Business Plan
SNACKS
......every bite anew
surprise......
PHONE NO: +2347030722911
EMAIL: martinslibrary1@gmail.com
WEBSITE: martinslibrary.blogspot.com
TABLE OF CONTENT
- EXECUTIVE SUMMARY
- MISSION
- VISION
- COMPANY ANALYSIS
- PRODUCTS AND SERVICES
- INDUSTRIAL ANALYSIS
- MARKETING STRATEGY
- OPERATING STRATEGY
- HUMAN RESOURCE STRATEGY
- FINANCIAL PLAN
- POTENTIAL RISK FACTORS
- LONG TERM PLAN AND EXIT STRATEGY
- IMPLEMENTATION STRATEGY
- APPENDIX
(Note that this is just a sample
plan – Call us on +2347030722911
or email martinslibrary1@gmail.com for
your proposals, business plan and feasibility study report at very cheap rates
- Martins Library Consultants)
EXECUTIVE SUMMARY
Martins
Library Snacks is a proposed bakery set to offer bakery products and services
at its best to the people. Martins Library Snacks unlike other bakeries tend to
produce a variety of bakery product as well as providing good producer customer
relationships between the company and the outside world. Its headquarters can/would
be located at Kubwa in Abuja, Mushin in Lagos, Ndufu-Echara Ikwo and Abakaliki
in Ebonyi, Kaduna, Warri Delta state, Amarata Yenogua Bayelsa, Eleme in Portharcourt, Owerri in Imo state, Aba in Abia state, Onitsha in Anambra state, etc (note that this is a sample) as this is the central areas of the
local government area and so it would give the bakery its propelling ease of
distribution of its product round the local government area and beyond. The
company intends to break free within the first five years as well as have a
number of branches distributed around the country. within the next few years
the company intends the begin customers service helpline, introduce online
bookings of products and also begin home delivery of products as well as open
up a number of stop points at designated hotspots around the state and beyond. Martins
Library Snacks management team would be made up educated and well trained
personals, its workers would have at least a secondary school leaving
certificate as well as experience on their various post of duties and a good
behavior to add to their list. Martins Library Snacks has a total project cost
of #10,000,000 with a fixed capital of #6,000,000 and working capital of
#4,000,000. The company intend to raise 30% (3,000,000) of the capital from owner’s
contribution and the remaining 70% (7,000,000) from bank loan. The company
estimates its net operating profit within the first three years 2015, 2016, 2017
to be #20,276,000. #21,307,300. #24,832,850. The company hopes to have a
significant increase in income every year.
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MISSION
Our
mission is to produce quality and affordable products, giving maximum
satisfaction to the costumers.
VISION
Our vision
is to build and sustain a reputation as the best bakery by ensuring the
satisfaction of our customers are reached.
COMPANY ANALYSIS
Martins
Library Snacks is a baking company set to unveil the unexplored aspects of the
bakery world, it is out to serve the people as well as give them varieties of
delicacies which include European, American, Italian and African delicacies
such as bread, sausage roll, chin chin, cakes, and donuts among others in the
baking field. The company is set to take
off by January 2016, in time to create a good stand before the year runs out.
Legal Structure: Martins Library Snacks is a private limited
company but to be registered under the Corporate Affairs Commission (CAC) and
its products with the National Agency for Food and Drug Administration and Control
(NAFDAC), also the company will be insured with an insurance company for
unforeseen circumstances.
