The consumption of rice among the Asians is high because it is their staple food. Considering the increasing population in the region, the demand for rice will rise. Based on the global rice statistics, the amount of rice needed to demand of the customers by 2035 is 116 million. This implies that the markets and production of rice are unsaturated. The production of rice enjoys a wide markets both form the domestic and international customers by exporting the final products. Thus, the engagement in rice production will gain domestic markets from both the local and international consumers. The company cans also diversity its income through the risk husk obtained from the rice production. The demands of the rice husk have been in demand for the production of traditional fuel and fertilizers. As a result, the company can be associated with production of rice and rice husk maximizing its sales in the current markets.
In order to develop the business, the company is required to have a starting capital of $1,214,800 in the first year and $873, 100 in the second year. The start-up capital seeks to provide the adequate to cover for the start-up expenses for the company. However, company can fund its initial plan through a long-term loan of $1,670, 320. The long-term loan will provide enough capital to allow for the start up of the company’s operations. Considering the amount of capital to be invested in the business, the company would certain forecasted revenues in the subsequent years. In the first year, the company makes of $1,800,000. In addition, it would make forecasted sales of $2,700,000 and $3,600,000 in year 2 and year 3 respectively. Based on the financial analysis of the business, the forecasted sales exceed the initial capital in the subsequent years. The investment in the business to would offer a considerable amount of returns for the business.
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