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Business plan presentation summary

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Rafiu Olaore
Rafiu Olaore

This document outlines the business plan for Wumi Soap Manufacturing Industry, a sole proprietorship startup that will produce medicated soap. The business will be financed through owner's equity of N2.1 million (about $8,050 USD) and will utilize a marketing strategy based on the 7 P's. Projections estimate annual sales of N3.67 million in year one with a net profit of N336,500. The owner believes the business will experience growth beyond expectations by providing quality soap products to the local community.

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AN OUTLINE OF BUSINESS PLAN PRESENTATION: A CASE OF WUMI SOAP 1 INDUSTRY BY Rafiu Akinpelu Olaore Senior Lecturer in Entrepreneurship Education Osun State Polytechnic, Iree, Nigeria olaoreakin@yahoo.com
EXECUTIVE SUMMARY Name: Wumi Soap Manufacturing Industry The firm: startup Product : Medicated Soap Location: Osun Communal District, Nigeria. Type : Sole Proprietorship Goal : Customer service and growth Finance : Owners equity = N2.1million(8050USD) Strategy: 7 P’s of Marketing 2
BUSINESS DESCRIPTION *A small firm of sole proprietorship, producing medicated soap with the objective of annual sales target and specific measures of customer satisfaction and to gain competitive edge. A family business which has its finance from owner’s equity, personal savings and friends *The five working team are experts in management, production and marketing. Firm plant is situated in an inherited building at the center of town with infrastructure advantages. 3
4 MARKETING • Research and Analysis: - Primary research used for market scanning. Market survey by direct interview. - Target Market: 7 rural communities - Market size: Approximate of 3.5m people - Competition: Two local competitors - Market share: 45%
5 Marketing • Research and Analysis - Marketing Plan: Positioning and Competitive edge - Marketing Strategy: 7 Ps of Marketing mix; Product, Placement, Promotion, Price, People, Positioning, Packaging. - Pricing Policy: Penetration pricing
6 Operational Plan • Location: 21, Ota Efun, Osogbo, Osun Communal District, Nigeria. Family building on 3 plots of lands. • Advantages: Availability of Infrastructures- electricity, good linkage roads, accessibility to low transports cost, water supply, nearness to communities and suppliers, car parks etc. • Production Method: Saponification process- PKO, Caustic soda, colouring, perfume, tryglyceride etc • Business Hours: 7am -6pm
Legal Environment • Establishment by registration with Nigeria Corporate affairs Commission and National Foods and Drugs Administration and Control (NAFDAC) • Government plan to cancel excise duties on imported raw materials. • Aids from Government by liaison with Nigeria Bank of Industry to purchase soap production machines from Selas in Germany at lower rates. • Low tax rate for startup. 7
MANAGEMENT PLAN • Management team: - General Manager/Production (1). This is the proprietor of the firm in charge of general administration and production control. - Production Officer(1). Full time staff for production and other relative duties - Marketing Officer(1). Liason with GM to Conduct market research, marketing plan and cost implication, customers outreach, competitive strategy etc - Sales Representative (2), part time. Responsible to marketing officer, customer relations, retails outlets etc 8
9 PROJECTED FINANCIAL STATEMENT PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DEC. 31ST 2012 Sales Revenue N3,670,000 Less: Sales returns and Allowances 30,000 Net Sales N3,640,000 Cost of Good Sold Beginning Inventory, Jan, 2012 90,000 Purchases 1,170,000 Goods available for Sale 1,260,000 Less: Ending Inventory, Dec., 2012 170,000 Cost of Good Sold N1,090,000 Gross Margin N2,550,000 Operating Expenses Selling Expenses 65,000 Administrative expenses 191,000 Salary 1,800,000 Depreciation 25,000 Miscellaneous 95,000 Total Operating Expenses 2,176,000 Income before Tax 374,000 Estimated Income Tax (10%) 37,500 Net Profit 336,500
PROJECTED CASH FLOW STATEMENT MONTH 1 2 3 4 5 6 7 8 9 10 11 12 SALES 280 308 336 364 392 420 448 476 504 532 560 588 CASH FLOW Expenses 180 190 175 190 167 300 375 295 320 330 330 370 Balance 100 118 161 174 225 120 73 181 220 202 230 218 10
11 Conclusion • The idea was born out as a result of my experience in the industry and interest in provision of good health for the masses, therefore, I am of the opinion that this firm will grow beyond imagination. THANK YOU

