Clean Cookstoves International
Business Plan 2015 – 2017
January 1, 2015
1400 16th St NW
Suite 130
Washington, DC 20036
Owner: Joseph Smith
202.733.1185
Website Address
Email Address
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Contents
Executive Summary ........................................................................................................................................................... 3
Company Description....................................................................................................................................................... 4
Market Opportunity.......................................................................................................................................................... 4
Product................................................................................................................................................................................. 5
Marketing & Sales............................................................................................................................................................... 6
Financial Projections.......................................................................................................................................................... 6
Team and Personnel.......................................................................................................................................................... 6
Risks and Mitigation........................................................................................................................................................... 7
Partnerships ........................................................................................................................................................................ 8
Financing Need ................................................................................................................................................................... 8
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Executive Summary1
Clean Cookstoves International (CCI) manufactures low-cost, high-quality cookstoves offering a safe and costeffective way to cook food indoors without electricity for rural households living on less than $10 per day in
developing regions worldwide. CCI will manufacture and sell clean cookstoves and pellets that eliminate the need
for traditional fuels such as firewood, which is time-consuming to collect, and kerosene and charcoal which are
harmful to individuals’ health and to the environment.
The market for clean cookstoves has been growing at a rate of 17%2 year-over-year in emerging markets.
Abyssinia, a relatively new market for clean cookstoves, relies on only three brands available for sale, but growth
has been increasing by 25% year-on-year given increased publicity and attention as a result of high-profile global
campaigns by the Global Alliance for Clean Cookstoves. CCI will target rural households in Abyssinia, and will
capture 1% of this market in the first twelve months of operation, or 66,800 units. At $75 per stove unit and 15%
profit margins (it costs $64 to manufacture and distribute inclusive of management and overhead), this is about
$750,000 of gross profit opportunity in year one.
In subsequent years, CCI will aim to continue selling to additional rural households in Abyssinia, adding at least 1%
market share per year. In Year 2, CCI will launch in Rhodesia and Zaire as well, but with more than one product;
the second product will be developed based on feedback gleaned from the market in Abyssinia in year one.
Alongside stoves, CCI will also sell its proprietary pellet blend, Green PelletsTM. Through these growth paths, CCI
will grow to $10 million after 5 years, based on presence in its first three African countries. Subsequently, CCI will
continue its growth through market expansion into one additional country per year, through more expensive
product upgrades, through customer segment diversification, and through acquisition of competitors to
consolidate logistics and headquarters functions.
CCI’s target customer is a rural household earning less than $10 per day. Traditionally, in these households, the
woman is responsible for collecting fuel and cooking, and the man makes the purchasing decisions. CCI’s products
will provide additional free time for her to engage in other productive activities, time which could be spent
generating additional income. Additionally, this will reduce the negative health consequences for her and for her
children that are currently associated with cooking, thereby decreasing health costs (by an estimated 56%) and
increasing school attendance (by an estimated 27%).
The primary competition in the market is from the existing fuel sources; purchasing and using a clean cookstove
requires a behavior change, so the customer must be convinced enough of the value of the stove to adopt a new
product, a new method of acquiring fuel, and a new way of cooking. The stove costs approximately the equivalent
of one month’s income for the target customer, making it a significant purchase. Five other cookstoves are
available in Abyssinia, however do not pose as much of a threat as the status quo because of the currently limited
penetration of these other products and the overall growing market for the stoves.
CCI is owned and operated by Joseph Smith, based out of Washington, DC with an office in Abyssinia’s capital.
CCI aims to raise $400,000 to fund market entry and expansion, composed of 50% debt and 50% equity for 20%
stake in the business. The blended return on investment is anticipated to be 10% per year on the debt and given
growth estimates, CCI anticipates a 10x return for the equity.
N.B. All data in this business plan has been fabricated for the purposes of an example. The data should not be used for actual
businesses purposes. Any resemblances to actual companies are accidental.
2 Not actual data.
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Company Description
Clean Cookstoves International (CCI) is a Limited Liability Corporation (LLC) registered and headquartered in
Washington, D.C. Founded in late 2014, it currently employs 8 people, including management and sales staff, and
plans to hire up to 50 sales staff on the ground to achieve sales objectives. CCI designs, manufactures, and sells
clean cookstoves to decrease the health consequences associated with cooking and reduce time spent gathering
fuel. The target customer is a rural household at the base of the pyramid in Abyssinia; CCI plans to expand quickly
to Rhodesia and Zaire. CCI’s pilot product – the CookerOne – uses pellets for fuel.
