NaijaCEO

BUSINESS PLAN FOR PROFITABLE

Water Bottle / Sachet Water Business In

Nigeria)

Prepared BY: NaijaCEO.com

Table of contents:

1. Executive Summary

2. Description of Problem and Solution

2.2 Business Objectives
2.3 Vision and Mission
2.4 Value Proposition
2.5 Critical Success Factor
2.6 Current Status of Business
2.7 Legal Requirement
2.8 Contribution to Local and National Economy
2.9 Contribution to SDG

3. SWOT Analysis

4. Market Analysis
4.1 Potential challenges in the business industry
4.2 The Opportunity

5. Competitive Analysis & Risk Analysis

6. Marketing Plan
6.1 Description of Product (S) or Service (S)
6.2 Market Segmentation
6.3 Target Market
6.4 Marketing and Sale Strategy

7 Production Plan/Operational Plan

7.1. Description of the Location/Factory
7.2 Production Equipment/Capital Expenses
7.3 Equipment/Depreciation Table
7.4 Pricing strategy
7.5 Record/Stock Control Process
7.6 Pre-operating Activities and Expenses

8 Organization Structure and Responsibilities

8.1 Salary Schedule

9 Financial Plan
9.1 Start up Capital Estimation (Expansion Capital Estimation)
9.2 Loan Details
9.3 Business Risk and Mitigating Factor
9.4 Financial Projections
9.5 Sales Forecast and Sales Assumption
9.6 Income Statement (P&L) Account

10 . Conclusion
1.0 EXECUTIVE SUMMARY
Connci Crystal is a Table Water processing company that uses mechanized method in the
processing and packaging of high quality drinking water, giving it its natural taste.

Connci Crystal Water Nigeria Limited main goal is to provide a quality Table Water for our
consumers in a way that is more sustainable, and more cost effective than our
competitors. We will be able to supply them with Table Water which is much cheaper
than competitors through our modern processing method on a commercial basis. Our
focus will predominantly be on business to business selling whereby we will work as a
manufacturer.

We will operate from our water producing factory in Imo poly Area in Imo state and it
will encompass multiple large rooms and outlying room / buildings for admin and
research/production purposes. With our modern method, we will produce fresh Table
Water with over a year longer shelf life.

With our estimated Pre operating Expense(capital) around N 35,753,550 Connci Crystal
Nigeria Limited is highly focused and promises to follow a path of prosperity for its
owners and staff.

Based on qualitative research and an in-depth feasibility studies carried out by us in

regards to the Bottled and Sachet water sector in Nigeria, we have been able to come up
with the following estimate for our business;

a. Income Projection: Our average Projected monthly income projected for the first
year is as follows: NGN 3,510,000 for bottled water while for sachet water we are
projecting NGN 1,170,000 per month. The projected revenue increases by 10% in the
second and third years given that we increase prices of our product or we sell more
bags of our product.

The projections contained herein are authentic and will be used as the budget for the
business Connci Crystal Water Nigeria Limited will show a profit within 12 - 18 months, and
will increase sales and profits each year thereafter.
2. Description of Problem and Solution

Nigeria is so rich in water resources that many of its 36 states are named after rivers. In addition to
surface water found in nearly every part of the country, there’s also plenty stored in the ground. One
would imagine that Nigerians have plenty of water to drink.

Here are Few Stats to take Note of:

 70 per cent of Nigerians are reported to have access to a basic water service more than half
of these water sources are contaminated
 In rural areas, only 54% do.
 73 per cent of the country’s population have access to a water source, only nine litres of
water on average is available to a Nigerian daily.

According to statics from theconversation.com, the lack of accessible, reliable, and safe drinking
water, together with poor sanitation and hygiene is estimated to cost Nigeria about USD$1.3 billion in
access time loss due to premature death, productive time lost and health care costs.

We believe that we as a Company can help solve this problem by.

