1/12/2020

MINI BUSINESS PLAN

IIP INTERGRETED SERIVCE LTD

Prepared by: Mathias Egbe

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 mattyphy@yahoo.co.uk
 +234 803 896 0949

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Content

1. Business Description 2. Industry Overview

1. Personal Information 1. Sector Analysis
2. Business Details 2. Sub-sector Analysis
3. SWOT Analysis
4. Leadership Structure

3. Marketing and Sales 4. Financial Analysis

1. Competition 1. Key Assumptions
2. Advertising and Sales 2. Products and Services
3. Target Market 3. Financial Projections
4. Current Financing

5. Funding Requirement 6. Viability Summary

1. Proposed Loan 1. Profitability Ratios
2. Use of Funds 2. Viability Ratios
3. Weighted Average Gross Margin
4. Enterprise Value
5. Fund Repayment Ability

7. Conclusion
1. References
2. Photographs

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Business Description

Personal Information
Name: Other Name:
Mathias Egbe Owuna

Gender: Email:
Male mattyphy@yahoo.co.uk

Contact: Government issued ID:

0803 896 0949 Driver's License

Identification number: Address:

CAL23889AA56 T junction By Ikot Ansa, Calabar

Bank Verification Number:

22149295329

Educational qualification:

Institution name: Qualification: Course:

Cross River University of Bsc Physics
Technology

Date awarded: Certificates proof:

11/22/2012 Yes

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Business Details
Name: Business age:
IIP Intergreted Serivce Ltd 5 Years

Address:
T junction by ikot ansa, calabar

Business description:
I choose to go into it because, today a common man in nigeria can use lubricate oil for their machines engine
and vechiles

USP: Our Products/Services

1. Will not be better than the competitor's product but will meet a current market need
2. Will be of superior quality
3. has no real competitor in the market
4. Will offer more choice to the customers
5. Will be priced lower than the market price

SWOT Analysis
Strengths Weaknesses

High barriers to entry. Competitors can offer similar products quickly.

Highly experienced Owner-Operator. High transportation cost.

Ability to sell products online. Limited flexibility in pricing.

Opportunities Threats

Ability to develop additional stores Changes in regulation can impact the business.

Development of proprietary product. Products are already sold by major competitors.

Continued expansion for online sales Increase in price inputs can cause upward pricing

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Leadership Structure
Details of owners of the business

# Name Shareholding in %

1 Mathias Egbe 100

100.00%
100.00%

Mathias E gbe

Details of managers of the business

# Name Area of Responsibility

1 Bassey Obang Obeten Administrator

2 Kenneth Patrick Eno Sale Manager

3 Blessings David Okora Generator man

4 Anietie Bassey Udoh Security

5 Grace Bassey Jhon Cleaner

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Industry Overview

Sub-Sector Analysis -
Liquefied Petroleum Gas Refilling Plant
Five forces

Bargaining Bargaining
Power of Power of
Customers Suppliers
LOW
5 HIGH

FORCES
Industry Threat of
Rivalry Substitution
LOW MEDIUM
Threat of New
Entrant
LOW

General
Liquefied Petroleum Gas (LPG) is a combination of flammable hydrocarbon fuel gases used for cooking,

vehicles, and machinery. It has a composition of 40% propane and 60% butane. LPG is stored in steel

vessels ranging from small barbeque gas bottles to larger gas cylinders and tanks. Nigeria ranks 9th globally

in terms of gas reserves. The value of the global LPG market was estimated at USD 151.89 billion in 2018 and

is expected to grow at a CAGR of 4.53% and reach USD 198.14 million by 2024. The Nigerian oil and gas

sector accounted for 9.77% of the GDP in Q3 of 2019. Major Nigerian LPG refilling plant companies include:

Gas Terminalling, Techno Oil, Banner Energy, and Nigeria Industrial and Domestic Gas (NIDOGAS) amongst

others

Trends
Nigeria is currently facing an epidemic of expired LPG cylinders. According to the Nigerian LPG Association

(NLPGA), 90% of LPG in the country is contained in gas cylinders that are more than 30 years old and need

replacing. This presents a major opportunity to cylinder manufacturers and LPG suppliers in order to ensure

the continued safety of all LPG users.

