SDD UNIVERSITY OF BUSINESS AND INTEGRATED DEVELOPMENT STUDIES-WA

SCHOOL OF BUSINESS

DEPARTMENT OF MANAGENT STUDIES

COURSE TITLE: FUNDAMENTALS OF ENTERPRENURSHIP

COURSE CODE: DBS 206

STUDENT ID: UD0152921

DATE: 15TH JULY, 2022

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 BUSINESS PLAN

Grass Wood Furniture and Cane Crafting Facility

Grass Wood Furniture and Cane Crafting Facility

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 BUSINESS INTRODUCTION

 Name of Business:

BAMBOO FURNITURE & CANE CRAFTING

 Address:

Office: Wasa Akropong

Factory: Wasa Akropong

 Names and Address of Principals

 Thomas Mensah: Wasa Akropong
 Francis Amoah: Akuapim
 Addae Clinton: Dunkwa-on-Offin
 Nature of Business:
Grass Wood Furniture and Cane Crafting Facility

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 ACKNOWLADGEMENT
By enriching the beauty and tradition while serving our economic demands, this report on the
bamboo furniture and cane making gave us a new perspective on the opportunities in Wasa
Akropong. This has been a terrific source of information for us as we investigate a unique but
traditional aspect of the country's art and compare it to the contemporary style that we support.
Many people worked hard and did their best to contribute to this report, giving it voice. But it is
our great honor to express our gratitude to our respective Hon. Nicholas Amankwa for his wise
counsel and assistance in providing us with a location to set up the plant.
(II) EXECUTIVE SUMMARY

Economic growth and agriculture go hand in hand.The Board of Directors is the owner of Grass
Wood Furniture & Cane crafting Facility. Our invested capital is GH₡11, 000,00. Net profit
distributed according to share capital, in our project we distribute profit 16% for Managing Director,
and 14% for each entrepreneur. The corporation will operate to produce luxurious furniture & cane
crafting in our country by supplying better product. Traditional technology and production process
are applied. In production, machineries are bought from our country. We use raw material as
bamboo & cane which we can collect easily from different part of our country. Our estimated raw
material cost for the five years is GH₡18,000. Labour cost GH₡12,800, Utility (water, gas,
electricity) GH₡40,720 project overhead cost GH₡8571.

Furniture made of grass wood and cane manufacturing facilities place a strong emphasis on timely
delivery of goods and efficient distribution. By setting up sales depots in its target geographical
sectors, it keeps deliveries running continuously. By assessing the internal and external
environments, the project's current and potential markets are determined. Based on attributes like
wealth, social status, and user behavior, we divide the market into several segments. People in the
mid- to upper-income bracket are primarily who we target. Through advertising and dealers, we
will introduce our goods. Our projected cost for the advertisement is GHC $25,000 Furniture made
of grass wood and cane that is produced in factories will provide as much profit as possible for their
owners each year, which significantly boosts GDP. Our project's debt to equity ratio is 60%: 40%.
In this venture, debt accounts for 60%. The Amenfiman Rural Bank is the bank we've chosen.

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Finally, the project is anticipated to uphold its social duty in a variety of ways, including by planting
trees & generating jobs.

OBJECTIVES AND SCOPE

We were motivated to research the subjects and be ready for the endeavor by certain fundamental
goals. These are what they are:

Project Purpose:

to exotically bring bamboo furniture and cane crafts to Wasa Akropong and the rest of the
globe.
to lessen the dependency on wood from forests.
to learn about the foundation of a new firm in a realistic way.
to open up a job opportunity
to effectively use our side crops.
To foster Pakistan's future growth

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 INDUSTRY ANALYSIS

(a) Future outlook and trends:

Vision is an exercise in thinking carefully about where a company needs to head to be successful.
It involves selecting the market arenas in which to participate, putting the company on a strategic
path, and making a commitment to follow the path. Managers cannot function effectively as either
leaders or strategy makers without a future-oriented concept of the business. A vision statement
portrays a company’s future business scope. It defines “Where we are going?”
The vision of GRASS WOOD FURNITURE AND CANE CRAFTING FACILITY is to be the one to
introduced Bamboo furniture and Cane crafting all over WASA AKROPONG and to help greenhouse
effect by helping the forest.
(b) Analysis of competitors
Our company is completely new so we need time to reach the level from where we can compete
our competitor. In our position is very strong due to good management system. Our main
competitors are the Wooden Furniture and Steel furniture. So, it is very difficult to establish and
gain popularity in this field. We act as market challenger and try to obtain the market leadership.
Our motto is to serve the people at a low cost and capture the market. We hope very soon our
product will be accepted by the customer.

