This document provides a business plan for a building materials and hardware centre. It includes an executive summary, descriptions of the entrepreneurs and management team, products, market, competition, and financial projections. The plan calls for financing to purchase initial stock and cover operating expenses. Projections estimate over R2 million in pre-tax profits over the first year from over R8 million in total sales, demonstrating the viability of the business.

1. BUSINESS PLAN
FOR BUILDING MATERIAL AND HARDWARE CENTRE
OF
KHUBUNG ENTERPRISES (PTY) LTD
CONTACT NUMBERS:
EMAIL:
DATE: 29th
JUNE 2012

2. TABLE OF CONTENTS
EXECUTIVE SUMMARY
FINANCE
THE ENTREPENEUR
COMPETITORS
MANAGEMENT
STAFF
DESCRIPTION OF BUSINESS
THE SUPPLIERS AND GUARANTEES
THE MARKET
THE PRODUCT
THE MARKETING PLAN
THE OTHER P’S OF MARKETING:
The Place
The Price
Promotion
SUPPORT
SWOT ANALYSIS
FINANCIAL INFORMATION
CASH FLOW PROJECTIONS
SUPPORTING DOCUMENTS

3. a) Survey done with prospective customers/letter of intent
b) Certified copies of identity documents
c) CVs of directors and other staff members are attached
d) Photographs of products
Notes to the Cash Flow Projections
List of products to be sold is attached together with estimated costs and
selling prices
The Loan Repayment Figures
This is arrived at interest rate of 25% for payment over(12 months) 1
year.

4. Executive Summary
From our market research, we know that the demand for building materials and hardware products will never stop and these
commodities mostly needed.With the support from our suppliers, customers and the passion to own and manage our own
business, we will be successful and able to service the loan.
Finance Required
Finance is required for setting up, namely:
Purchases of stocks
Rental of premises
Advertising & Promotions
Vehicle Expense
The Directors
The directors, Mr. Samuel Liphapang Senekal has business accounting degree, and has 12 years extensive experience in business. Mr
Ullas Vjayan has business management diploma and has 4 years experience in business. He is hardworking, honest, and reliable and
customer focused. He is keen to abide by the disciplines to make his/her business a success. The third director Vijayakumar
Bhaskaran has a BA in education and is also exposed to business environment.
The Suppliers
The following companies are our potential suppliers of products to sell:
• PG Bison – Boards
• York Timbers – All types of timber
• Proroof – Roofing materials such as corrugated iron sheets, tiles etc
•Solid Doors
•Robmeg
•Barns Fencing
The Market Plan
The target market is virtually most businesses, e.g. site developers, contractors, government ministries, schools, individuals
We intend to attract customers by using the following strategy:
•Advertising in local newspapers and radio
•Handing out flyers to vehicles
•Approaching various contractors in the area.
•Making contact with family and friends and their contacts.
• Monthly Sales Promotions

5. SURVEY OR LETTER OF INTENT
Will you purchase from our company building Materials
YES/NO
NAME & SURNAME
Ntja Lelefa
BUSINESS NAME
Smartbuild Consorium
CONTACT
(00266) 62-017921

7. DESCRIPTION OF BUSINESS
 The business will be the building materials and hardware centre.
 The stock of materials and hardware will be purchased from various
manufacturers and wholesalers in the neighbouring states such as Republic of
South Africa.
 The business will operate from affordable rented premises with myself and ten
other employees working in the business.
 With the constant increase in proposed new buildings and the population these
commodities will always be in high demand and hence it can only be a success.
 My past experience in the corporate world, where I gained invaluable business
experience, will put me in good stead to make a success of this business
opportunity.

8.  What will make this business very viable is that because of the demand for
this commodities, one can basically sell to many different people and organisations.
 In analyzing the customer base, we can predict that 80% of the business will
be cash, which will assist our cash flow.

9. THE MARKET
 The market is everybody that needs materials and hardware products for
themselves, their business, institutions etc.
 Although the business will be competing in our region for starters against some
well known companies, by saving on expenses, on transport cost and because our
overheads are a fraction of these companies, it will make me more competitive
and business strategy of being flexible to the customers needs will ensure that I
make a success of this business venture.
 The initial strategy is to get the business from our wide range of contacts, as well
as the public, direct calling and word of mouth
 The growth potential of this market is big, because as the area and population
grows, my business will grow.

10. THE PRODUCTS
 Building materials: Corrugated iron sheets, tiles, timber, cement, etc.
 Doors and openings: door frames, window frames, doors, locks, nails, paints,
gutters and window glasses.
 Electrical: wiring materials, plugs, lamps, etc.
 General hardware: Hammers, tapes, padlocks, saws, etc.
 Tools: Grinders, drills, wheelbarrows, picks, shovels etc.
 Garden & outdoor: Rakes, hoses, pliers, fencing materials etc.
Demand for the above products will always increase and being a service
orientated company with excellent pricing, I will market my business
aggressively and with my ability to build strong business relationship, it will
be hard not to succeed.!

