SUDECE LINKS SERVICES

(A TOOTHPICK MANUFACTURING COMPANY)

BUSINESS PLAN

ENGR. KEREN EBIOKPO PAUL

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 TABLE OF CONTENT

1.0 Executive Summary

1.1 My Products & Services

1.2 My Vision Statement

1.3 My Mission Statement

1.4 Core Values

1.5 SWOT Analysis

1.6 My Business Structure

1.7 Sales Forecast

1.8 Sustainability & Expansion

2.0 Company & Financial Summary

2.1 Registered Name & Corporate Structure

2.2Required Funds
2.3Investor Equity
2.4Management Equity
2.5 Sources of Income
2.6 Generating Funding/Start-up Capital

3.0 Industry Review

3.1 Business Overview

4.0 Strategic & Market Analysis

4.1 What is the market for Bamboo Toothpick?

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 4.2 Why Bamboo Toothpick?

4.3 What is the role of Bamboo Toothpick Manufacturing unit in rural

development?

4.4 General development attributes and advantages.

4.5 Suitable Agro-ecological Regions

4.6 Benefits

4.7 Market Segmentation

4.8 Competitive Edge

5.0 Marketing Review & Plan

5.1 Project Conceptualization

5.2Marketing Strategy & Sales Strategy

5.3 Our Pricing Strategy

5.4 Payment Options

6.0 Manufacturing Process and Management Summary

6.1Manufacturing steps

6.2 Raw materials

6.3 Minimum equipment requirement

6.4 Culm sectioning, splitting and rod-making

6.5 Toothpick Production

6.6 Checking and Packing

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 6.7 Requirements for Success

6.8 Title of Land

6.9 The Sponsors of the Toothpick Industry

6.10 Management and Administration

7.0 Financial Plan

7.1 Initial Investment Requirement

7.2 Sources of Funds

8.0 Checklist

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 1

EXECUTIVE SUMMARY

Sudece Links Services is a standard and yet to be fully registered and licensed
company here in Yengoa, Bayelsa State.

I will place a high value on my customers which is why I will adopt excellent
customer corporate culture in ensuring that I meet and exceed the expectations of
my customers.

In order for me to achieve all my goals and objectives, I intend to ensure that I
build a solid business structure, which will see me employing capable and
experienced hands to work with me. My employees will be well paid and have the
best welfare packages in the industry especially across start-ups in our category.
My facility will also be conducive for all my employees.

The Chief Executive Officer, Engr. Keren Ebiokpo Paul is a renowned

businessman and entrepreneur who has been in the production industry for over 20
years. He has other businesses that he owns and which are successful and so he
will bring his expertise and experience to bear in ensuring that the toothpick
manufacturing business is able to attain all its goals and objectives.

1.1 My Products and Services

Sudece Links Services is a toothpick manufacturing business that is fully registered

and licensed to operate as a profit making business here in Nigeria. My aim is not
to only generate revenue and maximize profit, I also intend to offer additional
products and services to my core service so as to sustain my bottom line and grow
my business.

The products and services that I therefore intend to make available to my various
customers are;

 Production of wooden/bamboo toothpicks

 Production of plastic toothpicks
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 Production of chewing sticks
 Consultancy and advisory services
 Training

1.2 My Vision Statement

My vision is to become the preferred toothpick manufacturing company for all my

customers not only here in Yenagoa but all over Nigeria as well. I intend for my
product to be amongst the top three brands in the country by the year 2023.

1.3 My Mission Statement

I am constantly building my business structure in order to ensure that I achieve my

goals and objectives. To this end, I will employ capable, experienced and efficient
employees to ensure that I achieve my intended goals and objectives.

1.4 Core Values

 The provision of high quality and maximum flexibility in customer service

delivery.
 Superior and personalized customer’s attention
 Provision of standard and quality supply of toothpicks.

1.5 Sudece Link Services Business Plan – SWOT Analysis

In a bid to run a business that is not only successful but of a high standard, I have
engaged the services of BetterTech Business Consulting Firm in Yenagoa. This is a
reputable firm that has experience of helping new businesses such as mine to know
if they are in the right business or not.

In response to my request, BetterTech Business Consulting Firm, a renowned and

well known firm made use of a thorough analytical method by using our strengths,

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weaknesses, opportunities and threats to determine if we would thrive in this
industry.