 Producing Sterilized, and Well Packaged Bottle and Sachet Water

 Educating the Public on the Importance of healthy and Clean Water
 By having a Well-Organized distribution Process for our Bottled and Sachet Water

2.2 Business Objectives

We have identified the following objectives to pursue in the upcoming years:

1. Become a major player in the Table Water industry in Nigeria

2. Have our business be the go-to place to purchase cheap, environmentally friendly Table
Water

3. Reach profitability within 24 months from when we start full production of our product.

4. Expand our customer base through direct referrals and aggressive direct sales.

5. Expand our product line gradually, based on customer requests.

Expand the types of services offered to our customers, as their desires are identified.
2.3 Vision and Mission
Our mission is to meet customers’ increasing demands for a more sustainable Table Water and Water
for dispensers by providing them with a clean, more environmentally friendly Water. We will offer all
of our customers the direct personal attention they deserve. Our commitment to customer service
and satisfaction assures us that our customers are 100% satisfied with our products and services

2.4 Value Proposition

We will focus on providing the market with high quality neat and safe to use consumable packaged
Water for consumption. Ours will be accurately measured in liters, constant quality and price
branded bottles and sachet which will appeal to customers. We will satisfy different consumer needs
with our various ranges of sizes, we will also focus on delivering excellent customer service and
relationship.

2.5 Critical Success Factor

a. Adequate funding/ availability of capital

b. Knowledge of the business

c. Favorable government policies

d. Assured market (sales)

e. Managerial competence / skills

f. Visionary and technical skills (expertise)

g. Availability of Technological equipments

h. Construction of factory

2.6 Current Status of Business

We are a new company in the process of registering with the CAC (Co-operate affairs commission)
and the Ceo has a dream of being an employer of labor in the Nigerian market.
 2.7 Legal Requirements

Details on frequency & other

Legal requirement Budget
information
Company registration 60,000 Non renewable
Local Govt. permits & licensing 60,000 Renewable
NAFDAC Certification 300,000 Non- Renewable
TOTAL N420,000

2.8 Contribution to Local and National Economy

To my family:

a) Improve standard of living

b) Increase personal income and wealth

c) Increase self-esteem and fulfillment

To my employee (s):

a) Improve their standard of living

b) Conduct periodic trainings on safety regulations, fire, fighting and prevention.

c) Provide source of livelihood.

To the state and nation:

a) Raise the revenue status of the state government by regular payment

of taxes

b) Increase growth of the gross domestic product (GDP) of Nigeria

2.9 Contribution to SDG

a) Reduction of Poverty by creating employment and Job Opportunities

 b) We are crushing Goal 6 by providing Nigerians with the cleanest and sterilize water to
consume

We are solving SDG Goal 12 by having an efficient production and consumption process for all our
Bottled and Sachet water.
 Strengths Weaknesses

 Consistent quality: We will constantly  Lack of funding: We will need up to

produce Table Water that is of high quality and N40M in fund to kick-start fully
well package.
 No reputation yet: We haven’t
 Another strength that counts for us established ourselves as a reputable firm yet.
is the power of our team, our workforce
and management. We have a team that is
considered Professional and Experienced in
Water Production, a team of hardworking
and dedicated individuals.

Opportunities Threats

 Customer Loyalty: Customers are  Similar size Industries: Similar

looking company that produce quality water
with long shelve life
 Growing market: The table Water
market is growing and the demand is very high.
Industries have being in business
 Poor Distribution: poor distribution
networks will adversely affect sales.

3.0 SWOT ANALYSIS

4.0 Market Analysis

About 70 per cent of Nigerians are reported to have access to a basic water service, more than half
of these water sources are contaminated. And although 70 per cent of the country’s population have
access to water source, only nine litters of water on average is available to a Nigerian daily. It is
therefore estimated that more than 50% of the population buy water daily. (According to Unicef)

The bottled water market in Nigeria was equal to 1.15 billion USD (calculated in retail prices) in 2015.
Until 2025, the water market in Nigeria is forecast to reach 7.52 billion USD (in retail prices), thus
increasing at a CAGR (Compound annual Growth rate) of 16.89% per annum for the period 2020-2025.
This is a decrease, compared to the growth of about 25.19% per year, registered in 2015-2019 but still a
large number of households in both urban and rural areas of Nigeria do not have access to safe
drinking water.

The growing consumer wellness and healthcare awareness is one of the most important drivers,
which has contributed to the expansion of the global bottled water market in the past few years. The
category has significantly grown, outpacing the carbonated soft drinks in many countries, including
the USA. In addition, consumers are also increasingly adopting flavored and functional waters such
as alkaline, Ph-balanced, protein and others, due to their additional health benefits.

