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Chemical Laboratory Business Plan

A complete business plan for Granite Industries, Inc.

About this business plan

Granite Industries, Inc. is a specialty chemical formulator selling products to various manufacturing companies. The core product is Creatine Monohydrate, and with the patented formula for this supplement, we estimate sales of over �2.6 million by 2002. The focus of this business plan is to solve the present cash flow squeeze, and to increase profits.

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Executive Summary

Granite Industries, Inc. (Granite) is a specialty chemical formulator, lab analysis agency, and toll manufacturer, selling products to companies from cosmetics manufacturers to food supplement marketers. We manufacture and distribute Creatine Monohydrate, an approved food supplement used to improve strength, endurance, and muscle mass. Granite also produces five other speciality chemicals that will be detailed later in this document. A strong knowledge-based management team, with a combined thirty-years of experience in this industry, incorporated Granite.

Granite is a niche player in the speciality- and industrial-chemicals business, focusing on value-added products which are not widely or readily available in the United States. We have perfected unique manufacturing processes resulting in lower manufacturing costs and high profitability. We have established a network of strategic alliances with distribution companies who lack our capability to ascend from laboratory to commercial scale and manufacture products in accordance with quality specifications.

Our distributors and our customers have given us an opportunity to provide products beyond our present capability. We need to add equipment, increase our inventory, and establish marketing and support activities.

Sales and Projections

We have had sales increase steadily over the last three years. These numbers give us a strong reference point on which we have based our sales projection for the upcoming three fiscal years. Our projected sales for the three years of this plan are shown in the Sales Forecast table.

Funding Requirements

We are seeking adequate capital to enable us to expand our operation and become a major factor in the production of chemicals in the industrial, consumer, and textile markets Our signature product is Creatine Monohydrate; we manufacture both the powdered and liquid forms. We are the only company in the world capable of manufacturing this product in liquid form. Our market research shows that the demand for this product alone justifies the expansion of our facilities.

Note: Customer and Distributor company names and financial information have been removed from this sample plan to protect proprietary and confidential information.

1.1 Objectives

The objectives of this business plan are outlined below:

Sales increasing by leaps and bounds through Year 3.
Gross Margin the envy of the industry.
Net Profits increases commensurate with sales growth.

1.2 Mission

We have the management team and the chemical formulations to become a major player in the specialized niche we serve. We have developed new technology and processes that are in demand by other chemical manufacturers as well as by major distributors who do not have the ability to produce our speciality products. We see our mission as not only that of toll and custom manufacturer, but as a trade supplier where we can reach the end-user market with products we consider to be proprietary. We seek a fair and responsible profit, enough to keep the company financially healthy for the long term and to satisfactorily compensate owners and investors for their money and risk.

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