The result of the SWOT analysis that was therefore conducted on our behalf by
BetterTech Business Consulting Firm are as follows;

Strength:

The fact that I am offering other products and services in addition to my core
service is a plus for me in this business. I will also employ professionals and
capable employees who will thoroughly understand the business and are dedicated
to help me run my toothpick manufacturing business. Another of my strength is
that I will operate a monopoly market here in Bayelsa State as the only toothpick
manufacturing company. I do not have any competitors in Yenagoa. My location
here in Akenfa 3 – Yenagoa is one that is very strategic and allows me to be close
to my various customers.

Weakness:

The fact that I am still new in the industry is one weakness I will face. Also, I do
not have the financial and human resource capacity as other existing toothpick
manufacturing companies outside Bayelsa State, which means I would need to
work harder to become known and my brand to be recognized so that traders in
Yenagoa would not patronize toothpicks from other states.

Opportunities

I have several opportunities available to me in this industry and it includes

exporting my toothpicks to other states and beyond. Also, due to that fact that I am
quite close to the production and commercial hub in Nigeria, more opportunities
are going to be available to me such as producing toothpicks for others either for
business purposes or as souvenirs.

Threat:

Every business is faced with threats but it is how they handle the threats that would
determine how long they would last in business. Therefore the threats that I am
likely to face is from competitors outside Yenagoa – new or already established
who would be offering the same services as mine and who would have better

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policies in regards to pricing and customer retention. Another threat that I might
face is more clients turning to another substitute – floss.

1.6 My Business Structure

Due to my intention to build a standard toothpick manufacturing business here in

Akenfa 3 – Yenagoa in Bayelsa State, I have decided to take a critical look at how
I can build my business structure. By building a solid business structure, my
intention is that my business can smoothly start off and be run with as less hitches
as possible. This is why I am going to ensure that I go the extra mile in picking the
right employees to handle the various positions and the roles that would come with
it.

Therefore, the business structure that I would build at Sudece Link Services is as
follows;

 Chief Executive Officer

 Human Resources and Admin Manager
 Production Manager
 Machine Operators
 Store Manager
 Accountant/Cashier
 Marketing and Sales Team
 Front Desk Officer
 Cleaner
 Driver

Job Roles and Responsibilities

Chief Executive Officer

 In charge of making the overall policies and strategies that would have a
holistic effect on the organization.
 Hires, disciplines, delegates tasks and rewards individuals in the management
team.
 Evaluates the success of the organization and removes or modifies ineffective
policies.

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Human Resources and Admin Manager

 In charge of placing adverts for, interviewing and hiring those that would
eventually work for the company.
 Conducts orientation for new employees and performance appraisals for
existing employees.
 Ensures that the administrative functions of the organization are smoothly
performed.

Production Manager

 Is in charge of all the toothpicks (wooden and plastic) and chewing stick
produced by the organization.
 Ensures that all staff on the production floor strictly adhere to organization’s
policies and guidelines.
 Ensures that workers give optimum performance and punishes erring workers
on behalf of the organization.

Machine Operators

 In charge of the machinery used for production and ensures that checks are
carried out before production.
 Carries out preventive repairs and maintenance on machineries.
 Ensures that the machines bought by the organization are genuine.

Store Manager

 In charge of all produced toothpicks and chewing sticks in the store.

 Monitors all incoming and outgoing inventory and records them for official
purposes.
 Ensures that the store is clean, secured at all times and well ventilated.

Accountant/Cashier

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 Prepares all the financial reports, information and statements on behalf of the
company
 Prepares the overall budget and makes sure that it is duly implemented by the
organization
 Monitors cash inflow and outflow and ensures that every naira is accounted for

Marketing and Sales Team

 Conducts market research in order to discover new target markets for the
organization.
 Drafts effective marketing and sales strategies to generate more revenue on
behalf of the organization.
 Meets and negotiates with high level clients on behalf of the organization.

Front Desk Officer

 Responds to inquiries and orders via phone, internet and via physical
appearance on behalf of the organization.
 Remains updated about organizational policies as well as industry trends in
order to give clients accurate information at all times.
 Keeps an updated and accurate customer database on behalf of the
organization.

Cleaner

 Cleans the factory before the start of administrative work and production every
morning.
 Ensures that the convenience is kept clean for staff and customers.
 Carries out any other duties as specified by the human resources and admin
manager.

