BUS 219: BUSINESS PRACTICAL

GROUP 24

OGUNYEMI JOSEPH OLAWALE

JIMOH RILIWAN OPEYEMI

AJIBOWO AHMED OLAYINKA

TIJANI NASIRAT

BALOGUN OPEYEMI JAMIU

BODUNDE AMINAT ABIOLA

21D/27EM/00843

20/27BA/01230

20/27BA/ 01159

21D/27EM/00893

21D/27BA/01514

20/27BA/01231

20/27BA/01239

20/27BA/01339

20/7EM/00156

20/27BA/01278

21D/27BA/01512

21/D/27BA/01504

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TABLE OF CONTENT

Group Name…………………………………………………………………………………………………………..1
Table of Content …………………………………………………………………………………………………..2
Title page ……………………………………………………………………………………………………………..3
Executive Summary ………………………………………………………………………………………………4
Business Description ……………………………………………………………………………………………..5
Business Environment Analysis ……………………………………………………………………………..8
Industry Analysis …………………………………………………………………………………………………11
Competitive Analysis ……………………………………………………………………………………………12
Market Analysis …………………………………………………………………………………………………..13
Marketing Plan ……………………………………………………………………………………………………14
Operations Plan …………………………………………………………………………………………………..15
Team and Management plan ………………………………………………………………………………..16
Financial Projection ……………………………………………………………………………………………..18
APPENDIX ………………………………………………………………………………………………………….19

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 TTITLE PAGE

This Document contains a business idea which is a “paint” which specializes majorly in
the production of high quality paint for surface preparation , finished painting , and
finishing services to residential, commercial, municipal building , and facilities.

It further discusses the target market, its estimated population, the strategy which we
will employ as a market plan , the purposed operation of the business mission , vision ,
goal , employment requirement , funding source and many more .

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EXECUTIVE SUMMARY

5-STAR PAINT VENTURE was registered under the corporate affairs commission
(C.A.C) of The Federal Republic of Nigeria on January 1, 2022.

It’s headquarter are located in Malete, Kwara state, Nigeria. The company was formed
for the purpose of producing and marketing a unique and top -grade paints and finishes
of varying types such as:

1. Satin Pants
2. Gloss Paints
3. Emulsion Paints
4. Marble Paints
5. Aluminum Paints

Our aims of starting this business is to ensure that our customer both within and outside
Malete get our unique paints which has been designed and produced for decorative
(aesthetic) and protective (humidity air, sunlight etc.)

We are also focusing on our customers’ needs and constant innovation in products,
marketing and service delivery.

The company was founded after conducting a comprehensive market research in which
we discovered that one of the physiological needs of every human is shelter, which
means people will definitely need house. Some people own, lease, others buy, build,
renovate etc. We now concluded that paint products will always be needed and will be in
demand especially for our country with a population of more than 90 million people.

Our customers will be able to reach us physically and even online through our social
media platforms as we will be available through all venues to be able to attend to their
inquiries, orders, suggestions and complaints.

The startup capital used to start the business is approximately 1,500,000 million Naira.
Source of the finance include:
1. Contributions from all partners involved; 1,000,000
2. Grant from government; 250,000
3. Bank loan ; 250,000

The working capital includes

 Building structure ; 300,000
 Raw material supplies ; 300,000
 Technical equipment;100,00
 Human capital; 100,000
 Mechanical equipment;100,000
 Channel of distribution cost ; 200,00
 Van ; 400,000

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 BUSINESS DESCRIPTION

The company is a combination of (20) people registered with name 5-star paint, it is a
new business created to serve people within and outside Malete with the need for the
supply of quality Paints.

MOTTO: Qualities matter

Our company is dynamic paint producing company, employing the state of the art
facilities for production and sale of high qualities architectural paints and coating for
private and industrial users.
The commercial manufacturing of paints is simply the mixing of paint constituents in a
quality controlled ratio that meets standard and can be faithfully produced in
commercial quantities.
Its constituent are:
 Dispersion medium water
 Binder – Resins
 Pigment -Colorants
 Filler -Calcium and kaolin
 Anti-fungal agents
 Marble dust ( texture coat )
The plant is expected to commence production with 20 liters daily and expand to 1000
liters within the next 3 years

OUR PRODUCTS
We hope to start our paint making business with about 6 product brand that cater for
different coating need/ market segment.
These brand will be fully registered trade names:

1. 5-star premium Matt emulsion

2. 5-Star premium silk Emulsion
3. 5-Star Texcoat

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 4. 5-star Gloss
5. 5-star Premium Satin

Other product will also include, protective wood sheen, Epoxy, Flex, Industrial coat,
Anti corrosion system for metals and plastic.

