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Sample business plan by angela itambo ppt

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Sample business plan by angela itambo ppt

  1. 1. By Angela Itambo 08033280453 www.angelaitambo.com.ng
  2. 2. ITEMS PAGE  EXECUTIVE SUMMARY 3  COMPANY OVERVIEW 4  BUSINESS OPPORTUNITIES 5  MARKETING STRATEGY 6-8  HUMAN RESOURCES STRATEGY 9  FINANCIAL ANALYSIS 10 Sparkling waterrefreshinglypure 2
  3. 3. AYZ industries plans to introduce sparkling table water with sizes ranges from 33cl and 75cl to the Ibeju/ Lekki market of Lagos State. Our strategy is to capture the middle to middle upper class income bracket of the market. We wish to capture 0.08% of the market to make loyal and repeat buy customers and increase market share organically. Our decision to invest in this form of business is based on the inadequate portable water supply in the once swampy part of Lagos, which is fast becoming a property haven for up starts in the Nations commercial hub of Nigeria. Our target market compromises of the following: Corporate market made up of hotels, restaurants , schools springing up in the axis Households who have boreholes, but due to the topography cannot have access to clean water to boil and drink even to brush their teeth every day. Our mission as a newbie is to produce and sell at least 1million bottles of our product , given that man can stay 40days without food, but can only survive 72hours without water. Despite the already brands in the market, we are confident we can curve our own market share. This we sure would do as we stick by our mission as a business which is to produce products of the highest quality consistently. To achieve this we need in addition to competent manpower and regulatory permits and a good site for our factory, we need startup capital of N15million, we will bring N1,250,000 and source for the rest. However from projections we anticipate a turnover of over N40million and a profit after tax of over N10million. The plan shows how we will achieve this ;given the challenging business terrain of the Nigerian business environment. Sparkling waterrefreshinglypure 3
  4. 4. AYZ industries wishes to introduce a brand of drinkable bottle water in the range of 33 cl and 75cl which will be distributed to the Lekki metropolis of Lagos state . The company will be registered as a Limited Liability company with the Corporate Affairs Commission in Nigeria, this will be in line with the regulatory procedures of the Country. Our goals as a business is to reduce the demand gap of drinkable water in the growing Lekki population of Lagos state , although surrounded by the Atlantic ocean,it has a poor underground water which makes drinkable water scarce, and given the environmental hazards of polythene sachet water known as pure water which is now consumed we offer a better alternative which is our 33cl of bottle water as well as 75cls for families and events. Our objectives :  Provide alternative to sachet water which has been labeled as hazardous to the environment and a major contributor to flooding  Be the number one brand in the Ibeju Lekki axis within 12 months of introduction of our brand  We also wish to produce at least 1 million bottles of water and generate at least N42million naira which is equivalent of over 160 , 000 pounds Our mission  Quality: We will ensure that the quality of our products is made from the highest production process and it is sustained.  Innovation: We will continuously innovate our production process to bring the best products to our customers, this will be needful especially as we expand in the future to areas where the underground water may not be to appropriate for consumption as well as imbibe recycling of our bottles  Integrity: We wish to build trust amongst our customers , this we believe will ensure there is a brand loyalty and to achieve this we will ensure our processes are standardised and employees are schooled on the need to adhere to them keys to success:  Set up our industry in Surulere axis of Lagos, the terrain has clean underground water which is the major raw material we need to have a good quality water.  We also will install water purification process which will enable us purify unclean and unsuitable water to make it good enough to drink  We will employ a conducive working environment to ensure there is team work to ensure that there increased productivity. Start up cost  We need the sum of N15million to kick start this project and this will be generated from the owner funds and outside investors Sparkling waterrefreshinglypure4
  5. 5. Our business will be located in Surulere, area of Lagos state ,our decision to locate the factory is based on the good topography of the area which makes it easy to access good quality underground.Although our production will be based in Surulere, our sales point is the Ibeju-Lekki area of Lagos , our business will produce drinkable bottle water which will replace the sachet water and provide an affordable alternative as well as the 75cl for events and family gatherings. Our decision to distribute there is based on the following demographics:  Almost all affluent Nigerians and those in the middle income bracket, want to own properties in this highbrow corridor.  The once dreaded swampy neighbourhood has become the toast of property investors  Lekki is also one of the fastest developing urban areas with an annual economic growth of 16.8% in Lagos, Nigeria and Africa as a whole.  Ibeju Lekki L.G.A had an estimated population of 99,540 people this is according to the Lagos state government and this growing at an alarming rate of Potentials customers are as follows:  Households who will buy our brand of water which will be ideal for them to consume at once  Events such as celebratory occasions such as weddings, birthdays  Hotels and restaurants  The aforementioned cuts across the strata of the society which can be found in the area, from low income which are the natives to low income , average income to middle to upper income earners Our target customers  We wish to target the 0.08%f the target market which cuts across the middle class to upper class echelon of the market , however we will are not excluding any one that needs portable drinking water. Our competitors  According to industry watchers there at least 31,820 water processing factories in Nigeria, on an average of 850 per state, including the Federal Capital Territory. This translates to about 795,500 employees. Top of them:-  EVA a brand that is from the stable of the Nigerian bottling company, the produce 1 litre and 50 cl of water  Pure life a brand from Nestle however they donot produce 33cl bottle water and the 75cl and due to the insatiable desire for drinking water, our value proposition is to fill this gap by producing these sizes with the highest production standards of bottled water production consistently. Sparkling water refreshingly pure 5
