Rita Timothy, Sewing Materials and

Accessories Shop
October 2011

Name: Rita Timothy

Location: Kulkpene village, northern Ghana

Business Name and Location: Jehovah Jireh, Kulkpene

Executive Summary
Business Description
Jehovah Jireh is the shop of Rita and her husband, Timothy. Timothy is a tailor and Rita uses
the shop to sell sewing materials and accessories. They selected the name Jehovah Jireh
because of the story of Abraham and Isaac. When God provides a sacrifice to replace Isaac,
Abraham responds by saying “God will provide”, or Jehovah Jireh.

Jehovah Jireh is located in Kulkpene, a small village outside of Yendi. Rita’s shop supplies the
materials and accessories needed for all of the tailors in her community and surrounding
villages. Rita is the only seller of these items in the surrounding villages and has no competition.
Rita would like to obtain a loan to purchase her supplies in bulk and fix the roof for her shop.
Currently, she purchases her products on an item by item basis. By purchasing these materials
in bulk she could reduce the number of trips that she must make to the market, provide her
customers with the materials that they ask for, and sell her products at markets outside of her
local community. This would also allow her to reduce travel and freight costs that she must pay
when purchasing the materials for her shop. Currently, Rita and Timothy are operating out of
their home because the roof on their shop is leaking and damaging some of their items for sale.
Their shop is located along the main road between Tamale and Yendi.

Kingdom Impact
Rita is one of a few women in her village who can read, so she spends her idle time in her shop
reading the Bible. When customers come into her shop, they ask her what she is reading and
she tells them about Jesus and read scripture to them.

Investment Required
The total investment needed for this business is 1,378 GHS, or $919 USD. This amount includes
100 GHS for materials to fix the roof of her shop and 1,278 GHS to purchase additional sewing
materials.
Business Overview
Business Description
Products and Services

Jehovah Jireh is the main supplier of sewing materials and accessories between Tamale and
Yendi. The store provides everything from zippers and thread to sewing handles and machine
oil. Tailors can purchase items on an as needed basis from the shop or can purchase items in
larger quantities during market days or at the weekly Association meetings, a gathering of all
the local tailors and apprentices.

The location of the store is ideal as it is right next to the main road between Yendi and Tamale
in the community of Kulkpene. Many people drive by Jehovah Jireh every day and stop by
when they see the items displayed. This allows Rita to get drive thru traffic as well as people
from the village and surrounding communities. Rita’s store is conveniently located for the
tailors, so that they do not have to travel to Yendi or Tamale to get sewing supplies.

Currently, Rita purchases as many items as she can, but she is unable to purchase the full
amount of each item needed to supply her customers. This requires her to travel to market
weekly to restock on goods that she has sold out of. She would like to carry each item in all
colors.

Purchasing the items in bulk would allow her to increase revenues and reduce costs. She would
increase revenue in three ways. First, she can purchase each item (i.e. lining, zipper, thread,
etc) in all available colors so that she has the appropriate materials on hand for any customer.
Second, bulk purchases would give her enough materials so that she could send a portion of her
items to market each week. At the present time, she is unable to do this because she cannot
send a large enough quantity to market for it to be cost effective and still retain the items
needed in her shop for her customers. Third, Rita and her husband attend weekly Association
meetings, a meeting in which 300 of the local tailors and apprentices attend. After the
meetings she will make her goods available for purchase.

Purchasing the items in bulk will also help her to reduce the transportation and freight cost. A
trip to the market is approximately 4 GHS and upon making the return trip, Rita must pay a fee
based on the amount of goods she returns with. This combined cost can approach 10 GHS per
trip.

Risks and Opportunities

The most significant risk is that the sales projections and cost assumptions for new products
prove to be inaccurate. If the sales projections are too optimistic, the loan amount would be
much too high for the support. Although clothing is a necessary item, new clothing and thus
new sewing materials are discretionary expenses. Should the community experience a drought
or other hardships, many of the villagers will make do with the items that they currently own.
Also, Rita’s sales projections depend to a high degree on her ability to sell her items at market.
She has had success doing this in the past; however, on a much smaller scale. Rita must also be
careful that no one tries to enter the market and compete against her. Currently, there are no
barriers to entry.