4.1 Potential challenges in the business industry

 Socio-cultural – habits of our consumers will definitely affect our business. Also, the success
of Hotels, Restaurants and Other co-operate firms, etc that order our products will indirectly affect
our business.

 Economic – economic trends such as demand and supply will determine the sustenance and
profitability of the business. Also inflation rates will affect the way we pay our employees and the
price of the product.

 Political – this will include government policies concerning inspection by the ministry of
health and agencies like NAFDAC.
 High cost of equipment for Production and Packaging
 Inadequate production facilities result in low quality of water in Nigeria.
 This business has suffered from years of mismanagement, lack of basic infrastructure like
good road network.
 Majority of Nigerian table Water were produced by the use of highly outdated manual
processing techniques.

4.2 The Opportunity

With only 9 Litres of Water on Average being available to Nigerians on a Daily and 50% of the
population buying water on Daily. We see a huge problem that has created an opportunity for us to
come into the market to solve it while also making Profits.
5.0 Competitive Analysis & Risk Analysis

The economic opportunity of investing in this Bottled / Sachet water business in Nigeria comes from:
the demand for Fresh and Clean water, Good Population size and the availability of cheap local labor
are equally important. The guaranteed demand for fresh water all year round makes the business a
superb investment choice but also restrictive in Nature. Similar to a lot of other manufacturing
businesses, a key factor in determining the location of the factory is good road network and power
supply.

However, establishing medium-scale operations of this nature normally requires a considerable

amount of capital and managed by people with a certain level of commercial expertise this has made
entry to market advantage and also being able to identify just few competitors listed below in our
intending startup location.
Competition and Buying Patterns
There has been a strong demand (sellers' market) for high quality and uniquely packaged
Table Water for several years. Traditional buying patterns in this industry are based on quality, price,
reputation of the producer, delivery times and proximity to markets. During such a sellers' market,
buying patterns are often more influenced by availability.

The buying patterns of the different customers are typically based on these variables:

• Price
• Availability
• Ability to deliver consistently on long-term contracts
• Consistency.

In Owerri Imo state and the whole Nigeria, there are various competitors and will be grouped in
three categories: Unregistered small scale water producers, registered small scale water producers
and established or well-known brand in Nigeria and international. Even with these the demand for
safe drinking water is so high and the market is still buoyant.

Some of the competitors are

Local farmers/Producers:
 These are local Table Water producers using non-mechanized or highly outdated manual processing
techniques. There are very common and they are scattered all over Imo and the whole Nigeria.

Well-Known Brand and Established Companies:

Table 1: Known Brands Competitor’s Analysis Schedule

Names of Competitors Your company Competitor A Competitor B

name
Claret Table Water La Crystal Natural water
Connci Crystal
Water NIGERIA
LIMITED

Location of Imo poly Area in St Anthony Mary Njiribeako St., 460281, Owerri, Imo
competitors Imo state Claret Compound,
New Owerri
460281, Owerri,
Imo

Products and services Production of Bottled and Sachet Bottled and Sachet Waters
offered Packaged Bottled Waters
and Sachet
Waters

Pricing strategy Penetration price Competitive price Competitive price

What are their Branded, Early to market/ A Major Brand

uniqueness packaged good Major Brand
quality and
unique.
What are their other Various sizes for Long existence. Long existence.
strengths various needs

What are their Newness Does not leverage Quality/quantity is not guaranteed.
weakness the Internet

How long have they Start up More than five More than three years
been existing years.
6.0 Marketing Plan
Before choosing a location for Connci Crystal Water NIGERIA LIMITED. We conducted a thorough
market survey and feasibility studies in order for us to be able to be able to penetrate the available
market in our target market locations. The chances of surviving in the Bottled / Sachet Water
Production market are good.

In other to continue to be in business and grow, we must continue to sell our Bottled and sachet
water to the available market which is why we will go all out to empower our sales and marketing
team to deliver our corporate sales goals. We will also pioneer the selling branded bottle water
through the internet; this will result to increase in profit and profitability since there are no much
Bottle Water companies doing that.

