business proposal sample for entrepreneurship

FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN

FEASIBILTY REPORT OF PROPOSED

CLEAN LAU MARK ENTERPRISE

(LAUNDRY, AMENDMENTS AND CUSTOMIZATION ENTERPRISE)

PRESENTED BY

GROUP SEVEN (7)

400 LEVEL

DEPARTMENT OF MECHANICAL ENGINEERING

FACULTY OF ENGINEERING

UNIVERSITY OF BENIN

BENIN

MARCH 2015

CENTRE FOR ENTREPRENERUSHIP DEVELOPMENT

CED300 PROJECT


BY GROUP SEVEN (7)

OSHAGBEMI

DAVID TOLU

ENG1203135

SUBMITTED TO

CENTRE FOR ENTERPRENEURSHIP DEVELOPMENT

UNIVERSITY OF BENIN, BENIN

AS A PEREQUISITE FOR CED300

MARCH 2015

BUSINESS PLAN REPORT


TABLE OF CONTENT

Title page

Table of Content

CHAPTER ONE

1.0 Introduction 2

1.1 Definition of Some Terms Used 2

1.2 THE TYPE OF BUSINESS PROPOSED 3

1.3 Time Frame 3

1.4 Site/Location 3

1.5 Vision and Mission 3

CHAPTER TWO

2.0 Executive Summary 4

2.1 Introduction of the Business Idea 4

2.2 Legal Structure 5

2.3 Market Research and Plan 5

2.4 Demand for Service Analysis 6

CHAPTER THREE

3.1 Financing Plans 7

3.2 Financial Analysis 7

3.3 Competitive Edge 11

CHAPTER FOUR

4.1 SWOT Analysis 12

4.1.1 Strength

4.1.2 Weakness

4.1.3 Opportunity

4.1.4 Threats

Conclusion 14

Reference 14


CHAPTER ONE

1.0 INTRODUCTION

Entrepreneurial forces in Nigeria are relatively strong as the lack of jobs and a rise on poverty

leave few other options for the Nigerian people. Although, difficult due to the lack of resources,

these enterprises abound in the country and cover almost all.

The Entrepreneurial plays a vital role in the process of economic growth and development.

Entrepreneurs are bold men and women who have initiative and the ability to lead, manage and take

the consequences. They are men of action, risk takers, missioners, creative and highly respected

for their ability to effectively and efficiently concubine the functions of management to achieve

goals.

A business plan is an essential road map to success. It is a written description of your businesss

future, a document that tells what you plan to do and how you plan to do it. Business plan is a

formal statement of business goals, reasons they are attainable, and plans for reaching them. It

contains background information about the organization or team attempting to reach those goals.

1.1 Definition of Some Terms Used

Business Plan: A business plan is a formal statement of business goals, reasons they are attainable

and plans for reaching them. It may also contain background information about the organization or

teams attempting to reach those goals.

Entrepreneurship: Entrepreneurship is the process of putting together, unique package of

resources to exploit an opportunity. This has been recognized all over the world as the critical

element on the development of every nation.

Entrepreneur: This term is of French origin and was first defined by the Irish Economist Richard

Cantillon. An entrepreneur is a person that has a possession of an enterprise or venture and assumes

significant accountability for the inherent risk, and the outcome of the enterprise.

An entrepreneur has conceptual and innovative abilities.

A Business Enterprise: A business enterprise is an organization or purposeful endeavor which is

primarily for profit making. A business enterprise can be an already established entrepreneurial

company small or medium scale business.


1.2 THE TYPE OF BUSINESS PROPOSED

CLEAN LAU MARK, a laundry (dry cleaning), clothes amendment and attire

customization enterprise. It is a game changer of sort as it brings greater comfort and reliability

to customers on campus and within the environs of Ugbowo, Osasogie, Ekosodin etc.

1.3 TIME FRAME

The enterprise CLEAN LAU MARK is a small scale business which has high prospects and

aspirations of reaching out to its potential customers in its location and even outside its location too.