(c) Market segmentation

Three types of people live in our society upper class, middle class and lower middle class. To
recognize customer differences, we segment our product in demographic basis.

Income
Income does not always predict the best customer for a given product. Middle class people prefer
to get product at a lower price.

Social class has a strong influence on preference in cars. Availability of our product helps to
fulfill their demand.

Behavioral
We divide our segment based on customer benefit & use.

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 Benefit

We provide our product at low cost which they seek.

Uses

We will focus on the potential users.

We segmented the market on the basis of:

• Top level segment

• Mid-level segment
(d) Industry and Market Forecasts
In our country there is a large present & potential market of bamboo-based products. The current
firms in the industry are operating profitably. Main characteristics of this market can be
summarized as follows:

• Never ending demand

• Small number of competitors
• High consumption growth
• Minimum price elasticity
• Low threat of substitute
• Easy reach of distribution channel

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 Description of venture
The economy of Pakistan is agriculture based and rice, wheat, jute, tea, sugarcane and tobacco are
its major crops. Bamboo and cane are measured as the side crops of our country. In a development
country like Pakistan non-wood forest product plays a vital role in the economic and socio-political
areas of the country.
(a) Product:
The nature of the product is furniture and art pieces for decoration. Among furniture the
concentrated items are
1. Chair
2. Bed
3. Sofa
4. Table
5. Easy chair

(b) Services
We follow Job based production and for that reason the category of our product always comes
from more than one variety. The purpose is to provide the people with the unique set of products
for their use, and thereby making it a luxurious product for our customers. Thought furniture is our
prime concentration but we find it very efficient to use the scrap portion to create different types
of showpieces.
(c) Size of business:
The structure of the layout holds an office space, warehouse and a work station. They are all within
the layout of the facility. The total space for the facility is 7200” square feet.
(d) Office equipment and personnel
In the sphere of bamboo and cane works simple and inexpensive used throughout the state. The
essential tools required for bamboo craft consists of a (bill-hook), a knife and a ‘jak’ (‘v’ shaped
wooden frame). In manufacturing cane products also, and knives are mainly used, and the furniture
making purpose uses a few saws, hammers, pliers and pincers in addition to daos and knives. A
few more hand tools are found to be employed in the manufacture of bamboo umbrella handles.

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 The tools and implements used in the craft are ‘(bending frame), (sharp and pointed carving blade),
files, saws, knives, blowpipes, tongs, oven, etc.

(e) Background of entrepreneurs

Name Age Qualification Institution

THOMAS MENSAH 27 BCOM (Finance) UGBS

ADDAE CLINTON 23 BSC (Accounting) KNUST

FRANCIS AMOAH 25 BCOM (Marketing) UDS

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 PRODUCTION PLAN
(a) Manufacturing process

• Bamboo and Cane treatment Process

Protection of Bamboo Plantations

The common insect pests of standing bamboo are defoliators, bamboo stem beetles, weevil borers,
sap suckers and etc.

Defoliators can be controlled by spraying with 0.2% fenitrothion or 0.1% carbaryl in water with a
"sticker". Silvicultural controls work better with weevils, while sap suckers can be controlled by
spraying kerosene oil in soap emulsion or folian spray with 0.04% dimacron/ rogor or 0.2%
fenitrothion.

Dangers from fungal attacks are low in plantations and vigilance is necessary during normal
silvicultural practices in the event that some protection/control is needed.

Dying process
Green bamboos may contain l00-150% moisture content, depending on the species, area of growth
and felling season. In addition, bamboos possess hygroscopic materials in the parenchyma and,
therefore, take a longer time to dry compared with wood of similar density. The liability to
biological degradation and to deformation owing to excessive shrinkage (which occurs even above
the fiber saturation point) necessitates quick drying of bamboo.

Kiln Drying

At the present level of drying technology, kiln drying of round bamboos is not feasible. Even under
mild drying conditions, higher temperatures enhance the incidence of cracking and collapseSplit
bamboos can, however, be kiln dried.

