According to Wikipedia, A business plan is a formal statement of business goals and objectives, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals.
TABLE
OF CONTENT
OF CONTENT
CONTENTS Page
Executive Summary – – – – – – – – 3
Introduction – – – – – – – – 6
Business/Product Description – – – – – – 6
Marketing Analysis – – – – – – – – 7
Marketing Plan/Strategies – – – – – – 8
Operating Plan/Production Process – – – – – 9
Price Range – – – – – – – – – 11
Expected Machinery and Equipment – – – – – 12
Management and Organization – – – – – – 13
Financial Plan – – – – – – – – – 14
Conclusion – – – – – – – – – 16
Conceptualization – – – – – – – – 16
EXECUTIVE SUMMARY
Good Hope
is a Multi-purpose Cooperative Society duly registered with Bureau of Co-operative
Development and Food Sufficiency in Akwa Ibom State, with the number AK16479.
The Company specializes on Palm Oil Mill production and processing.
is a Multi-purpose Cooperative Society duly registered with Bureau of Co-operative
Development and Food Sufficiency in Akwa Ibom State, with the number AK16479.
The Company specializes on Palm Oil Mill production and processing.
In
establishing this mill, three main objectives were targeted. These are:
establishing this mill, three main objectives were targeted. These are:
·
Creating employment opportunities
Creating employment opportunities
·
Providing avenue for growth and
development
Providing avenue for growth and
development
·
Raising the standard of living of the
people
Raising the standard of living of the
people
Among
the various villages that make up or surround Uyo Local Government Area, the
oil mill will be producing some products as palm oil, Palm Kernel oil, Palm
Kernel Powder and other stuffs used as raw materials for subsidy industries in
Akwa Ibom State within the South-south region. Industries that will benefit
from this oil mill include: the soap industry, cosmetics industries, beverages
industries, food industries etc.
the various villages that make up or surround Uyo Local Government Area, the
oil mill will be producing some products as palm oil, Palm Kernel oil, Palm
Kernel Powder and other stuffs used as raw materials for subsidy industries in
Akwa Ibom State within the South-south region. Industries that will benefit
from this oil mill include: the soap industry, cosmetics industries, beverages
industries, food industries etc.
the oil mill will contribute immensely to the
local government revenue as the products will make the village very big market
for raw materials for the above named industries. Also, it is possible that the
industry will contribute its quota to the local community. It is estimated that
the revenue or interest generated by the mill will be up to 3 Million Naira or
more annually.
local government revenue as the products will make the village very big market
for raw materials for the above named industries. Also, it is possible that the
industry will contribute its quota to the local community. It is estimated that
the revenue or interest generated by the mill will be up to 3 Million Naira or
more annually.
Also, given that, there is much soap,
cosmetics, fod and beverage industries in neighbouring cities and state, the
mill will experience increase in sales of its products. Before now, these
industries that depend on palm products for production go as far as
neighbouring countries for the raw materials. But with the establishment and
production of our palm oil mill in the area,, most of them will divert to us
for their raw materials.
cosmetics, fod and beverage industries in neighbouring cities and state, the
mill will experience increase in sales of its products. Before now, these
industries that depend on palm products for production go as far as
neighbouring countries for the raw materials. But with the establishment and
production of our palm oil mill in the area,, most of them will divert to us
for their raw materials.
The
Major Innovation in this Product is the packaging of processed palm oil with
adequate equipment and plastic bottles to avoid exposure of the oil to files
and other contaminants which cause cholera and air borne disease.
Major Innovation in this Product is the packaging of processed palm oil with
adequate equipment and plastic bottles to avoid exposure of the oil to files
and other contaminants which cause cholera and air borne disease.
The
product has an advantage over the existing packages palm oil in the market
because it is packaged and sealed with plastic bottles while the existing ones are packaged
with already used empty plastic bottles and can which are not sealed. This
exposes the edible plam oil to files and other contaminant making the product
harmful to human health.
product has an advantage over the existing packages palm oil in the market
because it is packaged and sealed with plastic bottles while the existing ones are packaged
with already used empty plastic bottles and can which are not sealed. This
exposes the edible plam oil to files and other contaminant making the product
harmful to human health.