CLEAN LAU MARK has a time frame of being a long term business enterprise because of its

possible ambitions of expanding to various Universities and states within the country, as we render

good laundry services, clothes amendments and customizations to our potential customers.

1.4 SITE/LOCATION

The business would be located inside the university of Benin campus so as to be easily accessible

to customers from Ekosodin, BDPA as well as neighbouring axis.

1.5 Vision and Mission Statement

CLEAN LAU MARK plans to operate a very successful and effective service with a large

customer volume and rate been adjudged pocket friendly in relation to service rendered.

Customer care is central.

- To stand out among competitors with similar business initiative

- To offer pocket friendly services

- To enhance the quote, cleanliness is next to Godliness.


CHAPTER TWO

2.0 EXECUTIVE SUMMARY

2.1 INTRODUCTION OF THE BUSINESS IDEA

The conceptualization of the idea for this business enterprise CLEAN LAU MARK, stems from

the various needs that were identified and has to be satisfied or better satisfied. These needs include:

1. The washing of clothes for students, lecturers, workers etc.

It was identified that as a result of the high standard of education and demand by the

University and world at large, students have little or no time to do their laundry themselves.

This also cut across to lecturers, workers and other potential customers that are engaged in

their work and other activities.

2. The General Maintenance of Clothes for Students, Lecturers and Workers.

It was identified that during school resumption, many students come to school with some

undersized and oversized clothes, which may be as a result of brief notification and as such

would require resizing of the wears to shape and taste. Also, it was identified that when the

wears of our potential customers get torn, it means the end in the use of the clothing as a

result of the unavailability of an amendment service provider. Also, Lecturers, workers and

other potential customers require the resizing of their oversize and undersize wears from a

readily available and trustworthy amendment service provider.

3. Customization of Wears

It was identified that fashion is the order of the day for most potential customers in unique

style, which has led to them wanting to imprint or customize names on their wears. This has

already been adopted as tradition for the Final Year Students of the University. Thus, in

identifying these needs, our firm CLEAN LAU MARK seeks to provide excellent services

in laundry, amendment and customization of clothes at affordable prices, coupled with

customers satisfaction.

2.2 LEGAL STRUCTURE

For the business CLEAN LAU MARK, the legal structure to be adopted is that of

GENERAL PARTNERSHIP, an arrangement whereby all 9 partners contribute equally to


the initial capital (i.e. N900,000) and each member contributes N 100,000, thereafter it would

be registered in order to operate as a legally approved business outlet.

From the foregoing, it is evident that the profits from the business would be shared

equally while the losses would be borne equally too, irrespective of the role being played by

any member in the business. All partners are expected to be active partners, no sleeping and

sluggard partners allowed.

2.3 MARKET RESEARCH & PLAN

The target market for our business is the large number of people living in and around

the campus. That is, those in the school hostels, BDPA, Osasogie, Ekosodin and adjourning

areas etc., which is why our business would be strategically located in Junior Staff Quarters.

Strategic plans would be carried out for the awareness of our products to our potential

customers. They are as follows:

PUBLICITY: First, posters, colourful banners and billboards would be placed at the

entrances of University of Benin, hostels and faculties. Flyers would also be distributed

alongside door-to-door advertising. This would develop personal relationship with the

potential clients.

Next, some of the marketers gave out questionnaires during which dialogue was also

included. From our survey, the structure of our target market is as follows:

(i) Students - 12000 persons

(ii) Academic staff - 900 persons

(iii) Professionals in Banks and other high profile firms 400 persons

(iv) Non-Academic Staff - 1200 persons

Total number of potential clients = 14,500 persons

From the survey, it was concluded that 45% of the persons were not satisfied with the quality

of services and prices of their current laundry service providers.

Also, 70% of those surveyed were highly receptive to the idea of door-to-door services.

From the dialogue, they wished for better services from us. 65% of them went for customization.

Then, 90% went for amendment.

However, call-by-client service would be carried out and clients would be attached to

specific marketers, for those who requested. This would be an edge over our competitors.