11. THE PLACE
 The business will be situated in Teyateyaneng at Assumption RCM Premises, which
is in close proximity to T.Y. Bus and Taxi Rank.
 The size of the premises is 25 square metres, which is ideal for the ,raw materials
and stock.
 The premises will be available from the end of June 2012.
 The premises is situated in an area with different types of business and housing
surrounding it.
 The lease is for 2 years, which can be renewed, however this business will not be
dependent on where it is located!

12. PRICE
 The cost of selling is approximately shown below . My research into this market
has indicated that the selling price is also shown below. Prices include all the
overheads, a healthy net profit margin between 30 and 35 percent will be
achieved.

13. PROMOTION
 Networking with all our contacts, our leads, family and friends, will be used
aggressively as well as word of mouth which is going to be a key element in
promoting my business.
 Advertising in the local newspapers, radio, handing out promotional leaflets, will
most definitely promote the business even further and because the business is not
linked to a franchise group, more money will be available to keep promoting my
business on a regular basis.
 Referrals will be another key element in promoting the business.

14. COMPETITION
The competition has expensive transport cost and they have much higher
overheads than ours, which will therefore make us more competitive than them.
 Our business strategy is to develop strong business relationships with all
customers.
 Together with our products being a neccessity and our competitive pricing, will be
able to attract a lot of customers.
 Flexibility to my clients needs will further play a role in the success of my business.
 All the above will ensure that this company stays one step ahead of the
competition!

15. MANAGEMENT
 We will be the owners of this business and will initially be assisted by 10 staff
members to support us in the running of it. As this business grows, more staff will
be added
 Whilst working for different companies we always exceeded expectations and
went the extra mile.
 In one of the positions held, we supervised a portfolio of staff, controlled budgets
and hence played a significant role in the success of the company and it’s growth.
 We believe that the experience that we have gained in the corporate world, our
strong business acumen and business studies, will contribute to the success of this
business.

16. STAFF
 Our staff will operate on the premises on a permanent basis.
 Their starting salaries will be R1,200 per month.
 We firmly believe in a years time our business would have grown substantially
and our staff needs would have doubled and in 3 years we would be in need of a
total of 15 staff.
 Training and motivation will be given to our staff on a continuous basis.

17. SUPPORT
 The bank would be the main financial support structure in our company, with fully
commitment of all directors playing active role, especially with administration and
bookkeeping!
 SWOT ANALYSIS
 STRENGTHS:
 There will always be a need for this products and demand will never stop.
 The products we will sell, will be of a high quality.
 We have a strong business background and a definite passion for business.
 The business will be highly profitable.
 WEAKNESSES:
 New venture.
 The need for funding for the business.
 The need to explore different distribution channels.
 Achieving consistency in quality and marketing strategies in a new business

18. OPPORTUNITIES
 To keep expanding on our customers needs.
 To expand products varieties.
 No limit on the capacity to grow and develop more initiative as well as market
aggression.
THREATS
 Cost and method of funding
 Labour interest

19. FINANCIAL INFORMATION
SETUP COST:
1. Cost of Stock R 1,200,000.00
2. Rental of Premises R 35,000.00
3. Transportation Inwards R 7,000.00
4. Van Hire R 4,000.00
5. Stationery R 1,500.00
6. Electricity R 5,500.00
7. Protective clothing R 3,200.00
8. Packaging R 2,500.00
 This business will require the bank to finance it.
 This money will be utilised to pay for the purchases, rent, van, stationery, set up costs
and the general day to day running of the store including salaries and telephones.
 Error and ommission excluded subject to change

20. FINANCIAL PROJECTION
MONTH 1ST
2ND
3RD
4TH
5TH
6TH
7TH
8TH
9TH
10TH
11TH
12TH
SALES 187000 755000 812000 950000 910000 987000 710500 675000 625000 610000 589000 680000
COST OF SALES 1100000 250000 300000 600000 525000 800000 300000 300000 300000 300000 300000 300000
TRANSPORT
INWARDS
7000 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000
ELECTRICITY 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500
RENT 5000 5000 5000 5000 5000 5000 7000 7000 7000 7000 7000 7000
ADVERTISING 500 500 500 500 500 500 500 500 500 500 500 500
SALARIES &
WAGES
21500 21500 21500 21500 21500 21500 21500 21500 21500 21500 21500 21500
PACKAGING 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500
MOTOR
VEHICLE
4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000
PROTECTIVE
CLOTHING
3200 Nil Nil Nil Nil 3200 Nil Nil Nil Nil Nil Nil
TELEPHONE 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200
STATIONERY 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500
TOTAL SALES: R 8, 490,500.00
TOTAL COST EXPENDITURE : R 6,280,400.00
PROFIT BEFORE TAX: R 2, 210,100.00

21. SUMMARY
 We firmly believe that the passion we have to have our own business, coupled
with our business acumen and a products that we will sell, the business can only
but succeed.