The
range of some of the products type sizes includes 5 litres, 10 litres, 20
litres, and 200 liters (in plastic drums) etc.
range of some of the products type sizes includes 5 litres, 10 litres, 20
litres, and 200 liters (in plastic drums) etc.
The
market survey shows a lot of potential customers in Akwa Ibom State, Abia,
Cross River, Bayelsa, Rivers and Delta, as well as in Lagos, and Northern part
of the county where there is abundance need of palm oil consumption.
market survey shows a lot of potential customers in Akwa Ibom State, Abia,
Cross River, Bayelsa, Rivers and Delta, as well as in Lagos, and Northern part
of the county where there is abundance need of palm oil consumption.
Good
Hope Multi-purpose Co-operative Society shall create awareness for the product
through the different media outlets like Radio, Television, promotional fliers,
personal selling contacts etc. and attendance of local and international trade
fairs.
Hope Multi-purpose Co-operative Society shall create awareness for the product
through the different media outlets like Radio, Television, promotional fliers,
personal selling contacts etc. and attendance of local and international trade
fairs.
The
effective running of this mill industry will cost about Six Million, Seven
Hundred Thousand Naira (N6,700,000.00)
since we embark on a community based business that will continue to bring about
development in the local community and the country at large, there would not be
any financial spending for land
acquisition, the community has already granted a sizable space for the factory.
effective running of this mill industry will cost about Six Million, Seven
Hundred Thousand Naira (
since we embark on a community based business that will continue to bring about
development in the local community and the country at large, there would not be
any financial spending for land
acquisition, the community has already granted a sizable space for the factory.
The total investment cost is estimated
at N6.7m (Six Million, Seven Hundred Thousand Naira only). About 40% of this
cost is to be used as working capital for the first 3 months. At present almost
N1,700,000 has been spent on the
procurement of some production equipment of some production equipment and
logistics. The difference ofN5000,000
shall be sourced from the world Bank, NDDC, or relevant financial institution.
at N6.7m (Six Million, Seven Hundred Thousand Naira only). About 40% of this
cost is to be used as working capital for the first 3 months. At present almost
procurement of some production equipment of some production equipment and
logistics. The difference of
shall be sourced from the world Bank, NDDC, or relevant financial institution.
Good
Hope Multi-purpose Co-operative Society has Theresa Godwin Umoh as President,
Edidiong Joseph Asuquo as Vice President while Stella Effiong Etim is the
Secretary General as well as Ekaette Udeme Archibong, as the Treasurer.
Hope Multi-purpose Co-operative Society has Theresa Godwin Umoh as President,
Edidiong Joseph Asuquo as Vice President while Stella Effiong Etim is the
Secretary General as well as Ekaette Udeme Archibong, as the Treasurer.
The
Company is located at Ikot Anyan Ikono, Uyo, Akwa Ibom State. They have been in
the palm oil production/palm oil mill b usiness for some years now.
Company is located at Ikot Anyan Ikono, Uyo, Akwa Ibom State. They have been in
the palm oil production/palm oil mill b usiness for some years now.
In
conclusion it has been demonstrated that the project is technically feasible,
financially viable and economically beneficial to households, hotel etc. within
and outside the state. Also the project will go a long way at reducing the
unemployment problem in the country. The ripple economic effect via
distribution shall definitely be felt within a very short time once the funds
are accessed.
conclusion it has been demonstrated that the project is technically feasible,
financially viable and economically beneficial to households, hotel etc. within
and outside the state. Also the project will go a long way at reducing the
unemployment problem in the country. The ripple economic effect via
distribution shall definitely be felt within a very short time once the funds
are accessed.
INTRODUCTION
The
abundance of palm tree plantation in various areas in Akwa Ibom State has
informed the establishment of palm oil mill by GH MULTI-PURPOSE CO-OPERATIVE SOCIETY. The oil mill focuses
on the production of palm oil, palm kernel oil and palm kernel proceeds needed
for the making of soaps, pomade and even snacks.
abundance of palm tree plantation in various areas in Akwa Ibom State has
informed the establishment of palm oil mill by GH MULTI-PURPOSE CO-OPERATIVE SOCIETY. The oil mill focuses
on the production of palm oil, palm kernel oil and palm kernel proceeds needed
for the making of soaps, pomade and even snacks.