Driver

 Ensures that ordered toothpicks and chewing sticks are duly delivered to the
right destination.
 Supervises the loading and offloading of goods from the truck and helps out
too.

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 Performs other official duties on behalf of the organization.

1.7 Sales Forecast

Toothpicks in Nigeria will always be in constant demand due to the fact that is
very popular amongst the people than its closest substitute – floss. I have therefore
keyed into this fact to ensure that I get a huge share of the market.

Our location in Akenfa 3 – Yenagoa is very strategic as I am deep in the

commercial manufacturing and production hub. My location has made it possible
for me to generate the needed revenue that will grow and sustain my business. I am
also confident after studying my revenue generating model that I will make my
profit in the first year of business, which would mean that I am able to achieve a
milestone.

However, because I intend to ensure that I give accurate reports regarding my sales
forecast, I have taken a thorough evaluation of the toothpick manufacturing
business so as to correctly deduce my chances of surviving in this industry.

I used several assumptions and data from similar start-ups such as mine and even
already established toothpick manufacturing businesses in Nigeria. Below
therefore are the sales projections for Sudece Links Services depending on several
factors and data as relating to small and medium scale enterprises not only here in
Yenagoa but all over Nigeria as well;

First Fiscal Year-: N3,200,000

Second Fiscal Year-: N6,000,000

Third Fiscal Year-: N12,500,000

N.B: It should be noted that the above sales projections were dependent on what
was obtainable in the industry for the stated time period. The assumptions are
based on the act that more people won’t start using the alternative – floss, and also
that I won’t have a competitor offering the same services as mine within the three
years that we have based my sales projections on. Should there be any changes in
the above stated factors, it would lead to an increase or decrease in the figures
stated above.

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1.8 Sustainability and Expansion Strategy

My aim is to start a business that will not only become a household brand but that
is sustained for as long as possible in the industry. However, in order to achieve
this goal, I intend to consider certain factors that I know will be helpful to sustain
and expand my toothpick manufacturing business. The factors are ensuring that I
build a solid business structure, a sound re-investment strategy, and a customer
retaining strategy.

I will ensure that my employees are well paid and that their welfare packages are
the best in Bayelsa State. I would also ensure that my employees undergo the right
training that will see them not only enhance their skills but also boost productivity
for our company as well.

Having a solid re-investment plan is very important for my business because I do

not intend to always go out to seek for funds externally in order to run and sustain
my business. I therefore have put plans and structures in place that will ensure that
at least 30% of my earnings is put back into the business. This way I would be able
to not only make sure my bottom line is solid; but would be able to sustain and
grow my business.

Even though toothpicks are used by everyone, it is a market where I intend to fight
in order to retain my customers. I have adopted an excellent customer care culture
that will ensure that my customers are given topmost care whenever they patronize
me.

All my employees understand the value of our customers and the customer care
attitude has become a part of our corporate culture. We will make sure that we
offer our customers incentives every once in a while and those that refer us to
others will be rewarded as well. These measures will ensure that a high number of
our customers prefer our brand to that of our competitors.

COMPANY AND FINANCING SUMMARY

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2.1 Registered Name and Corporate Structure

Sudece Links Services will be registered as a corporation in Nigeria.

2.2 Required Funds

At this time, Sudece Links Services requires about N10,000,000 of grant funds.

2.3 Investor Equity

Engr. Keren E Paul is not seeking an investment from a third party at this time.

2.4 Management Equity

Keren E Paul owns 100% of Sudece Links Services.

2.5 Sources of Income

Sudece Links Services just like any other business has been established to generate
revenue and maximize profit here in Yenagoa – Bayelsa State. I intend to do all it
legally takes to ensure that I not only generate revenue from our core service but
from additional services as well, in order to sustain and boost our bottom line and
therefore grow our business.

Sudece Links Services intends therefore to generate income by offering the

following products and services;

 Production of wooden toothpicks

 Production of plastic toothpicks
 Production of chewing sticks
 Consultancy and advisory services
 Training

2.6 Generating Funding / Startup Capital

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While having a business idea is important, it is equally important to ensure that
there is finance available to make the business idea become a reality. Without
finance, the business idea would remain just an idea. Also, it is important that an
entrepreneur knows just how much is needed to run the business till the business
starts paying for itself.

This is why conducting a thorough feasibility study is necessary as this would stop
the entrepreneur from constantly seeking for loans every time instead of just once.
Even though sourcing for finance is very difficult and can be quite intimidating, it
is nevertheless one of the task that an entrepreneur must undergo for the sake of the
business.