Another awareness point was that, the workers would always wear customized T-shirts &

face-caps having the name of our firm.

At the first week of resumption of every session, there would be bonanza for our customers

with a view to reminding them of our presence.

Also, as the business progresses there would be draws whereby customers would be given

different gift items including T-shirts, biros, face-cap, all carrying our trademark and name. This

would lead to more awareness and competitive advantage.

Some plans for expansion include electronic advertising via Radio and Television, adopting

more modernized machinery and processes in our operations.

Finally, the importance of marketing would completely serve as a core tool for improving

our business. The questionnaire administered during the market research is attached at the end of

this thesis.

2.4 DEMANDS FOR SERVICE ANALYSIS

Before the establishment of this business enterprise CLEAN LAU MARK there were few

or no service rendered in terms of laundry services, clothes amendments and customization in the

school environment but due to the reluctance of University students in doing their laundries,

amending their clothes themselves even the lecturers have no time to maintain their laundries, the

invention of CLEAN LAU MARK meets the huge demand for laundry service for the students,

lecturers etc., for clothes amendment and also customization. This is to say that the demand for our

service was high.

Also, in the University environment, we noted that the demand for our service is very high

during the second semester program because a lot of students have few or no time for themselves

because of how short the semester could be. Also we noted that during that period, the final year

students in various faculties in the school would patronize us in terms of customization of their final

year T-Shirts. This period in this enterprise is called the Peak Point because at this point, we hope

to make huge profit and render a whole lot of services due to the high demand of our potential

customers.


CHAPTER THREE

3.1 FINANCING PLANS

On the basis of how the generated capital would come, we are 10 general partners in this

business enterprise CLEAN LAU MARK so the capital is generated by an individual contribution

of a sum of N100,000 (One Hundred Thousand Naira) each so that the nine (9) partners are regarded

to being fully active partners in the running of the enterprise CLEAN LAU MARK for mutual

profit to be made and collective interest.

Deducing, we have

N 100,000 x 9 Persons = N 900,000

3.2 FINANCIAL ANALYSIS

(a) FINANCIAL OUTLAYS

Capital Costs N

Rent 70,000

Generator 60,000

Washing Machine 60,000

Weaving Machine 15,000

Sewing Machine & Electric Motor 17,000

Pressing Iron (2 Electric, 1 Coal) 6,200

Registration Charges 10,000

Ironing Boards (2) 10,000

Furniture & Fittings 20,000

Advertising & Marketing 35,000

Total Capital Cost 303,200

Operating Cost (Per 2 Months) N

Fuel 16,000

Packaging & Costumes 30,000

Required Chemicals & Materials 80,000

Miscellaneous 40,000


Total Operating Cost (2 Months Only) 166,000

Start Up Cost (Total) 469,200

SALARIES N

1 worker (per month) 6,000

10 workers (per month) 60,000

10 workers (per 2 months) 120,000

Services Amount (N) First 2 Months Subsequent

Months

LAUNDRY

Suits

Shirts Trousers/Skirts

Jeans

Native Attire: Simple

Complex

300.00

100.00

100.00

150.00

350.00

4

10

25

3

2

6

15

40

5

4

AMENDMENT

Trousers (Plain/ Jeans)

Slim-fitting

General Amendments

100.00

100.00

50-200

10

15

30

15

20

40

CUSTOMIZING

Polymark Pattern

Acrylic Pattern

Weaving Pattern

Paint Pattern

700.00

500.00

600.00

300.00

10

15

6

30

15

20

10

50

3.2.1 FINANCIAL INLAYS

Projected Incomes N

First Two Months 307,600

Subsequent Months (N 238,600 x 10 months) 2,386,000

First Year 2, 693, 600


(c) COST/ BENEFIT ANALYSIS

Expenditure and Income For Year 1

Expenditure (N) Income (N)