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Business plan presentation summary

  • 1. AN OUTLINE OF BUSINESS PLAN PRESENTATION: A CASE OF WUMI SOAP 1 INDUSTRY BY Rafiu Akinpelu Olaore Senior Lecturer in Entrepreneurship Education Osun State Polytechnic, Iree, Nigeria olaoreakin@yahoo.com
  • 2. EXECUTIVE SUMMARY Name: Wumi Soap Manufacturing Industry The firm: startup Product : Medicated Soap Location: Osun Communal District, Nigeria. Type : Sole Proprietorship Goal : Customer service and growth Finance : Owners equity = N2.1million(8050USD) Strategy: 7 P’s of Marketing 2
  • 3. BUSINESS DESCRIPTION *A small firm of sole proprietorship, producing medicated soap with the objective of annual sales target and specific measures of customer satisfaction and to gain competitive edge. A family business which has its finance from owner’s equity, personal savings and friends *The five working team are experts in management, production and marketing. Firm plant is situated in an inherited building at the center of town with infrastructure advantages. 3
  • 4. 4 MARKETING • Research and Analysis: - Primary research used for market scanning. Market survey by direct interview. - Target Market: 7 rural communities - Market size: Approximate of 3.5m people - Competition: Two local competitors - Market share: 45%
  • 5. 5 Marketing • Research and Analysis - Marketing Plan: Positioning and Competitive edge - Marketing Strategy: 7 Ps of Marketing mix; Product, Placement, Promotion, Price, People, Positioning, Packaging. - Pricing Policy: Penetration pricing
  • 6. 6 Operational Plan • Location: 21, Ota Efun, Osogbo, Osun Communal District, Nigeria. Family building on 3 plots of lands. • Advantages: Availability of Infrastructures- electricity, good linkage roads, accessibility to low transports cost, water supply, nearness to communities and suppliers, car parks etc. • Production Method: Saponification process- PKO, Caustic soda, colouring, perfume, tryglyceride etc • Business Hours: 7am -6pm
  • 7. Legal Environment • Establishment by registration with Nigeria Corporate affairs Commission and National Foods and Drugs Administration and Control (NAFDAC) • Government plan to cancel excise duties on imported raw materials. • Aids from Government by liaison with Nigeria Bank of Industry to purchase soap production machines from Selas in Germany at lower rates. • Low tax rate for startup. 7
  • 8. MANAGEMENT PLAN • Management team: - General Manager/Production (1). This is the proprietor of the firm in charge of general administration and production control. - Production Officer(1). Full time staff for production and other relative duties - Marketing Officer(1). Liason with GM to Conduct market research, marketing plan and cost implication, customers outreach, competitive strategy etc - Sales Representative (2), part time. Responsible to marketing officer, customer relations, retails outlets etc 8
  • 9. 9 PROJECTED FINANCIAL STATEMENT PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DEC. 31ST 2012 Sales Revenue N3,670,000 Less: Sales returns and Allowances 30,000 Net Sales N3,640,000 Cost of Good Sold Beginning Inventory, Jan, 2012 90,000 Purchases 1,170,000 Goods available for Sale 1,260,000 Less: Ending Inventory, Dec., 2012 170,000 Cost of Good Sold N1,090,000 Gross Margin N2,550,000 Operating Expenses Selling Expenses 65,000 Administrative expenses 191,000 Salary 1,800,000 Depreciation 25,000 Miscellaneous 95,000 Total Operating Expenses 2,176,000 Income before Tax 374,000 Estimated Income Tax (10%) 37,500 Net Profit 336,500
  • 10. PROJECTED CASH FLOW STATEMENT MONTH 1 2 3 4 5 6 7 8 9 10 11 12 SALES 280 308 336 364 392 420 448 476 504 532 560 588 CASH FLOW Expenses 180 190 175 190 167 300 375 295 320 330 330 370 Balance 100 118 161 174 225 120 73 181 220 202 230 218 10
  • 11. 11 Conclusion • The idea was born out as a result of my experience in the industry and interest in provision of good health for the masses, therefore, I am of the opinion that this firm will grow beyond imagination. THANK YOU