  6. 6. Sales projection Sparkling will produce two sizes of table water, 33cl water for households, events and 75cls for large . Within the first 12 months, we hope to achieve the following; Sparkling waterrefreshinglypure 6 Production capacity Capacity Per day Liters 2,000 Litres 1,000 In Centiliters 200,000 In Centilitre 100,000 Bottled Water Container 75 Cl Size 75 33 Output Qty in Bottles 2,667 33Cl Size 1,333.5 Wholesale Price per 75Cl Bottle =N= 35 =N= 17.5 Revenue per Day =N= 93,333 =N= 46,666 Revenue per Month 25 days =N= 2,333,333 25 days =N= 1,166,666 Revenue per Year 12 months =N= 28,000,000 12 months =N= 14,000,000
  7. 7. 33cls N6 75cls N12 12months 4,400,500 12months 8,801,100 Sparkling waterrefreshinglypure 7
  8. 8. Our target market are:  Drinks and water specialists; that serve events from wedding to birthdays, it is estimated by the Lagos state government that Lagosians spend an average of 3billion naira on events, this especially with our target market fall within the middle to middle upper income echelon of the society.  Hospitality venues from Restaurant, to recreational centers and hotels( Lekki axis according a report by The total of almost 9,600 rooms represents the mainstream hotel industry in the city, a growing number are sighted within that axis, we intend supply as well as contract manufacture for our clients  Households made up of a greater number of up ward mobile individuals ;we wish to target at least 0.1% to meet our target in sales Sales strategy  Our sales strategy is to use direct selling tactics to meet the end users directly  We wish to consistently visit our customers to meet their needs so that there will be no gap in supply. Marketing plan  We will ensure we compile with the regulatory and local councils laws within regards doing our business  This is needed and with the distributive vehicle and our active sales officers we will constantly distribute our products  Our van will be properly branded, which is meant to gain exposure for our brand  We will also use social networks such as Face book to engage with our on-line community . We will sponsor our page on the platform regularly, in addition we will use twitter to create brand name remembrance. This we intend to do within the 12 months of operation, we will review our strategy quarterly to ascertain the impact  We will collaborate outdoor caterers to supply the water while they do focus on their strengths , same with event coordinators Sparkling waterrefreshinglypure 8
  9. 9. HIRING STRATEGIES  Our business will rely on referrals from those in the industry especially with regards the hiring of a competent technical supervisor especially from members of the table water trade body. In addition we will place ads in on-line job sites, common and effective in Lagos is Jobberman for other positions. Recruiting and selection  We wish to outsource this function when we launch , however insist that a member of the trade association be present to use the peculiarities of the industry to guide the process.  We will also use the expertise of this organisation in assisting in recruiting and training, we know that the human resource is key to success to the business, that is why we spend a little more to do.  In future we wish to include a vacancy button on our web page, which will give others the opportunities to place their CVs subject to when the need arises.  We will bring an officer from the association of table water producers(the umbrella body to come with a team to train our staff ) Motivational strategies  To ensure we reduce staff turnover we wish to do the following:  Create a conducive working atmosphere , which will promote hard work, dignity of labour and respect.  We will annually give our workers part of the profits which can be beneficiary to them aside their salaries  We will provide health insurance, given that this a factory, accidents may happen Manpower needs aside the owner manager , that will oversee the entire the business and earn the sum of N80,000 as salary we need the following staff Sparkling waterrefreshinglypure9 Description Unit/Day Rate Cost /Day Days Cost Per Month =N= =N= =N= =N= Superviso r 1 1,667 1,667 30 50,000 Productio n Staff - Operators 5 1,500 7,500 30 225,000 Drivers 2 1,333 2,667 30 80,000 Assistant Drivers 2 667 1,333 30 40,000
  10. 10. Capital expenditure Profit and loss account AYZ industries needs the sum of N15million Naira to set up this factory in the Surulere Suburb of Lagos this will be used for the following: LAND AND BUILDING BOREHOLE OVERHEAD TANKS (WITH BASE CONSTRUCTION) ( DELIVERY / DISTRIBUTION VAN ) PRODUCTION EQUIPMENT MANUAL BOTTLE FILLING MACHINE AUTOMATED BOTTLE RINSER OZONE AUTOMATED BOTTLE CODING MACHINE BOTTLE CAPPING MACHINE SHRINK WRAPPING MACHINE OFFICE EQUIPMENT FILE CABINETS FURNITURES AND FITTINGS OFFICE FURNITURE & FITTINGS GENERATOR 15 KVA WORKING CAPITAL Assumption: Sales Receipt from bottled water in a month is put at 90% of sales to Corporate Customers the 10% balance is collected in subsequent month. The direct cost of the output is estimated at average 30% of selling price The budgeted Unit of job / income / cost per month are based on the industry standards Expected loan is to pay 10% per annum, the promoter will bring N1,250,000 of saved savings to the business INCOME SALES INCOME: DIRECT COST 42,000,000 13,201,600 Less (closing stock) GROSS PROFIT EXPENDITURE SALARIES TRAVEL EXPENSES PRINTING EXPENSES INSURANCE RATES/PERMITS NAFDAC/TESTS INTERNET/TELEPHONE PROMOTION ELECTRICITY PROFESSIONAL SERVICE DEPRECIATION BANK CHARGES INTEREST ON LOAN TOTAL NET PROFIT TAX @ 30% NET PROFIT AFTER TAX 28,798,400 150,000 28,648,400 5,700,000 187,200 1,790,000 50,000 1 889,568 125,000 318,000 100,000 90,000 250,000 676,500 60,000 137,500 12,807,368 15,841,032 (4,752,309) 11,088,723 Sparkling waterrefreshinglypure 10

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