BUSINESS PLAN/PROPOSAL

FOR

SUPPLYING AND DISTRIBUTION

OF

TEXT BOOKS TO SCHOOLS

PREPARED BY:

MR. MICHAEL UMOH

NO. VISION ROAD, NSUKARA OFFOT, UYO

TEL. 080742554845
EXECUTIVE SUMMARY

Our business name is Miko enterprises. We are suppliers and distributors of textbooks “ALL KINDS”
to Nursery/Primary and Secondary Schools, and we are located at Vision road, Nsukara Offot in Uyo
Local Government Area of Akwa Ibom State.

 Our target market includes: Government Primary & Secondary Schools; Missionary Primary &
Secondary Schools; Private Nursery/Primary Schools; and Private Secondary Schools including
tertiary institutions.
 The business will operate under the sole proprietorship, business structure which will be
managed by the business promoter, Mr Michael Umoh who has 4 years experience in books
publishing/distribution and supervised by a trusted personnel of the financier.
 Our vision is to become most reputable and fast growing books distributor in Akwa Ibom State
and our mission is to constantly distribute books (text books) to meet our clients need and
satisfaction.
 The required start up capital for our business will be five million naira (N5,000,000.00); four
million naira (N4,000,000.00) will be used to purchase stock, eight hundred thousand naira
(N800,000.00) will be used to smoothen our pre – operating activities while the balances of two
hundred thousand naira (N200,000.00) will serve as the initial operating expenses. The
business will be financed by owners equity of five million naira (N5,000,000.00).
BUSINESS OBJECTIVE
 Since our business is a seasonal business, we anticipate to achieve a sale turnover of One
Million, Eight hundred thousand naira (N1,800,000.00) a gross profit of One million two
hundred thousand naira (N1,200,000.00) and a net profit after tax of One million and eighty
thousand naira (N1,080,000.00) in our first year of commencement of services.
BUSINESS RISK
(a) Motor accident
(b) Theft and pilfering
(c) Fire outbreak
(d) Roof leakage
(e) Book worm

MITIGATION FACTOR
(a) We employ the service of experienced driver.
(b) Adequate stock control process shall be in place such that every theft/pilferage will be detected
with 6 hours. Any theft or pilferage traced to staff shall attract stringent punishment; we will
also participate in the Community Security Scheme and buy quality lock and burglary proof.
Above all, the business will undertake an insurance mortgage for the best mitigation.
(c) Switching off appliances when not in use and after use, training staff on how to use fire
extinguisher. Our insurance coverage will include insurance against fire outbreak and other
form of natural disaster.
(d) We will be sure our roof are well fix as well as windows and doors to prevent water.
(e) Pest control will be inform of fumigation.

Our business will benefit the promoter by providing an opportunity for self – employment and will
also bring him fulfilment. It will also create employment opportunity for youths in the community
which will reduce the level of unemployment and bring opportunity for personal income generation.
We will also contribute to state and national revenue through the payment of tax and other levies.
 CHAPTER 1 - BUSINESS OVERVIEW

1.1) Description of the business

Our business is distribution of textbooks to schools; nursery, primary and secondary schools,
and we will be located Use Offot in Uyo Local Government Area of Akwa Ibom State.

1.2) Vision statement: Our vision is to become most reputable and fast growing books
distributor in Akwa Ibom State and our mission is to constantly distribute books (text books)
to meet our clients need and satisfaction.

1.3) Mission statement: To become a leading school books distributor in Africa.

1.4) Business objectives:
Since our business is a seasonal business, we anticipate to achieve a sale turnover of One
Million, Eight hundred thousand naira (N1,800,000.00) a gross profit of One million two
hundred thousand naira (N1,200,000.00) and a net profit after tax of One million and eighty
thousand naira (N1,080,000.00) in our first year of commencement of services.
1.5) Critical success factors :
 Availability of capital.
 Availability of product at any point of time.
 Assured market.
 Good means of mobility for distribution.
 Managerial competence.
1.6) Value proposition:
 Free delivery for bulk purchase.
 Credit facility for alter sales payment.
1.7) Current status:
Our business is a startup business. Our proposed startup time is January 2020.
1.8) Legal requirement:
Legal requirement Budget Detail on frequency and
other information
Corporate affairs registration Already registered

1.9) Target market: Schools, Students and Pupils.