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Demand
Demand for LPG in Nigeria is driven by its usage in the manufacturing and agriculture industries, as well as

household usage. However, despite being a clean fuel, only 5% of residences in the nation use LPG. This is

partly due to endemic poor housing conditions, as well as the availability of alternative sources of energy. As

a result of latent consumer demand, and a lack of stability in supply caused by infrastructure, investment in

upgrading facilities is needed to support the production and distribution of LPG.

Regulatory considerations
Businesses in this industry must register with the Corporate Affairs Commission (CAC) and conform to the

regulations of the Standards Organisation of Nigeria (SON), responsible for checking the integrity of cylinders

in circulation every five years. The Department of Petroleum Resources (DPR) also ensures compliance with

petroleum laws, regulations and guidelines in the oil and gas industry and the Nigerian Association of

Liquefied Petroleum Gas Marketers (NALPGAM).

Risks
The LPG industry is plagued with the risks of unsafe operations and inadequate bulk storage facilities that

can lead to fatal accidents, and discourage existing and potential users of LPG. Risk assessments and safety

guidelines should be incorporated into the operations of the business in order to mitigate these risks.

* So u rces: Natio n al B u reau o f Statistics ( NB S) , 2 0 1 9 ; Pressread er 2 0 1 8

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Marketing And Sales

Competition
Key competitors:

Factors Competitor 1

Products Oil

Name of Competing Product lubriccate

Name of Competitor Organization Local oil services

Price of the individual’s/ company’s product/ service( ₦ ) 19250

Price of Competitor product ( ₦ ) 20500

Region of Competitor Operations Cross River

LGA of Competitor Operations Calabar Municipal

Difference from your product Price

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Advertising And Sales
Our Advertisment:
1. Radio
2. Television
3. Print Media
4. Billboards
5. Mobile marketing
6. Social media

Sales Strategy:
1. Direct sales and marketing by you or your employees
2. Direct online sales with delivery
3. Online sales via third-party e-commerce platforms
4. Direct sales through your own outlets
5. Indirect sales through distributors, agents, or other shops

Target Market
Target Customers: Businesses, Individuals

All 30-34,45-49,50-54,25-29,55-59


Gender Age Category

119,349 23%
Customer population by location Customer proportion by age group

Target Location
States: Cross River LGA: Calabar Municipal,Calabar South

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Financial Analysis

Key Assumptions
Assets:

Land & Building

Purchase price ( ₦ ): 1,500,000
Year of accuistion: 2020
Lifespan (years): 5

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Products And Services
Product list:

Product Production Selling Wholesale price of Retail price of

# name quantity quantity product ( ₦ ) product ( ₦ )

Lubricate 5,796,000
1 483,000 Litres 20,000 20,500
oil Litres

Frequency of increase in Product/Service price: Selling Price Growth Rate:

Annually 5%

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Financial Projections
Projected profit ( ₦ ):
750000M

599067M
599067M

500000M 475450M
475450M

377341M
377341M
299477M
299477M
237680M
237680M
250000M
188635M
188635M
149710M
149710M
118818M
118818M
₦) ( t n uo mA

1188M
1188M 1497M
1497M 1886M
1886M 2376M
2376M 2994M
2994M 3773M
3773M 4754M
4754M 5990M
5990M
0

-1 1 7 6 3 0 M
-117630M
-1 4 8 2 1 4 M
-148214M
-1 8 6 7 5 0 M
-186750M
-250000M
-2 3 5 3 0 4 M
-235304M
-2 9 6 4 8 3 M
-296483M
-3 7 3 5 6 9 M
-373569M

-500000M -4 7 0 6 9 7 M
-470697M

-5 9 3 0 7 8 M
-593078M

-750000M
Year 1 Year 2 Year 3 Year 4 Year 5 y ear 6 y ear 7 7

Net R evenue Cost of r evenue Gr oss pr ofit

Projected operating expenses ( ₦ ):