The
products for this oil mill serve as raw material for cosmetic industries, food
and snacks making industries. In the oil mill, palm fruits will be processed
into different products such as palm oil, palm kernel and by products for fire
making. In the industry, there would be machines for crushing and pounding of
palm fruits, extraction of palm oil, kernel oil and other byproducts.
products for this oil mill serve as raw material for cosmetic industries, food
and snacks making industries. In the oil mill, palm fruits will be processed
into different products such as palm oil, palm kernel and by products for fire
making. In the industry, there would be machines for crushing and pounding of
palm fruits, extraction of palm oil, kernel oil and other byproducts.
BUSINESS/PRODUCT DESCRIPTION
As
stated in the introduction above, the name/owner of the business is GH. It is a co-operative
business owned by a group of 20 individuals of the same goal from Uyo Local
Government Area of Akwa Ibom State. They run palm oil production/palm oil mill.
The location area will be the will be the major sources of raw materials for
the mill. The major materials are the palm trees plantation in the area.
stated in the introduction above, the name/owner of the business is GH. It is a co-operative
business owned by a group of 20 individuals of the same goal from Uyo Local
Government Area of Akwa Ibom State. They run palm oil production/palm oil mill.
The location area will be the will be the major sources of raw materials for
the mill. The major materials are the palm trees plantation in the area.
Though
the community have abundant palm plantation which is part of its natural
endowment, the cooperative will establish improved breeds or species of palm
that can produce palm fruits very fast. This is to ensure constant production
of the palm products.
the community have abundant palm plantation which is part of its natural
endowment, the cooperative will establish improved breeds or species of palm
that can produce palm fruits very fast. This is to ensure constant production
of the palm products.
BUSINESS LOCATION
The
business is located at Ikot Ayan Ikono Village, Uyo Local Government Area of
Akwa Ibom State.
business is located at Ikot Ayan Ikono Village, Uyo Local Government Area of
Akwa Ibom State.
TYPE OF BUSINESS
Palm
Oil Production/Palm Oil Mill
Oil Production/Palm Oil Mill
{Production,
processing, bulk marketing and exporting of GOOD HOPE Mechanized/edible palm
oil}
processing, bulk marketing and exporting of GOOD HOPE Mechanized/edible palm
oil}
BUSINESS ENVIRONMENT
The
land obtained for the establishment of the Mill is located at Ikot Ayamn, Uyo,
Akwa Ibom State.
land obtained for the establishment of the Mill is located at Ikot Ayamn, Uyo,
Akwa Ibom State.
The
community is known for its palm plantation which is abundance and the fertility
of its soil. The land is vast, measuring about 2 hectares, in the land; we
would erect a building which will serve as a hall for the materials. There will
be less transport cost since the mill is near the sources of raw materials.
Warehouses will be built for the storage and sales of the already processed
palm.
community is known for its palm plantation which is abundance and the fertility
of its soil. The land is vast, measuring about 2 hectares, in the land; we
would erect a building which will serve as a hall for the materials. There will
be less transport cost since the mill is near the sources of raw materials.
Warehouses will be built for the storage and sales of the already processed
palm.
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MARKETING ANALYSIS
The
marketing survey conducted by our team member’s show that the potentials for
the products are enormous. Yes, the palm, oil mill has a very good prospect for
surviving in the raw materials market for industries.
marketing survey conducted by our team member’s show that the potentials for
the products are enormous. Yes, the palm, oil mill has a very good prospect for
surviving in the raw materials market for industries.
Firstly,
most of the small scale industries in different states in the country will
patronize the mill industry. Hotels, palm kernel oil and palm oil sellers in
the area can buy directly from us in bulk quantity and in wholesale prince.
most of the small scale industries in different states in the country will
patronize the mill industry. Hotels, palm kernel oil and palm oil sellers in
the area can buy directly from us in bulk quantity and in wholesale prince.
Secondly,
the various soap, cosmetics and food industries within and outside the state
can come to our oil mill for their raw materials. Industries in Northern parts,
Lagos, Aba, Enugu, and Port Harcourt can easily locate the mill and buy the
products. This will thereby reduce the transport cost.
the various soap, cosmetics and food industries within and outside the state
can come to our oil mill for their raw materials. Industries in Northern parts,
Lagos, Aba, Enugu, and Port Harcourt can easily locate the mill and buy the
products. This will thereby reduce the transport cost.