Rita’s greatest opportunity with a loan is the ability to enter a new market by selling her items
at local markets. Many tailors purchase sewing accessories at a market near their community.
Rita can travel to those markets that are not near her home and establish a new customer base
among those tailors that are unable to travel to her home. An additional opportunity is the
increased selection that Rita will carry in her shop. Currently, she is unable to carry every item
in every color. By buying in bulk with her loan, she will be able to purchase all the items that
her customers request. Lastly, by replacing the roof on her shop, she will be visible to those
passing her shop which is located along the main road between Yendi and Tamale.

Biography of Candidate
Rita Timothy is the wife of Timothy, a tailor, farmer, and pastor in Kulkpene. Timothy has had
formal education and can read and write English. Rita is one of the few women in the village
who can read in her own language. They have two children together and live in Kulkpene. Rita
grew up as the daughter of an idol worshipping priest. However, she eventually came to realize
that she didn’t want to make sacrifices to an idol because she believes Christ paid for her sins
with his sacrifice on the cross.

Company Structure
The business is a Sole Proprietorship with no government or legal issues. Rita and Timothy own their
shop and use it to sell both her items and Timothy’s clothes through this tailoring business.
Marketing
Industry and Market Overview
Market

Tamale is the largest city in the Northern Region of Ghana, and Yendi is the next largest town,
situated approximately 150km east of Tamale. A paved road (1.5 hour drive) connects Tamale
and Yendi and runs through a series of small villages along the way, one of which is Kulkpene.
Oftentimes, the locals from these villages do not have easy access to the market in Yendi town
to buy things they need.

Rita fills this need by being the only carrier of sewing accessories outside of the towns of
Tamale and Yendi. If a seamstress or tailor were to need additional sewing accessories and it
was not a market day, they would have to travel to Yendi, Tamale, or Rita’s store, Jehovah Jireh.
Because there are only a few places for someone to purchase sewing accessories, Rita sells out
of products quite often and will make several trips to the market each week to keep stock of
the items needed by her customers.

Rita estimates that there are ten or more tailors and seamstresses in the community of
Kulkpene and more than 80 in the surrounding communities. There are an additional 150
apprentices estimated to be in the surrounding community, too.

As mentioned previously, Jehovah Jireh is located along the main road to Tamale to Yendi an
ideal location for the shop. The markets that Rita plans to sell her products at are held twice
weekly in different communities each month. Also, the Association meetings that Rita’s
husband must attend are held bi-weekly for tailors and bi-weekly for apprentices. Rita will sell
her products at these meetings each month which will expand the breadth of her customer
base.

Customers
Rita’s customers are tailors and apprentices. She has customers from all around as her shop is
visible to tailors and seamstresses from other villages traveling along the main road. Her shop
relieves tailors from making the long trip to Tamale or Yendi to get supplies. At times though,
Rita doesn’t have the appropriate materials for her tailors. By purchasing her materials in bulk
instead of hand-selecting items, she can be certain to select all the zipper colors and designs
that her clients need. When returning from her trip to Tamale, she will often go to the tailors in
her community to show them the new materials that she has so that they can purchase what
they need.

Not only does Rita provide sewing accessories, she also provides replacement parts and tools
such as sewing machine handles, machine oil, and scissors. A tailor can purchase anything they
might need at her store.
Rita spends her spare time talking with locals in her community, singing, and reading the Bible.
Kulkpene is a community that has many Muslims and Traditionalists, and many people that stop
as they are passing by are non-Christians. By reading the Bible in her shop, it often invites the
opportunity to discuss Jesus with people in her community and those passing by.

Competition
Rita is the only person in her community and surrounding communities that provides sewing
accessories. Without her shop, a tailor must wait for market day or make the long journey to
Tamale or Yendi to get sewing materials.

Pricing and Distribution

Customers purchase their items from Rita on an as needed basis. Items are purchased by Rita
in bulk but are sold individually. The customers will come into her shop and hand-select their
items. The first eight products and prices are listed below, as well as a weighted average unit
price of the other products. Rita sets her prices by evaluating the market. For a complete list of
her products, see Rita’s financials.