Company Location: The Company’s Headquarters is to be situated in
either Lagos, Abuja, Kano, Ebonyi, Delta state. (Note that this is just a sample plan – Call us
on +2347030722911 or email martinslibrary1@gmail.com
for your business plan), where there are no competitors. That is to
say that Martins Library Snack is setting the pace for other bakeries to follow
as we are the first bakery to be established there. The area is fast growing
with the College of Education, Federal University, secondary schools, primary
schools, a proposed Polytechnic and also the indigenes of the land to add to
the list of costumers. Read more About
Martins Library
TRENDING BUSINESS IDEAS
PRODUCTS AND SERVICES
We intend
to offer special mouthwatering bakery products like
Bread, donuts, chin chin, cake among others
Services
includes;
·
Wholesale
and retail
·
Home
delivery
·
Mobile
catering
·
Home
delivery service
·
Occasion/event
supply
INDUSTRIAL ANALYSIS
Martins
Library Snack is a baking company that falls under the food industry. The
bakery industry overtime has been a lucrative company and has helped in the day
to day availability of foods such as bread, cake, sausage roll, chin-chin,
doughnut and others to people. The industry is a large one and has spread
immensely around the globe touching its four corners. Every individual
patronizes the industry as its products play a major role in the food table of
people around the world. The flour producing company, the sugar and salt
company, producers of preservatives and yeast and other companies are in the
line of baking materials providers. Companies like Yale, Nasco, UAC, among
others are major competitors in the industry.
STRENGTH AND WEAKNESS OF OUR COMPETITORS: These companies such as Nasco, UAC foods,
Yale, and others have been in existence over time and have been recognized by
the people. They also have branches distributed around the nation. Also they
have materials and human resources and have even made packaged products that
can be distributed in faraway distances and can last for a period of time
before expiring. This above reasons serves as their strength but over research,
Martins Library Snacks has discovered that these companies have weakness such
as:
·
Inability
to satisfy taste of most consumers
·
Poor
packaging.
·
Poor
customer care service.
·
Lack of
innovation and new product introductions.
·
Inability
to check on product in retail sales in order to check mate the sales of expired
product.
·
Unavailability
of on-line booking and home service.
Martins
Library Snack is set to annul the defaults of existing companies and this
includes:
·
Satisfying
consumers taste and listening to their ideas and taste requirement.
·
Better
packaging.
·
Creation
of customer service both on internet, cellular and call centers.
·
Innovation
and production of new and wonderful products with varieties in taste.
·
Regular
checkmating of products in retail distribution and removal of expired goods and
production of long term lasting foods and also getting information’s from
retailers.
·
Ensure
regular and constant online booking and home services if required.
·
Introduction
of promotions.
OBSTACLES: The obstacles to the success of this company include:
·
Mobilization
of staffs.
·
Finance
(capital).
·
Inadequate
supply of power.
HOW TO DETERMINE FATE OF THE COMPANY: The Company has set goals and a range of time
at which these goals would be attained. If at the proposed time these goals are
not met, then it would be noted that the company is failing but if the goals
are attained before or at the proposed time, then it would be said that the
company is succeeding.
MARKETING STRATEGY
Martins
Library Snacks will sell its product at wholesale prices to institutions like Universities, Polytechnics, College of Educations and many other public organizations like
Hotels, Supermarkets, Shopping Malls, small and big Provision Shops and Restaurants. The public consisting of lovers of quality baked foods
are not left out. Storefronts at designated areas such as the shopping
center among others would serve as Hotspot to costumers. The available market at
present is fairly large, taking into consideration that Ebonyi, Enugu, Anambra
state inhabitant and visitors are in dire need of quality baked foods which the
existing bakeries have failed to supply over the years. The students, visitors
as well as inhabitants in the state are target customers. It is of the Company’s
goals to extend its branches to about 5 or more states in the federation in the
next five years. This will invariably increase the size of the market. The location consisting of forums of higher learning which is one of our primary target areas
will experience a tremendous increase number of students and establishments
like banks will encourages the population increase and thereby, boost the size
of the market. The
company intends to reach its customers by the use of van to supply our products
to the four corners of the state, also advertisement of goods would be done to
create awareness, also Martins Library snacks would sell their goods at subsidized
rate to the public and this would also help increase our rate of costumers. Promotions
also would be carried out by the company and this includes bonuses during
festive periods like Christmas, Easter, Salah
and so on, discounts on bulk purchase would also be available, also weekly
promotions like Saturday buy 5 products and get a free gift would come in play.
