PAINT COMPANY BUSINESS PLAN SAMPLE - FEASIBILITY STUDY REPORT

PAINT COMPANY BUSINESS PLAN SAMPLE BY MARTINS LIBRARY PAINT 

BUSINESS PLAN COMPONENTS
Executive summary
Business overview
Marketing plan
Operational plan
Organizational and management plan
Financial plan
Risk and mitigating factors
Appendices

This is a business plan sample..... We can write a Feasibility study / Business Plan for that business you want to venture in; a Business proposal for that bank loan / grant you want to collect to start your business.... Call us Today on +2347030722911 or send us an email at martinslibrary1@gmail.com Click Here for detailed Explanation

 Paint Business Plan Sample for Loans

EXECUTIVE SUMMARY
By focusing on its strength, its key customers, and underlying values they need, MARTINS LIBRARY paint will increase revenue to more than……. In three years. This business plan leads the way. It contains our vision and strategic focus: the paint contractors and home owners in our local markets. It provides the step-by-step plan for entering the market and seizing up to 40% of the market in four years. This plan include this summary, chapters on the company, product and services, marketing forecast, management team and financial plan.

BUSINESS OVERVIEW

LOCATION
The business name is MARTINS LIBRARY PAINT LIMITED. The head office is situated along (address here). It includes a show room and an office. Our factory will be located at (location) which is 6km away from our head office.

VISION
MARTINS LIBRARY PAINTS LIMITED is a proposed company under the painting sector of the building and construction industry in Nigeria. The painting sector has recorded great proliferation due to constant demand for paints in our country Nigeria. The vision of the company is therefore to become a household name in the South Eastern part of Nigeria in five years.

MISSION
The mission of the company is to help our customers get maximum satisfaction and the desired aesthetics of their buildings at present and in the future.

OBJECTIVES/AIMS
1.      To present an improved quality goods and services in the painting section.
2.      Continuous training of our employees for efficiency.  
3.      To endeavor to get the best for the benefit of the consumers.
4.      To add value to the society through creation of employment.

OUR VALUE PROPOSITION
Our proposition is to be different from the big retail chains. We offer our target customer, who is service seeking and not self-reliant, a vendor who acts as a strategic ally, at a premium price that reflects the value of reassurance that our coating systems will work.

CUSTOMIZATION OF PAINT COLOUR: The Company shall extend its services to allow the customers make a choice of their colour. Their choice shall be made available at any time they need it.

DIFFERENTIATION OF OUR PRODUCT THROUGH HIGH QUALITY:
Our products will be made of high quality and good quantity of materials. The products when applied on structures will not need to be recoated like other paints, that is, it will only be coated once. It will also contain Aluminum Silicate that will make our products to glitter.

CRITICAL SUCCESS FACTORS
Direct contact with our consumers: Our consumers will to not need to pass through the middlemen in order to reach us. We intend to achieve this by having agents that will create a direct link between our company and the consumers.

Acknowledgment of customers’ feedback: Consumers’ complaints will be worked on with urgency and not overlooked. To be updated by gathering information about our product and improving on them. On a monthly basis, agents from our company will be sent into the market to get information about our product in order to improve.

CURRENT STATUS OF THE BUSINESS
MARTINS LIBRARY PAINT is a proposed paint making and painting company in the building and construction industry in Nigeria. The business is proposed to start by January 2016.

OUR BUSINESS CONTRIBUTIONS TO THE LOCAL AND NATIONAL ECONOMY
·        Industrialization
·        Creation of job opportunity
·        Participation in cooperate social responsibilities

MARKETING PLAN
MARTINS LIBRARY PAINT LIMITED provides wall coating paints {domestics} and also offer excellent services to building owners and contractors. In painting we support two main lines;
  1. Emulsion paint
  2. Text coat paints


Emulsion paint is our main upscale line of product, it is our best product for all buildings - residential, schools, churches, and market square and airports. Emulsion paints are easier to apply, spatter resistance and fast drying and have no unpleasant odor during application. In service and support, we offer a range of working and depot services. We also offer excellent painting services.

