The Benefits of Aloe Vera and How to Use - Research Paper Example

Aloe Vera Hair Gel - A Mini Project Feasibility Study Introduction Aloe Vera is said to be one plant which the heaven sent to the people on earth to help them with its many values. New findings have indicated that the leaves of the plant have plenty amount of nutrients and trace elements that will enhance good health. Iodine, iron, copper and zinc are the trace elements which are present in Aloe Vera. It also has vitamins, amino acids, organic germanium and fatty acids. Because of its high nutrients, Aloe Vera can be used externally to enhance air growth and prevent hair loss. (Souza, Roy De. Aloe Vera - The Heavenly Plant. Lifestyle and Health. AViVA. [internet]). The two hundred plus phytonutrients are found in the gel inside the leaf. (Adams, Mike. How to Harvest Fresh Aloe Vera Gel. NaturalNews.com. [internet]). It is said that the hair can generally benefit from Aloe Vera. The plant cures the scalp from whatever it suffers by balancing the level of acidity, getting rid the pores of unclean elements and stops too much loss of hair, among others. Most of all, Aloe Vera reduces seborrhea. The rejuvenating and regenerating characteristics of Aloe Vera help make the skin constantly moist and hydrated. (Aloe Vera Plant History Uses and Benefits. DISABLED WORLD. [internet]). These are the elements which are likely the ones enhancing hair growth and rehabilitation. In an article, it is suggested that aloe juice be applied and massaged into the scalp for its good health every day before going to sleep. This must be done for a month and the application of the gel should be direct from the stem leaving the aloe on through the night. It may then be rinsed the next morning during shower. (Ni, Maoshing. Natural Tips for Gray Hair, Hair Loss, and Dandruff. Ask Dr. Mao. Dec 08, 2009. Yahoo! Health. [internet]). The observations seem to imply that the use of Aloe Vera as a healing medium should be in its fresh stage. This may be so because it is claimed that laboratory findings show that the ingredients of the plant no longer have beneficial effects after being processed. (Aloe Vera. Aloe Vera Guide. [internet]). It is also necessary to state here that there have been so many testimonials about the use of Aloe Vera having succeeded in re-growing hair but there is no scientific basis for this yet. (Aloe Vera. herbs at a glance. National Center for Complementary and Alternative Medicine. National Institutes of Health. [internet]). One account says that a grandmother told stories of Aloe Vera being used to treat split ends, dandruff and falling hair. (Aloe Vera Express.com. [internet]). Another article straightforwardly says that it prevents hair loss. (Berry, Yulia. The Benefits of Aloe Vera and How to Use. Aloe Your Miracle Doctor. Aloe Vera and Handy Herbs. [internet].). There are theories that Aloe Vera helps hair growth because of what nature has provided for its contents. Aloe Vera gel naturally gives moisture and nutrients to the scalp healing it or making it healthier. The gel can be applied direct from the leaves or in commercial forms duly preserved. (Bradley, Charlie. Does Aloe Vera Help Hair to Grow Again. eHow. [internet]) The proposal in this feasibility study is the commercial marketing of Aloe Vera gel for hair care, restoration or rehabilitation. It is thus necessary that the fundamentals of the planned project are premised above. Presumptions This project feasibility study will cover the whole process from cultivating to selling. A farm of five hundred hectares for Aloe Vera will be established in the Philippines, a country in Southeast Asia and which has sufficient historical proof that Aloe Vera has been a native in the land as evidenced by folklores. (History of Aloe Vera. 21st Century Aloe Vera. [internet]). The place is chosen firstly because of its reasonable labour cost and land rentals. The second reason is its proximity to Hong Kong which will become the jump-off point for the delivery of the finished product to the United Kingdom, the final destination for marketing. Gathering testimonials Considering that the initial research points to the circumstance that there is no basis yet in science that indeed Aloe Vera is a cure for hair loss, it is proposed that the first step to take is to gather and collate testimonials together with the relevant data and information in the attempt to persuade the buying public to patronize the product. Necessarily, there will be difficulties in getting positive feedbacks because, in the first place, there is no product yet. This will mean that a thorough literary research and actual hard work survey have to be done during the preliminary stage. For the census, the big task is to ask. The most important process in obtaining testimonials is simply to ask. The library and databank research work can be made the basis for the poll