PRODUCT BENEFITS
Newly constructed buildings might be structurally completed but they will still be
termed incomplete without coating.
PAINT MAJOR FUNCTIONS ARE
1. To Beautify
2. To protect buildings from natural elements such as humidity, air, sunlight etc.
3. To add increase to the value of building Luminescence, solar reflections, water
proofing, insect repelling.
The organization is a collective ownership or partnership among the student of Kwara
State university (Kwasu ) from the department of Business and entrepreneurship
studies.
BUSINESS OBJECTIVES

1. IN 3-5 years, start paint will become a household name in Nigeria coating
industry and readily chosen over competitors wherever builder land think if
quality coating at right pricing , artistic coating innovation, customer/
environment friendly operation.
We would achieve all this by adopting
 An effective and well define growth strategies
 Efficient marketing and distribution strategies
 Great quality controlled production
2. To generate reasonable turnover Witt manufacturing and sales capacity of over 7
million liters of paints annually.

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 3. Customer satisfaction- we go extra miles to study and understand our customers’
needs and assisting them to make better decision and ensuring that all our
customers are happy .
VISION

To establish a leading indigenous paint industry in Nigeria that will be environmental

friendly and compete favorably with other leading paint industries in the world through
TECHNO managerial excellence.

MISSION

Bring technology to the surface the needs of our customers through the production of
quality paint product and provision of services unrivaled in the paint industry.

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 BUSINESS ENVIRONMENT ANALYSIS

STRENGTH:

• The industry shall have a staff strength of twenty people with production capacity of
(one drum = 20 liters) a day for a start.
• Since the population of Kwara State where this industry is to be sited is about 3 million
people, and the entire North central is about twenty million (20m), enough and
adequate manpower is assured. The projected 20 liters a day is as a result of different
colors involved and also different types of paint products. We have emulsion paints,
texcoat paints, these are water soluble. There is
Also oil and marine paints, there are resin and soluble in solvent. The industry will make
a substantial quantity of these paints available during her productions so that what is
demanded by the customers is supplied. This will strengthen -the industry as a result of
the availability of the products irrespective of the type and color.

DISTRIBUTING- apart from key distributors, we will put in place wide small-scale sub
distributors known as SAMPLES HOPS which will not be more than 3 in a city. Our
distributors will be chosen based on their passion and integrity, not the size of their
pockets. In fact, we will encourage more women entrepreneurs to become distributors of
our products. Our distributors and their key staff will receive from us free regular
training on winning selling strategies.

TECHNOLOGY- the adoption of a production technology and process that would be

efficient, cost advantageous and ensuring great quality.

WEAKNESS

DISTRIBUTION BASE- unlike our competitors, we presently have zero distributor

bases. Will set aside 1-3 months before factory production commences (pre-launch
period) to marketing effort dedicated to distributor acquisition. These efforts will

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include adverts on national magazines, online adverts and face to face marketing by 3
company trained marketers, headed by myself.

The weakness of the industry will result from epileptic power supply, short supply or
scarcity of fuel needed by the industry.

Unfavorable government economic policies and programs like heavy taxation or

multiple taxation.

OPPORTUNITIES

The opportunity for the industry lies in its feasibility and viability. Since almost
everybody in Nigeria is embracing the culture of clean and green, decoration and
beautification, and with company's environmental friendly philosophy, the entire
Nigeria is the market for the products.

The privatization policy of the federal and state governments has created favorable
climate for private sectors investment.

Another opportunity being that the World Bank assisted rural electrification and water
schemes has created favorable environments which cottage industries can utilize to
advantage.

THREATS

Emergency of substitute products - initially paints controlled a 100% share in the

coating industry but now has to contend with substitutes like epoxy premixes, stone
veneer,metal boards, tiles and sand blasting.

Global warming : This may result from some environmental outbreaks caused by

climatic change nowadays. This may affect the color pigments and other chemicals used

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in paint production. This is anticipated future trend; every precautionary measure shall

be taken to remedy the situation

in any event of such occurrence. In this case the policy of government through the

National Environmental and regulatory Enforcement Agency (NESREA) shall be

adopted in order to be on safer side of climatic change and remain in business.