Sudece Links Services is a business owned and operated by Engr. Keren . Paul.
Having known the rudiments of the business he believes that he doesn’t require an
external partner to run the business with. This has therefore led to his deliberate
sourcing of start-up capital from just two areas.

The areas where I therefore intend to generate the necessary start-up capital for
Sudece Links Services are;

 Generate part of the start-up capital from personal savings

 Apply for loan from the bank

N.B: I am able to generate the sum of N4 million from my personal savings. I am

applying for the sum of N10,000,000 as credit faclity. All the supporting
documents have been signed and attached for a quick processing of the loan.

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 INDUSTRY REVIEW

3.1 Business Overview

There is a huge market for the toothpick production business both here in Nigeria
and all over Africa and this is because almost everyone uses toothpicks to remove
unwanted food leftovers that stick in between the teeth. The use of toothpicks is
higher than the use of floss, its closest substitute, which then makes starting the
toothpick business lucrative for any enterprising entrepreneur.

The market potential for toothpick is such that it can be sold locally or exported in
order to earn foreign exchange. The market for toothpick production was made
possible by the ban on toothpick importation by the Nigerian Federal Government,
and this has created enough opportunity for the local markets to grow.

According to analysis, the market for toothpicks is not only sustained but
expanding as well, this is because toothpicks are used in hotels, homes, restaurants,
bars and joints, parties and in other public gatherings.

Production has stepped up in Nigeria with different companies preferring to ensure

that their products are manufactured according to international standard especially
as there is potential for the products to be exported to other countries where there
might be stringent laws as to what is being imported.

Raw materials used in producing toothpicks are readily available here in Nigeria as
the raw materials used are either wood or bamboo. This makes it a great advantage
for starting this business here in Nigeria.

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 STRATEGIC AND MARKET ANALYSIS

4.1 What is The Market for Bamboo Toothpick?

The bamboo toothpick production business is one that attracts huge demand
thereby making it an interesting and lucrative business to start up. The flourishing
custom of dining in urban and suburban areas has heightened the need for this
product. There is always profit to be made in this business regardless of the size of
the company. Toothpicks can either come in wooden or plastic forms and are used
by hotels, bars, restaurants, in homes, eateries, in parties and in the travel industry
as well.

Also, the raw materials used for the production of bamboo toothpicks are easily
accessible locally, which means there would be no need for importation except
maybe the machinery and this would have to be the automatic machines, if the
entrepreneur does not intend to use the local machines. In
order to develop the market still further the environmentally friendly nature of
using bamboos to produce toothpicks could be stressed.

4.2 Why Bamboo Toothpicks?

Bamboo wood is relatively soft, not particularly dense, and is ideal for the
production of toothpicks. Bamboo is a renewable resource that can be harvested
annually and if cultivated well produces a known yield per unit area. This makes it
ideal for supplying the relatively low but regular inputs of raw materials required
by the toothpick unit.

4.3 What is the Role of bamboo Toothpick Manufacturing Unit in Rural

Development?
A bamboo toothpick-manufacturing unit can provide employment opportunities to
a range of people. The unit itself will employ a minimum of 20 people and more
employment will be generated in its forward and backward linkages, such as
cultivation and harvesting of bamboo, marketing and retailing. The need for
substantial quantities of raw bamboo will encourage the sustainable management

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of bamboo plantations, which can easily be intercropped with food crops and thus
increase the food security of the rural poor that grow them.

4.4 General Development Attributes and Advantages

The main development attributes are as follows:
 Reduction in the use of tree timber through its substitution by bamboo timber,
leading to increased environmental protection.
 Rehabilitation of degraded and waste lands
 Creation of employment opportunities especially among the rural poor
 Improvement of rural peoples skills and their empowerment through
development of their potential
 Increasing social and community welfare

4.5 Suitable Agro-ecological Regions

A bamboo toothpick unit is very suitable for most sub-tropical and tropical regions
in which sympodial bamboos grow. Regions of natural bamboo forest are suitable,
but the unit could be established where bamboos are grown on any scale, from
homesteads to large plantations. This is especially suitable for areas where soil
erosion is a problem, as the planting of bamboos to supply the unit can greatly
reduce erosion. Planting bamboos can also restore degraded lands, such as
abandoned shifting cultivation plots, and bring them back into productivity.