We
will continue to increase the production and sales of palm produce in the
environs. This will result to increase in profit and profitability since there
are no too many competitors in the South-south/South-East region market.
will continue to increase the production and sales of palm produce in the
environs. This will result to increase in profit and profitability since there
are no too many competitors in the South-south/South-East region market.
The
cost of production will be low because most of the staff will be recruited from
the community and the sources of raw materials for the mill are gotten from the
natural endowment within the environs.
cost of production will be low because most of the staff will be recruited from
the community and the sources of raw materials for the mill are gotten from the
natural endowment within the environs.
MARKETING PLAN/STRATEGIES
GH MULTI-PURPOSE CO-OPERATIVE
SOCIETY has a team of good marketers and sales forces who will
create public awareness of the mill’s products. There would be an integrated
marketing communication between the mill and its target market. The mill’s
product would be communicated to the public through advertisement (using
various media including the internet), public relations, posters, flyers, sale
promotion and publicity. There will be proficient marketing professionals
recruited for this purpose.
SOCIETY has a team of good marketers and sales forces who will
create public awareness of the mill’s products. There would be an integrated
marketing communication between the mill and its target market. The mill’s
product would be communicated to the public through advertisement (using
various media including the internet), public relations, posters, flyers, sale
promotion and publicity. There will be proficient marketing professionals
recruited for this purpose.
Again,
the industry will make use of customer based pricing one of its pricing
strategy. It will also emphasize on quantity discount as a pricing strategy
also. The industry will make use of sales representatives and agents instead of
middlemen to avoid hoarding of the products, excessive price hike and low
customer’s satisfaction
the industry will make use of customer based pricing one of its pricing
strategy. It will also emphasize on quantity discount as a pricing strategy
also. The industry will make use of sales representatives and agents instead of
middlemen to avoid hoarding of the products, excessive price hike and low
customer’s satisfaction
OPERATING PLAN/PRODUCTION PROCESS
Operation
– 6 days per week, 1 shift per week, 8 hours per shift, and 1 hour break per
day.
– 6 days per week, 1 shift per week, 8 hours per shift, and 1 hour break per
day.
The
production process for palm oil making is very vital and the procedures of
making palm oil are 2 patterns: the old or ancient pattern and the new or
modernized pattern. Both patterns will be used.
production process for palm oil making is very vital and the procedures of
making palm oil are 2 patterns: the old or ancient pattern and the new or
modernized pattern. Both patterns will be used.
The
following stages in palm oil making using the old pattern include the following:
following stages in palm oil making using the old pattern include the following:
a.
The
First Stage: The palm will be cut from the tree in
a bunk.
First Stage: The palm will be cut from the tree in
a bunk.
The
Second Stage: Cutting it from the bunk and after
few days it will be selected.
The
Third Stage: cooking the selected with a very big
pot.
The
Fourth Stage: Pounding in a big Mortar.
The
Fifth Stage: Sieving out the oil and turn into a
container.
The
Sixth Stage: Packaging the container and the oil
is ready for sale.
After
this process, the kernels and the chaff will be separated from others for
domestic uses and consumption.
this process, the kernels and the chaff will be separated from others for
domestic uses and consumption.
Using
the modernized pattern, the industry has its own different departments which
will be divided into sub sections room such as crushing room, the cooking room,
the extracting room and the canning room. There will be administrative,
personnel, and marketing department. There would be machines for cooking;
crushing and extracting units will work hand in hand in order to bring out the
end products of the industry.
the modernized pattern, the industry has its own different departments which
will be divided into sub sections room such as crushing room, the cooking room,
the extracting room and the canning room. There will be administrative,
personnel, and marketing department. There would be machines for cooking;
crushing and extracting units will work hand in hand in order to bring out the
end products of the industry.
The marketing departments would be concerned for
sourcing customers for the product. The industry have its own palm plantation
form where it gets its raw materials and the palm plantation will be made up
improved breeds to ensure constant supply of raw materials. There would also be
warehouse for stoning the products.
sourcing customers for the product. The industry have its own palm plantation
form where it gets its raw materials and the palm plantation will be made up
improved breeds to ensure constant supply of raw materials. There would also be
warehouse for stoning the products.