Inadequate fund to run establishments is always a threat to any given

establishment, since fund is the life wire of any organization, shortage in funding or

little or no access to fund when required will affect the production capacity of the

industry especially when there is speculation on increments in the prices of raw

materials and there is no fund to get enough of the materials to store up before it

increase, this will go along way to distort the production schedule of the industry

especially new establishments the like this business proposal.

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INDUSTRY ANALYSIS

The paint industry runs parallel to the GDP and economy. Considered as discretionary
spending, as the GDP increases so does the spending capacity of the people. In the past,
this industry has seen double-digit growth in terms of both, value and volume, and this
is why it has always traded at premium valuations in emerging economies.

For the last two years, there has been a constant rise in the market share by organized
players. Currently, the ratio is around 70:30 between organized and unorganized
players, and with the technological innovation and proper GST implementation, this
market share is expected to rise to 85% in the next couple of years

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COMPETITIVE ANALYSIS
There about 115 good selling brands in Nigeria with most being regional players. Only
about 30 brands can be found all over Nigeria.

DULUX - Dulux is an American franchise operated in Nigeria you CAP Plc, a

subsidiary of UAC, Lagos. This is the best-selling brand in the world and in Nigeria. This
brand targets the middle and luxury homeowner. This is the oldest paint firm business
in the area. It has achieved reasonable acceptance in the locale. However they are weak
in marketing.

INTER COLOR PAINTS- this is a licensed product of Inter color Dubai ltd. They are
manufactured in Nigeria by Intercooler industries Nigeria Limited, Enugu. They are a
good selling brand. They also target the middle and luxury home owner segment. This
business uses modern gadgets and has been able to attract building contractors.
However, his price is high

COMPETITIVE ADVANTAGE
GREAT QUALITY AT RIGHT PRICES- our top quality products especially targeted
at middle and luxury class customers will incorporate a low water-high acrylic resin mix,
high steadfast pigment load and effective additives. These products will be sold at prices
that are more competitive than their competitor. we are using more local raw materials
(plant pigments) so our unit cost will be lower making us to open up to some market
segment that feels that high price is a barrier.
AMIABLE CUSTOMER CARE- customers will buy our product from comfortable
studio/showrooms where they can relax and make product, color and design choices
with the help of a expert. Our product sales will include a cash back guarantee on proven
product damage or over order. We shall always see our customers as partners and serve
more like a consultant to them.
Exceptional product features and benefits: Our paints are an innovation in the
industry. It is mosquito repellant and fire retardant. It is uniquely durable and can resist
pressure. It issuitable for swampy areas and flood prone environment

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MARKET ANALYSIS

WHO:

5- Star premium paints will have the following market :

( I)people or organizations erecting new buildings.

(ii) People or organizations repainting existing buildings.

(iii) People or corporations protecting the surfaces of wood and metal fabrications, Our
customers are building contractors, general contractors, concrete subcontractors,
builders association, housing consultant, developments agencies, construction workers,
civil engineers, architect, land lords and individuals. Individuals building houses,
Building material markets in Kwara state and other part of North central region ,
Construction firms in the state handling building sites, Marketers of paints in Kwara
state and its environs, Household/industrial consumers, Cooperate bodies, agencies,
MDAs and estate managers.

WHERE
At maturity, we will have a vast distributor network that covers most major cities in
Nigeria. So the geographical market is national.

SIZE:
Checking with the 20million size of existing buildings in Nigeria which statistics shows
that about 50% will have need and ability to pay for a fresh coat of at least 200 liters of
paints in every 5-10 years at an average price of N150/liter. Our market size come to
(10million buildings x 200 liters x N150) divided by (10yrs). This comes to an annual
yearly consumption of about 200million liters and about 30billion Naira annual sales.

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MARKETING PLAN
ADVERTISEMENTS- (i) online adverts-this is usually the easiest and most neglected
means. We will have a aesthetically designed website that fully describes our products
and benefits. We will also have our presence in social media like Facebook and twitter
for easy interaction with our customers. (ii) Magazine adverts- we will make few
magazine adverts, mostly at the pre-launch of our products. This means of advert is
effective but might be above our advert budget at the beginning.

SITE TO SITE MARKETING- This is also a major way the industry markets her
products. Trained marketers working for our distributors market building sites in
different cities with catalogs, color chart, paint sample and other promotional materials.

STRATEGIC ALLIANCES- we will develop a multitude of commission agents who

earns substantial commissions on sales made as a result of their introduction. We prefer
businesses or individuals relevant to building or seen as an authority on the product
type. Our chief target will be painters and contractors.