6.1 Description of Product (S) or Service (S)

We will offer our well-packaged Connci Crystal Sachet and Bottled water in various sizes ranging
from 75cl to 1litre bottles for home usage and bigger quantities for commercial, Water Dispensers or
industrial usage.

We will offer the supply of high quality and well-packaged Connci Crystal Sachet and Bottled water
to resellers/wholesale and companies in Nigeria.

Our distinctive unique selling point of providing high quality Connci Crystal Water that is well-
processed and packaged that will be approved by NAFDAC and endorsed by Standard Organization
of Nigeria and a product barcode at affordable price compared to our competitors quality and
methods.

Connci Crystal Sachet and Bottled water will be sufficient enough to secure our company survival in
a competitive market.

We offer all of the above great products, while evaluating the desire and need by our customers for
improvement and other products.
6.2 Market Segmentation
We have identified the following segments which make up our market:

1. Distributors and Wholesalers: Since our major sales objective is business to business, we will
sell more to wholesalers and distributors who will then sell to the final consumers.

2. Hotels and Eateries: Our potential customers in this segment include Hotels, Eateries and
several others.

3. Co-operate Offices: Our Potential customers in this segment include, Zenith bank, UBA, Gt
bank, Government Offices and other private offices.

6.3 Target Market

Distributors and Wholesalers:

This is potentially our greatest market opportunity. Distributors and Whole sellers buy in bulk and
sell to small stores, for home use etc. This is a growing market in Nigeria Therefore it seems
logical to exploit this opportunity and devote much of our time at Connci Crystal Water in
meeting this demand. This market will potentially be the basis of our growth.

Hotels and Eateries: These companies want quality Table Water for their numerous
customers.

Co-operate Offices: In co-operate world they will require our Quality water products to
serve their members of staffs.
 6.4 Marketing/Sales Strategy
Our marketing strategy is at the beginning of our business geared towards creating more
awareness for our company and Products. We have identified five strategies that will be
implemented to make this possible.
Advert/Promotional Details On Frequency &
Budget Per Annum
Strategies Justification Of Budget
Implement Bulk SMS - Renewable
Signpost - Non renewable
Banner - Non renewable
Flyers and handbills - Renewable
Website $ social media - Renewable
Budget N1,000,000

We will be using Distributors and wholesalers who will be supplying shopping malls and other
grocery shops and also to big Companies outside Imo State.

We will also be sending automated SMS to all our customers at least monthly, after sales services
such as free delivery occasional incentives or discount, good customer’s relationship and
appreciation. E.g. “Thank you for your patronage”
7.0 Production Plan/Operational Plan
The Bottled/Sachet Water proposed factory consists of the RAW WATER PRODUCTION
EQUIPMENT and the WATER TREATMENT EQUIPMENT AND REAGENTS

7.1 Description of the Location/Factory

Connci Crystal Water NIGERIA LIMITED will be situated in Imo state we will be using a 3
bedroom Self Contain Bungalow, This will serve as the factory building.

1 room from this building will be used for Production of Our Bottled and Sachet
Water, Another 1 room will be used for Storage and the other 1 room will be Official
Office where all sales records will be kept this will also serve a the Managers office.

We will site our facility in a densely populated area with good road network

7.2 Production Equipment/Capital Expenses:

List of Capital Equipment, Description, Uses and Suppliers and Prices;

S/N EQUIPMENTS Description/Uses Supplier

930,000
1. Pure Water Production Machine: Anambara / Lagos
Power 1.6kw Production capacity
Dingli Sachet water machine State
2200 sachets per hr

