Confidential

Funmi Herbal Business

Plan

28th of April, 2024

Contact Information

CEO: Odusanya Ruth Abosede

+2348121996941

funmi.herbal@gmail.com
Table of contents
Executive Summary…………………………………………………………………………………………………………….3
1 Executive summary .................................................................................................................................................. 3
2 Business details ........................................................................................................................................................ 4
3 Key personnel .......................................................................................................................................................... 5

Vision .......................................................................................................................................................................6
4 The business idea ..................................................................................................................................................... 6
5 Business goals .......................................................................................................................................................... 6
6 What the business does ........................................................................................................................................... 7
7 What makes the business different .......................................................................................................................... 7
8 Legal requirements .................................................................................................................................................. 7

Marketing ..............................................................................................................................................................8
9 Market research ....................................................................................................................................................... 8
10 Profiling customers ................................................................................................................................................ 8
11 Profiling competitors .............................................................................................................................................. 9
12 Managing market risks ........................................................................................................................................... 9
13 Pricing .................................................................................................................................................................... 9
14 Promotion and advertising ................................................................................................................................... 10

Running the business ...................................................................................................................................... 11

15 Staff ..................................................................................................................................................................... 12
16 Premises .............................................................................................................................................................. 12
17 Suppliers .............................................................................................................................................................. 12
18 Equipment ........................................................................................................................................................... 13
19 Managing operational risks .................................................................................................................................. 13

Finance.................................................................................................................................................................. 14
20 Start-up costs ....................................................................................................................................................... 14
21 Profit and loss forecast ......................................................................................................................................... 15
22 Sourcing finance ................................................................................................................................................... 16
23 Managing financial risks ....................................................................................................................................... 16
1 Executive summary
Funmi Herbal is a licensed herbal medicine company based in Lagos state, Nigeria. Our mission is to
emerge as one of Nigeria's premier herbal medicine production firms, dedicated to delivering superior-
quality herbal products to our esteemed customers.

Committed to excellence, Funmi Herbal is strategically investing in top-tier professionals and cutting-
edge equipment to position itself as an industry leader. Our facility is meticulously designed to meet and
surpass the highest industry standards, and we have secured all requisite permits from regulatory
authorities in Nigeria (National Agency for Food and Drug Administration and Control).

We aspire to redefine the herbal medicine landscape not only within Lagos state but throughout Nigeria.
To achieve this vision, Funmi Herbal places a strong emphasis on ongoing staff training and collaboration
with key industry stakeholders to effectively respond to evolving market dynamics.

With the demand for herbal medicine experiencing an upward trajectory, Funmi Herbal is well-equipped
to seize this opportunity by exploring diverse market segments within Nigeria. Our products are
distinguished by their unparalleled taste, ensuring maximum customer satisfaction and fostering long-
term loyalty.

As a sole-ownership enterprise, Funmi Herbal is under the stewardship of Odusanya Ruth Abosede, a
seasoned professional with a background in Pharmacy. With over 12 years of experience in
pharmaceuticals and medical research, Odusanya Ruth is committed to upholding the highest standards
of quality and sustainability in our operations.

Funmi Herbal is deeply committed to sustainability and community engagement, integrating

environmentally responsible business practices and actively engaging in community development
initiatives.

In conclusion, Funmi Herbal is primed to emerge as a trailblazer in Nigeria's herbal medicine sector,
delivering unparalleled products and services to our valued customers.
2 Business details
Company name:

Funmi Herbal
Telephone number:
+2348121996941

Legal status:
Sole proprietorship

The business will:

➢ Provide natural remedies for various health concerns.
➢ Offer herbal products for common health issues such as reoccurring infections,
infertility, diabetes, breast lumps, high cholesterol, genital warts, weight management,
low sperm count, vitality enhancement, and kidney detoxification.
➢ Ensure the safety and effectiveness of herbal solutions.
➢ Address customers' health needs with genuine and trustworthy products.
➢ Focus on quality and authenticity in herbal remedies.
➢ Strive to be a reliable source of alternative healthcare options.

3 Key personnel
Details of owner(s):
Name: Odusanya Ruth Abosede

Position/main responsibilities: Chief Executive Officer (CEO)

Experience and knowledge of our industry: 5years Experience in Pharmaceutical Company

Previous employment: Roland Pharmaceutical Company (Position: Pharmacist)

Key skills brought to the business: Expertise in pharmaceuticals and herbal medicine
Business experience and any training undertaken: Acquired knowledge of herbal medicine
production through hands-on experience.