SHOWROOMS- we will have key distributors in every city setup a showroom/studio

space that will be tastefully furnished with air conditioners, DSTV entertainment and
comfortable seats. The walls of these spaces will be filled with a careful arrangement of
our product samples. In these space,customers are meant to relax, view our samples and
go overmatching color combinations with the aid of our catalogue and a marketer.

CASH BACK POLICY- customers will be encouraged to return unused product to our
point of sale and get full cash back.

PROMO- will run promos like; buy 3 drums (60ltrs) get 4 liters free.

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OPERATIONAL PLAN

The business will be operated with this structure

• CEO/Project manger

• Production mangers

• Marketing manger

• Inventory/Store keeper

• Company secretary

• Financial manger

Other factory workers the choice of the operational structure is to ensure

professionalism and efficiency. The CEO or the project manager co-ordinates the
activities of the production through efficient scheduling.

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TEAM AND MANAGEMENT PLAN

It is based on how business organization is run.

How organization is being run and how the power is being shared into many sub-
divisions.

Managing Director:

i. He controls overall resources and expenditures

ii. He ensures the business is financially secured
iii. He represents the company especially in areas of contract and Negotiation with high
level client
iv. He makes strategic decisions on behalf of the company and ensures its
implementation.

Admin Manager:
i. Sees to the day to day running of the business
ii. Sees to the welfare and promotion of the employees
iii. Handle the sources and recruit of the business
iv. Communicate the vision and corporate culture of the business to the employees.

Marketing and sales Executive:

i. Carry out market research so as to have a better understanding of the target market
ii. Create a workable marketing strategy for 5- Start paint venture
iii. Develop a workable budget in collaboration with the managing director and
accountant
Purchasing Manager:

i. Maintaining accurate report of good ordered and those received

ii. Source for reliable vendors and suppliers for the business
iii. Prepare purchase orders and requisition on behalf of company to suppliers and
vendors
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iv. Develop a workable budget for the purchasing department in collaboration with
managing director and accountant.

Accountant:

i. Carry out thorough analysis of the income and expenditure of the business.
ii. Work with the purchasing manager and offer advices and suggestions where
necessary
iii. Works with the managing director to prepare a workable budget for the business

Store Manager:
i. In charge of keeping records detailing with stock level
ii. Ensure that the store is conducive and properly maintained
iii. Ensure that the store is well secure from theft.
Receptionist:
i. Ensure to keep record of the people that patronize the organization
ii. Responsible for scheduling necessary appointment
iii. Promptly answers phone calls of customers either for order or enquiry.

Security guard:
i. Report any suspicious activities to relevant department
ii. Responsible for securing the premises and properties of 5-Star pint venture.

Cleaner:

i. Ensures that the premises is kept clean all the time

ii. Report broken or spoilt facilities to management
iii. Replenish rest room with necessaries facilities
Van Drivers:
i. Ensures that the product is transported and delivered to it proper destination
ii. Carry out regular maintenance and repair on the delivery van

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iii. Keeping records by maintaining logbook recording distance traveled and fuel
consumed.
FINANCIAL PROJECTION

This Plant makes uses of a fully mechanized processing method that brings efficiency
and reduces waste and labor requirement. The startup capital is 1,500,000 Million
Naira.

The project will generate profit beginning from the first year of operation. Relevant
ratios such as the percentage of net profit to total sales return on equity and return on
total investment shows a promising return. Percent gross on sales in the industry is
about between 60% and 75%, overall profitability of the plant then would depend on
how promoters manages its administrative expenses

Investment cost and income statement projection are used in estimating the project
payback period. The projects will payback fully the initial investment in 2 years or less.

Startup Capital: 1,500,000

Source of Capital:
Contribution from all partners involved: 1,000,000
Grants from the government: 250,000
Bank loan: 250,000

WORKING CAPITAL:

Building structure: 300,000

Raw material suppliers: 300,000
Technical equipment’s: 100,000
Mechanical equipment’s:100,000
Human capital: 100,000
Channels of distribution cost: 200,000
Van: 400000
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Total------------------------------1,500,000

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 APPENDIX

We would like to acknowledge the source who aided in the developing this Business plan

(1) Covello , Joseph, and Brian Hazelgren . Your first business plan

3 rd Ed . Naperville,IL : sourcebooks 1998

(2) Creating a business plan . Harvard business school press . Pocket

mentor edition

(3) All group 24 member of Business practical (ENT 219) . Kwara state
university, Malete , Ilorin

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