Professional Documents
Culture Documents
1.0 Executive Summary
1.0 Executive Summary
1.0 Executive Summary
0 EXECUTIVE SUMMARY
1.1 The following report and recommendation been stated herein relates to the proposal by
1.2 The project would require a start-up capital of ₦2,500,000 made up of ₦1,500,000 in
1.3 The enterprises vision is to be the biggest bead making firm in Nigeria, particularly in the
South- South.
1.4 The project will be located in Sapele Road in Benin because of its easy access to both
1.5 A huge market is available for the planned business based on our market survey.
1.6 The financial projection shows that the project would be financially stable and sound by
the time it matures. The sales figures stand at ₦4,800,000, ₦5,280,000, and ₦5,808,000
for years 2014. 2015 and 2016 respectively. Also, profits after taxes are: ₦491,750,
1.7. The funding requirement is ₦2,500,000. As the sponsors are committing ₦1,000,000
1.8. Our project has been subjected to SWOT, and risk analysis and appropriate risk mitigants
proffered.
1.9 The competitive edge of the enterprise lies in the utilization of locally
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1.10 The profitability measures are shown below:
₦ ₦ ₦
From the point of analysis of our findings, the proposed profit is found to be
technically feasible, financially viable, and economically desirable. Thus, the project
implementation.
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2.0 BACKGROUND
2.1 Introduction:
The project is based on the sustained sectors of both the economy and the average human life.
The South-South zone of Nigeria, particularly Benin, is a haven for fashion as a larger
percentage of its human population comprises of the elite who categorically express themselves
through what they wear and how they wear it. A product such as beaded bags, necklace, Bracelet
etc. is a new addition to the fashion line and is seen as trending to most men, women and
children.
Thus there exists a huge market with clear signs of long term sustainability dwelling in the
presence of well many citadels of learning in the State which serves as melting pots for character
Our vision is to become the biggest bead making firm in Nigeria, specifically in the South-South.
Our mission is to put Nigeria at the top of the fashion industry in consideration with the
necessary skills for business and strong regard for preserving and elevating Nigerian culture.
This is a sole proprietorship wholly owned by Mbaogu Nnaemeka Paul. It has been fully
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2.4 Location/Facilities
The plan bead making business would be located at Sapele because of the following reason:
2.6 Products/services
- Necklace
- Bracelet
- Bags
To be known as the company that produces the best quality beaded product without endangering
3) The stratification of designs under the label to satisfy all income classes.
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2.9 Revenue Base
The revenue of the business will come from the sale of the beaded products.
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3.0 MARKET, CLIENTS AND COMPETITORS
The business of beads is growing. The role of cultural preservation has led to an increase demand
for beads.
There are no restrictions as to the size of the market. The pattern of pricing will be with
regard to the type of raw material used by Enns Accessories we are focusing on civil staff and
other workers
My target clients are the chiefs, royal families, individuals and Brides.
The key competitors/players in this area are other bead firms that offer similar product.
Create loops.
packaging
Customer – friendly delivery and support service will be package to ensure customer retention
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3.6 Quality assurance
The desires for profitability will not overshadow our focus on quality. To ensure this we would;
We have conducted a market survey and it shows that a huge demand supply gap exists.
3.8 Technology
Our core competitive edge is having expertise knowledge, management aptitude and knowledge
We would always keep abreast of the trend and changing customer needs and do well to adapt
to them.
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4.0 MARKETING PLAN
The marketing plan to be adopted by Enns Enterprise would be geared towards exploiting the
Going out for personal advert by telling people of the existing business.
We would mount aggressive awareness campaign to draw potential customers, as the business
4.3 ALLIANCES
At start –up, we will not go into alliance with any organization. However as the business grows,
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4.5 SERVICE DELIVERY STRATEGY
To ensure that customer are well served and as such, satisfied and retained the following would
be put in place:
4.5.1 Strengths
The location of the bead making firm makes it to have an easy access to its
targeted customers.
The natures of the product being made are rare and spectacular.
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4.5.2 Weaknesses
shall be addressed through proper stores management and early contracting of raw
materials.
4.5.3 Opportunities
Innovation and new business opportunity may arise from the proprietors’
4.5.4 Threats
Bead making is a skill, and skills are highly initiative. Styles and patterns could be
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5.0 Organization and management
Enns is a sole proprietorship and to avoid excessive payroll cost would adopt a simple
organizational structure.
Enns venture is a sole proprietorship business not registered, and as such the promoter is the sole
The enterprises would be mange by the promoter Mbaogu Nnaemeka Paul. A student of the
and intelligent as a student who has not failed any of his departmental causes.
The planed project has external support of ₦1,000,000 which was obtained from a United Bank
of Nigeria.
The plan for personnel for the business is to start with seven staff; one manager, four
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5.6 Values and Norms of the company
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Legal, Regulatory, Social and Environmental issues
Enns plans to commence commercial operations as a sole proprietorship; therefore, the business
would be registered with the Registrar of companies in the CAC and what necessary department
in the Local Government and State Government. No special licensing shall be required for
Enns Accessories will comply with all environmental regulations, relevant industrial safety
production.
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Defect Accessories shall pose no environmental hazards as all wastes generated are purely
recyclable. Wastes/scrap pieces of materials could be used for the production of free bracelets. In
this way, not only would the wastes be properly managed, it shall also generate goodwill to the
business.
million and five hundred thousand naira) made up of ₦1,500,000 fixed capital and
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Cash at hand/bank (3 Months’ salary and wages) ₦465,000
Beads ₦410,000
Equity 1,500,000 60
The funding required for the project is ₦2,500,000 as the sponsors are committing ₦1,000,000
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7.5 PROJECTED INCOME STATEMENT
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Retained earnings ₦491,750 ₦1,080,450 ₦1,772,295
Equity 1,500,000 - -
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OPENING BALANCE - 1,074,250 1,245,450
Financed by:
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7.8 PROFITABILITY ANALYSIS
₦ ₦ ₦
Where:
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VC= VARIABLE COST
S = SALES
1 = CONSTANT
₦ ₦
Depreciation 82,500
Salaries 1,860,000
By substitution,
BEP = FC
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1-VC
FC = ₦ 2,042,500
1-VC = 1 – ₦95,000
₦4,800,000
1- VC = 1- 0.01979
1- VC = 0.98021
BEP = ₦ 2,042,500
0.98021
BEP = ₦2,083,737
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8.0 RISK ANALYSIS, CONTINGENCY PLAN AND EXIT STRATEGY
This project has been subjected to risk analysis. Some inherent risks and appropriate measures
RISK MITIGANT
campaigns
Large amount of old stocks in the market at Discount issue and extension of market
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No exit is planned rather diversification will be promised. If insolvency persist, the sale of stocks
9.1 Economic Justification: As proven by our studies and analysis of the findings made, the
9.2 Commercial Viability: The commercial viability of the project is shown through the impressive sales,
9.3 Conclusion: In reference to all the above, this project is highly recommendable both on
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