Assignment TakenFUND RAISING PROPOSAL TO SUPPORT EXPANSION (FROM VENTURE CAPITALISTS)

Case UnderstandingFresh Growers is a Pune based company started by Chitranjan Desai. He started a business of Procurement and delivery of Farm fresh produces. Fresh Grower intends to deliver products from harvesting to doorstep within 3 hours. In any case, the ground real factors show that the lead time among harvesting and delivery can't be diminished by half so effectively, regardless of whether business measure reengineering is finished. It is important to actualize measures that guarantee the nature of newness of vegetables, so clients get a similar degree of sustenance and newness. New Grower comes up short on a complex far reaching framework that can monitor when the ranch produce was collected, when it was stuffed, how its newness boundaries have been during the acquisition, pressing and capacity measure, and furthermore how soon it has been conveyed. The organization additionally doesn't have any instrument to discover the amount they should reap ordinary and how they should anticipate the following day. Fresh Growers needs a Fund Raising Proposal which provides insights into the ways of raising funds from different sources like self – funding, independent investors, banks, private equity, sponsors. Fresh Growers as it is a self- funded organization so its owner has invested Rs. 10 Lakh from his savings as Initial Capital. Fresh Growers wants to Expand their business in at least 3 metro cities, in next 2 years, so there are many factors from financial point of view for which he needs a Fund Raising Proposal.

BCS Solution SummarySmall agricultural producers around the country are finding it increasingly difficult to remain competitive in a market place dominated by the consolidation of agricultural production. This challenge for producers to market directly to the supermarkets and to their consumers is becoming greater as we consider the number of recent consolidations that have occurred in retail grocery markets throughout the country. To create a Fund raising proposal, we need to look into various principles of Management, viz. Organizing Finances, Spend less than you earn, Put your money to work, Limit debt to Income Producing Assets, Understand Risk, To understand that Diversification is not just for investments, Maximize your employment benefits, Plan for the unexpected. To help Fresh Grower create its Fund raising proposal, we propose with the aim of the following:- That the Board of Trustees confirms that the overarching mission for Branches is to strengthen and add value to the relationship between Fresh Growers head office and the wider membership. Support and reflect the Fresh Growers corporate brand and aim for high quality/professionalism. Offer networking opportunities for members.

Solution

The solution from a Financial perspective revolves around Finance maintenance, Expansion of business to reach out to more people around the country.

Objectives:-

1. To Expand Business to at least 3 Metro Cities, in next 2 years.
2. Sales more than the First year in the Second Year.
3. Profitable in the year two, better than 7.5% profits on sales by year three.

Mission:-

Fresh Growers is a reliable source of Farm Fresh produces, combining an intriguing atmosphere with excellent, interesting organic and healthy Produce that is also very good for the people to eat. We want fair profit for the owners, and a rewarding place to work for the employees.

Aims of Project:-

Branches have been an inherent part of Fresh Growers, since the Company’s inception, with a small number being the founding force of the very strong and well established branch structure we have today. As a result of analysis and conclusions emerging from three major pieces of research, this is the branch evaluation and research.

Key findings from the brand research highlighted the following:-

• Members have a purely functional relationship with Fresh Growers.

• Fresh Growers is seen as distant and operating at arm’s length from branches, and therefore, from members.

 • Members get their networking and support through branches.

 • Branches “own” the emotional relationship with members.

The request to implement business in at least 3 metro cities the staff was formed with the specific role to consider the following:-

• The aims and roles of branches.

• The governance architecture surrounding the branch network, including reporting lines, accountability etc.

• The branch experience.

• The support structures which are needed for the branch network.

Process:-

The intention is to expand business to at least 3 metro cities, in next two years is to pilot our approach. The intervention will be carefully monitored and evaluated (baseline studies have already been conducted) and recorded in order to make replicability in other districts and by other agencies possible. In order to achieve success in the pilots, we have entered into a partnership with the District Governments who have agreed to provide grants to cover the material needs. The grants will be administered by a central office of in each district. Funds, raised from member congregations, will be used to cover administrative costs. The district offices will be responsible for locating members and ensuring that grants are appropriately used. Detailed reports will be provided to District Governments. To achieve this, Fresh Growers will employ approximately ten trained community workers in each District. Costs of these community workers will be covered through the administration fund. However, we believe that, for the project to succeed, extensive community training is needed in the form of intensive interventions with professionals. Training, which will involve both theoretical and practical work, will be made specific to each group.

Outputs:-

The planned outputs for the two-year period are as follows:

1. Participants’ workbooks and facilitators’ guides for each Module;
2. A total of 80 three-day modules run (40 in each district, eight for each of the five groups);
3. At least five projects operating effectively in each metro city;
4. Independent City branches Co-ordinating Committees in each of the two districts as a basis for sustainability;
5. A report detailing the experiences and impact of the branch performances as a basis for replicability.

Budget Insights:-

Each branch is to submit their budget to the Networks & International Director (N&ID) detailing planned income and expenditure for the following financial year. Where 3 metro cities branches cover districts, the district submission is to be included within that of the branch and identified as such.

Budgets should include the following:-

 • Basic running costs

 • Funding of branch meetings (including speaker/venue/refreshments)

• Committee meetings etc. (These to be based on current costs plus price increase if known, with the number of meetings to be factored into the calculation)

• Bids for additional activities e.g. development of branch (included in the budget submission with supporting paperwork).

 The budgets should include proposed events which fall into the financial year, with full costings, showing income, sponsorship and expenditure calculations. Events are not required to generate a surplus, they can be subsidised by the branch if they so wish. The Accounts Department will provide a template for completion based on previous year end actuals.

ConclusionThe expansion of business to operate in at least 3 metro cities. This project is specifically aimed at ensuring that every customer gets freshly grown foods and Fresh farm produces directly deliver to consumers as freshly grown foods has high benefits to our bodies. We believe that the context in which we are operating makes such a project an imperative. Our intention is to pilot the project in three metro cities, as models for replicability by other agencies. The emphasis on district development and community-based projects makes it likely that the project will be sustainable at community level. We already have substantial support from, and have entered into a partnership with, the two District Governments involved in the project to provide material support. We believe that our track record and our management and financial competencies qualify us to make a success of this project. The staff from our head office who will be involved are highly skilled and experienced.