1.1 Raw Materials Requirement
(a)
Fresh and Ripe Oil Palm Fruits
Fresh and Ripe Oil Palm Fruits
(b)
Plastic Bottles
Plastic Bottles
(c)
Plastic Cans
Plastic Cans
(d)
Tapes and stationeries
Tapes and stationeries
(e)
Cartons
Cartons
(f)
Labels etc.
Labels etc.
1.2 Process Flow Diagram
The
company coordinates the packaging and marketing of various palm oil related
products, such as processed edible palm oil for local consumption as well as
export.
company coordinates the packaging and marketing of various palm oil related
products, such as processed edible palm oil for local consumption as well as
export.
PRINCE RANGE
are the unit selling price for the various sizes of one of our processed
packaged product edible palm oil.
75cl ……………………………… N200
1.5 litres ……………………………… N350
litres ……………………………… N450
litres ……………………………… N900
10 litres ……………………………… N2,500
litres ……………………………… N4,500
litre {Rubber Drum} ……………………………… N55,000
Etc.
CUSTOMER SERVICE
Distributor
will be allowed some percentage credit on line of trust.
will be allowed some percentage credit on line of trust.
WASTE MANAGEMENT
The
waste products generate will be dispose appropriately.
waste products generate will be dispose appropriately.
EXPECTED MACHINERY AND EQUIPMENT
Items
Qty/pieces
Qty/pieces
§ Pick
up van – 1
up van – 1
§ Iron
drums for storage – 10
drums for storage – 10
§ Pressing
Machine – 2
Machine – 2
§ Selector – 1
§ Grinder – 2
§ Beaker/Selector
– 1
– 1
§ Big
basins (Stainless) – 10
basins (Stainless) – 10
§ Borehole/GP
Tank – 1
Tank – 1
§ Big
Generator (Lister) – 1
Generator (Lister) – 1
§ 20
litres of Jeri cans for packaging of the oil 300
litres of Jeri cans for packaging of the oil 300
§ Big
blue 200 litres plastic drums – 50
blue 200 litres plastic drums – 50
§ Auto
semi dispensing machine – 1
semi dispensing machine – 1
§ Labeling/coding
machine – 2
machine – 2
§ Office
desktop computer – 2
desktop computer – 2
§ Fire
Extinguisher – 1
Extinguisher – 1
MANAGEMENT AND ORGANIZATION
The
management team works hard to increase the sales, market shares and profit by
understanding the customers and the competition. The team is collectively
building cohesive marketing strategies for the products and creating maximum
impact.
management team works hard to increase the sales, market shares and profit by
understanding the customers and the competition. The team is collectively
building cohesive marketing strategies for the products and creating maximum
impact.
The
business is partnership between 20 people and these people collectively run the
business.
business is partnership between 20 people and these people collectively run the
business.
BACKGROUND OF KEY OFFICERS
The key personnel/management team
comprises
comprises
1.
Mrs.
GRACE UMOH – a business mogul and a well-trained
manager. With her vast experience in management and entrepreneur, she assumes
the post of the President/General Manager. Her knowledge will lead to efficient
and effective management of the industry.
Mrs.
GRACE UMOH – a business mogul and a well-trained
manager. With her vast experience in management and entrepreneur, she assumes
the post of the President/General Manager. Her knowledge will lead to efficient
and effective management of the industry.
2.
Mrs.
Edidiong Asuquo – An elegant
lady with vast experience in Management. She takes the role of vice
President/Assistant Manager. Her skills when applied will take the industry to
greater height.
Mrs.
Edidiong Asuquo – An elegant
lady with vast experience in Management. She takes the role of vice
President/Assistant Manager. Her skills when applied will take the industry to
greater height.
3.
Mrs. Ekaette Oluwashegun – The business guru, versatile in all
aspects of the business operation takes the post of the Secretary. Her skills
are needed for the development and sustainability of the industry.
Mrs. Ekaette Oluwashegun – The business guru, versatile in all
aspects of the business operation takes the post of the Secretary. Her skills
are needed for the development and sustainability of the industry.
4.
Mrs.