Academic/professional qualifications: Bachelor's Degree in Pharmacy

Other key personnel (including shareholders):

Name: Mr Korede

Position responsibilities: Manager

Experience and knowledge of our industry: 3 years Experience

Previous employment: Pasbrun Labouratories Ltd.

Key skills brought to the business: Strong leadership and decision-making skills and knowledge of
regulatory requirements in the industry.
Business experience and any training undertaken: Participated in various pharmaceutical training
programs and developed business acumen through practical experience in the industry.

Academic/professional qualifications: Bachelor’s Degree in Chemistry

Vision

4 The business idea

Funmi Herbal embodies a vision of wellness and vitality through the power of nature. We are
dedicated to becoming a trusted provider of natural herbal remedies, offering a comprehensive
range of products meticulously crafted to address a myriad of health concerns. Our mission is to
empower individuals on their journey towards holistic well-being by harnessing the healing
properties of herbs.
At Funmi Herbal, we understand the growing demand for alternative healthcare options amidst a
backdrop of increasing health challenges. Our extensive portfolio of herbal products is designed to
cater to a wide spectrum of needs, ranging from common ailments like infections and diabetes to
more specialized concerns such as infertility and hormonal imbalances.
What sets us apart is our unwavering commitment to quality, safety, and efficacy. Each herbal
remedy undergoes rigorous testing and quality assurance processes to ensure that it meets the
highest standards of excellence. We source our ingredients from trusted suppliers, prioritizing
organic and sustainably harvested herbs to preserve their potency and purity.
Furthermore, our dedication to transparency and integrity forms the cornerstone of our business
ethos. We believe in empowering our customers with knowledge and understanding, providing
clear information about the ingredients, benefits, and usage of our products. Through education
and advocacy, we aim to demystify herbal medicine and foster greater confidence and trust in its
efficacy.
As we embark on this journey, our goal is not just to provide products but to cultivate a
community of wellness enthusiasts who share our passion for natural healing. We envision Funmi
Herbal as more than just a brand; it's a lifestyle rooted in the timeless wisdom of nature and the
profound potential for holistic health and vitality. Together, we strive to inspire and empower
individuals to embrace the transformative power of herbal remedies for a healthier, happier life.

5 Business goals
The business goals for Funmi Herbal in its first year of operation are as follows:

➢ To achieve a turnover of 3 million naira, aligning with the budgetary constraints.

➢ Establish a robust presence in the local market for herbal medicine, cultivating a loyal
customer base.

➢ Expand distribution channels to reach a broader audience within the country and
neighboring country.
 ➢ Ensure customer satisfaction by providing high-quality and effective herbal remedies for
various health concerns.

➢ Continuously innovate and diversify the product range to meet evolving customer needs
and preferences.

➢ Build brand reputation as a trusted and reliable source of herbal remedies within the
community.

➢ Forge partnerships with healthcare professionals and wellness centers to advocate for the
benefits of herbal medicine.

➢ Implement sustainable business practices to minimize environmental impact and

contribute to community development.

➢ Achieve profitability while maintaining affordability and accessibility of herbal products for
all segments of the population.

➢ Invest in employee training and development to foster a skilled and motivated workforce
committed to the company's success.

In 3-5 years, Funmi Herbal aims to:

1. Expand nationally in Nigeria.

2. Introduce new herbal remedies.
3. Increase production capacity.
4. Build brand trust and recognition.
5. Engage in community education and outreach.

Our vision is to be a trusted leader in herbal medicine, promoting health and wellness nationwide.

6 What the business does

Product/service Features Benefits
Vjay wash Formulated with Keep you clean and fresh
natural ingredients
Flat Tummy Easy to use Slimmer waistline and feel lighter
Powder
Weight Loss Kit Effective Boost energy levels and curb
cravings
System Safe and gentle Detoxify the whole-body system
Flusher Herb
Womb detox Convenient Cleanse the womb properly
powder packaging
7 What makes the business different
Our product/service is unique or different compared with the competition because:
Our product stands out due to its unique blend of natural ingredients carefully selected for their
effectiveness in promoting weight loss and improving overall well-being. Unlike many
competitors, we prioritize safety and quality, ensuring that each batch is thoroughly tested and
validated. Additionally, our convenient packaging and easy-to-use format make it accessible for
consumers seeking a simple solution to their health goals.

8 Legal requirements
The legal and insurance requirements that apply in our business are:
The legal and insurance requirements for our business include compliance with regulations
governing the production and sale of herbal products, obtaining necessary permits and licenses
from regulatory authorities, and ensuring product labeling and advertising adhere to applicable
laws.

