Sample business plan by angela itambo ppt

By

Angela Itambo

08033280453

www.angelaitambo.com.ng

ITEMS PAGE EXECUTIVE SUMMARY 3

COMPANY OVERVIEW 4

BUSINESS OPPORTUNITIES 5

MARKETING STRATEGY 6-8

HUMAN RESOURCES STRATEGY 9

FINANCIAL ANALYSIS 10

Sparkling water refreshingly pure 2

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.


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


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

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;


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

33cls N6 75cls N12

12months 4,400,500

12months

8,801,100


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


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


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

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


Sample business plan by angela itambo ppt

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