Also the company might come up with various forms of promotions depending on
how the market functions at that point in time.
OPERATING STRATEGY
BOARD OF DIRECTORS
|
MANAGING DIRECTOR
|
GENERAL MANAGER
|
PERSONNEL MANAGER
|
OPERATIONAL MANAGER
|
PRODUCTION MANAGER
|
MARKETING MANAGER
|
FINANCIAL MANAGER
This company being a producing company and its production is on daily bases will be managed by the chart above. Almost all the group of bodies above engages in work on daily bases except the board of directors who will not be engaging in every day to day activity of the company but would be updated from time to time on the functionality of the company. It is the work of the operational manager to oversee the work of individuals like the engineering department, security and also collect information from technical workers about the functionality of the machines of the company. The production manager takes charge of the quantity of the products to be produced as to get feedback from the marketing unit to determine the level of sales that is going on. Marketing manager oversees the work going on in selling, promotion and advertising the products of the company. The financial manager oversees the movement of money in the company which includes money for production, money after sales, money for payment of workers, money for maintaining and running of the company. As the company is growing, it will be empowering her workers in order to get more genuine information that will aid her in meeting up with the demand of the society. Material research: the company will also be sending her members to go into research in order to know better innovations that will aid the growth of the company.
BUSINESS ARTICLES
HUMAN RESOURCE STRATEGY
Every business organization must have humans who work for the
attainment of the organizational goal. Martins Library Snack should not be left
out as we look forward to employing individuals who posse entrepreneur spirits
and also posse the skills needed to get the business growing to its peak. The
business already has its chief executives and board of directors which leads to
its proper management. The chief executive officer is in the person of (Name
Here) and the managing director is in the person of (Name Here) followed by
other executives. The business would employ other workers for the day to day
operations of the bakery. The workers should poses nothing less than SSCE
qualification and other experiences based on their area of specialization. The
workers should be under different areas of operations such as distribution -
drivers, marketers, advertisers, manufacturing- bakers, finance- accountant. The
workers would be paid based on their area of specialization and qualification.
The bakery will also create room for training of her workers to enable them
acquire more skills and fill certain positions which might be left by other workers
as a result of retirement, promotion, ill-health among other unavoidable
circumstances. The business will also offer benefit to the workers such as
bonuses, work leave, shifts etc. in order to inspire motivation in them. Martins
Library Snack has hope of expending in years to come so they will have need for
employing more workers in the future
into their different branches of business as this would help in output increase
and also give room for employing people with innovative skills who could bring
up ideas on how to improve the bakery.
(Note that this is just a sample
plan – Call us on +2347030722911
or email martinslibrary1@gmail.com for
your proposals, business plan and feasibility study report at very cheap rates
- Martins Library Consultants)
FINANCIAL PLAN
PROJECT COST
The total project cost is estimated at
₦10,000,000 which are made up of ₦6,000,000 in fixed capital and ₦4,000,000 in
working capital.
FIXED CAPITAL
|
COST
|
Land
|
₦600,000
|
Building
|
₦1,000,000
|
Oven
(two rotary rack ovens)
|
₦451,000
|
Furniture
|
₦150,000
|
Van(fairly
used)
|
₦750,000
|
Mixer
(spiral mixer)
|
₦440,000
|
Sound
proof 100KVAGenerator
|
₦1,500,000
|
Berkel
MB bread slicer
|
₦450,000
|
Cookware
|
₦70,000
|
Dish
washer
|
₦200,000
|
Somerset
bread moulder
|
₦300,000
|
Refrigerator
|
₦65,000
|
Show
glass
|
₦24,000
|
Total
|
₦6,000,000
|
WORKING CAPITAL
|
COST(MONTHLY)
|
Salaries
|
₦1,500,000
|
Electricity
|
₦200,000
|
Miscellaneous
|
₦1,000,000
|
Advertisement
|
₦100,000
|
Printing
and stationeries
|
₦80,000
|
Accessories
|
₦450,000
|
Insurance
|
₦400,000
|
Ingredients
|
₦200,000
|
NAFDAC
|
₦50,000
|
Staff
uniform
|
₦20,000
|
Total
|
₦4,000,000
|
FUNDING PLAN
The funding plan for this project is
as follows:
Owners
contribution
|
30%
of ₦10,000,000
|
₦3,000,000
|
Loan
from bank
|
70%
of ₦10,000,000
|
₦7,000,000
|
Total project
cost
|
₦10,000,000
|
FUNDING
REQUIREMENT
The funding requirement for this project is
₦7,000,000 and the company is counting ₦3,000,000 into the project.