4M

4M
4M

4M
3M
3M

3M 3M
3M

3M
3M
3M 2M
2M
2M
2M
2M
2M
₦) ( - s es n epx E

2M 1M
2M
2M

2M
2M 1M

2M 1M
1M
1M
1M 1M

1000k
1M
1M
1M
1M
1M
1M
500k 963k 1M

0 0 0 0 0 0 0 0
0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

S alar ies Gener al and Administr ation Utility costs R ent Other s

* It is a ssume d tha t.
1. COS growth ra te is e qua l to he re ve nue growth ra te .
2. Pric e a nd qua ntity growth ra te s a re e ffe c te d on a n a nnua l ba sic (whe re a pplic a ble )

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Financial indicators ( ₦ ):

Ye a r
# S t a t e me nt Ye a r 1 Ye a r 2 Ye a r 3 Ye a r 4 Ye a r 5 Ye a r 6 Ye a r 7 8

EBI TDA ( Gr oss P r ofit - Ope r a tin g

1 1,186,077,000 1,494,793,500 1,883,809,938 2,374,007,663 2,991,697,510 3,770,031,504 4,750,781,598
Expe n se s)

2 DEP REC I ATI ON -1 , 0 7 6 , 6 6 6 -1 , 0 7 6 , 6 6 6 -1 , 0 7 6 , 6 6 6 -3 9 0 , 0 0 0 -3 7 0 , 0 0 0

3 EBI T 1,185,000,334 1,493,716,834 1,882,733,272 2,373,617,663 2,991,327,510 3,770,031,504 4,750,781,598

4 I N TERES T I N C OME / ( EXP EN S E) -2 5 9 , 3 0 0 -2 2 9 , 2 3 4 -1 9 6 , 3 6 9 -1 6 0 , 4 4 7 -1 2 1 , 1 7 8 -7 8 , 2 5 4 -3 1 , 3 3 6

5 N ET EA RN I N GS BEFORE TA XES 1,184,741,034 1,493,487,600 1,882,536,903 2,373,457,216 2,991,206,332 3,769,953,250 4,750,750,262

6 TA XES -3 5 5 , 4 2 2 , 3 1 0 -4 4 8 , 0 4 6 , 2 8 0 -5 6 4 , 7 6 1 , 0 7 1 -7 1 2 , 0 3 7 , 1 6 5 -8 9 7 , 3 6 1 , 9 0 0 -1 , 1 3 0 , 9 8 5 , 9 7 5 -1 , 4 2 5 , 2 2 5 , 0 7 9

7 N E T E ARN I N GS 829,318,724 1,045,441,320 1,317,775,832 1,661,420,051 2,093,844,432 2,638,967,275 3,325,525,183

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Balance Sheet ( ₦ ):
70000M

63232M
63232M

60000M

17104M

49523M
49523M
50000M

12913M
40000M 38644M
38644M
₦) ( t n uo mA

9588M
30010M
30010M 63232M
30000M

6949M
23158M
23158M 49523M
46128M

20000M 4855M
17721M
17721M 38644M
36609M
3194M
13406M
13406M 30010M 29056M
9982M
9 982M 1876M
23158M 23061M
10000M 830M 17721M
13406M
9982M

0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Assets E quity Liabilities

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 Cashflows Statement:

Operations ( ₦ ): Financing Activities ( ₦ ):

16000M 3M

2M
2M

14000M 13562M
13562M 2M

12000M 2M

10000M 1M
2M
) ( - t n uo mA

) ( t n uo mA
₦

₦
8000M 1000k

13562M

6000M 500k

0 0
4000M 3459M
3459M 0

2745M
2745M -386k -462k
-551k
2178M
2 178M
- 3 5 4 k -386k
-354k -3 8 6 k
2000M 1728M
1728M -500k - 4 2 2 k -462k
-422k
3459M -4 6 2 k
- 5 0 5 k -551k
-505k -5 5 1 k
1088M
1088M
863M
8 63M 2178M
127M
127M 1371M
0 -1000k
la

la
1

8
t

t
ra

ra

ra

ra

ra

ra

ra

ra

ra
oT

oT
ae

ae

ae

ae

ae
eY

eY

eY

eY

eY

eY

eY

eY

eY
Y

Oper ations Financing Activities

Investing Activities ( ₦ ): Net Cash Change ( ₦ ):

