project coordinators:
● Israel Andres Vicente
● Raquel Duran
● Francisco Jimenez

1.3. Business Location:

- It will be located in our city, in Malaga

1.4. Your Address and Postcode:

- Calle César Manrique 6, 29010, Málaga
1.5. Telephone Number (home, mobile and business):
+34 694568125

+34 952658745

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1.6. Email Address (personal and business):
● SospanCropsSupport@sospancrops.com

1.7. Business Start Date:

- 1st January 2021

1.8. Business Website and Social Media Links (if available):

It isn´t available yet

2. The Business

2.1. Summary of the Business:

We are going to give a new opportunity to some people who has been excluded from
society.

It consists in offering to them a house in the countryside ,a salary which they earn
from selling the products of the countryside.
These products will be sold and with the money earn to maintain the company and
the rest of money is destined to charity organisations.

2.2. Describe the product(s) or service(s) the business is going to sell:

Our company is going to sell differents products coming from the countryside. These
products are oil, vegetables like tomatoes,potatoes,carrots,lettuce and fruits like
strawberries,apples,orange,pears.
For manufactured the oil is necessary recollected the olive and squash it.
The crops grow in the best climate conditions and also we take care of the field with
the natural products to promise the best quality of the crop.

2.3. Describe how the product(s) or service(s) will be sold:

The oil will be sold in bottles of one, three and five litres. That bottles come from
recycling plastic.
The vegetables and the fruits are sold to the kilogram. All this vegetables and fruit
will be sell by using recycling paper and cardboard.
The customers can do the order by internet, email or telefone and we will send the
order to a pick-up point or house.

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2.4. What is the business mission (the main purpose of the business)?
The main purpose of our company is giving the new opportunity to some people who
has been excluded from society for any reason providing a new job, new house and
a salary so in conclusion a new life.
That people have lived a difficult situations. We want to make people see that they
have a new opportunity to be a healthy and normal life without any kind of social
exclusion.

Also we destined money which is made from sell products to charity organisations.

2.5. What is the business vision (where will the business be in one, three and five
years)? Try to make the business aims SMART – Specific, Measurable, Achievable,
Realistic and Timely
The idea for the future of the company is supplying to big supermarkets and
becoming a big and international factory. First of all is expand to the Spain and after
that the purpose is including west Europe. If all goes well next step will be extended
of the rest of word.

In 2023 our purpose will be:

- to improve the company adapting it to the present incorporating farming
methods.
- used other material of the bottles. We think that in the future thanks to the
investigations we can replace plastics bottles for other materials which won’t
increase the climate change.
- sold our products in west Europe not only to supermarkets but also to personal
houses.

2.6. What sets this business apart from the competition:

Is the Business’ product/service cheaper? Is the Business’ product/service better
quality? Is the business filling a gap in the market?
Our company provide products with the best quality of the south coast of the Spain.
Our lands are selected and we look after of the field with the natural products.
The delivery to supermarket are in same day if you do the order before 3 pm and in
next day if you do the order after 3 pm. Also we do delivery to personal houses, it
lates 24-48 hours and is free if the order is more than 30 €.
Also customer service is as close as possible.

2.7. How will this business be staffed?

The staff are composed of person who has been excluded of the society. We take to
them a new opportunity for reconstruct their life. They are educated by the best

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farmer of Málaga and they are doing a lot of formation’s course impart to promise
the best service.
- 10 employees
- 1 accountant
- 3 person responsible for orders (by internet,telefone or email)

3. About us

3.1. Why do you want to run your own business?

We want to run our own social business because we are a little group of students who
want to change some situations of poverty in our community, some people can not
afford any bottle of oil, some vegetables necessary for us to have a healthy life and a
good development of our body.
We are young entrepreneurs, our range of age is 16-18 years old, so we are people
who are on the latest news and who understand different social networks to
investigate and know more about social problems in our community.
We want change this essential problem to increase those products necessary in a
really good price and decrease poverty in general, but specially in our communities.
We are very enthusiastic about the social project which we want to start, because we
are concerned about we can make a lot of progress and to get better the society.