Water Treatment tanks Foreign Capacity 2,000 litres =

2. Anambara / Lagos
N1,200,000.
State

3. Micro filter For Water filtering 20 inches 7,000 Anambara / Lagos

x 4 = 28,000 State

N40,000 for
 4. Uv steriliser 1,000 litres Anambara State /

Lagos State

5. Air uv - Anambara State /

Lagos State

6. Stainless pumps 1hp 30,000 Anambara State /

Lagos State

Anambara State /

7. 1.5hp - Lagos State

For

8. 883 Monolock Washing,Filling,Capping,Labeling Anambara State /

Lagos State

9. Pet bottle Blower For blowing drinking bottles Anambara State /

Lagos State

Anambara State /

10. Reverse Osmosis For water purification Lagos State

11. Semi-automatic coading machine For attaching manufacturing Anambara State /

date etc. Lagos State

12. Shrink labeling machine This machine is used for label

shrinking outside of bottle, ideal Anambara State /

for bottle water labelling. Lagos State

13. Computers For Record Keeping Anambara State /

Lagos State

14. 3g ozone - Anambara State /

Lagos State

15. Laboratory Coat/Apron Hygiene Equipment Anambara State /

Lagos State

16. Reusable Handling Gloves Hygiene Equipment Anambara / Lagos

State

17. Head Net/Cap Hygiene Equipment Anambara / Lagos

State

18. Rubber Boots/Clogs Hygiene Equipment Anambara / Lagos

State

19. pH Meter (hand held or bench used to check the pH, Anambara / Lagos

top) conductivity, Total Dissolved State

Solids and a few other

parameters that help indicate

the quality of the treated, and

produced water.

20. Truck For Logistics Anambara / Lagos

 State

21. Safety Boots Hygiene Imo/Anambara /

Lagos State

22. Power Generating set- 25KVA Power Supply Imo/Anambara/

Lagos State

23. Long-Handle Hard Brush Cleaning storage Tanks Imo/Anambara/

Lagos State

24 Dust Brush/Sweeping Brush Cleaning Factory Imo/Anambara/

Lagos State

25 Waste Bin For Waste Disposal Anambara / Lagos

State

26. sachets water nylons For Packaging Anambara / Lagos

State

27. Fire Extinguisher In cases of Fire outbreak Anambara / Lagos

State

28. Borehole Lagos

29. Extra Utility - Anambara / Lagos

State
 7.3 EQUIPMENT DEPRICIATION TABLE
S/N EQUIPMENTS Description/Uses QTY Unit Cost Value Life Span N
(mnths)
1 N930,000 930,000 48 19,375

1. Pure Water Production

Power 1.6kw
Machine: Dingli Production
Sachet water machine capacity 2200
sachets per hr

Water Treatment
2. Foreign Capacity 1 N1,200,000. 1,200,000 48 25,000
tanks
2,000 litres

3. Micro filters For Water 4 7,000 28,000 48

583
Purification 20

inches

4. Uv steriliser 1,000 litres 1 N40,000 40,000 48 833

5. Air uv - 1 N20,000 20,000 48
417

6 Stainless pumps 1hp 1 N30,000 30,000 48 625

7. Stainless Pumps 1.5hp 1 N65,000 65,000 1,354

8. 883 monoblock For Capping etc 1 N8,000,000 8,000,000 48 166,667

9. Computers For Record

1,250
Keeping 2 N30,000 60,000 48

10. Pet bottle blower For blowing 1 N5,700,000 5,700,000, 48 11,8750

drinking bottles

11. Reverse Osmosis For water 2ton N3,200,000 3,200,000 48 66,667

purification

12. Semi-automatic Date 1 N150,000 150,000 48 3,125

coading machine For attaching

manufacturing

date etc
13. Shrink Labeling For labeling 1 N3,600,000 3,600,000 48 75,000

Machine

14. 3g ozone - 1 N220,000 220,000 48 4,583

417

15. Laboratory Hygiene 10 N2,000 20,000 48

Coat/Apron Equipment

16. Reusable Handling Hygiene 10 N500 5,000 24 208

Gloves Equipment

Hygiene
208
17. Head Net/Cap Equipment 10 N500 5,000 24

Hygiene
625
18. Rubber Boots/Clogs Equipment 10 N1,500 15,000 24

19. pH Meter (hand held used to check 2 N5,000 10,000 24 417

or bench top) the pH, 2

conductivity,

Total Dissolved
 Solids and a few

other parameters

that help indicate

the quality of the

treated, and

produced water.

