Executive Summary

Business Description
Dorcas Offor owns a tailoring and fabric sale business called DOCKY’S Home of
Fashion on the main road in Amaoba-Ime. Dorcas is a seamstress in Amaoba-Ime
where she sews women’s traditional wears. She currently sews a very limited
number of both adult and children’s traditional wears and would like to expand her
line to include additional grade levels and newer popular styles. She has an
excellent location on the only tarred main road in Amaoba-Ime. Dorcas also wants
to expand her business by purchasing an additional sewing machine so that she and
her apprentice can work simultaneously, therefore increasing output. In addition,
Dorcas would like to buy a finishing machine, which would save money and time
from the current outsourcing of this work. The finishing machine would also allow
her to generate more income by offering finishing services to other tailors and
seamstresses in the area.
Investment Requires:
• Three different quality levels of additional fabrics for an initial investment of
#30, 000 each.
• The additional sewing machine will require an investment of #25, 000.
• The finishing machine will require an investment of #65, 000.
• Total investment is #180, 000.
Business Description
Dorcas is a seamstress with a shop in Amaoba-Ime where she sells fabric and sews
women’s traditional wears. She currently sells a very limited number of both men
and women’s fabrics and would like to expand her line to include additional grade
levels and newer popular styles. She has an excellent location on the only tarred
main road in town. She is located directly next to a truck park and the bus stop
contributes to the potential of this business opportunity. She and her apprentice
currently share one sewing machine and Dorcas would like to borrow money to
invest in an additional one. Her apprentice is becoming more skilled and will be
able to assist more if she had a machine of her own. In addition, Dorcas would like
to purchase a finishing machine. She currently has to outsource this work and it is
costing her about #17,280 per month (#720 per week) as well as a half day of
work.
Risks and Opportunities:
The most significant risk is that the sales projections and the cost assumptions for
new products prove to be inaccurate. It is very difficult to predict demand given
that this is a relatively new addition to the existing business. The lace fabric is
quite expensive and, although very popular, it is difficult to predict how much it
will be sold. We have reduced the amount requesting to half of what she initially
asked for to add in conservatism and allow her to grow her business with the profit
she will see as her business grows. The margin for lace, although decent, is the
lowest of the three fabrics at 14%, while Fabric 1 returns 40%, and Fabric 3 returns
20%. The biggest advantage of lace is that it is in high demand and may draw new
customers.
There are many opportunities in this business. Dorcas is currently the only
women’s seamstress in the Amaoba-Ime area and she is located right on the main
road. In addition, she will own the only finishing machine in the area so she can
take in finishing work from other seamstresses or tailors from surrounding villages.
The finishing work returns a very high profit margin (90%) for very quick work.
This could prove to be not only very profitable but also a big draw for new
customers.
Biography of Candidate:
Dorcas Offor is a student of Michael Okpara University of Agriculture, Umudike.
Dorcas has been a seamstress for about 2 years. She completed her apprenticeship
in 2 ½ years (normally a 3 year program). Dorcas has a divided shop that she
shares with her friend who is a recharge card seller. They are both strong believers
who share their faith whenever possible. She and her friend are both interesting
and personable. Her friend, Lizzy is a teacher and a recharge card seller.
Company Structure:
Dorcas Offor is the sole owner of the tailoring and fabric side of the business. The
building and property she shares with her friend. Dorcas has one apprentice whom
she is currently training.
Marketing Industry and Market Overview:
Community
Amaoba-Ime is a village within the Oboro Province with a population of
approximately 6,500, which includes; men, women, youths, children and university
students . Amaoba-Ime area has predominately believers. Many of the residents are
idol worshippers. There are no Muslims living in Amaoba-Ime. Mostly, the
Christians and non-Christians get along well. There have been a few issues in the
dry season because some of the idol worshippers have tried to force the Christians
to contribute funds to purchase ‘sacrifices’ i.e. goats, fowls, etc. for the shrines
(idols) during the dry seasons. They complain that the entire community should
contribute to sacrificing to the shrine in an attempt to call down rain. Of course, the
Christians refuse. Otherwise, they mostly live in peace and Christians frequently
are able to share Christ with non-believers. The main road that runs through
Amaoba-Ime from Umudike is tarred and runs all the way to Ndoro.
Like other local areas there is no electric or running water in the majority of homes
or buildings. The standard of living is quite low with most of the people making
significantly less than #10, 000 (approx. #3.50 per day). The average family does
not have electricity or plumbing. Many people walk for several miles to get their
water. The most predominate industry is agriculture with businesses slowing
significantly during the farming season which runs from February-November.
Harvesting typically takes place during the last two months of farming season.