3.2. Previous work experience:

We are a young group, so we don’t have any work experience in general, including in social
projects, but some of us have been collaborating in different NGOs, and we have been
participating in different social projects, but never have started any project.
We are very motivated because of that reason, it is our first experience, and we know it will
be very difficult but we know that all effort has its reward, and it is the motive because we
are going to put effort to the end and fight for our project.
We have a lot of information about that, because we have studied different situations and
investigated to improve our learnings.

3.3. Education and Qualifications:

We are students of high school in Malaga, we are in the last year of high school,
previously at university. We have been educating in Colegio los Olivos since we were
young people, in our school we are learnt about solidarity, about charity and love to

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the people who lives around us, so we are very solidarity, and we love help people
who need our help, so in social education we are in a very good position.
Then, in general we have a lot of information about economic, biology, chemistry and
other subjects, we are a very different group, and each one of us are specialist in
different areas.

3.4. Hobbies and Interests:

Like all boys and girls in our age, we are interested in music, sports, read, and different
activities with our friends.
Now, we are also interested in helping people who need it and speak about different
situations which can improve in our community.

4. The Products and Services

4.1. Give an overview of the product or service this business will sell.
Our company will obtain all the food that is going to be sold from the countryside,
collected and some manufactured (such as oil) by those people who have been
excluded from society and have nowhere to live or to subsist.
These aliments will have a high quality, as they are cultivated from nature and grown
on good lands, they will become highly requested by buyers and consumers, who will
not regret their purchase. In addition, the lands where the seeds are planted, that will
be fruit, will be recultivated, and thus give yields. Therefore, those towns that were
deserted will now have more inhabitants working on their lands.

4.2. How will the product be produced or how will the service be carried out?
Depending on the product that is obtained, it will be carried out in one way or
another. Those seeds that are planted and cultivated on the land, will grow on them
and later their fruits (vegetables, fruits...) will be collected by the workers. These
products will be taken to the market, where they will be put on sale and thus obtain
economic benefits.
Otherwise, products such as oil, which has to be processed, will be obtained in
another way. First you must have several olive trees, so that the workers can pick the
olives. These will be taken to the mill, where they will be ground and the olive stone
will be separated from its juice, this being the oil itself. From this first grinding, the
olive does not produce as much oil as it can, so it is ground a second time, giving the
remaining oil. Once this is obtained, it is packaged to take it to the market, and thus
sell it and obtain benefits. The first grinding of the olive always gives a better quality

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oil, so it will be more expensive than the second grinding, but both are brought to
the market.

4.3. How much does the product(s) or service(s) cost to produce/deliver?

The fruits and vegetables will be obtained from planting their seeds in the land. The
seeds of different fruits cost an average of € 0.80, and the seeds of vegetables cost
an average of €1. Therefore, an average of € 1.80 is needed to be able to plant the
seeds and thus later collect their fruits.
Otherwise, for fruits and vegetables to grow faster and better, you must buy
fertilizers, which cost about € 11.50 for every 1.5 kg of the product.
In addition, we should buy an irrigation system in the event that it does not rain
frequently, in order not to stop the growth of fruits and vegetables. The irrigation
system would cost about € 20.
To manufacture the oil, olive trees are needed to collect the olives and thus obtain
the oil. A two-year-old olive tree costs € 15, knowing that in three years it begins to
bear fruit, so you only have to wait a year to pick the olives.

4.4. How much will the product(s) or service(s) be sold to customers for:
To know what price we assign on each product, we must add what it costs to produce
each one of them, and this we add the profit we want to obtain. We must take into
account the price that our competitors put up, so that there is a similar price.
Fruits and vegetables will be sold by the Kg, at an average price of € 1.50 per Kg.
The oil will be sold in 1L, 2.5L and 5L containers. Thus, the liter of oil will be sold for
€4,99, 2.5L of oil for € 12,5 and 5L of oil for €24,99.

