Brief description of the project
The opportunity to earn EUR 1,000,000 in 7 years operating the business of selling used tractors with a power starting from 200 hp, of such brands as: John Deere, Case IH, New Holland, Fendt, Challenger.
The tractors will be purchased in Western Europe and America, and sold to farmers in Ukraine. The company will sell equipment in the same condition in which it arrived from Europe and America. The goal is to become number one on the Ukrainian market for the supply and sale of used tractors with a power starting from 200 hp in 5 years. Business margin 10 - 25%. The expected profit from one transaction is from EUR 7,000 to EUR 90,000.
Project stage
Today the company is registered as a legal entity – KSN Tractor Company LLC. It has successfully passed customs accreditation.
Investment Applicant Information
Kirienko Serhii Mykolayovych, 25 years old. He worked in a company for the supply and sale of special equipment and agricultural equipment, has been working in this industry for 4 years. Thanks to previous work experience, he is able to attract more than 40 potential customers per month, in this area, using Internet resources. Serhii has information about the customer database, competitors and suppliers, as well as the consumer. At the moment, it is useful to the market in that it helps to sell used agricultural machinery to farms with a land plot from 300 hectares. Every day he communicates and helps the target audience in the sale of used agricultural machinery, every day the database of decision makers' contacts increases from 1 to 5 new clients, in the future this will help to sell faster.
Development strategy
1st year – market entry will be carried out with one product – used tractors with a power starting from 200 hp. The main task is to build relationships with suppliers and buyers, become useful to the market, and increase awareness. To get customers, 7 sites will be created on which Google contextual advertising and targeted advertising on Facebook will be set up, and also a database of potential customers with 6,000 numbers will be called in a week.
2nd year – advertising and start of sales of 5 products: tractor, harvester, self-propelled sprayer, seeder, telescopic loaders. There will be 19 new sites created. The total number of sites is 26. The task for the 2nd year is to agree with European dealers on the possibility of taking equipment for sale at their site or with a deferred payment.
3rd year – the beginning of sales of microfertilizers, pesticides and the creation of a department for the sale of special equipment (tracked, wheeled excavators, front loaders, road construction equipment, cranes ...) At least 51 new sites will be created.
4th year – creation of a department for the sale of trucks, range roving vehicles. The company's product line will consist of 27 products, excluding the classification. The company will consider opening branches in Russia and Kazakhstan, and later in Western Europe and America.
Offer to Investor
To implement the business, an investment of EUR 1,000,000 is needed for the first purchase of tractors. The loan repayment period is 7 years. For 3.5 years, there is a return on investment of EUR 1,000,000, with a monthly payment of EUR 24,000. There will be accrued profit with a monthly payment of EUR 24,000 during the remaining 3.5 years. Total return of EUR 2,016,000 euros in 7 years.
Terms of participation in the project will be negotiated personally.