Ekaette Udeme Archibong – With her educational background and
qualifications on accounting and Finance, utilizes her skills in recording the
business operations and analyzing our financial prospect. She serves as a
Treasurer/Financial Secretary.
Mrs.
Ekaette Udeme Archibong – With her educational background and
qualifications on accounting and Finance, utilizes her skills in recording the
business operations and analyzing our financial prospect. She serves as a
Treasurer/Financial Secretary.
5.
Other
Members who are business oriented ladies jointly share in various
aspects of the daily production, operations, and marketing of the products.
Other
Members who are business oriented ladies jointly share in various
aspects of the daily production, operations, and marketing of the products.
Note: The above mentioned personnel have years of working experience both in the
company as well as I their various field of discipline.
company as well as I their various field of discipline.
With
this team, we believe our collective efforts will take the industry to greater
heights, enabling us to have market power in the industry.
this team, we believe our collective efforts will take the industry to greater
heights, enabling us to have market power in the industry.
FINANCIAL PLAN
The
financing and funding of the business would come from the collective
contribution of the members and from the appropriate entities or grant from
government. Subsequently, the revenue generated from the industry will be
re-invested into the business and some of the income will be shared among the partners.
Hence, the financial requirement of the pal, oil Production/Mill industry is
analyzed below.
financing and funding of the business would come from the collective
contribution of the members and from the appropriate entities or grant from
government. Subsequently, the revenue generated from the industry will be
re-invested into the business and some of the income will be shared among the partners.
Hence, the financial requirement of the pal, oil Production/Mill industry is
analyzed below.
FINANCIAL PROJECTION
(Underlying
Assumptions or Estimates)
Assumptions or Estimates)
Operation
– 6 days per week, 1 shift per week, 8 hours per shift, and 1 hour break per
day.
– 6 days per week, 1 shift per week, 8 hours per shift, and 1 hour break per
day.
ITEMS/LOGISTICS EXPECTED | AMOUNT (N) | |
of industrial buildings | ||
of machines and equipment | ||
of workers for the 1st 3 months | ||
plantation and cultivation | ||
pick-up car for transportation, sales distribution, and services | ||
FINANCIAL STRUCTURE
– 1,700,000.00
– 5,000.000.00
Interest
Rate: 40% per annum
Rate: 40% per annum
§ Loan
duration 4 years
duration 4 years
§ Wages
and salaries 10% annual increase
and salaries 10% annual increase
§ Sales
commission 5% of sales
commission 5% of sales
The
assuming rate of interest rate of returns is 82%
assuming rate of interest rate of returns is 82%
CONCLUSION
Based on the above information and analysis, it can be inferred that the GOOD
HOPE Multi-purpose Co-operative Society in Akwa Ibom State has a great mission to promote human development project in the area,
create employment opportunities for the youth and create means of generating
more income for the investors/partners. Hence, it is clear that the business
presents a new dimension of development.
HOPE Multi-purpose Co-operative Society in Akwa Ibom State has a great mission to promote human development project in the area,
create employment opportunities for the youth and create means of generating
more income for the investors/partners. Hence, it is clear that the business
presents a new dimension of development.
CONCEPTUALIZATION
The
GOOD HOPE Palm Oil Mill in the local
government area will be a very big industry specialized in the production of
pal, products such as; palm oil, palm kernel oil, palm kernel powder and other
by-products from palm, which subsidiary industries can used as raw materials
for their production.
GOOD HOPE Palm Oil Mill in the local
government area will be a very big industry specialized in the production of
pal, products such as; palm oil, palm kernel oil, palm kernel powder and other
by-products from palm, which subsidiary industries can used as raw materials
for their production.
Up
to 100 tons of palm oil will be ready for sales and distribution on daily
basis. Having established business contact with most of the soap, cosmetics,
and beverage industries in Aba, Port Harcourt, Enugu, Onitsha, Kano, Kaduna,
Lagos, Abuja etc. the mill will distribute them at any quantity they want.
to 100 tons of palm oil will be ready for sales and distribution on daily
basis. Having established business contact with most of the soap, cosmetics,
and beverage industries in Aba, Port Harcourt, Enugu, Onitsha, Kano, Kaduna,
Lagos, Abuja etc. the mill will distribute them at any quantity they want.
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