BENEFITS OF OUR PRODUCTS AND SERVICES
Through our quality products and services we assure our customers that they would get that ultimate satisfaction they have always desired. Our company will provide products and services that would last for a good period of time which our customers would also benefit from them. Our products are going to be affordable by both the middle and local people in the environment at a moderate prize. Having different branches in the south eastern Nigeria, our company’s products would be available and ready anytime and anywhere. Our customers would also benefit from our products and services because we will produce any type of color they want from us therefore leading to their satisfaction.
We have buses that would serve the purpose of transportation and will therefore make available our goods to our customers any time they need them.

METHODS OF PACKAGING OUR PRODUCTS/SERVICES FOR DELIVERY.

Generally, paints are stored in air tight bucket. MARTINS LIBRARY will also follow the trend. MARTINS LIBRARY PAINT LIMITED plans to store paints in drums. Our products will also be packaged in air tight buckets. In packaging we will also segment our products in smaller drums of five litters. The segmentation is to enable customers who have the need of small quantity of paint to also enjoy our quality product.

HOW WE DETERMINE THE PRICE OF OUR PRODUCTS AND SERVICES
We must charge appropriately for quality product services offered. Our revenue cost structure must match our cost structure so that the salary we pay must be balanced by the revenue we charge. Our selling price would be determined by the total cost of material used in production. The price of painting service would be determined by the building structure. Our proposed selling price at the moment as a new business will be such that will enable us to enter the market within a reasonable period of time. A drum of emulsion paint will cost two thousand naira (2000). A drum of textcoat paint will cost two thousand three hundred and fifty naira (2350)

OUR TARGET MARKET
MARTINS LIBRARY PAINT targets to get forty percent of the market share in the south eastern part of Nigeria. Our target customers are building owners, contractors, painters and chain stores.

PROMOTION STRATEGIES
We intend to use newspaper advertising and online medium as our main way to reach new buyers. As we change strategies, however, we need to change the way we promote ourselves.

Operational plan
Our company is located at (address here).  Reason for the location is because it connect to the three major road in (location here).

This is a business plan sample..... We can write a Feasibility study / Business Plan for that business you want to venture in; a Business proposal for that bank loan / grant you want to collect to start your business.... Call us Today on +2347030722911 or send us an email at martinslibrary1@gmail.com Click Here for detailed Explanation

Raw materials for emulsion paint production
s/n
Description of item
Source
Comment
1
Water


2
Calcium


3
White titanium


4
Aluminum silicate


5
Acrylic


6
Pest


7
Ammonia


8
Deformer


9
Formalin


10
Hydrosol



Raw materials for text coat production
s/n
Description of item
Source
comment
1
Water


2
Titanium


3
Ammonia


4
Biocide


5
Calcium


6
Calwolin


7
Smooth marble dust


8
Rough marble dust


9
Acrylic


10
Thickener


11
Yellow pest


12
Calgon



METHOD OF RECORD KEEPING
The method of recording is by paper and electronic.
The system of accounting is by double entry accounting system and will also prepare manufacturing account and stock valuation. The company’s financial accountant will be responsible for keeping the record.

MANAGEMENT AND ORGANIZATIONAL PLAN
COMPANY’S ORGANOGRAM
General Manager
Personnel Manager
Chief
Financial officer
Production Manager
Research Manager
Proposal Manager
Marketing Manager
OWNERSHIP AND FORMOF BUSINESS
Martins Library paint is currently owned by twenty-five shareholders. It is a private limited liability company which separate personal assets of shareholders from business asset. Also guarantees the continuity of existence of business, easy capital raising and high scope of business expansion.

MANAGEMENT TEAM
Martins Library paint will start off its business in January 2016 with eight management personnel. More workers will be employed as the business grows. In painting, the company will make use of adhoc painters when necessary. Below are the eight management staff that will start off the company and their positions.


NAMES                                                                     POSITIONS
1.      Mr. A                                                                    General manager
2.      Mr. B                                                                   Operation manager
3.      Mrs. C                                                                  Personnel manager
4.      Miss D                                                                  Marketing manager
5.      Miss E                                                                  Financial manager
6.      Mr. F                                                                     Research manager
7.      Mrs. G                                                                  Proposal manager
8.      Mr. H                                                                    Service manager

Mr. B, the operation manager has eight years of experience in manual paint making. He managed a company store in (address here) and he was instrumental in the development of MARTINS LIBRARY paint.