PROJECTED INCOME
STATEMENT (₦)
2016
|
2017
|
2018
|
|
Turnover
(sale revenue)
|
₦43,194,000
|
₦45,353,700
|
₦49,889,070
|
Cost
of sales
|
₦11,268,000
|
₦11,831,400
|
₦12,422,970
|
Gross
profit
|
₦31,926,000
|
₦33,522,300
|
₦37,466,100
|
Operating Expenses
|
|||
Electricity
|
₦200,000
|
₦210,000
|
₦220,500
|
Advertisement
|
₦100,000
|
₦105,000
|
₦110,250
|
Printing
and stationeries
|
₦80,000
|
₦84,000
|
₦88,200
|
Loan
interest
|
₦350,000
|
₦350,000
|
₦175,000
|
Salaries
|
₦9,000,000
|
₦9,450,000
|
₦9,922,500
|
Accessories
|
₦450,000
|
₦472,500
|
₦496,125
|
Insurance
|
₦400,000
|
₦420,000
|
₦441,000
|
Ingredients
|
₦200,000
|
₦210,000
|
₦220,500
|
NAFDAC
|
₦50,000
|
₦52,500
|
₦55,125
|
Staff
uniform
|
₦20,000
|
₦21,000
|
₦22,050
|
Miscellaneous
|
₦500,000
|
₦525,000
|
₦551,250
|
Depreciation
|
₦300,000
|
₦315,000
|
₦330,750
|
Total
operating expenses
|
₦11,650,000
|
₦12,215,000
|
₦12,633,250
|
Net
operating profit
|
₦20,276,000
|
₦21,307,300
|
₦24,832,850
|
PROJECTED CASH
FLOW STATEMENT
2016
|
2017
|
2018
|
|
Cash inflows
|
|||
Owners
capital
|
₦3,000,000
|
_
|
_
|
Bank
loan
|
₦7,000,000
|
_
|
_
|
Sales
revenue
|
₦43,194,000
|
₦45,535,700
|
₦49,889,070
|
Total
cash inflow (A)
|
₦53,194,000
|
₦45,535,700
|
₦49,889,070
|
CASH OUT FLOW
|
|||
Fixed
assets acquisition
|
₦6,000,000
|
_
|
_
|
Cost
of sales
|
₦11,268,000
|
₦11,831,400
|
₦12,422,970
|
Operating
expenses (less depreciation)
|
₦11,350,000
|
₦11,900,000
|
₦12,302,500
|
Loan
repayment
|
₦3,500,000
|
₦3,500,000
|
|
Total,
cash out flow
|
₦28,618,000
|
₦27,231,400
|
₦28,225,470
|
Net
cash flow
|
₦24,576,000
|
₦18,304,300
|
₦21,663,600
|
Opening
cash balance
|
_
|
₦24,576,000
|
₦42,880,300
|
Closing
cash balance
|
₦25,246,000
|
₦42,880,300
|
₦64,543,900
|
PROJECTED BALANCE
SHEET
2016
|
2017
|
2018
|
|
Capital
employed
|
|||
Fixed
assets (at cost)
|
₦6,000,000
|
₦6,000,000
|
₦6,000,000
|
Less
depreciation
|
₦300,000
|
₦315,000
|
₦330,750
|
Net
book value
|
₦5,700,000
|
₦5,685,000
|
₦5,669,250
|
CURRENT ASSETS
|
|||
Balance
at bank
|
₦25,246,000
|
₦42,880,300
|
₦64,543,900
|
Less
current liability
|
₦7,000,000
|
₦3,500,000
|
_
|
Net
Current Assets
|
₦18,246,000
|
₦39,380,300
|
₦64,543,900
|
Net
Assets
|
₦23,946,000
|
₦45,065,300
|
₦70,213,150
|
Financed by
|
|||
Owners
capital
|
₦3,000,000
|
₦3,000,000
|
₦3,000,000
|
Retained
profit
|
₦20,946,000