We will meet your legal and insurance requirements by:

To meet these requirements, we will engage legal counsel to ensure our operations comply with
all relevant regulations and obtain the required permits and licenses before commencing
production and sales. Additionally, we will invest in comprehensive insurance coverage to protect
our business and assets against potential risks and liabilities.
Marketing

9 Market research
Trends in our chosen market are:
In our chosen market, trends indicate a growing demand for natural and herbal remedies,
driven by an increasing preference for alternative healthcare options and a rising awareness of
the benefits of herbal medicine. This trend is supported by a shift towards holistic wellness and
a desire for sustainable and environmentally friendly products.
How we know this:
We have conducted extensive market research, including surveys, interviews, and analysis of
industry reports and trends, to understand the evolving needs and preferences of consumers in
our target market.

10 Profiling customers
The customer groups we will be selling to are:
➢ Individuals seeking natural remedies for health issues
➢ Health-conscious consumers interested in holistic wellness
➢ Those looking for alternatives to conventional medicine

Our customer research has shown what our customers want is:
Our customer research has revealed a strong demand for safe, effective, and natural herbal
products that address specific health concerns while promoting overall well-being. Customers
are seeking products that are trustworthy, reliable, and backed by scientific research or
traditional knowledge.

We anticipate winning approximately: 1000 customers

Individuals seeking natural remedies: 500 customers

Health-conscious consumers: 300 customers
Those looking for alternatives to conventional medicine: 200 customers

Customers may be willing to pay varying prices per unit, depending on the
product and its perceived value:

Individuals seeking natural remedies: N15,000 per unit

Health-conscious consumers: N 25,000 per unit
Those looking for alternatives to conventional medicine: N 30,000 per unit
11 Profiling competitors

Competitor name Strengths Weaknesses

Salym Wellness Quality Focus Market Adaptability
HSF Wellness Centre Customer Loyalty Reginonal Presence
Okpeifa Herbal Doctor Positive Reviews Marketing Channels
Solaq Herbal Innovation Competitive Pressure
Naturecure Herbal Pricing Strategy Supply Chain Dependency

How we can improve on their offer and/or price(s):

By focusing on product differentiation, value-added services, promotional pricing strategies,
packaging and branding, customer rewards programs, product quality and safety, online
presence, and customer feedback, we can enhance our offer and pricing compared to our
competitors. These strategies collectively contribute to building a strong and competitive brand in
the herbal medicine market, ultimately driving growth and success for your business.

12 Managing market risks

Managing market risk involves identifying potential threats to the business due to factors such as
market saturation, regulatory compliance issues, and shifting consumer preferences. To mitigate
these risks, Funmi Herbal will focus on product differentiation, strict adherence to regulatory
requirements, and continuous market research. Additionally, the company will stay agile and
responsive to changing consumer trends, ensuring that its product offerings remain relevant and
competitive in the herbal medicine market. By implementing robust risk management strategies,
Funmi Herbal aims to safeguard its business against market uncertainties and maintain long-term
success.

How to manage these risks so that they become less of a threat:

Funmi Herbal will mitigate market risks through diversification of its product range, strict
regulatory compliance, continuous market research, and vigilance. Building a strong brand
reputation, maintaining flexibility in operations, and managing supplier relationships will further
enhance risk management efforts, ensuring resilience and adaptability in the face of market
challenges
13 Pricing

How you can calculate your prices:

To calculate prices, Funmi Herbal will consider factors such as production costs, including raw materials,
labor, and overhead expenses. Market demand and competition will also influence pricing decisions,
ensuring that prices remain competitive while maintaining profitability. Additionally, the perceived value
of the products and customer willingness to pay will be taken into account to determine optimal pricing
strategies. Regular pricing reviews will be conducted to adjust prices as needed based on market dynamics
and business objectives.

How your prices compare with the competition:

Product/service Our price(s) Range of competitor

N prices (per unit) N
Hormonal Regulator Herbs 30,000 28,000
Fertility booster 28,000 22,000
Infection Drink (2 liter) 28,000 25,000
Infection Mini Kit 22,000 20,000
Flat Tummy Powder 18,000 14,000
Vjay Wash 15,000 9,000
Weight Loss Pills 28,000 25,000

Reasons for the difference between our price(s) and our competitors’ price(s):
Our prices may be higher than competitors due to factors such as superior product quality,
brand reputation, value-added services, production costs, and target market positioning. These
factors contribute to the perceived value and benefits of our products, justifying the premium
pricing strategy.