taking. (Doyle, Bernadette. How To Get Testimonials. Salesopedia. [internet]). The gathering of the testimonials shall be done in all available varied forms. The same may be via person to person interview, e-mailing, utilization of social networks such as Facebook, Friendster, Twitter and the like, and newspaper published inquiries. The objective will be to gather at least one hundred positive responses and to be sourced from the United Kingdom and the Philippines. All declarations will be documented by print, video and or audio facilities. While this methodology will drive awareness, it becomes part of the advertising campaign on a general note as the specific product shall not be known yet by then. The projected time-frame for the testimonials gathering efforts is three months. The farm After the poll taking goal is attained, the next move will be to find for a lot consisting of five hundred hectares. The area to be picked up will be a plain or rolling land somewhere in Bukidnon Province, Philippines, which has a high elevation and which is between arid and humid and therefore suitable for the propagation of Aloe Vera. If the location is found, the offered deal will be one of lease for ten years. At four plants per square meter, the whole parcel of five hundred hectares will accommodate twenty million plants. Leases or rentals of land in the province for agricultural purposes range an average of one thousand pounds ( 1,000.00) per hectare per year. A five-year advance payment has been a practice in the industry. Bukidnon is the choice for some good reasons. It is the food basket of Mindanao, the third largest subdivision of the Philippines. (Bukidnon. Wikipedia. [internet] Accessed December 13, 2009). The province provides so much crops not only in the province itself and the neighbouring provinces but also to the nation's capital. Pineapples, bananas, sugar, corn and rice are the major harvests from Bukidnon. The prospect area will be somewhere in a town called Quezon which is about one hundred forty kilometres from Cagayan de Oro City, home of the seaports including one for international shipping. It may be queried if Aloe Vera can survive in the place. The answer is definitely in the affirmative. Many scientists believe that the plant has its origins in Africa where it is warm and dry and this theory is backed up by established facts. It is likewise a circumstance that Aloe Vera adapts verily to any condition because man has been historically carrying the lily with him wherever he goes and settles from here to there. It is no wonder thus that it can presently be found in places with warm temperature. In the United States of America, it is commercially produced in the Rio Grande Valley of Texas as well as in California and Florida. It is likewise grown in Oklahoma in greenhouses specially built for the purpose. Due to its characteristic to grow anywhere, it can also be planted well in humid locations for as long as it does not get drowned and water does not stagnate in its roots. (Pike. A Short History of Aloe Vera. February 1, 2002. [internet]). The very fertile soil of the province of Bukidnon is an important factor, together with its friendly weather and climate. Labour source Works in the farm will be undertaken by the local manpower supply which is abundant in the province. Pineapple, sugar, corn and rice agricultural operations are surely more complex than Aloe Vera growing. In order to promote goodwill in the locality by providing employment, mechanization has to be limited to the minimum. As much as possible, jobs have to be done manually except in cases where it is totally practicable to use machines. Locally legislated minimum wage amounts to four pounds per day or one hundred twenty pounds per month, more or less. For the processing and administrative functions, the source of manpower will still be from Bukidnon because the harvests will be processed in there and the office, accounting and other administrative positions will be so based. For the production workers, a salary of one hundred thirty pounds per month will be fine while that for administrative positions, one hundred fifty pounds on the average will be attractive enough. Land preparation and cultivation Since the project will involve a new Aloe Vera farm, the land has to undergo massive development during the first year in preparation for the crop. Development will include preparation and, later on, cultivation. It has to be importantly noted that Aloe Vera is a perennial plant and its leaves can produce valuable gel and juice for a period of between four and seven years. (Miscellaneous Food Crops. [internet]). In short, the huge costs will be during the initial stage of the venture. Among others, the breaking up of the soil specifically for Aloe Vera farming and the development and preparation of the land for the purpose are the major incipient cost items. To follow in a short