Market Opportunity
“Exposure to smoke from traditional cookstoves and open fires – the primary means of cooking and heating for
nearly three billion people in the developing world – causes four million premature deaths annually. It is the fourth
worst overall health risk factor in the world, and second worst for women and girls. Traditional cookstoves are
also an important contributor to climate change at the regional and global level, and contribute over 20% of global
black carbon emissions. Reliance on biomass for cooking and heating forces women and children to spend hours
each week collecting wood, during which time they often face severe personal security risks, especially in conflict
zones. Cooking over open fires also puts women and girls at risk of debilitating burns and increases pressure on
local natural resources (e.g., forests, wildlife habitat).”3
CCI’s target customer is a rural household making the equivalent of $0-$10 per day and that is currently using
firewood, kerosene, or charcoal for fuel. In Abyssinia, 50% of households are rural households making less than
$10 per day, meaning that the target market is 6.88 million households.
Population
People per Household
Number of Households
Percentage of Households that are
Rural and with <$10/day Income
Rural Households with <$10/day
Income
66 million
4.8
13.75 million
50% 4
6.88 million
In rural areas, 90% of households are engaged in farming as the primary income source. The man works in the
fields while the woman tends to the house and children. This segment typically cultivates less than 2 hectares.
Income is not steady over the year; approximately 40% comes in each of two flush seasons and the final 20% over
the remainder of the year. These low-income target customers are very sensitive to price changes of existing fuel
sources; if they use wood it can take up to 40% of a woman’s day to collect, leaving little time for other
productive, possibly income-generating uses of her time.
There are many competitors in this market:
 Status quo:
o Firewood is free, available in nature, however requires labor to collect it.
o Kerosene is widely available in markets and at small kiosks, however creates harmful fumes. The
price is reduced through subsidies, however subject to wide fluctuations in price and supply.
o Charcoal is available for purchase in markets and at small kiosks, however also creates harmful
fumes and contributes to carbon emissions.
 Direct competitors:
o CookEco80: This metal cookstove can be assembled locally from metal sheets that are shipped.
CookerOne achieves 92% efficiency, compared with CookEco80’s 78%. CookEco80 includes a
specific pot/pan and lid that must be used in conjunction with the stove, adding cost and
complications compared with CookerOne.
U.S. Department of State, Global Alliance for Clean Cookstoves: http://www.state.gov/s/partnerships/cleancookstoves/.
2Global Alliance for Clean Cookstoves Presentation – Nigeria Market Assessment; sources of data: National Bureau of
Statistics and Accenture analysis. Data assumed to be similar for “Abyssinia.”
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o
o
EasyHome: This highly efficient clay cooker reduces fuel required to operate due to minimal
heat loss, however because of the materials used, the stove is very heavy to transport and
cannot be produced locally – a specific mold for the clay is required. The CookerOne is
lightweight and easier to transport, thus a direct sales force model can be deployed to rapidly
expand market penetration.
JStove: The JStove is the most inexpensive stove on the market in Abyssinia, however has a
lifespan of only about two years, whereas the expected lifespan of CookerOne is at least ten
years.
Abyssinia has lifted the tax on pellets to encourage their use in cookstoves, positioning CCI well for competition.
Similar policies are under consideration in Rhodesia and Zaire. The Global Alliance for Clean Cookstoves, a multicountry donor initiative, is active in all three countries; more information is available in the partnerships section.
Product
CookerOne is currently CCI’s only product. It is a rocket stove, which has
“an insulated, L-shaped combustion chamber that improves combustion of
gases and smoke inside the stove. Rocket stoves also incorporate design
elements to improve heat transfer efficiency and to direct the flow of hot
gases to the pot or griddle using insulation and narrow channels.”5
CookerOne has been specifically designed for this target market by starting
with the ability to pay and designing and building a stove that fit this price
requirement. Then CCI chose the fuel type – pellets – because they can be
produced locally, can be stored for extended periods of time, and are safe
and clean. Finally, CCI chose the size of the stove based on market research
into the typical size pot that is used by the target customer households. Sales
agents will continuously gather feedback at every interaction with the customer to influence the design of
subsequent products.