14 Promotion and advertising

We will promote our product/service through various channels such as social media
advertising, influencer marketing, email marketing, content marketing, and participation in
health and wellness events and expos. Additionally, we will utilize targeted online
advertisements on platforms like Instagram, Facebook, and Google Ads to reach our desired
audience effectively. Offline promotion will include distributing flyers and brochures in
strategic locations and collaborating with local health practitioners for referrals.
Running the business

15 Staff

Role Total Necessary experience Specialist skills and/or

cost qualifications
Herbal Medicine #230,000 5+ years in pharmaceuticals Herbal medicine
Production Manager Production Management knowledge
Sales and Marketing #150,000 3+ years in sales/marketing Customer acquisition
Manager industry
Customer Service #100,000 2+ years in customer Effective communication
Representative service and problem solving
Administrative #80,000 No specific experience Attention to details
Assistant
Delivery Driver #80,000 15+ years as a driver Route planning
16 Premises
Cost (#)
Premises required at start-up: Office acquisition #1,000,000

17 Suppliers
Our key suppliers and their credit terms
Supplier What you’ll buy from them Number of days’ credit
Mr Raji Herbs raw materials 30

Mr Idowu Packaging Materials 15

Mrs Juliet Office Supplies 20

Mr Faruq Equipment and Machinery 40

Miss Feyi Cleaning Supplies 30

18 Equipment

Resource How funded Cost # per unit

Herbal Medicine Mixer Startup Business Funds 180,000

Packaging Machine Startup Business Funds 80,000
Labeling Machine Startup Business Funds 350,000
Weighing scale Startup Business Funds 40,000
Storage Rack Startup Business Funds 30,000
Office furniture Startup Business Funds 200,000
Safety Equipment Startup Business Funds 100,000
Computer and software Startup Business Funds 500,000

19 Managing operational risks

Risk
Staff
Implement thorough training
programs to ensure
competence and efficiency in
performing tasks.
Solution
Regularly review employee
performance and provide
feedback for improvement.
Develop contingency plans for
staff shortages or unexpected
turnover.

Suppliers Regularly assess supplier

Establish relationships with
multiple suppliers to mitigate
the risk of reliance on a single
source.
performance and seek
alternative options if necessary.
Maintain open communication
with suppliers to address any
issues or concerns promptly.
Finance

20 Start-up costs
Calculate how much money I need before I start trading

Equipment 400,000
Stock 300,000
Tools 120,000
Transportation 200,000
Professional fees 350,000
Insurance 300,000
Rent/rent deposit 1,000,000
Stationery 120,000
Marketing 300,000
Consumables 150,000
Licences 250,000
Training 300,000
Association fees 50,000
Wages/recruitment 500,000
Security/health and safety equipment 200,000
Market research costs 120,000
TOTAL # 4,660,000
21 Profit and loss forecast

Year 1 (#) Year 2 (#) Year 3 (#)

Total expected sales 20,000,000 30,800,000 38,000,000
Variable costs 6,000,000 10,000,000 15,000,000
Gross profit = 14,000,000 20,800,000 23,000,000

Salaries/wages 6,000,000 6,000,000 6,000,000

Premises (including rent, rates,
1,000,000 1,000,000 1,000,000
utilities)
Telephone and broadband 50,000 50,000 50,000
Printing, post and stationery 20,000 20,000 20,000
Advertising and promotion 100,000 100,000 100,000
Bank charges 20,000 20,000 20,000
Insurances 2,000,000 2,000,000 2,000,000

Total fixed costs 9,190,000 9,190,000 9,190,000

Net profit (gross profit less fixed cost) 4,810,000 11,610,000 13,810,000

Calculate your net profit margin (net

24 38 36
profit divided by total sales x 100)

Calculate your break even Year 1 (#) Year 2 (#) Year 3 (#)
Total variable costs + total fixed costs
15,190,000 19,190,000 24,190,000
(B)
Break even (B) divided by (A) 5 6 8
5.063333333 6.396666667 8.063333333
22 Sourcing finance
#
Start-up costs 4.66M

Personal start-up contributions - 0

Other start-up contributions - 0
Total required = 4.66M

23 Managing financial risks The risks that we have identified for our financial
forecast are:
To manage financial risks, Nature Herbal Medicine Production, Inc. will adopt the following
strategies:
1. Develop contingency plans to adjust expenses and operations in case of lower-than-expected
sales or funding delays.
2. Utilize conservative financial projections to account for fluctuations in sales and funding
timelines.
3. Explore opportunities to diversify revenue streams to reduce reliance on any single source of
income.
4. Implement regular monitoring and review processes to track financial performance and make
timely adjustments to business strategies.

How you will minimise their impact:

To minimize financial risks, Funmi Herbal will diversify revenue streams, build cash reserves,
monitor financial performance, maintain good supplier relationships, implement cost-saving
measures, and seek expert advice.