Business plan for the creation of a processing Company sweet potato (Ipomoea batatas L) in Delicias, Chihuahua, Mexico

Abstract

The cultivation of sweet potato in state of Chihuahua has increased in recent years, however, farmers obtain a low price for their harvest, which is why a business plan was developed to create a processing company in Delicias. A market study was carried out in three municipalities using the Malhotra methodology to determine market segmentation and the FIRCO guide for the analysis of financial indicators.  Throwing for the market study that 77% of the sample consumes the tuber, and of this percentage, 85% is willing to consume the products offered by the company, with sweet potato candy being the most interesting (24%), covered in sweet potato (20%) and chips (18%). The results of the profitability indicators NPV, IRR and RBC through a 5-year projection, with an update rate of 12%, indicate that it is profitable with a NPV of $1,610,875.34, an IRR of 79% and a RBC of 1.16, recovering the initial investment with a positive flow from the third year with a profit of $463,079.91 pesos. The limitation would be to obtain the full credit of the financing to start the business while the fixed and variable costs would be assumed by the owners.The producer has the possibility of forming his factory with an initial investment of 422,472 pesos, increasing his profits, giving added value to the crop and eliminating intermediaries.