20. Truck Tokunbo (For 1 N5,000,000 5,000,000 48 104,167

Logistics)

21. Safety Boots 5 N30,000 N30,000 625

22. Power Generating set- 25KVA 1 N3,000,000 3,000,000 48 62,500

23. Long-Handle Hard For Cleaning 1 N1,000 1,000 48 21

Brush storage Tanks

24. Dust Brush/Sweeping Cleaning Factory 2 1,000 2,000 48 42

Brush

25. Waste Bin For Waste 2 N5000 10,000 48 208

Disposal
26 Sachet Water Nylon - N50,000 50,000 -

27. Fire Extinguisher In cases of Fire 2 N5,000 10,000 24 417

outbreak

28. Borehole Nafdac requires 150m N6,000 900,000 48 18750

about 150

minimum depth

and cost per

minimum depth =

6,000

29. Extra Utility Budget - N100,000 100,000 48 2,083

Total N32,401,000 N674,917

7.4 Pricing Strategy
Our proposed selling prices are based on the prevailing market prices;

Generally we intend to apply the penetration pricing strategy for our market entry
while implementing the Competitive pricing strategy on the long run.

7.5 Record/stock Control Process:

Record keeping documents

S/N Books to be kept Reasons

1. Day book For recording daily financial transactions

For evidence of the purchase/sales of goods and

2. Receipts services.

3. Cash book For recording all business transactions

For recording day to day expenditure of small

4. Petty cash book amount

For recording the quantity of goods and material on

5. Inventory book hand stock.

Sage Accounting Cloud Software For Recording Day to Day

6. Software Transaction of the Business

7.6 Pre-operating Activities and Expenses:

PRE-OPERATING ACTIVITIES AND EXPENSES

PRE-OPERATING ACTIVITIES DESCRIPTION/ DETAILS AMOUNT N

 Property Rent 1,250,000

Company registration CAC 60,000

Local Govt. permits & licensing 60,000

NAFDAC Certification 300,000

Equipment’s 32,401,000

5% of equipment + 5% cost of
Insurance 1,682,550
factory (rent)

TOTAL 35,753,550

7.7
OPERATING ACTIVITIES and EXPENSES

OPERATING ACTIVITIES DESCRIPTION/ DETAILS AMOUNT N

Marketing 1 year period 1,000,000
Depreciation Expense 674,917
Workers Salaries 1 year period 5,820,000
Diesel and Miscellaneous 1 Year Period 400,000
TOTAL 1 year period 7,894,917

7.8 Milestone
Activity Funding Budget Period of
Accomplishment

Company Registration Personal fund N60,000 March 2023

Writing of Business Plan: - 15,000 March 2023
 8.0 Organization Structure and Responsibilities

The Organizational Structure of Connci Crystal Water NIGERIA LIMITED is planned to be a simple
and traditional one. All production and manufacturing operations will report to the COO. All
administrative and finance functions will report to the CFO. Both the COO and CFO will report to the
Manager, who will also have the responsibility for the growth and management of the business.

The company's management is highly experienced and qualified, with seasoned investors. The
company strives to hire qualified people who take pride in their work. The company's management
philosophy is based on responsibility and mutual respect. Connci Crystal Water would maintain an
environment and structure that encourages productivity and respect for customers and fellow
employees.

Our proposed organizational structure is shown in table below and details of each person’s
responsibilities are equally outlined

Position Skills, qual. & experience Functions and Responsibility

required
1. Oversees the day to day running of
Manager BSC, Masters the business
2. Manage accounts
1. Monitors the quality of production
Chief Machine
Skilled/Unskilled 2. Make sure we meet up to our
Operating Officer market demands

Chief Financial Officer Chattered Accountant 1. Reports directly to the CEO, she is
responsible for analyzing and
reviewing financial data, reporting
financial performance, preparing
budgets and monitoring
expenditures and costs. The CFO
routinely checks the corporation's
 financial health and integrity.
2. Takes Record of Sales of the Factory

Both Operates the Factory machines and

Machine Operator and
Unskilled. Also responsible for the Packaging of the
Packager 1,2,3
water
Involves is stocking the truck with our
Truck Driver Unskilled Sachet and Bottled Water he also Drives our
Trucks and Distributes our Products
Tasked with the responsibility of cleaning
Cleaner Unskilled the factory and making sure the whole
factory is healthy
1. To monitor the inflow and outflow of
Security personnel Unskilled people around the Factory.
2. Guard against theft