4.6 Benefits
The environmental benefits of a toothpick-manufacturing unit are considerable.
The use of large quantities of bamboo as the raw materials will necessitate the
effective and sustainable management of bamboo plantations and stands, and will
encourage the planting of more bamboo. The cultivation of bamboo is beneficial
for soil conservation and afforestation activities and plantations are encouraged as
part of social forestry programmes. The use of bamboo to produce toothpicks will
reduce pressure on timber wood, and contribute to forest conservation.
As noted above, establishing the unit will generate considerable
employment opportunities for rural people. The unit would increase economic

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activity in the region, bringing greater prosperity to the communities involved and
permitting knock-on investment in new bamboo-based projects.

4.7 Market Segmentation

Before every business can determine who its target market is even though it might
look obvious, it is very necessary that a market survey is performed. Performing a
market survey forces one to look critically at the target market for one’s business
and know what is expected from this target market i.e their unique characteristics
and what is likely to appeal to them. This will then help when drafting marketing
strategies as they would be more suited to the target market.

Another reason for conducting a survey is so that we understand what it is the

target market expects from us. Therefore, from the following reasons, we are going
to be offering our products and services to the following groups of people or
businesses; restaurants, households, fast food joints, bars, hotels, and the whole
hospitality industry.

4.8 Competitive Edge

The toothpick business might look like an easy one to start up but it truly is a
saturated market and this is due to the fact that almost every entrepreneur with easy
cash can venture into this business even without having any technical knowledge
of the business.

My aim to become the preferred brand for my various customers will not be easy
to attain, and for this reason, I have laid down strategies that will allow me to
compete effectively against my competitors in order to have competitive advantage
over them.

Everyone in Nigeria knows that Aba is the manufacturing hub where almost
anything can be manufactured. The Akenfa area where my manufacturing
company will be located has me strategically close to the toll gate in Nigeria where
visitors from all over the country flock in and out from. My strategic location is not
only going to get me a large share of the market, it is one edge that I have because
it will stop traders in Yenagoa from travelling to Aba to purchase toothpick.

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Because I understand how valuable customers are to the growth of a business, I
will put strict customer policies in place so much so that it will become a part of
my employees’ attitude. This therefore means that all my customers will be given
the highest care and attention. My factory is one that will be convenient for my
customers to get to and I roll out incentives every once in a while in order to keep
my customers happy.

I will assemble a team of professionals and highly capable individuals to handle

the affairs of my company. My management team for instance will be filled with
individuals who have experience as regards the industry. My management team
will also understand how best to help build my company from the start-up I am to
the national phenomenon I intend to become and this is due to the fact that they
will understand my vision and goals and are willing to work hard to ensure that it
comes to pass.

Finally, knowing how important it is for my employees to remain motivated, I will

pay my employees better salaries and wages than what they are likely to get from
our competitors. I will also have other welfare packages in place that will ensure
that they remain committed and dedicated to my vision and objectives. I will also
ensure that my facilities are environmentally conducive for all my employees.

MARKETING REVIEW AND PLAN

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5.1 Project Conceptualization
Bamboo toothpicks are a low input - low output product for the factory but are
required in enormous numbers. All sectors of society in a huge range of countries
use toothpicks, and with a little careful marketing, perhaps stressing the eco-
friendly nature of the product, the vast majority could be using bamboo toothpicks.
The very short rotational cycle of bamboo makes it very attractive in terms of cash
flow compared to timber trees and this means it is attractive for those with limited
capital. As a small-scale enterprise a toothpick-manufacturing unit may be eligible
for development grants or other incentives from the government - check with your
local government office or business advisory centre for details.

5.2 Marketing Strategy and Sales Strategy

Marketing is a process where the needs of intending and existing customers are
anticipated, identified and met. This is one serious aspect of a business that
requires a thorough evaluation especially as this is the revenue generating aspect of
the business, that enables the business grow and sustain itself.

Without marketing the business, not only will a business not likely have customers,
it will struggle to exist and might eventually fail. Businesses therefore always set
aside an amount to use in marketing as well as marketing strategies that will ensure
that the target market is well penetrated.

In regards to this, I intend to conduct a market research that will allow me to

thoroughly understand the market which I would be going into in order to draft
effective strategies for my business. The market research will not only allow me
understand my target market and their characteristics, it will also allow me position
my business well in order to penetrate and get a large share of the market.