Travel is difficult as very few people have cars or trucks. Most people either walk
or ride motorcycles. Only the main road from Umudike to Amaoba-Ime is tarred.
All others are dirt. Traveling far is difficult and expensive. Most ride motorcycles,
even for long distances.
The community in Amaoba-Ime and surrounding is very friendly and hospitable.
They are very receptive to outsiders coming in and sharing Christ openly with non-
believers. When a believer publicly acknowledges Christ, they often lose
customers, friends and sometimes even family. However, this is not as big of an
issue for those living in DC Kura.
There is a market day in most communities every six days on a rotating basis. The
market is extensive and the main source of supplies for the local community.
Local Tailor/Seamstress Market:
There are many tailors in the region; however, Dorcas is currently the only
seamstress. The other seamstress very recently went out of business. This is a
unique opportunity for Dorcas to expand her business and become the leading
provider of women’s apparel and the ‘place to go’ for finishing work. Despite low
income levels, people continue to buy clothing out of necessity and cultural
tradition.
Despite the lower economic level, there are several times in the year when business
is difficult to keep up with. One time is, predictably, Christmas but also February
and March are busy periods for the seamstress due to ceremonies. Funerals also
serve as a busy period. The actual funeral is planned for (due to the cost) and
includes a week-long gathering for family and friends of the deceased. Thus there
is a funeral season. New outfits are quite often purchased for this event.
Customers:
Because Dorcas’ shop is right in the village, she has a lot of repeat customers and
people from her church as well as people passing her shop. Dorcas builds
relationships with her customers and treats them well, understanding that customer
service is a big part of her business success. She shares the Lord with non-believers
and often invites her non-Christian customers to church.
Most of her customers are local residents. Dorcas has marketed to the local school
through her friend’s connections as a teacher. The uniforms, although purchased by
the parents must all be purchased from the same place so that the fabric matches.
Dorcas sells to this target market also by speaking with the teachers who then
recommend her shop to the parents.
Competition:
The other seamstress in the area (Ogeh’s Shop ) is no longer in business and
Dorcas will have the entire village as the only women’s tailor. There are three
tailors and they all sell fabric but only for men. Dorcas will be the only shop that
sells women and children’s fabric. Men’s fabric is already available on market day
which is every six days
Pricing and Distribution:
The customers come to his shop to put in an order and get measured, and then
come back to pick up their orders depending on when they want it. Express orders
are #500 extra.
Name of Product or Service
Unit Price in Naira (#)
Fabric 1 per yard (organza) #300
Fabric 2 per yard (lace) #800
Fabric 3 per yard (satin) #350
Fabric 4 per yard (silk) #350
Fabric 5 per yard (cotton) #300
Sewing of gown #2000
Sewing of skirt and blouse #3000
Sewing of madam Blouse #2500
Sewing of children’s wear #1500
Finishing work #120
Price is determined by comparing what is being charged in surrounding towns.
Dorcas’ price is in line with other areas.

Promotion:
Dorcas has advertised on the local radio station that covers an area of three districts
for #3500 perday. Population is approximately 60,000. In the past, Dorcas had
experienced a large increase in business based on a one day advertisement. This
made many in the community aware of Dorcas’ shop. She plans to advertise again
when she makes more profit. Depending the results of the advertisement, she might
continue do so every few months.
Dorcas is also making samples to hang outside her shop. She will determine
whether or not to make a signpost based on the literacy of the people.
Financial
Startup Costs
Startup costs for the business consist of the following:
Naira (#)
Total Loan #400,000
Fabric Purchase #150,000
Sewing machine #25,000
Finishing Machine #50,000
Renting of shop #150,000
Other items #20,000
Total Start-up Expenses #395,000
Financial Plan:
All amounts are in Naira (#)
Year 1 2 3
Income:
Fabric 1 per yard 2,576 2,576 2,576
Fabric 2 per yard lace 2,080 1,928 1,928
Fabric 3 per yard piece 873 873 873
Sewing of gowns 1,768 1,768 1,768
Sewing of skirt & blouses 2,766 2,766 2,766
Sewing of madam blouses 600 600 600
Finishing work 336 370 406
Gross Sales 10,999 10,881 10,917
Expenses:
Cost of Goods Sold 4,421 4,291 4,295
Wages 0 0 0
Occupational Trauma (injury) tax @ 0.02% of wages 0 0 0
Revenue Tax @ 6.00% of gross sales 0 0 0
Transportation 360 360 330
Zippers 180 180 180
Thread 120 120 120
Buttons 60 60 60
Advertising 33 36 36
Miscellaneous expenses 120 120 120
Loan Payments 266,640 133,360
Total Expenses 6,374 5,711 5,141
Projected Cash Flow 11,570 11,876 11,985
Cash Profit 4,625 5,169 5,776
Cash Flow (Cumulative) 4,625 9,794 15,570
Loan Information
Loan to be paid back in 15 installments of #26,667 over a 1.25 year period. First
payment to be due at the end of the 3 month.
Naira (#)
Loan Amount (Principal) #400,000
One-time Service Fee Percentage 15.00%
Number of Years 1.25
Months before First Payment 2
Monthly Payment Amount #22,220
Total of all Payments #460,000
Total Service Fee Paid #60,000
Assumptions:
• During farming season (June, July, August, Sept) productivity and sales are
decreased to 60%.
• Dorcas and her apprentice currently have a max of 8 products per day with two
sewing machines, and this reduces to 4 in farming season.
• Assumes six day work week unless farming season.
• Will often be working by lantern at night.
• Assumes 30% gowns, 60% skirts and blouses, 10% madam blouses
• Sales and cost numbers were provided by business owner and checked with a
local tailor/seamstress for feasibility.
• Farming and harvest season is June-November; business is significantly reduced
during this period. Sale of fabric is reduced to 60% during June-November with
slight increase in November and December.
• Significant additional revenue potential in December, and the funeral period of
Jan-March
• The cost associated with tailoring/sewing is primarily the time to make the
product, so profit margin appears very high.

Action Plan:
Upon receipt of the loan the following steps should be taken quickly.
• Purchase sewing machine from Umuahia.
• Purchase finishing machine from Aba.
• Travel to Onitsha for the fabric purchase
• The above should be able to be accomplished within the 20 days from loan
receipt.
• Advertise on the radio to inform the community of the new selection of fabrics
and the finishing machine (ongoing).
The following should be discussed:
Encourage fabric & finishing machine sales to be set aside for loan repayment.
In addition, Dorcas should be saving for replacing/adding equipment.