0 16000M
0 0 0 0 0 0 0

-250k
14000M 13560M
13560M

-500k

12000M
-750k

-1000k 10000M
) ( t n uo mA

) ( t n uo mA
₦

-2M -3M -3M

8000M
-2M
13560M

-2M 6000M

-2M
4000M 3459M
3459M
2744M
2744M
-3M
2177M
2177M
2000M 1728M
1 728M
3459M
-3M 1088M
1088M
-3 M
-3M -3 M
-3M 863M
8 63M 2177M
127M
127M 1371M
-3M 0
la

la
1

8
to

to
ra

ra

ra

ra

ra

ra

ra

ra

ra

ra

ra

ra

ra

ra
T

T
eY

eY

eY

eY

eY

eY

eY

eY

eY

eY

eY

eY

eY

eY

I nvesting Activities Net Cash Change

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Funding Requirement

Proposed Loan
Loan required: Loan duration:

(₦ )3,000,000 7 Years
Purpose:

Expand an existing business

Loan start year:

2020

Loan Repayment
Repayment mode:

Quarterly instalment payments

Loan moratorium:

No, the business can start to repay once expansion takes place

Use of Funds
Funds Allocation

# Use % Allocation

1 Purchase machinery / equipment 35

2 Fund working capital / operations 30

3 Fund construction / facility renovation 35

New Machinery/Equipment

# Name Use of equipment No. of units Lifespan Unit cost Total

1 Keke Vehicle Motor Conveying of goods 1 3 1,000,000 1,000,000

2 Display Rage Advertise the product 4 5 87,500 350,000

3 Oil storage drums Storaging of oils 4 4 20,000 80,000

4 Storage container Advertise the product 4 3 15,000 60,000

Fairly Used Machinery/Equipment

# Name Use of equipment No. of units Unit cost Total

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 # Name Use of equipment No. of units Unit cost Total

1 Keke Vehicle Motor Conveying of goods 1 1,000,000 1,000,000

Working Capital

# Item Description/Purpose Unit cost Quantity Total Cost

1 Management of staff Wages 1,140,000 1 1,140,000

2 Business Asset Asset 1,500,000 1 1,500,000

3 Equipment Cost 1,490,000 1 1,490,000

4 Production cost Sales 80,250 1 80,250

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Viability Summary

Profitability Ratios

Ye a r 1 Ye a r 2 Ye a r 3 Ye a r 4 Ye a r 5 Ye a r 6 Ye a r 7 Ye a r 8

Gr oss P r ofit % 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

EBI TDA ( Gr oss P r ofit - Ope r a tin g

1,186,077,000 1,494,793,500 1,883,809,938 2,374,007,663 2,991,697,510 3,770,031,504 4,750,781,598 5,986,580,908
Expe n se s)

Viability Ratios

Values Decision

Internal Rate of Return (IRR) 100% Positive

Net Present Value (NPV) 6,477,771,375.39 Positive

Weighted Average Gross Margin : 1.00 %

Enterprise Value : ₦ 6,454,596,578.05

Fund Repayment Ability

Ye a r 0 Ye a r 1 Ye a r 2 Ye a r 3 Ye a r 4 Ye a r 5 Ye a r 6 Ye a r 7

De bt S e r vic e C ove r a ge ( DS C R) 2,036.88 2,567.04 3,235.11 4,076.92 5,137.70 6,474.36 8,158.62

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Conclusion

References

No Full Name Contact Address

1 Ale Bassey E. 08033931454 Ikot Ishie Road 128

2 Fabin Bassey Njah 08134640688 Ikot Ansa By T. Junction 153

Photographs

Photograph of business owner

Photograph of business
operations

Photograph of business operations

Photograph of business
operations

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IIP INTERGRETED SERIVCE LTD

T junction By Ikot Ansa, Calabar

 mattyphy@yahoo.co.uk
 +234 803 896 0949

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