I will engage the services of a reputable marketing consultant here in Yenagoa to

help me draft effective marketing strategies that will allow me to favorably
compete against my competitors, either new start-ups or already existing
companies.

I would also empower my marketing team to ensure that the marketing strategies
are in line with our corporate sales goals and objectives. My marketing team will

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also be empowered to modify and remove ineffective marketing strategies and
deploy conventional and unconventional modes of marketing our toothpicks.

The following are therefore the marketing and sales strategies that I intend to adopt
in ensuring that awareness for my products reach the target market;

 Ensure that I introduce my business to toothpick wholesalers, large chain hotels

and restaurants, bars as well as other stakeholders in the industry.
 Throw a huge party when launching our business that will generate the much
needed awareness about my business.
 Ensure that I place adverts in local and national newspapers as well as on radio
and television stations.
 Use our social media platform such as Facebook or Instagram to vigorously
market my toothpick production business.
 Install billboards in strategic locations all around Yenagoa in order to increase
awareness about my business.
 Empower my marketing and sales team to engage in direct marketing in order
to generate revenue that will sustain my toothpick manufacturing business

5.3 My Pricing Strategy

Toothpicks are a commodity that is used by almost everyone and in most

establishments that majorly deal with edible products. Even though the raw
materials for toothpicks are readily available, the prices that I would set for my
toothpicks would be solely dependent on the kind of toothpicks I would be giving
my customers (plastic or bamboo); my overhead cost, my running cost and the size
of the toothpick packaging.

In order however to attract as many customers as I want to my toothpick

manufacturing business, I intend to offer a price discount in my first two months of
operations. This strategy would not only bring me more customers, but will allow
potential customers in my target market to be aware of our business.

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Having looked thorough at this strategy that I intend to adopt, I am confident that
while I might have a low gross margin during these two months, it will in no way
allow me run into a loss.

5.4 Payment Options

Choosing the right payment options is very important to my business and this is
due to the fact that customers prefer various options to pay for products and
services. In picking the payment options for my clients, I would ensure that it
abides by the financial rules and regulations here in Nigeria.

Therefore, the payment options that I want to make available at Sudece Links
Services are;

 Payment via bank transfer

 Payment via cash
 Payment via Point of Sale (POS) Machine
 Payment via cheque

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 6

MANUFACTURING, PROCESSES AND MANAGEMENT SUMMARY

6.1 Manufacturing Steps

Bamboo toothpicks are produced by the following basic steps

 Cutting of culms into shorter sections

 Splitting culms and sectioning into thin, round rods 2 mm in diameter
 Drying rods
 Rolling rods to smooth the surface
 Sectioning rods to toothpick length (usually 65-70 mm)
 Polishing
 End-sharpening
 Sorting
 Checking
 Packing

6.2 Raw Materials

Bamboo culms 3-4 years old are selected. Species with very long internodes and
relatively thin culm walls such as B. chungii and B. cerosissima from South China
are ideal materials as their long internodes maximise the amount of useable wood
available from each culm. Bamboo has over 1,250 species that grow throughout
the world. More than 100 of these species are used commercially. Some of the
species include dedendrocalamous giganteous, oxyenanthera braunii,
phyllostachys nigra. Out of this 1250 species, there is no one planted at large
quantity for commercial purpose in Nigeria. It is only at the substance level.
Africa has the smallest bamboo area covering an area of 2.7 million hectares or 7%
of the total bamboo area in the world. There are totally about 40 species within 13
genera which mostly are widely distributed across the tropical rainforest and the
evergreen broadleaved mixed forest. The main species are Arundinaria alpine,

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Bambusa vulgaris and Oxytenanthera abyssinica. In the African, approximately 66
percent of bamboo area is classified as private system.