Air Drying
Air drying takes 6-12 weeks, depending on the initial moisture content and wall thickness.
Collapse may be a major problem in some species, owing to excessive and non-uniform shrink-
age of the Culm. However, problems are mostly seen in drying of immature culms. It is
recommended that only mature culms are used

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Split bamboos do not pose any problems in air drying and can be dried even in the open sun. Split
bamboos standing upright dry faster than horizontal stacking. Round bamboos can also be dried
standing upright or in stacks, using bamboo crossers of appropriate diameter.

Manufacturing and Service cost

Buildings GH₡1,000,000

Employee and Labor cost GH₡ 794,800

Raw materials GH₡118,000

Utility GH₡56000

Utility Electricity (15000unit X GH₡4.02) GH₡60,300

Water GH₡53400

Gas GH₡5400

The given costs are for estimated for the three years.

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 (b) Physical plant
Factory Layout
Every layout has four fundamental elements: Space Planning Units (SPUs), Affinities, Space and
Constraints. These fundamental elements apply to any size facility and at any level. Just as a few
chemical elements give rise to an infinite number of compounds, the four layout elements and their
variations can produce an almost infinite number of factory layouts’ combine with Affinities to form
an Affinity Diagram. The Affinity Diagram is an idealized spatial arrangement that eventually
becomes a layout. Each SPU requires some finite space whether great or small. Space, added to the
Affinity Diagram, distorts it into the Layout Primitive. Constraints are conditions, assumptions,
policies or edicts that restrict the design is some way. For example, "The layout must fit into the
existing building." Constraints further modify the spatial arrangement and a Macro- layout result.
The layout of our workshop would be 7200 square feet of open place, which will be then modified
into a shape according to the requirement. The workshop would consist of structures like
administration office, canteen, restroom, warehouse and an open space for the manufacturing.
(c) Machinery and equipment:

In the sphere of bamboo and cane works simple and inexpensive used throughout the state. The
essential tools required for bamboo craft consists of a (bill-hook), a knife and a ‘jak’ (‘v’ shaped
wooden frame). In manufacturing cane products also, knives are mainly used, and the furniture
making purpose uses a few saws, hammers, pliers and pincers in addition to daos and knives. A
few more hand tools are found to be employed in the manufacture of bamboo umbrella handles.
The tools and implements used in the craft are ‘(bending frame), (sharp and pointed carving blade),
files, saws, knives, blowpipes, tongs, oven, etc. The good thing about this crafting is that all the
equipment’s are locally found and can be easily accessed. The sorts of advancement that can be
used in this project are that the uses of electrical cutting tools like power saw, bamboo slicing and
polishing machinery, bamboo Mat Weaving Machine.

(d) Names of suppliers of raw materials

The sources of the raw materials will derive from the designated farmers. To maintain the quality
of the raw material the suppliers will be chosen significantly. Our desire is to get the materials
directly from there.

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The raw materials are:

1. Bamboo of different species.

2. Cane

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 OPERATIONS PLAN
(A) Description of company’s operation
Bamboo and cane handicraft are very ancient industry in Wasa Akropong. They have been
established and working in different scale throughout the year. The traditional technological
procedure is somewhat not very technical comparing to other manufacturing processes. Basically,
bamboo and cane handicraft are done by hand. And they are quite very valuable and desirable
when they are used as a part of daily life. Our concentration is not different from the traditional
techniques. We will try to follow the same procedure with the help of modern technology. Since
our goal is to reach a standard level through the quality of the material and longer lasting service,
we plan to create an image of our technological and technical aspect as a promising one.
Traditionally our resources are enormous but we would like to use every possible source to make
our production as diversified as possible.
(B) Technology utilization
It is only natural that the quality of the product would depend on the quality of the raw material.
If the raw is not well furnished and well quality, the product cannot be capable of the quality we
desire. For the fact we like to establish our product technology from the very beginning of the
cultivation of the bamboo and cane. We will not personally be producing bamboo and cane but
would like to create an opportunity for our farmers by providing proper technology and training
about producing bamboo and cane.

(c) Flow of order and goods & services

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 MARKETING PLAN

Market Summary

In our country there is a large present & potential market of bamboo-based products. The current
firms in the industry are operating profitably. Main characteristics of this market can be
summarized as follows:

• Never ending demand

• Small number of competitors
• High consumption growth
• Minimum price elasticity
• Low threat of substitute
• Easy reach of distribution channel
The overall market of agro based products characterized below:

Breakdown of demand

The market demand may be broken down into demand for different segments of market

Nature of product:

Bamboo based products can be categorized mainly, Furniture, Tools, and

Handicraft.