4.5. How will the product(s) or service(s) be delivered to the customer?

The products that are made or collected from the crops are sold to an intermediary.
The intermediary takes them to department stores where only store owners can buy
the products, and once they buy these products, they are put on sale in the markets
or stores where consumers go to buy.

Sometimes the same workers who collect the fruits are the ones who sell the products
directly to the customers, having some extra benefits.

4.6. Are there any legal requirements that are necessary to start this business?
To start the business, it is necessary the following legal requirements:

-Choose a name for the company and ensure that it will have a good operation.
-Each worker has to register as self-employed, which would be the cheapest way to
work on their own.

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-Each worker must open an account in the bank, in order to pay the expenses and
that they receive the money that they earn with the sales.
-They will have to sign a contract to rent the house, that is in the town where they
work.
-The workers will have to go to the Town Hall so that they can give them the lands
they are going to cultivate.

4.7. Are there any insurance requirements that are necessary to start this business?
To start the business, it is necessary the following insurance requirements:
-They have to sign an insurance that covers any unexpected event that destroys or
damages the harvest.
-The workers have to register with social security.

4.8. What is the growth potential for the product(s) or service(s)?

Our company aims to help those people who have been excluded from society for
any reason. Success and making the business fully operational, among other things,
will include the fact of giving jobs and a place to live for those people.
In addition, the lands that were not used before will be used to obtain products, such
as fruits and vegetables, which will be sold in order to have economic benefits and
therefore the company can survive. Otherwise, the towns where the lands are, will
have more inhabitants, so they will not be deserted and without life.
Regarding the products and their economic benefits, part of them would be for the
workers and the company itself, but another part would be donated to charities, in
order to contribute and help those most in need.
Returning to the workers who were once excluded from society, the creation of this
company would help them overcome the problems they had. These problems could
simply be either drug or drinking addiction, or in other cases, the fact that they had
no way of keeping a decent life.

5. The Market

5.1. Describe the business’ typical customer and where they are based.

There are two typical customers: enterprises around West Europe (Spain, France, Italy,
Great Britain and Switzerland), and small consumers in Spain (families and people
who do not want to buy in the physical market but by internet and those who want to
receive the products at home).

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The company will develop a huge structure to distribute its products, considering
sellers and distributors by van and train. An important logistic area should be
improved to assure the delivery on time and in the best conditions.

5.2. How many of these customers will this business have the potential opportunity
to reach:

The idea is to reach the most target customers as possible. Thanks to the
technological devices and tools the company will have to be able to develop the
selling and the attendance to customers. On the one hand, the webpage will be
considered an effective window to show our products and to persuade the potential
customers using real devices that show the high quality of them. On the other hand,
marketing strategies will be used and advertising on TV (for Spanish customers) and
on the Internet to introduce the products. The most important factor to reach
customers is through information and marketing; thanks to digital marketing the
company will reach a lot of people and make it well known.

5.3. Have you sold any products/services to customers already?

Yes, at the very beginning of the company, as a first step we started cultivating
products for local customers near the land we were working. Because of the good
results and the magnificent acceptance, we have decided to develop the business and
to create a strategy of selling all around Spain and west Europe.

5.4. Why will customers buy this business’ products or services instead of your
competitors?

There are two reasons why customers prefer buying our products instead of our
competitors; the first one is because of a caring reason: people want to help those
who were once excluded from society, we all love to help them overcome their
problems with drugs or drinking addictions in order to get a healthy and organized
life. The second reason is because we offer natural products which have neither been
manipulated with fertilizers, nor chemical substances. We assure our customers that
our fruits and vegetables are completely bio.