while will be the processing and preservation facilities. Capital expenditures will be amortized within a reasonable number of years. Cultivation, including the loosening up of the soil, will be a periodic activity intended to maintain and enhance the productivity of the plant. Planting, maintenance and harvesting Planting, maintenance and harvesting will all be done manually during the first year. Costs and time consumption have then to be reviewed for the second and subsequent years of operations to determine if there is a need to shift to mechanization. Processing and preservation The process in the factory will be more on the extraction of the juice and the gel and the conversion of the same into preserved form. A regular day in the farm This will be how things may look and happen in a regular day in the new Aloe Vera farm under Aloe Vera Bukidnon Corporation, the tentative name of the venture. At the beginning of the day, the workers and employees of the company wait outside their homes for the personnel bus which fetches them in the morning and conducts them home in the afternoon. Upon reaching the plantation, everybody gets inside the meeting hall where the manager gives an orientation for the scheduled activities for the day. A regular feature of the discussion may be a weeding work in one of the subdivisions of the farm, or the application of fertilizer in another, or the harvesting of leave in yet another section, or some maintenance jobs in the processing area. The farm division, projected to comprise of two hundred fifty labourers work in the field while another fifty will work in the factory or processing plant. After the manager shall have discussed everything in the agenda, the section supervisors will brief the employees under their respective direct supervision for the more detailed instructions. Employees and workers will all be afforded the chance to air their views, comments, problems, suggestions and other remarks during the daily meetings. Hence, at the conclusion of each meeting, every personnel will have a substantial idea of what he has to do on that day. The field workers may have to feel the heat of the sun but being natives of the place, they are used to it. Nevertheless, protection tools like hats, helmets and long-sleeved shirts are to be provided by the company. During harvests, the green leaves are pulled back and cut at the white base with about three of the most mature leaves being gathered and placed in boxes for delivery to the processing house. The employees in the production line then properly line up the leaves for the first stage of washing. These are then moved from the primary wash tank to the mechanical washer and then to the cutting area. After being cut, the leaves are forwarded to the gel expulsion equipment. The production space is kept in highly clean and sanitary condition, whether or not it is being utilized. Personnel are advised to pass through the sanitation check each time before getting inside. The whole room is cleansed and sanitized after every operating activity. After the gels are removed, these are rid of pulp with the use of a special machine, then pasteurized and stored in insulated tanks for pumping into the concentration area. (Harvesting and Processing. Farming. ALOECORP. [internet]). Packaging and delivery The target point for marketing and distribution is the United Kingdom via Hong Kong. This means that the goods are projected to be first delivered to Hong Kong and from there the merchandise will be shipped to London or any nearby location. Depending on the cost parameters of the freight, there is the possibility that transporting will be done by air. In the latter case, the route can probably direct from the Philippines to the UK. These options will be based on the decision of whether the items will be sent out in bulk or in small containers ready for immediate selling. It is again emphasized that labour cost in the Philippines being very much lower than that in Hong Kong and the UK, there is the viability that the increment in the cost of freight via air delivery of the products in ready canisters, tubes or small bottles may have an offsetting effect. (Philippine Labor Costs One-Fifth Lower. Cost effective Outsourcing in the Philippines. November 30, 2006. Offshoring.com. Offshoring, Inc. [internet]. Accessed December 13, 2009. Available at: < http://www.offshoring.com/article28.html>). Finance and accounting Finance It is presumed in this study that the sources of cash funds for the project total 10,000,000 comprising of (a) the equity of stockholders, 1,000,000, and (b) a bank loan in the amount of 9,000,000. At the moment, the said bank loan (of 9,000,000) is to be borrowed at an interest burden of twelve per cent (12%) per annum and to be paid in five equal yearly instalments. The total sum of 10,000,000 will be distributed as shown in the schedule below. Organizational