6.3 Minimum Equipment Requirement

 Cross cutting machine
 Splitting machine
 Rod-making machine
 Toothpick cutting machine
 Polishing machine
 End-sharpening machine
 Grinder

6.4 Culm Sectioning, Splitting and rod-making

Culms may be sectioned by hand or by using a cross-cutting machine. It is

necessary to remove nodes at or very close to either end of a section as they
hinder proper splitting.
 The sections are then split longitudinally into splits of approximately equal
width in the splitting machine.
 Each split is then passed through a rod making machine that produces fine
round threads of bamboo the same thickness as the eventual toothpick (usually
2mm). The machine also removes the outer green layer of the culm that is still
attached to the split. However, the use of just one machine to produce rods from
splits is relatively wasteful of bamboo wood. Productivity per culm is higher if
the splits are passed through a series of machines, each of which produces splits
of successively smaller diameter. However, the capital investment and running
costs would increase.
 The bamboo rods are then left in the sunshine to dry.
 The rods may be bleached in open tanks to ensure uniformity of colour and
increase acceptance amongst consumers. The rods are soaked in the bleaching
agent (such as hydrogen peroxide, H2O2) for 15 minutes and then piled together

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 to allow further penetration of the bleaching agent. They should be covered
with plastic sheet to protect them from rain.

6.5 Toothpick Production

 After drying the rods are cut to toothpick length. The cutting machine has an
exposed blade and appropriate care should be taken to avoid injury.
 The toothpicks are then placed in the polishing machine.
 The ends of the toothpicks are then sharpened in the end-sharpening machine.
In the case of single-ended toothpicks, other machines are available that
engrave patterns or rings in the blunt end for decoration.
 Finally the toothpicks are placed in the grinding machine to finish them off.

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6.6 Checking and Packing
The toothpicks are finally sorted into batches and substandard ones removed. They
are packed at the unit into packages of up to 200 toothpicks, using the unit’s own
packaging style. This ensures greater brand recognition and offers greater
opportunities for market penetration.

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6.7 Requirements for Success
The essential requirements for a successful bamboo toothpick-manufacturing unit
are:
1) Initial capital investment
2) A regular supply of bamboos as raw material
3) Secured, trained workforce
4) Sufficient markets

6.8 Title of Land

Sudece Links Services has acquire 1 (one) plot of land at the said location.

6.9 The Sponsors of the Toothpick Industry

The bamboo toothpick production in Akenfa, Yenagoa Local Government Area of
Bayelsa State would be financed partly by Engr. Keren E. Paul and partly from
grant.

6.10 Management and Administration

The overall responsibility for the management of the toothpick manufacturing
business will be vested on the Chief Executive Officer. He is a person of proven
integrity with progressive and dynamic qualities. He is able to exhibit traits of
managerial capabilities in handling both administrative and financial activities on
the company. Corps of direct and indirect staff will in turn support him.
In addition to technical knowledge and skills, the staffs will possess drive and
determination to get the job well done. The management staff will be prepared to

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put extra time and efforts, which are considered vital to the smooth operation of the
company. The staffs will also ensure that production targets are met within
specified period. It has therefore become imperative that merit and rationality be
given adequate attention in the selection of the Production Manager and other
supporting staff.

FINANCIAL PLAN

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7.1 INITIAL INVESTMENT REQUIREMENT

Fixed Capital Investment

1 FURNITURE & FITTINGS Unit QTY Amount,

Cost, N N
Giant 60 ceiling fan 12,000 2 24,000
Plastic chair 4,000 5 20,000
Table 18,000 2 36,000
Wooden shelves 60,000 1 60,000
2 MACHINERY & EQUIPMENT
Procurement
25Kva Generator 1 2,800,000
Bamboo Toothpick Production Line 11 set 9,108,323
TOTAL 12,048.323

Working Capital

Total Investment Outlay

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7.2 Sources of Fund

The finance for the project is expected to come from management equity which
amount to 30% and 70% grant.

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 8

CHECK LIST

 Business Name Availability Check: Completed

 Business Registration: In Progress
 Opening of Corporate Bank Accounts: Completed
 Securing Point of Sales (POS) Machines: In Progress
 Application and Obtaining Tax Payer’s ID: In Progress
 Application for business license and permit: In Progress
 Purchase of Insurance for the Business: In Progress
 Leasing of a facility and renovating the facility as well: In Progress
 Conducting feasibility studies: Completed
 Applications for grant from the bank: In Progress
 Writing of Business Plan: Completed
 Design of The Company’s Logo: Completed
 Graphic Designs and Printing of Packaging, Marketing/Promotional Materials:
In Progress
 Purchase of the needed furniture, racks, shelves: In progress
 Creating Official Website for the Company: In Progress
 Creating Awareness for the business both online and around the community: In
Progress
 Health and Safety and Fire Safety Arrangement (License): In progress
 Establishing business relationship with vendors – wholesale
suppliers/merchants of cooking gas: In Progress

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