5.5. What can be learned about the business’ market from an internet
search/secondary research:

Before creating the company, we applied for consulting related to the market; and we
obtained a lot of information through the internet. We studied the profiles of our
potential competitors in order to strengthen our capacities and make us better. We
also looked for the most suitable area of the market, the most demanded products

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and the weakness of our competitors in order to lead on specific areas in the selling
of fruits and vegetables, and olive oil.

The great amount of information on the internet related to the industries of our area
offered us a realistic portrait of our competitors and it was an opportunity to find
benefits for a better settlement of our products in the global market.

5.6. What can be learned about the business’ market from field/primary research?

The field research was our first step when considering the creation of the company.
Remember that we started cultivating the small areas of ground to sell fruits and
vegetables for local customers in the village. After the excellent reception, we
considered to develop the business and by that moment we began to analyse the
market in our region, after in Spain and, because of our first input about customers,
we decided to extent to west Europe because fruits and vegetables as well as olive oil
were demanded by customers, even more so they were natural, fertilizers free. For
the market research we were helped by a consulting firm that provided us with
relevant information of customers, demand of our products, the profile of our
competitors. This firm also offered us a marketing plan.

6. Start-up Costs

Variable Costs
7 workers: 1250€/ month
200 kg fruits and vegetables seeds: 1.8€ per kg
80 fertilizer: 7.6€ per kg
2000 kg manufacture oil: 15€ per kg
3500 L water: 0.25€ per litre
10000 paper bag: 0.05€ per bag
1 distribution services: 12000€ per year
Other costs ( electricity, advertising, other consumable materials, gasoil, etc) :500€/month

Fixed Costs
3 workers: 1250 €/ month
2 store workers: 1450 €/ month
1 manager: 1500 €/ month

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 25m Irrigation: 20€/ year
3 machinery: 200€/ month

7. Break even

This is the point at which the sales are exactly the same as the costs.

7.1 Use the table below to list all the different types of cost:

Fixed Cost Variable cost

3 workers to collect fruits, vegetables and olives (1.250 7 workers to collect fruits, vegetables and olives (1.250
€/month) €/month)
2 store workers (1.450 €/month) 200Kg Fruits and vegetables seeds (1,80€ per kg)
1 manager (1.500 €/month) 80 Fertiliser (7,6€ per kg).
25 m Irrigation (20€ per year) 2000 kg Manufacture oil (15€ per kg)
3 machinery (200 € per month) 3.500l Water (0,25 € per litre)
10.000 Paper bag (0,05€per bag)
1 Distribution Services (12.000 € per year)
Other Cost (Electricity, advertaising, other consumabel
materials, gasoil, etc) 500 €/month
Total 107.300 € Total 158.968€

7.2 What is your selling price?

Our selling price is:

- Fruit and vegetables. 1,5€ per Kg

- Oil we have three type of container:
- 1L: 4.99€
- 2,5L: 12,5€
- 5L: 24,99 €
7.3 Use the table below to list all the different types of cost:

Total costs = 107.300€ + 158.968€= 266.268 €

Sales revenue =
- Fruit and vegetables: 10.000 kg x 1.5 €/kg= 15.000 €
- 1L Oil: 12.000x 4.99 €/l = 59.880 €
- 2.5L Oil: 8.000 x 12.5 €/l= 100.000
- 5 L Oil: 5.000x 24.99 €/l = 124.950

Profit = 299.830 – 266.268= 32.848

7.4 Use the formulae to calculate your Break-even point

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 Fixed Costs
Selling Price - Variable cost per item

8. Cash flow forecast

RECEIPTS July Aug Sept Oct Nov Dec

Sales 21.358 € 32.038 € 40.047 € 48.057 € 58.736 € 66.746 €

8% 12% 15% 18% 22% 25%

PAYMENTS 39.355,50 € 39.355,50€ 39.355,50€ 39.355,5€ 39.355,50€ 39.355,50

Total 39.355,50 € 39.355,50 € 39.355,50 € 39.355,50 € 39.355,50 € 39.355,50€

Payments

Net Cash - 17.997,5€ - 7.317,66€ 691,80 € 8.701,26 € 19.380,54 € 27.390,00€

flow

Opening -17.997,5€ - 25.315,16 € - 24.623,36€ - 15.992,10 € 3.458,44 € 30.848,44€