|
₦42,065,000
|
₦67,213,150
|
Owners
funds
|
₦23,946,000
|
₦45,065,000
|
₦70,213,150
|
BREAK- EVEN POINT
ANALYSIS
Fixed cost
|
variable
|
|
Electricity
|
_
|
₦200,000
|
Advertisement
|
_
|
₦100,000
|
Printing
and stationary
|
_
|
₦80,000
|
Loan
interest
|
₦350,000
|
_
|
Salaries
|
₦9,000,000
|
|
Accessories
|
₦450,000
|
|
Insurance
|
_
|
₦400,000
|
Ingredients
|
_
|
₦200,000
|
NAFDAC
|
₦50,000
|
_
|
Staff
uniform
|
_
|
₦20,000
|
Miscellaneous
|
_
|
₦1,000,000
|
Depreciation
|
₦300,000
|
_
|
Total
|
₦9,700,000
|
₦2,450,000
|
Fixed
cost ₦9,700,000
1-
variable cost 1- ₦2,450,000 ₦2,450,000
Sales revenue
₦43,194,000
₦43,194,000
= 0.057
1- 0.057=0.943
BEP = ₦9,700,000
0.943 = ₦10,286,320.
The
interpretation is that out of the first year (2016) sales of ₦43,194,000 this
bakery business will break even at the point when the turnover is just
₦10,286,320 after this point it will begin to yield profit.
DEPRECIATION SCHEDULE
No
|
Fixed asset item
|
Cost (#)
|
Scrap value
|
Depreciate value
|
Life span
|
Annual depreciation
|
1
|
Building
|
₦1,000,000
|
₦450,000
|
₦550,000
|
10
|
₦55,000
|
2
|
Oven (two
rotary rack ovens)
|
₦451,000
|
₦51,000
|
₦400,000
|
10
|
₦40,000
|
3
|
Furniture
|
₦150,000
|
₦50,000
|
₦100,000
|
10
|
₦10,000
|
4
|
Van(fairly
used)
|
750,000
|
₦50,000
|
₦700,000
|
10
|
₦70,000
|
5
|
Mixer (spiral
mixer)
|
₦440,000
|
₦40,000
|
₦400,000
|
10
|
₦40,000
|
6
|
Sound proof
100KVAGenerator
|
₦1,500,000
|
₦500,000
|
₦1,000,000
|
10
|
₦100,000
|
7
|
Berkel MB bread
slicer
|
₦450,000
|
₦50,000
|
₦400,000
|
10
|
₦40,000
|
8
|
Cookware
|
₦70,000
|
₦20,000
|
₦50,000
|
10
|
₦5,000
|
9
|
Dish washer
|
₦200,000
|
₦50,000
|
₦150,000
|
10
|
₦15,000
|
10
|
Somerset bread
moulder
|
₦300,000
|
₦100,000
|
₦200,000
|
10
|
₦20,000
|
11
|
Refrigerators
|
₦65,000
|
₦15,000
|
₦50,000
|
10
|
₦5,000
|
12
|
Show glass
|
₦24,000
|
₦7,000
|
₦17,000
|
10
|
₦1700
|
LOAN REPAYMENT
Year
|
Practical
|
Interest
|
Loan
repayment
|
Loan
balance
|
2015
|
₦7,000,000
|
₦350,000
|
_
|
₦7,000,000
|
2016
|
₦7,000,000
|
₦350,000
|
₦3,500,000
|
₦3,500,000
|
2017
|
₦3,500,000
|
₦175,000
|
₦3,500,000
|
--
|
ASSUMPTIONS BEHIND
THE FIGURES
The sales revenue which is the cash inflow
schedule in figure shows the turnover is realized based on the estimated
quantity of demand for cake, bread and chin-chin per day, monthly and yearly.
