Exporting Canadian maple syrup to France: business plan

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H. Terms of Sale

The terms of sale tend to be negotiated when you have a sale, which in this case means when you have a wholesaler or business partner. There are a few different options with respect to this. Freight on Board affects the price, because FOB Seller means that the buyer will pay for the product to be delivered to the seller's location; FOB Buyer means that the seller is going to ship the product. FAS is "free alongside ship," which means that the seller's obligation is to get the goods to the ship (WCS, 2014). C&F means cost and freight, while CIF means "cost, insurance, freight." With these, the cost of the goods and freight are included in the price or the goods of goods, insurance and freight.

While obviously this is subject to negotiation, we are planning to ship to Europe, then distribute to wholesalers. So the cost is going to be FOB Buyer, and we will take care of getting the product to the wholesaler's warehouse. This allows us to have control over costs, and handle our own shipping to Europe. Either way, you price according to the service that is being provided.

III. Resource Requirements

This plan requires some resources. First, there will need to be staffing requirements. They will all be part-time, conducing this part of the business in addition to other duties, but it is expected that 2-3 FTEs will be required, in accounting, in legal, in marketing and in administration, to work on this project. The project will also require a budget, as there are up front costs in the range of $190,000 for the first year, most of which will come before any revenue is earned. But the business is expected to be profitable the first year, so the business should be financially self-sustaining after that point.

In terms of production capacity, the initial effort will be done with existing production, but it is clear that over time, production will need to be increased in order to meet what we hope will be a considerable increase in demand. A much as a million gallons of production will be required over the long run, to facilitate this expansion.