Balance

Closing -17.997,5€ - 25.315,16 € - 24.623,36€ - 15.992,10 € 3.458,44 € 30.848,44€

Balance

9. The Competition
9.1. Table of Competitors

Competitor Location Business Product / Price of Strengths of Weaknesses of

Company Size Service comparable the competitor
Name offered product / service competitor

TROPS Vélez Large -Fruits Very competitive -It's a Great dependence

Málaga -Vegetables price, top quality cooperative. - on water.
products. Competitive

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 price.

DCOOP Antequera Large -Oil Average market -Competitive Dependence of

-Olive price by relying on prices. other companies, in
-Wines other cooperatives. -Product this case
-Almonds diversification. cooperatives.
-Meat
-Milk
-Goat Cheese

HUERTAL Valencia Mid-market Traditionally Unre-competitive Fresh and -Dependence on

IS S.L grown fruit, prices as organic natural water and time.
vegetables and farming products. products, -There is no
vegetables without possibility of using
chemical chemicals in the
treatments or face of a pest.
intermediary,
grown
sustainably.

IBERIAN Alamería Large Production, Medium quality -Best value for Excessive reliance
ORIGIN marketing and products and money. on products
WHOLES distribution of: competitive prices. -Purchases on produced in El
ALE, S.L -Fresh credit. Ejido as it supplies
vegetables 95% of sales.
-Fruits
-Olive Oil
-Almonds
-Other foods of
Spanish origin

10.Marketing mix (4Ps)

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Product Price
Give a brief summary of your product What is your selling price?

-Fruits Fruits and vegetables 1,5€ per Kg

-Vegetables Oil we have three type of container
-Oil - 1L: 4.99€
- 2,5L: 12,5€
- 5L: 24,99 €

Why have you chosen to sell at this price?

Because,we need seeds of fruits and

Sospancrops
vegetables cost an average of € 0.9
Therefore, we need to plant and later
collect their fruits which an average of
€1.80

Then, to grow the fruits and vegetables

better and faster we need to use
fertilizers,which cost about € 11.50 for
every 1.5 kg

In addition, we need an irrigation system if

it doesn't rain frequently, which costs
about € 20.

To manufacture the oil, we need to collect

Place
Where do you plan to sell your product?
In West Europe(Spain, France, Italy, Great Britain
and Switzerland )
the olives of the olive trees to obtain oi. A
two-year-old olive tree costs € 15.
Promotion
How will you market and promote your
business?
Applying marketing strategies, one
example could be advertising on TV (for
Spanish customers) but the Internet will
have the biggest importance to introduce
the products and to be known in all
Europe, with the recommendation of our
customers .

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 11. Back-up plan

11.1 What do you plan to do if your business fails?

-As the purpose of our business is to make money and give it away to the
poor people we have an alternative plan in case it fails.
The alternative plan consists in selling christmas cookies made with our
Olive Oil so we have double benefit: on the one hand we make money and
on the other hand we make something useful with the oil we have
produced.

11.2 How will you afford your loan re-payments if the business fails?
- There is an app called crowfunding which we are going to use if we need
money. This app ables you to upload your proyect so as to everyone
could see it and if they think the proyect is a good idea they give money
to afford it.

12. Total capital required (Loan request)

12.1 How much loan do you need?

- We need about 50.000€

12.2 Why do you deserve to be given the loan?

- We deserve to be given the loan because the proyect is not for our own
benefit, it is for a common benefit and we have created it so as to make
needy people’s life better.

13. Appendices

Include your questionnaire, charts and other relevant documents that will
support your application for a loan

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