We commence work from Monday through Saturdays and our resumption period will be
6:30 am and closing time will be 7pm. We will also provide ration pack incentives
occasionally at especially Easters, Salah, Christmas and New Year for our staff. Punctuality,
good conduct and behavior will be rewarded.
8.1

Salary Schedule

MONTHLY
NAME DESIGNATION SALARY(N) ANNUAL SALARY(N)
1,800,0
Staff 1 Manager 150,000 00
1,200,0
Staff 2 COO 100,000 00
960,0
staff 3 CFO 80,000 00
240,0
Staff 4 Operator 1 20,000 00
240,0
Staff 5 Operator 2 20,000 00
240,0
Staff 6 Operator 3 20,000 00
120,0
Staff 5 Cleaner 10,000 00
300,0
Staff 5 Security personnel 25,000 00
720,0
Staff 6 Truck Driver 60,000 00
5,820,0
TOTAL N355,000 00
9.0 Financial Analysis
Financial Assumptions:
 Assumption for inflation is Five percent (5%)
 Assumption on interest rate is five percent (5%)
 Assumption on tax is 10 percent (10%)
 Assumption on salary increment is by five percent (5%) after Two Years of
commencement.
 Assumption on insurance is 5% of equipment + 5% cost of factory building
9.1 Start Up Capital Estimation (Expansion Capital Estimation):

Table 5.1: Required Startup

Capital Estimate
ITEMS AMOUNT COMMENT
Pre-operating Expenses 35,753,550

Operating Expenses =1 Year 7,894,917

Total Operating and Operating
Expense 43,648,467
SOURCES OF FUNDS AMOUNT
Personal Fund /Equity N 100%
Bank Loan
Total Funds Sourced N0 100%

9.2 Business Risk and Mitigating Factor:

These include:-
a) Theft, robbery or pilfering
b) Fire outbreak
c) Flood incident
d) Adulteration of products
Mitigation factors:
a) Patency right
b) Bio-security
 c) Insurance
d) Trade mark

Equipment Maintenance / Water Quality Measures:

1. Cleaning and Sanitizing: Cleaning and sanitizing of all production equipment would be
done on a regular basis, such as at the beginning and end of each shift. This should
include wiping down the machinery, tanks, and other surfaces with a disinfectant
solution.

2. Regular Check-Ups and Inspections: All machines should be inspected for mechanical
and electrical issues on a regular basis. This would include testing for safety and
function on all components.

3. Scheduled Maintenance: Scheduled maintenance would be carried out on all

machines to keep them running smoothly and efficiently. This should include
lubricating parts, replacing worn out belts or other small components, and checking
for any signs of wear or damage.

4. Filter Changes: The water filters would be changed on a regular basis. This would be
done according to the manufacturer’s instructions.

5. Cleaning of Water Lines: The water lines would be flushed out on a regular basis, and
any debris should be removed.

6. Check pH Levels: Regular testing of the water pH levels would be conducted to

ensure the water is safe to drink.

7. Quality Control: Quality control would be conducted on a regular basis to ensure

production of safe and healthy drinking water. This would include regular testing of
 the water for contaminants.

8. Training: All employees would receive proper training in the maintenance and
operation of the equipment. This will include proper safety protocols.

9. Documentation: All maintenance activities should be documented and kept on file for
future reference. This can help with troubleshooting any problems that may arise and
ensure that all activities are up to date and compliant with industry standards.

9.3 Financial Projections

 One automatic sealing machine and one delivering van at 100% utilization will produce
40 sachets of pure water per minute which is equivalent to 120 bags in one hour.
 883 mono block can produce up to 3,500 pieces of bottle water per hour
 We can produce between 500 to 700 bags with one machine in a day of operation, If
we work for 4-5 hours per day.
 We can also produce up to 874 Packs of Bottled Water in Day, If we work for 4-5
hours per day.
 Our Price point for a bag of Sachet water would be N150/Bag
 Our Price Point for a Pack of 60cl Bottled water would be N900
 As a new Business we are projecting that we can sell an average of 300 bags every
day and an average of 150 packs of bottled water per day.
 We estimate that our factory will be functional 26 days every month canceling out 4
Sundays in a month.
9.4 Sales Forecast and Sales Assumption
Sales will increase by 10% yearly, and operating expenses will rise by 5%