and pre-operating costs and expenses 1,000,000 Land rentals 2,500,000 Cost of land development, preparation and cultivation in the first year 3,000,000 Plant facilities 2,700,000 Transportation equipment 200,000 Office and other equipment 100,000 Reserved fund for contingencies 500,000 Except for land rentals, the figures listed above have no basis and are purely raw estimates or guesses. Since this preparation is a mini feasibility study, the details cannot be arrived at without extensive study and research which may be done in the project feasibility study proper. No earnings are projected during the first year because the activities will focus on pre-operating and organization activities including the gathering of testimonials discussed above. Projected earnings Starting the second year, net earnings are projected at the conservative ratio of ten per cent (10%) of sales. Sales are expected to be 160,000,000 as per the computation set forth hereunder. Number of plants 4 Aloe Vera plants per square meter multiplied by number of square meters per hectare multiplied by number of hectares 4 x 10,000, 500 20,000,000 Multiply by number of kilos of gel produced per Alove Vera plant per harvest 1 _____________ Total number of kilos of gel produced in one harvest 20,000,000 Multiply by number of harvest per year at once in every six weeks 52 weeks divided by 6 weeks = 8.6 or say 8 _____________ Total number of kilos of Aloe Vera gel produced in one year 160,000,000 Multiply by selling price per kilo 1.00 _____________ Total sales per year 160,000,000 =========== Projected financial statements The three most basic financial statements will be prepared on an annual basis. It is presumed for purposes of this study that the company will use the calendar year as its fiscal period. The said financial statements are (a) the balance sheet which reflects the assets, liabilities and equity or capital of the owners as of the end of the year, (b) the income statement which reflects the earnings and expenses of the corporation for the year that just then ends, and (c) the cash flow statement which reflects the sources and uses of cash funds also for the year that just then ends. (financial statement. BusinessDictionary.com. [internet]). At the end of the first year, the balance sheet will show the following figures, thus - Assets Cash (reserved for contingency) 500,000 Organizational and pre-operating costs and expenses 1,000,000 Deferred land rentals 2,500,000 Capital expenditure on land development 2,000,000 Deferred land preparation and cultivation costs 1,000,000 Plant building and factory equipment 2,700,000 Transportation equipment 200,000 Office and other equipment 100,000 __________ Total Assets 10,000,000 ========= Liability and Stockholders' Equity Liability - Bank loan 9,000,000 Interest payable 1,080,000 Stockholders' equity (deficit) Beginning 1,000,000 Less: Net loss for the year 1,080,000 ________ Ending ( 80,000) __________ Total Liability and Stockholders' Equity 10,000,000 ========= As earlier admitted, all projected expenditures are based on very raw estimates or guesses except for land rentals which were based on information regarding actual or traditional practices in Bukidnon (Philippines) province. Since no income yet will be generated during the first year, there is no significant item to show earnings and costs and expenses except for the interest on the bank loan reckoned at 12% per annum. For convenience in presentation, there appears no need to capitalize or amortize the expenditure. However, the pertinent data will be fully disclosed in the notes to the financial statements for the first pre-operating year when the organization will be set up. If the income statement is to be prepared, it will show the following. Expenses Interest on bank loan 1,080,000 __________ Net loss for the year 1,080,000 ========= A deferred tax asset may be computed for the loss as a tax saving scheme. This means that the interest expense during the first year may be deferred and instead applied in the later years so that it can become part of the deductions from earnings in the said subsequent periods rather than immediately reflecting the same for the first year when there is no income yet from which the interest expense may be deducted. However, this consideration has to be viewed within the internal revenue landscape of the host country, that is, the Philippines. Tax matters sometimes have political repercussions or impacts. A company's scheme to avoid taxes is sometimes perceived as corporate greed and invites hostility from the taxing authority. On the other hand, being charitable to the coffers of the government brings such benefits as tax holidays and other credits. In view of these variables, the resolution on whether or not to take into account tax deferment measures will become a management option and prerogative when the right time comes. The