Mr. H, the service manager has four years of experience in painting. He has handled several painting contracts within and outside (name of state here). At present we have a good team for covering the main point of the business plan. The training of our managers before starting the business will be an important way to cement our fundamental positioning in the market.

This is a business plan sample..... We can write a Feasibility study / Business Plan for that business you want to venture in; a Business proposal for that bank loan / grant you want to collect to start your business.... Call us Today on +2347030722911 or send us an email at martinslibrary1@gmail.com Click Here for detailed Explanation

FINANCIAL PLAN
Startup cost (a):
Fixed assets                                                                       NGN
Machines and equipment                                                500,000
Vehicle                                                                            1,500,000
Furniture and fittings                                                         500,000
Total fixed assets                                                        2,500,000                            
Working capital 
Salaries and allowance                                                   1,325,000
Telephone                                                                           45,000
Raw materials                                                                       457,500
Rent                                                                                   300,000
Fuel for generator                                                                325,000
Miscellaneous expenses                                                     500,000
Research and travel                                                            250,000
Company incorporation                                                     60,000
Accounting, taxes and license                                           250,000
Fuel for vehicle                                                                  144,000
Electricity                                                                          55,000
Installation of machines and equipment                            150,000
Advertisement                                                                     125,000
Total working capital                                                           3,986,500      
Total start-up cost                                                  6,486,500

SOURCES OF FINANCE
  Sources of fund                 percentage share              amount (N)
Shareholders
80%
 5,189,200
Investors
20%
 1,297,300
Total

6,486,500

DEPRECIATION SCHEDULE
­
Cost

Scrap value
Depreciable value
Life span

Annual depreciation
Machines
500,000
50,000
450,000
10
45,000
Furnitures and fittings
500,000
-
500,000
10
50,000
Motor vehicle
1,500,000
50,000
1,450,000
10
145,000
Total
2,500,000
100,000


240,000

PROJECTED COMPREHENSIVE INCOME STATEMENT FOR 3 YEARS
DESCRIPTION
2016 (N)
2017 (N)
2018 (N)
Sales turnover(product)
        7,830,000
10,179,000
        12,528,000
Sales turnover(services)
4,216,153
5,480,998
           6,745,844
Total sales turnover
12,046,153
15,659,998
          19,273,843
cost of production
4,420,000
5,746,000
7,072,000

7,626,153
9,913,998
12,201,843
Less Expenses:



salaries and allowances
(1,325,000)
(1,325.000)
(1,325,000)
Fuel for vehicle
144,000
187,200
230,400
Company incorporation
60,000
-
-
advertisement
125,000
162,000
200,000
miscellaneous
500,000
650,000
800,000
electricity
55,000
55,000
55,000
installation and equipment
150,000
-
-
Fuel
325,000
422,500
520,000
Rent
300,000
300,000
300,000
Telephone and postage
45,000
58,500
72,000
Depreciation
240,000
240,000
240,000
Total operating ex
(3,269,000)
(3,400,200)
(3,742,400)
Net operation profit
4,357,153
      6,513,798
8,459,443

CASH FLOW STATEMENT
CASH IN FLOW
2016 (N)
2017 (N)
2018 (N)
owners capital or equity
6,486,500
-
-
sales revenue
12,046,153
15,659,998
19,273,843
Total cash inflow(a)
18,532,653
        15,659,998
19,273,843
CASH OUT FLOW



Acquisition of fixed asset
2,500,000
-
-
cost of production
4,420,000
5,746,000
7,072,000
operation expenses less depreciation
4,337,000
3,939,200
4,055,820
total cast out flow(b)
3,029,000
        3,160,200
3,502,400
Net cash flow(a-b)
8,583,653
12,499,798
15,771,443
opening cash balance
-
8,583,653
10,740,298
closing cash balance
8,583,653
10,740,298
12,685,943