Consumer group:

The ultimate customers of the product are the peasants of different districts and will be the
final user.

Geographical Division:

All most all divisions of our country are demanding furniture and other product. Target segment
are districts mainly producing bamboo made product.

Marketing Mix Analysis:

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 Price Promotion

Marketing
Mix

Product Place

(a) Pricing

Price of agro based products can be determined either by- Manufacturer’s price quoted.
Considering target markets price should be kept as minimum as possible. We set our price in order
to penetrate market quickly and deeply to attract large member of buyers quickly and win a large
market share.

(b) Distribution:
According to product type i.e., furniture and handicraft and its demand it is necessary to distribute
the product directly to the consumer group, by avoiding the influence of middleman, from our
country aspect.

There are various types of distribution channel. But we use 1-level consumer marketing channel.
That is-

Manufacturer→ Dealer→ Customer

We never use direct marketing because we don’t have any showroom. We deal with only retailer
in a wholesale price. The retailers contact with customer to sell our exclusive furniture & craft

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Store location:
We don’t have any showroom. That’s why we deal with retailer to sell our product. The price of
the product is fixed. We also offer customer-oriented product. It priced on the basis of customer
specific demand.

(c) Product forecasts

Product is mainly two categories. Those are:

 Furniture
 Craft
Best quality product is suitable for targeted customer. Product is available in both forms.
Furniture includes Bed, Dining table, various types of chair, Dressing table, Sofa, Computer
table, Tea table etc. Craft includes various types of handmade show piece which is used for
decoration.

(d) Promotion
We use various ways to advertise our furniture and craft. Those are:

 Newspaper is the direct way to reach the customer.

 Billboard
 lift late
 Poster
 Banner
 Taking parts in furniture fair & Trade fair
 Cost push method

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 ORGANIZATIONAL PLAN
(a) Form of ownership
Our business is a partnership business. So, all business-related matters will be under concern of
all the promoters. This firm owned & managed by the partners of the firm. Here the Partnership
Act 1932 is followed that is all the partners have got the same or equal liabilities. The partnership
of the firm is based on a written contract which is duly sign by all partners of the firm. So, by law
the firm is operated & managed by the articles of partnership.
(b) Identification of partners or principal shareholders

Share Holding of the Owner

As our personal business is partnership business and the board of directors are the owner of it. The
net profit will be distributed among them equally. So, for the assets, liabilities the shareholders
will be equally responsible. Here given the share and profit distribution among the partners.

Name Designation Shares

THOMAS MENSAH Managing director, 33.5%

ADDAE CLINTON General Manager 33.5%

FRANCIS AMOAH Marketing officer 33%

100%

(c) Organization structure

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 Managing
Director

General
Manager

Marketing Administrative Operating

Manager Manager Manager

Supervisor
Clark

Guard
Labors

(d) Management team background

This part of the feasibility study of a bamboo and cane craft contains management aspect of the
manufacturing firm. a brief description to the promoters, partners, their shareholders status, the

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 legal form and business, organizational structure, management team, banks, key recourses of
partners and auditors.

Name Fathers name Address

THOMAS MENSAH PAUL MENSAH Wasa Akropong

ADDAE CLINTON ANTHONY Dunkwa-on-Offin

ADDAE

FRANCIS AMOAH PRINCE AMOAH Akuapim

(e) Roles and Responsibilities of members of organization

Name Designation

THOMAS MENSAH Managing director,

ADDAE CLINTON General Manager

FRANCIS AMOAH Marketing officer

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 ASSESSMENT OF RISK

(a) Evaluate strength & weaknesses of business

SWOT Analysis
Strength:

 Production process is Eco – friendly.

 Availability of raw material at cheap rate.
 Price level is responsible for the target customers. Because low production cost.
 Unique design. (Discreet design)
 To provide unique customer service.
 Strong managerial skills.
 Wastage is becoming resources by recycling method.
Weakness:

 High transportation cost & it is also hazardous.

 Low production level at initial stage of the firm.
Opportunity:

 Less competitors.
 Attractive market by lucrative offers.
 Exporting product generate foreign currency.
 Expand the business for kitchen accessories.
Threat:

 Inflation.
 Natural disaster.
 Risk of new product.
Financial constraints abstract nature of the product.

