FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN
CENTRE FOR ENTREPRENERUSHIP DEVELOPMENT
CED300 PROJECT
FEASIBILTY REPORT OF PROPOSED
CL EAN L AU M ARK ENTERP ENTERPRI SE (LAUNDRY, AM ENDM ENTS AND CUSTOMI CUSTOMI ZATI ON ENTERPRISE) ENTERPRISE)
PRESENTED BY
GROUP SEVEN (7) 400 LEVEL
DEPARTMENT OF MECHANICAL ENGINEERING FACULTY OF ENGINEER E NGINEERING ING UNIVERSITY OF BENIN BENIN
MARCH 2015
FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN
BUSINESS PLAN REPORT
BY GROUP SEVEN (7)
OSHAGBEMI DAVID TOLU ENG1203135 SUBMITTED TO
CENTRE FOR ENTERPRENEURSH ENTERPRENEURSHIP IP DEVELOPMENT UNIVERSITY OF BENIN, BENIN
AS A PEREQUISITE FOR CED300
MARCH 2015
FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN
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
FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN
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 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, mana ge and take the consequences. They are men of action, 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 business’s future, a document that tells what you plan to do do and how you plan to do it. Business plan is a formal statement of business goals, reasons they are attainable, and plans 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 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.
FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN
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 M ARK ” is a small scale business which has high prospects and ARK aspirations of reaching out to its potential customers in its location an d even outside its location too. “CLEAN L AU M ARK ” has a time frame of being a long term business enterprise because of its ARK 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 plans to operate a very successful and effective service with a large plans CLEAN LAU M ARK ARK
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”.
FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN
CHAPTER TWO
2.0
EXECUTIVE SUMMARY
2.1
INTRODUCTION OF THE BUSINESS IDEA
The conceptualization of the idea for this business enterprise “CLEAN LAU M ARK ”, stems from ARK 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. themselve s. 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 M ARK ” seeks to provide excellent services ARK in laundry, amendment and customization of clothes at affordable prices, coupled with customers’ satisfaction.
2.2
LEGAL STRUCTURE
For the business “ CLEAN LAU M ARK ”, the legal structure to be adopted is that of ”, ARK GENERAL PARTNERSHIP, an arrangement whereby all 9 partners contribute equally to
FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN
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 e qually too, irrespective of the role being played pla yed 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
(iv)
Non-Academic Staff
-
Total number of potential clients =
400 persons 1200 persons 14,500 persons
From the survey, it was concluded that 45% of the persons were not s atisfied 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.
FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN
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
there “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. 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 because at this point, we hope because Peak Poi nt to make huge profit and render a whole lot of services due to the high demand of our potential customers.
FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN
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 so the capital is generated generate d by an individual contribution of a sum of N100,000 (One Hundred Thousand Thousa nd Naira) each so that the nine (9) partners partne rs are regarded to being fully active partners in the running of the enterprise
for “CLEAN LAU MARK” for
profit to be made and collective interest. Deducing, we have N 100,000
x
9 Persons
3.2
FINANCIAL ANALYSIS
(a)
FINANCIAL OUTLAYS Capital Costs
=
N 900,000
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
mutual
FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN
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
300.00
4
6
Shirts Trousers/Skirts
100.00
10
15
Jeans
100.00
25
40
Native Attire: Simple
150.00
3
5
Complex
350.00
2
4
Trousers (Plain/ Jeans)
100.00
10
15
Slim-fitting
100.00
15
20
General Amendments
50-200
30
40
Polymark Pattern
700.00
10
15
Acrylic Pattern
500.00
15
20
Weaving Pattern
600.00
6
10
Paint Pattern
300.00
30
50
AMENDMENT
CUSTOMIZING
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
FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN
(c)
COST/ BENEFIT ANALYSIS Expenditure and Income For Year 1
Expenditure (N)
Income (N)
M onths onths 1 & 2
Capital Cost
= 303,200
Operating Cost
= 166,000
307,600
469,200 M onths onths 3 & 4
Salaries
= 120,000
Operating Cost
477,200
= 166,000 286,000
M onths onths 5 & 6
Salaries
= 120,000
Operating Cost
477,200
= 166,000 286,000
M onths onths 7 & 8
Salaries
= 120,000
Operating Cost
= 166,000 286,000
M onths 9 & 10
Salaries
= 120,000
Operating Cost
477,200
= 166,000 286,000
M onths 11 & 12
Salaries
= 120,000
Operating Cost
477,200
= 166,000 286,000
End of M onth (11 (11 & 12) 12)
Salaries TOTAL:
= 120,000 N 2,014,200
TOTAL:
N 2,693,600
FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN
YEAR (1) ANALYSIS
Total Income
N 2,693,600
Total Expenditure
N 2,014,200
Net profit
N679,400
Per Per Twelve Twelve (12) M onths
Salaries
= 720,000
Operating Cost
= 996,000
477,200
1,716,000 YEAR (2) ANALYSIS
3.3
Total Income
N 2,863,200
Total Expenditure
N 1,716,000
Net profit
N 1,147,200
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‘beating -them-to-it’ it’ becomes a source for concern. For the business “ CLEAN we have decided to adopt the following measures C LEAN LAU M ARK ARK ” ” we to give us a competitive edge in the market.
Pri ce 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.
I mpr oved oved Customer Customer Ser vice:
One of the most important departments of a business is its
‘Customer -care Unit’ as they are in constant contact c ontact with the customers. We choose to adopt ado pt 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 Unparallel Skil ls: ls: We will carry out our services meticulously and skillfully, work hard to
meet time target imposed by our clientele, thereby there by giving them ‘a good run for their money’. When the measures analyzed above a bove are utilized, we expect to have a competitive co mpetitive edge over other laundry service providers. But we would be quick to point out that the sole aim of business is
FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN
profit-making, thus any competitive advantage that t hat would lead to a ‘TOTAL LOSS” would not be experimented.
ORGANIZATIONAL STRUCTURE
Manager
Assistant Manager
Secretary
Accountant
Developer
Workers
Security
FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN
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.
Staff Strength is rather low.
2. Nearness and Accessibility to
Low technological level, but
potential customers.
with prospects for advancement
3. Access to amenities from the University, Financial constraints at the initial stage viz: I. II.
Availability of work force Security 4. Strategic Marketing and Advertising procedures. OPPORTUNITIES 1. Increasing target market.
THREATS
Many competitors.
2. Expansion as a result of excellent Risk of possible vandalization during student service delivery 3. Increasing
Extra-curricular
demonstrations activities Inadequate power supply and sometimes
e.g. final year week, church programmes problem of fuel scarcity 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.
Inadequate water supply
FEASIBILITY REPORT ON CLEAN LAU MARK BY GROUP SEVEN
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 6 th edition: Ashford colour press, Gosport Hampshiere, Uk
Anthony Laundry and Customization Network, Adesuwa Grammar School Road, GRA, Benin City.