CHAPTER 2 – MARKETING STRATEGY

Advert/promotional Budget per annum (N) Details on frequency and
strategies justification of budget
Complimentary card 2,000 Per term
Bulk SMS 10,000 once
Total = N12,000

We will also employ other measures as personal contact, discounts, referrals, e.t.c to boost
our sales.
1.0) Distribution strategy:
We will contact our client through phone calls and sms, various orders will be taken which
will enable us to deliver our products at various sites. Product will be sold on wholesale with
discount. And our target is our client satisfaction.
1.1) Competitive analysis:
Name of competitors
Location
Products & services
Pricing strategy Penetration
Their uniqueness
Their other strength
Their weakness
 How long have they been existing
Text book distribution and supply
Penetration
Good client relationship & constant
availability
Good marketing/managerial skills
Newness
Startup

1.2) Price strategy:

Our proposed selling price strategy will be fix which is determined by the cost indication of
the product. However, we will maximize cost to sell about the prevailing market price.

CHAPTER 3 – RECORD/STOCK CONTROL PROCESS:

1.0) Record keeping documents:

S/N Books to be kept Reason

1 Day Book
2 Receipts
3 Cash book
4 Petty cash book
5 Inventory
For recording daily financial transaction
For evidence of the purchase of goods
For recording all business transaction
For recording day to day expenditure and small
amount
For recording the quantity of goods on hand
stock

1.3) Pre – operating activities:

Pre – operating activities Description/details Amount (N)
Renting of warehouse 2 years rent with agreement 400,000.00
Business registration & permit Yearly 10,000.00
Purchase of stock
Buying of delivery bus For distribution of the books 1,800,000.00
Insurance 5% per initial stock
Recruitment of staff
TOTAL =

CHAPTER 4 – OWNERSHIP OF THE BUSINESS

The business will be registered to ensure security of the business existence beyond the
founders and to be open to scruting by board members as thus propel growth. This structure
will help in pulling of funds by promoters to fund the business.
1.0) Profile of the promoters:
The business will be operate under a sole proprietorship business structure which will be
managed by the business promoter, Mr. Michael Umoh who has experience in Book Publishing
and Distribution.
1.1) Details of employee:
Designation Skills, qualification Function and
& experience acquired responsibility
Chief Executive Officer (CEO) Oversees the day to day
running of the business
Manager (general) (G/M) Manage strategy planning
Administrator Handle administrative
duties/auditing
Working days will be Monday – Friday. Work resumes at 8:00am and closes by 4:00pm daily.
We will observe national holidays.
1.2) Details of salary:
 Name Designation Monthly salary Annual salary
Staff 1 C.E.O
Staff 2 G/M
Staff 3 Administrator
Staff 4 Secretary
Staff 5 Driver
Staff 6 Office Asst./Store
keeper

CHAPTER 5 – FINANCIAL PLAN

1.3) Required startup capital estimated:

Items Amount Comment
Pre – operating expenses 800,000.00
Opening stock 4,000,000.00
Initial operating expenses 200,000
Total startup capital estimation 5,000,000.00

1.4) Source of capital:

The money needed will be derived from personal fund and from loan from financial institution.
Source of funds Amount %
Personal fund/equity 5,000,000.00 100%
Total funds sourced 5,000,000.00 100%

1.5) Business risk and mitigating factor.

(a) Business risk
(i) Motor accident
(ii) Theft and pilfering
(iii) Fire outbreak
(iv) Roof leakage
(v) Book worm

(b) Mitigating factor

(a) We employ the service of experienced rivers.
(b) Adequate stock control process shall be in place such that every theft/pilferage will
be detected with 6 hours. Any theft or pilferage traced to staff shall attract stringent
punishment; we will also participate in the Community Security Scheme and buy
quality lock and burglary proof. Above all, the business will undertake an insurance
mortgage for the best mitigation.
(c) Switching off appliances when not in use and after use, training staff on how to use
fire extinguisher. Our insurance coverage will include insurance against fire outbreak
and other form of natural disaster.
(d) We will be sure our roof are well fix as well as windows and doors to prevent water.
(e) Pest control will be inform of fumigation.

CONCLUSION: I believe that this business is viable and has potentials of creating a good profit
with return on investment.