(b) New technologies

It is only natural that the quality of the product would depend on the quality of the raw material.
If the raw is not well furnished and well quality, the product cannot be capable of the quality we
desire. For the fact we like to establish our product technology from the very beginning of the

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cultivation of the bamboo and cane. We will not personally be producing bamboo and cane but
would like to create an opportunity for our farmers by providing proper technology and training
about producing bamboo and cane.

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 FINANCIAL PLAN

PROJECTED INCOME STATEMENT

FOR THE YEAR ENDED 2018-2020

Income Statement

Particulars 2018 2019 2020 2021 2022

Facility Utilization 60% 65% 75%

Sale Revenue:

Furniture 6,300,000 6,825,000 7,875,000

Crafts 2,700,000 2,925,000 3,375,000

Total Sales 9,000,000 9,750,000 11,250,000

Cost of Goods Sold 1,462,091 1,577,251 1,805,971

Gross Profit 7,537,909 8,172,749 9,444,029

Admin and selling Expenses 685,000 685,000 685,000

Operating Profit 6,852,909 7,487,749 8,759,029

Interest Expenses Long term 858,000 725,596 575,979

Interest Expenses Short term 175,451 189,270 216,717

Depreciation 56,500 56,500 56,500

Preliminary Expenses

Earnings Before Tax 5,762,958 6,516,382 7,909,833

Provision for Tax (40%) 2,305,183 2,606,553 3,163,933

Earnings After Tax 3,457,775 3,909,829 4,745,900

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 PROJECTED CASH FLOW STATEMENT

FOR THE YEAR ENDED 2018-2020

Projected Cash Flow Statement

Particulars 2018 2019 2020

Cash flow from operating activities:

Earnings After Tax 3,457,775 3,909,829 4,745,900

(+) Depreciation 65,071 65,071 65,071

(+) Preoperative expense

(i)Net cash from operating activities 3,522,846 3,974,900 4,810,971

Cash flow from investing activities:

Initial cost of project 11,000,000

(ii)Net cash from investing activities 11,000,000

Cash flow from financing activities:

Increase in equity 4,400,000

Increase in term loan 6,600,000

Repayment of loan (1,018,493) (1,150,897) (1,300,513)

Less: Dividend paid 20% (781,966) (949,180)

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 (iii)Net cash from financing activities 9,981,507 (1,932,863) (2,249,693)

(iv)Net increase/decrease in cash 2,504,353 2,042,038 2,561,277

(v)Opening cash balance 100,000 2,604,353 4,646,390

(vi)Closing cash balance (iv+v) 2,604,353 4,646,390 7,207,668

PROJECTED BALANCE SHEET

FOR THE YEAR ENDED 2018-2020

Particulars 2018 2019 2020

Liabilities & Owners equity

Current Liabilities:

Long Term Liabilities

Long Term Loan 6,600,000 5,581,507 4,430,610

Less: Repayment of loan (1,018,493) (1,150,897) (1,300,513)

Retained Earnings 3,457,775 6,585,638 10,382,358

Equity Capital 4,400,000 4,400,000 4,400,000

Total liabilities 13,439,282 15,416,249 17,912,455

Assets:

Current Assets:

Cash 2,604,353 4,646,390 7,207,668

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 Total Current Assets 2,604,353 4,646,390 7,207,668

Fixed Assets:

Land 9,774,000 9,774,000 9,774,000

Equipment 41,000 33,000 25,000

Less: Depreciation (8,000) (8,000) (8,000)

33,000 25,000 17,000

Building & Civil works 1,000,000 951,500 903,000

Less: Depreciation (48,500) (48,500) (48,500)

951,500 903,000 854,500

Other Assets: (Generator) 60,000 51,429 42,858

Less: Depreciation (8,571) (8,571) (8,571)

51,429 42,858 34,287

Preliminary expenses 25,000 25,000 25,000

Preliminary exp. Written off

Total Fixed Assets 10,834,929 10,769,858 10,704,787

Total Asset 13,439,282 15,416,248 17,912,454

Table of Contents
(I) Business Introduction................................................................................................................. 3

OBJECTIVES AND SCOPE ...................................................................................................... 5

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  Bamboo and Cane treatment Process ................................................................................. 10

Manufacturing and Service cost ................................................................................................ 11

Store location: ........................................................................................................................ 18

Share Holding of the Owner...................................................................................................... 19

SWOT Analysis ..................................................................................................................... 22

Projected Balance sheet............................................................................................................. 26

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