CookerOne provides a method for cooking cleanly and efficiently, benefitting the customer in two ways: financially
and socially.
 Financially:
o The stove uses pellets, which have a stable price. This is in contrast to kerosene, the price of
which fluctuates dramatically.
o The stove costs approximately 20% less than other clean cookstoves on the market in Abyssinia,
lowering the barrier to adoption of clean cookstove technology.
o Clean cookstoves on average reduce fuel costs by 50% over traditional fuel stoves.
o Due to the social benefits listed below, healthcare costs are reduced by an estimated 56%.
 Socially:
o The stove burns cleanly, eliminating the health hazards associated with open stoves and/or using
kerosene or charcoal to cook with. This increases the school attendance by an estimated 27%
and improved the learning potential of children.
o Because the pellets are placed into a compartment in the stove, there is reduced risk of burns or
fires.
o The time women typically spend collecting firewood is eliminated, thus freeing up time to
potentially engage in income-generating activities.
o Use of the pellets reduces greenhouse gas emissions associated with kerosene and charcoal by
87% and 79%, respectively.
The CookerOne comes with maintenance included for six months and unlimited instruction as needed when
agents are available.
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Global Alliance for Clean Cookstoves, Rocket/Side-Feed, http://cleancookstoves.org/technology-and-fuels/stoves/index.html.
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Compared with the other clean cookstoves, CookerOne offers:
- A comprehensive solution, pairing training and maintenance with the product itself.
- A network of locations to purchase pellets for fuel.
- The rocket stove design is 15% more efficient than other pellet stoves, requiring fewer pellets, and
heating them faster.
- The pellets also heat water and food faster than traditional fuels (firewood, kerosene, and charcoal),
saving time and money.
Marketing & Sales
CCI will develop a dedicated direct sales force by recruiting and training local community members to be company
agents. By using local community members, CCI will be able to quickly build trust with potential customers and
reach deep into communities to sell and distribute goods.
Sales will be done through two methods:
1. Sales agents will attend the weekly market with a well-branded booth and perform stove demonstrations.
Stoves will be available for purchase at the market, but customers must receive training from the agent on
how to use the stove to ensure proper use and product satisfaction.
2. Sales agents will travel to surrounding villages to sell the product directly to households, offering
demonstrations, sales, and training at the home. Agents will have stoves with them to enable sales and
distribution simultaneously. Each agent will have a CCI motorbike to use that is equipped with a way to
transport the stoves and pellets.
CCI will offer demonstrations to all potential customers to show the ease of use and speed with which water and
food are heated. In both sales cases, agents will also sell pellets for the stoves, transporting a supply of pellets with
them at all times. Agents will be supplied a mobile phone (with credit) so that customers can reach the agents if
additional pellets are needed. Pellets should always be available for delivery within 24 hours to a village or at the
market. The sales agents will be compensated on commission, receiving 5% of the sales price for each stove sold
and 10% for pellets.
The CookerOne will be priced at the local equivalent of $75. This is expected to be equal to about one-month of
wages, on average. Customers must pay 50% up front and can pay the remaining 50% in installments over the
following four months.
Other advertising channels will not be needed given the one-on-one demonstrations and personal connections
with sales agents; additionally, the anticipated rapid penetration of the market will reinforce the agents’ work.
While sales efforts are currently focused on Abyssinia, additional geographies – starting with Rhodesia and Zaire –
will be pursued to expand the business. Additionally, as CookerOne gains traction in the market, CCI will release
newer models based on feedback from customers. CCI anticipates entering Rhodesia and Zaire by mid-2016 and
launching its second product simultaneously; CCI will enter the two new markets with both products.
Financial Projections
Financial projections have not been provided for this example. Rather, an example of a completed Agribusiness Planner,
forecasted out three years, is available.
Team and Personnel
CCI has a strong team in place to lead the company both from Washington, DC and the company’s office in
Abyssinia’s capital.
 Joseph (Joe) Smith is the owner, founder, and CEO of Clean Cookstoves International. He founded the
company because of his passion for market-based solutions to health challenges. He has an MBA in
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

finance, an MA in agronomy, and is fluent in French and Aramaic. Prior to CCI, Joe was Chief of Party to
an incubator that focused on scaling technologies that improve agriculture, health, and education at the
base of the pyramid in 30 developing countries. Through this project, Joe helped successfully launch and
or scale 37 unique technologies, reaching nearly 10 million customers at the base of the pyramid. He
started his professional career in Dupont. He splits his time between Washington, DC and Abyssinia.