PROJECTED FINANCIAL POSITION FOR 3 YEARS
capital employed
2016 (N)
2017 (N)
2018 (N)
fixed asset
2,500,000
2,500,000
2,500,000
less depreciation
240,000
240,000
240,000
Net book value(a)
2,260,000
2,260,000
2,260,000
current asset:



cash at hand & bank balance
8,583,653
          10,740,298
12,685,943

10,843,653
13,000,298
14,945,943
Financed By:



capital
6,486,500
6,486,500
6,486,500
net profit
4,357,153
6,513,798
8,459,443

10,843,653
13,000,298
14,945,943

This is a business plan sample..... We can write a Feasibility study / Business Plan for that business you want to venture in; a Business proposal for that bank loan / grant you want to collect to start your business.... Call us Today on +2347030722911 or send us an email at martinslibrary1@gmail.com Click Here for detailed Explanation

BREAK -EVEN ANALYSIS:
                                                          Fixed cost                              Variable cost
                                                                (N)                                            (N)     
Salaries and allowance                       (1,325,000)                                       -     
Rent                                                      300,000                                         -
Installation and equipment                         -                               150,000
Telephone and postage                              -                                45,000
Fuel                                                            -                                325,000
Depreciation                                       240,000             
Miscellaneous                                                                                  500,000
Electricity                                                                              55,000           
Advertisement                                                                      125,000

Total                                                1,865,000                            1,200,000
Fc = fixed cost
Vc= variable cost
S= turnover
1= constant.

      Fc                         1,865,060
        1-vc        =           = 1-1,200,000    =    
             S                          12,046,153       
1-     0.0996      =     0.9004
      1,865,060   =     2,071,368.281
        0.9004







The interpretation is that out of the year (2016) sales of ₦12,046,153 this business will break even at the point when the turnover is just ₦2,071,368.281, after this point, it will begin to turn

RISK ANALYSIS
­­
1.      The prices of our competitors might likely reduce therefore making our customers run to them. 
2.      Inexperienced management team of the company may lead to slowing down the rate at which the company sales.
3.      Low sales of our products leading to reduction of our profits.
4.      Advance in technology.
5. Unstable economy situation might also turn out to be a risk, because in the future due to the economic situation customers might prefer wall tiles to paint application.

STRATEGIES TO MITIGATE OUR RISKS
1.      The company will maintain market fair price with adequate distribution channel.
2.      Our main tactics include; application expertise, excellent training and developing of our management team before starting off the business.
3.      The company would apply different marketing strategies in order to make more sales yielding to profits.
4.      Our company would import the improved machines that would stand the thirst of time.
5.      The company would also be flexible in enrolling in the current trends by going on continuous quick environmental scan to gather basic information about our environment so as to adjust.   
    
SWOT ANALYSIS
STRENGTH OF OUR COMPANY

1.      The customization of our products and services will make our customers demand more of our products in the environment.
2.      The company also intends to establish a cordial relationship between us and our customers which would lead to maintaining our customers.
3.      Considering the number of shareholders, there would be inflow of capital. Through our management skills, there would be a number of investors who would invest in our business.
4.      Our business location is also our strength. Located at (address here) which controls three major roads in (location).
5.      Our company will have well-trained skilled man power for takeoff.
Also considering the newness of our paint, its quality and its moderate price, we believe it would be demanded at a higher rate.

OUR WEAKNESSES
1.      Making of paints does not really require special training, therefore it would be simpler and easier for local consumers to produce paints as well.
2.      Lack of close substitutes for our raw materials. Almost all the raw materials used in the production of paints are chemicals which are purchased.
3.      Little chance of recognition in the market environment due to our new presence in the business environment.

OUR OPPORTUNITIES
1.  Relatively low competition since we have less paint production companies in our business environment.
2.    Online shopping and advertisement thereby allowing customers from other states to have access to our products and service.
3.      The company is located at a great proximity to the market.
4.      As an indigenous company, we are likely to receive support and approval from the local government because it would serve as a platform to develop the local government.

OUR THREATS
1.      Competition from other paint production companies.
2.      New market strategy from our competitors.
3.      Tremendous change in demand of paints in future by our customers.
4.      Instability in government policy.

This is a business plan sample..... We can write a Feasibility study / Business Plan for that business you want to venture in; a Business proposal for that bank loan / grant you want to collect to start your business.... Click Here for detailed Explanation

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