·
The total sales revenue from bread, cake and chin-chin for the 1st
year(2016) gave a total of ₦43,194,000.
·
In the 2nd year we estimated 5% increment of the previous
year’s total. This means that by 2017, the turnover will increase by 5% of ₦43,194,000=₦2,159,700.
Therefore turnover in 2017 will ₦2,159,700+ ₦43,194,000= ₦45,353,700
·
In the 3rd year (2018), the sales will also increase by 5% of
2018 figure. That means the increase will be 5% of ₦45,353,700=₦22,676,85. Therefore,
the turnover in year 2018 will be ₦22,676,700 + ₦45,353,700=₦47,621,385.
·
For the cost of sales, the 1st year total is ₦11,268,000. For the 2nd
year, we assume 5% increase of 2017 figure which is ₦11,831,400. For the
3rd year (2017) we assumed 5% increase of 2018 figure which is ₦12,422,970.
·
In the operating expenses which shows the administrative, selling and
general expenses is increased also by 5% each year of the preceding years
figure.
POTENTIAL RISK FACTOR
Martins Library Snack as a bakery would encounter a wide range of
fixed factors and they include
·
Spoilage:
due to the fact that bakery goods are perishable with time, the company has
developed ideas on how to innovate products that are distinct to those in the
market imperishability.
·
Fire
outbreak: due to the fact that in a bakery world, fire is a basic constituent and
the company will be dealing with both electrical and heat producing appliance’s
which may lead to fire outbreak. The management has insured the company with an
insurance company.
·
Industry
accident: this includes cuts, burns among other industrial injuries may take
place, to this effect, the company has liaised with the nearby hospital in case
of emergency cases.
Other factors may
include burnt product, inconsistence of government policy etc. and the company
tend to tackle all this appropriately.
LONG TERM PLAN AND EXIT STRATEGY
The company tends
to hold ground and increase in profitability over time. It also sets a good
pace as it organizes trainings, workshops from time to time for its workers as
this will enable them get better and also create replacements for retiring or
promoting staffs. In event of the company unable to break even within three to
five years of existence, and no success forth coming, the company will have no
other choice but to merge with one of our major competitors or go on sales
(i.e. sell the company)
IMPLEMENTATION STRATEGY
Martins Library
Snack is a company that has come to grow and hopes to spread its winds around
the four corners of the nation and beyond. Implementation strategies are as
follows:
·
Short
term: within the first twelve months, the company hopes to be a well-recognized
brand in the market and to be rated among the top five growing enterprises in
the state. The company also hope to have made above fifty percent startup
capital as income.
·
Medium
term: one year to five years. Within this period, the company’s hopes to be
established as a well-known brand in the market having above three branches. Within
the second to third year the company tends to have started home delivery and
online bookings and services. And also introduce more verities of products in
the market. At the third to fifth year, the company tends to have broken even,
stand out as a renowned firm, having about ten branches in its name or more.
·
Long term:
five to ten years. At this, the company must have made a reputation as a stand
out firm and so will tend to maintain this reputation continually serving its
customers well, introducing new and better product in the market creating
easier accessibility of their products by customers, creating more branches and
even going beyond the borders.
APPENDIX
1. DIRE: Terrible, to need something so much
2. LUCRATIVE: Producing a surplus, profitable
3. IMMENSITY: Huge, gigantic, and very large.
4. UNEXPLORED: Have not been explored (to examine
or investigate something systematically, to travel somewhere is search of something)
5. UNVEIL: To reveal or disclose something.
6. Business Plan Sample on Snacks, Bread, Palm Oil, Poultry, Fishery, Recharge Card
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