Unit Price
Name of Product or Service in cedis
Polyester 1.20
Zipper 8 0.10
Zipper 14 0.10
Zipper 16 0.10
Signing Z14 0.35
Signing Z16 0.35
Invisible Z8 0.20
Invisible Z14 0.20
Others 3.56

Promotion
Rita promotes her business in three ways. First, she has built a shop that sits right next to the
road way. She would like to repair the roof of her shop so that it does not leak when it rains.
Rita services the tailors in her community, surrounding communities, and those passing by on
the main road. Second, Rita will travel to sell her products at local markets. Markets are held
in different communities twice weekly each week of the month. This is where most tailors will
purchase their materials if they do not live in Kulkpene. Lastly, she will grow her customer base
by selling her supplies at the Association meetings that the tailors and apprentices attend.
Financial
Startup Costs

Startup cost to expand the business is for additional sewing accessories and materials and for
material to fix the shop.

One-Time and Startup Items cedis $

Tools and Equipment (see below) 100 $67
Equipment Installation & Prep. $0
Starting Inventory 1,278 $852
Veterianary Fees $0
Advance Rent $0
Other Fees (legal, etc.) $0
Licenses and Permits $0
Initial Advertising & Promotion $0
Operating Cash $0

Total Start-up Expenses 1,378 $919

Investment Required

Investment required is 1,378 GHS, which is equivalent to $919 USD.

Financial Plan

Assumptions

• October to May is high season

• Assumes six day work week unless farming season
• Sales and cost numbers were provided by business owner
• Significant additional revenue potential in December, and the funeral period of January
through March
Projected Income Statement
Jehovah Jireh (all amounts are in $)
Year 1 2 3
Incom e
Polyester $576.00 $576.00 $576.00
Zipper 8 $172.80 $172.80 $172.80
Zipper 14 $134.40 $134.40 $134.40
Zipper 16 $96.00 $96.00 $96.00
Signing Z14 $336.00 $336.00 $336.00
Signing Z16 $448.00 $448.00 $448.00
Invisible Z8 $192.00 $192.00 $192.00
Invisible Z14 $192.00 $192.00 $192.00
Others $7,653.20 $7,653.20 $7,653.20
Gross Sales $9,800.40 $9,800.40 $9,800.40

Expenses
Cost of Goods Sold $4,471.60 $4,471.60 $4,471.60
Wages $40.00 $40.00 $40.00
Transportation (4GHS for trip & 7GHS f or load) $88.00 $88.00 $88.00
Delivery (0.50GHS per trip f rom Tamale) $4.00 $4.00 $4.00
Loan Payments $1,056.67 $0.00 $0.00
Total Expenses $5,660.27 $4,603.60 $4,603.60

Projected Cash Flow

Cash Profit $4,140.13 $5,196.80 $5,196.80
Loan Proceeds $918.67
Start-up Costs $918.67
Cash Flow (Cum ulative) $4,140.13 $9,336.93 $14,533.73

Financial Investment Required

Cedis $
Loan Amount (Principal) 1,378 $918.67
One-time Service Fee Percentage 15.00%
Number of Years 0.75
Months before First Payment 1
Monthly Payment Amount 176 $117.33

Total of all Payments 1,585 $1,056.67

Total Service Fee Paid 207 $138.00

Loan to be paid back in 9 monthly installments of 176 GHS, or $117.33 USD, over a 9 month period. First
payment to be due at the end of the 2nd month.
Action Plan
Upon receipt of the loan the following steps should be taken quickly:

• Rita purchases all of her products from Tamale. She has to take a bus to Tamale and she
could buy all of her materials in one trip.
• It would take Timothy two days to purchase the material and fix the roof.
• Upon purchasing her items she would make an announcement at the next Association
meeting. There are approximately 300 tailors in the surrounding villages and Yendi who
go to this meeting. Meetings are held bi-weekly on Saturday, twice for master tailors
and twice for apprentices.