third and last financial report is the cash flow statement. For the first year, it will be presented as proposed below. Cash balance, beginning - Add: Sources of cash Receipt from stockholders for shares issued 1,000,000 Proceeds of bank loan 9,000.000 __________ Total cash available for use 10,000,000 __________ Less: Uses of cash Organizational and pre-operating costs and expenses 1,000,000 Advance payment for land rentals 2,500,000 Land development expenditure 2,000,000 Land preparation and cultivation costs 1,000,000 Construction of plant building and factory equipment 2,700,000 Transportation equipment 200,000 Office and other equipment 100,000 __________ Total uses of cash 9,500,000 __________ Cash balance, ending 500,000 ========= The net loss and the deficit are not reasons for alarm. As a matter of fact, if the financial cost of 1,080,000 representing the interest on the bank loan incurred during the first year is to be amortized over a reasonable period starting in the second year, no loss or deficit may be reflected in the income statement of the company for the first calendar year. It is presented here as a current expense during the first year because it is a fact that financial charges are charged to the borrowing entity, be it in operation or not. Hence, whether or not there are incomes or expenses for the first year will have no bearing on the creditor bank calculating for interests that have accrued. The loss and deficit will be wiped out by the second year of existence of the corporation which will actually be its first year in operation when harvests start. Sales being projected annually at 160,000,000, and net operating income at ten per cent thereof, net earnings in money terms will thus be 16,000,000. The corporate income tax bracketing under Philippine revenue regulations suggest about forty per cent for income taxes or 6,400,000 in the case here. That will leave a net income after taxes in the sum of 9,600,000 which is very much over and above the loss and deficit aforementioned. Accounting The chart of accounts and the relevant accounting methods and procedures will be designed according to present standards and principles which are generally accepted in the accountancy jargon. Monitoring and reporting Considering the advent of swift technological advances in the fields of information management and reporting process, submission of any and all data to the top echelons of the corporation will be via the internet on a 24/7 basis. References Adams, Mike. How to Harvest Fresh Aloe Vera Gel. NaturalNews.com. [internet]. Accessed December 11, 2009. Available at: . Aloe Vera. Aloe Vera Guide. [internet] Accessed December 11, 2009. Available at: Aloe Vera Express.com. [internet] Accessed December 12, 2009. Available at: < http://www.aloeveraexpress.com/site/1345660/page/902294>. Aloe Vera. herbs at a glance. National Center for Complementary and Alternative Medicine. National Institutes of Health. [internet] Accessed December 11, 2009. Available at: . Aloe Vera Plant History Uses and Benefits. DISABLED WORLD. [internet] Accessed December 11, 2009. Available at: . Berry, Yulia. The Benefits of Aloe Vera and How to Use. Aloe Your Miracle Doctor. Aloe Vera and Handy Herbs. [internet]. Accessed December 11, 2009. Available at: . Bradley, Charlie. Does Aloe Vera Help Hair to Grow Again. eHow. [internet] Accessed December 13, 2009. Available at: Bukidnon. Wikipedia. [internet] Accessed December 13, 2009. Available at: Doyle, Bernadette. How To Get Testimonials. Salesopedia. [internet]. Accessed December 12, 2009. Available at: financial statement. BusinessDictionary.com. [internet] Accessed December 14, 2009. Available at: < http://www.businessdictionary.com/definition/financial-statement.html> Harvesting and Processing. Farming. ALOECORP. [internet] Accessed December 13, 2009. Available at: < http://www.aloecorp.com/farming>). History of Aloe Vera. 21st Century Aloe Vera. [internet]. Accessed December 12, 2009. Available at: < http://1st-aloe-vera.com/aloe-history.htm>. Miscellaneous Food Crops. [internet] Accessed December 13, 2009. Available at: < http://aggie- horticulture.tamu.edu/extension/Texascrops/miscellaneousfoodcrops/index.html> Ni, Maoshing. Natural Tips for Gray Hair, Hair Loss, and Dandruff. Ask Dr. Mao. Dec 08, 2009. Yahoo! Health. [internet]. Accessed December 11, 2009. Available at: Philippine Labor Costs One-Fifth Lower. Cost effective Outsourcing in the Philippines. November 30, 2006. Offshoring.com. Offshoring, Inc. [internet]. Accessed December 13, 2009. Available at: < http://www.offshoring.com/article28.html> Pike. A Short History of Aloe Vera. February 1, 2002. [internet]. Accessed December 12, 2009. Available at: Souza, Roy De. Aloe Vera - The Heavenly Plant. Lifestyle and Health. AViVA. [internet], Accessed December 11, 2009. Available at: < http://www.aviva.ca/shop/product_sections.aspcatid=265>. Read More