Months 1 & 2

Capital Cost = 303,200

Operating Cost = 166,000

469,200

307,600

Months 3 & 4

Salaries = 120,000


286,000

477,200

Months 5 & 6

Salaries = 120,000


286,000

477,200

Months 7 & 8

Salaries = 120,000


286,000

Months 9 & 10

Salaries = 120,000


286,000

477,200

Months 11 & 12

Salaries = 120,000


286,000

477,200

End of Month (11 & 12)

Salaries = 120,000

TOTAL: N 2,014,200

TOTAL: N 2,693,600


YEAR (1) ANALYSIS

Total Income N 2,693,600

Total Expenditure N 2,014,200

Net profit N679,400

Per Twelve (12) Months

Salaries = 720,000 477,200


1,716,000

YEAR (2) ANALYSIS

Total Income N 2,863,200

Total Expenditure N 1,716,000

Net profit N 1,147,200

3.3 COMPETITIVE EDGE

As the business of Dry-cleaning, customizing, amendment, etc. is in no way monotonous,

competition comes to play, and then beating-them-to-it becomes a source for concern.

For the business CLEAN LAU MARK we have decided to adopt the following measures

to give us a competitive edge in the market.

Price Slash: We observe the current market price for our service and then introduce a price

slash to attract customers. This is done only for a period of time. We would also introduce a

policy whereby customers get one free laundry done for them for every five that they bring.

Improved Customer Service: One of the most important departments of a business is its

Customer-care Unit as they are in constant contact with the customers. We choose to adopt

a pattern of being friendlier and more personal with them as much as the business would

allow. Also, we have decided to adopt a measure whereby we go the extra mile to add

fragrance of customers choice to the clothes after laundry services are done.

Unparallel Skills: We will carry out our services meticulously and skillfully, work hard to

meet time target imposed by our clientele, thereby giving them a good run for their money.

When the measures analyzed above are utilized, we expect to have a competitive edge over other

laundry service providers. But we would be quick to point out that the sole aim of business is


profit-making, thus any competitive advantage that would lead to a TOTAL LOSS would not

be experimented.

ORGANIZATIONAL STRUCTURE

Manager

Developer Workers Security

Assistant Manager Secretary

Accountant


CHAPTER FOUR

4.1 SWOT ANALYSIS

This is a technique for assessing a business, its resources and environment. The analysis helps the

entrepreneur to know well and understand the business as well as its market. The term SWOT

typified the following:

Strengths

Weaknesses

Opportunities

Threats

STRENGTHS WEAKNESSES

1. Strategic location of the business.

2. Nearness and Accessibility to

potential customers.

3. Access to amenities from the University,

viz:

I. Availability of work force

II. Security

4. Strategic Marketing and Advertising procedures.

Staff Strength is rather low.

Low technological level, but

with prospects for advancement

Financial constraints at the initial stage

OPPORTUNITIES THREATS

1. Increasing target market.

2. Expansion as a result of excellent

service delivery

3. Increasing Extra-curricular activities

e.g. final year week, church programmes

and even football matches.

4. Lack of Competitors for now would lead

to an in-flock of customers to the area,

leading to a possibility of higher

patronage.

Many competitors.

Risk of possible vandalization during student

demonstrations

Inadequate power supply and sometimes

problem of fuel scarcity

Inadequate water supply


FUTURE PROJECTIONS/ CONCLUSION

As a result of the high demand for our services and our dependable human capital, we have high

hopes and aspirations of growing, expanding and diversifying into related businesses. In a short

time, we hope to open new outlets within the state and in other states within the country. Our

methods of diversification in future includes; embarking on complete interior decoration of homes

and fashion designing for interested customers. In advertising, we hope to maximize advancement

in available technology by creating our own website for more awareness and also introducing online

business services for our customers

REFERENCE

F.C. Okafor et al, Entrepreneurship -A practical Approach (Second Edition) Mindex Publishing

Company, Uniben Press.

Andre Francis (2005) Business Mathamatics and statistics 6th edition: Ashford colour press,

Gosport Hampshiere, Uk

Anthony Laundry and Customization Network, Adesuwa Grammar School Road, GRA, Benin City.

business proposal sample for entrepreneurship

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