Tiffany Williams is the Director of Marketing, with 30+ years of experience in consumer product good
marketing for major multinational companies, including Unilever and Proctor and Gamble. Specifically, she
has specialized in launching new products in emerging markets, with a focus on sub-Saharan Africa. Tiffany
retired in 2013 and spent 12 months volunteering as a mentor for companies in a start-up incubator in
Abyssinia; four of these companies have successfully launched and another three are expected to by end
of 2015. She lives full-time in Abyssinia now and travels to Washington, DC quarterly.
Haben Belnap, Director of Sales, is a native of Abyssinia, educated in the United States. He grew up in a
rural community, though now resides in the capital. He spent the last three years consulting to agriculture
and health start-ups in East Africa
The local sales staff, which will be managed by Mr. Belnap, will be comprised of promising local talent with strong
ties to their communities. Typically these men will have at least some post-high school education and interested in
gleaning practical business knowledge and skills. These sales staff will be able to refer their friends for additional
sales positions as the company grows; employees will receive a bonus for each referral who has been with CCI for
4+ months and met sales targets within 90% of goals.
Risks and Mitigation
Market research done by the Global Alliance for Clean Cookstoves suggests that previous cookstoves have not
been successful because of a lack of fuel access, unclear value propositions, and a lack of flexible payment terms.
To mitigate this, CCI will:
 Ensure consistent access to pellets by selling them through sales agents who are available locally, including
by phone.
 Communicate a value proposition that is based on a positive return on investment for the customer
(typically a customer can recoup the cost in only a few months) and secondarily beneficial to the
customers’ and families’ health.
 Offer payment plans with no interest charge for the first four months, decreasing price barriers.
 Implement a sales and distribution strategy focused on deeply penetrating certain geographical markets
before moving on to others, ensuring that sales agents are sufficiently incentivized and that there is
adequate access to pellets for fuel and to training and maintenance.
A final risk is the source of the materials used to manufacture the stoves. CCI purchases recycled metal from a
local Abyssinian manufacturer to construct its stoves. This manufacturer is the only one producing the bulk
quantities CCI requires, and has been increasing the price of the specific metal with increasing demand. To mitigate
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this risk, CCI will diversify its sources of recycled metal, purchasing 20% of its inputs from small start-up
manufacturers, thus increasing competition in the marketplace.
Partnerships
CCI is a member of the Global Alliance for Clean Cookstoves (GACC), which aims to reach 100 million
households by 2020 worldwide with clean cookstoves, and specifically 9.4 million in Abyssinia by 2017. It is a
public-private partnership hosted by the UN Foundation. The GACC assists with building demand for clean
cookstoves in base of the pyramid markets, and partners with the private sector, CCI included, to meet that
demand. GACC educates consumers on the health risks of using firewood, charcoal, and kerosene – many of
which are unknown, and the risks to the environment of using these, thus generating interest in the inherent
benefits of clean cookstoves. The benefits of this partnership are that a significant amount of the upfront demand
generation – helping the customer understand the need for a cleaner option – is done by GACC, leaving CCI to
focus on its core business of producing, selling, and distributing the stoves. It lifts some of the burden off the sales
agents, however the CCI agents must understand the unique value proposition of CCI stoves over competitors.
The risks of the partnership with GACC are that individual GACC workers may be privately (and unethically)
incentivized to promote a specific cookstove brand, however CCI accepts this risk as present whether or not it
participates in the GACC. In the case of GACC, CCI has determined the benefits outweigh the risks. CCI receives
invitations to workshops on business acumen from GACC and access to market research. Additionally, GACC
informs members about where knowledge generation campaigns are taking place, thus CCI can more effectively
target within Abyssinia.
Financing Need
CCI requires $400,000 in financing, split equally between debt and equity. Ideally the debt will be a revolving line of
credit. The $200,000 in equity will be for 20% equity, valuing the company at $1 million. The return on investment
for the debt is anticipated to be 10% per year and, given growth estimates, CCI anticipates at 10x return on the
equity. The full amount will be used to fund market entry and expansion, specifically production and to purchase
motorbikes for sales staff.
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