3 YEARS SALES FORECAST

YEAR 1
YEAR 3 30%
37% YEARS 3 YEARS SALES FORECAST
YEAR 1 56,160,0
00
YEAR 2 61,776,000
YEAR 3 67,953,600
YEAR 2
33%
 Sales forecast

Year 1 Month Quantity Quantity Selling Selling Monthly Monthly Total

of Pack of Price/per Price/per Revenue/ Revenue/ Monthly
of Sachet unit Pack unit Bag of from Bottled from Revenue
Bottled Water Of Bottled Water Water Sachet
Water bags Water Water
Sold / Sold /Per
Per Month
Month
January 3,900 7,800 900 150 3,510,000 1,170,000 4680000
February 3,900 7,800 900 150 3,510,000 1,170,000 4680000
March 3,900 7,800 900 150 3,510,000 1,170,000 4680000
April 3,900 7,800 900 150 3,510,000 1,170,000 4680000
May 3,900 7,800 900 150 3,510,000 1,170,000 4680000
June 3,900 7,800 900 150 3,510,000 1,170,000 4680000
July 3,900 7,800 900 150 3,510,000 1,170,000 4680000
August 3,900 7,800 900 150 3,510,000 1,170,000 4680000
September 3,900 7,800 900 150 3,510,000 1,170,000 4680000
October 3,900 7,800 900 150 3,510,000 1,170,000 4680000
November 3,900 7,800 900 150 3,510,000 1,170,000 4680000
December 3,900 7,800 900 150 3,510,000 1,170,000 4680000
Total - 42,120,000 14,040,00
0 56,160,000
9.5 Income Statement (P&L) Account for Year 1

Income Statement
Tax rate 10%

Sale revenue 56,160,000

Cost of Sale 0

Gross Profit 56,160,000

Pre-Operating Expenses
Company registration 60,000
Local Govt. permits & licensing 60,000
NAFDAC Certification 300,000
Equipment’s 32,401,000
Land Acquisition 1,250,000
Insurance 1,682,550

Total Pre-Operating Expense 35,753,550

Operating Expenses
Marketing 1,000,000
Workers Salaries 5,820,000
Diesel and Miscellaneous 400,000
Depreciation Expense 674,917
Total Operating Expenses 7,894,917

Total Pre Operating / operating expenses 43,648,467

Operating income 12,511,533

Interest Expense

Income Before Income Taxes 12,511,533.00

Income tax expense 1251153.3

Net Profit 11,260,380

Note This Document was edited for Bottled / Pure water Business plan
 Year 1,
12,664,380
Year 3,
19,395,959

Yea
r 2,
15,
824
,79
9

3 Years P&L FORECAST

20,000,000
18,000,000
16,000,000
14,000,000
12,000,000 3 Years P&L FORECAST
10,000,000
Years 3 Years P&L FORECAST
8,000,000
Year 1 11,260,380
6,000,000
Year 2 14,350,599
4,000,000
Year 3 17,848,049
2,000,000
0
Year 1 Year 2 Year 3
10. Conclusion
We are confident that we can achieve our conservative financial projections, generating a s
revenue in excess of N 56,160,000 in year one after the opening of the business if we
maximize sale. In addition, our management has carefully considered its market, potential
customer base, and its ability to grow its sales average to capture market share (in our area
of business). With our projected numbers and the total market share and revenue in the
Packaged Water industry.

We firmly believe that our business has the potential to become a highly regarded resource
in local and regional markets. Due to the company’s aggressive marketing strategy as well
as the careful development of company products and services, the establishment of the
company as a regarded entity in our industry is now within grasp.

In all the above we intend to communicate our ability to serve our community or customers
with products and services that will satisfy & exceed our customers’ needs and wants. All
the above promotional tools that we have mentioned throughout the plan shall be well
integrated and utilized in tandem so as to maximize their effect.

Business owners have a tendency to paint any business plan with a very optimistic brush,
highlighting strengths and camouflaging the risks.

The Company Managers, as business owners, have a vested stake and financial commitment
in the success of this business. The Company has taken all precautions to validate the
Company business and financial models, focusing on realistic projections.

If you have any questions, please contact us the Founders directly.