A BUSINESS PLAN REPORT ENTREPRENEUSHIP DEVELOPMENT (EED413) OF
A BUSINESS PLAN REPORT
ENTREPRENEUSHIP DEVELOPMENT (EED413)
OF
E-mail: olak@yahoo.com
Tel:
08036450701, 08053514135
PREPARED BY
OLAIFA GBEMINIYI A.
H/BA/10/2146
SUBMITTED TO
MR. A.A. TAIWO
DEPARTMENT
OF BUSINESS ADMINSTRATION
AND
MANAGEMENT
THE FEDERAL
POLYTECHNIC ILARO
FEBRUARY
2012
AN ADEQUATE BUSINESS
PLAN FOR
OLAGBEMY BUILDING
1.0
INRODUCTION
An Essential Requirement for Setting
up my Business.
The decision of Ola-Gbemmy Building
Blocks Industry and Services Nig Ltd
is to commit the limited resources at my disposal to an investment
opportunity will definitely depend upon connection that my decision is the best
available opportunity from which my wealth can be maximized. The basic
assumption is that I would not invest in any venture unless I expect to be
appropriately compensated for having done so. Thus, my ability is to make
comparison with much degree of accuracy between the expected return and the
anticipated risk will, to a lar
ge extent, determine the correctiveness of my decision.
Hence, this act of comparison is better done by carrying out feasibility study
or report on various investment opportunities or a particular proposed
investment decision.
1.1
PREPARING A FEASIBILITY STUDY
Good planning is a pre-requisite for
survival and success of any business without proper planning; a business may
head towards failure if corrective measures are not taken in time. Many
business men lose the opportunity of realizing their dream projects through
poor preparation of feasibility study. This is saying that, the viability of
project could be underscored by poor feasibility report. A feasibility report
is simply a business plan. It is a detailed study that examines the
profitability, feasibility and effectiveness of a proposed investments
opportunity.
1.2 THE USES OF FEASIBILITY STUDY- REPORT
a.
To
provide the basic information for effective decision making on whether I should
start my business or not.
b.
Organize
my ideas so that I will start and run my business in the best way.
c.
To
assist me in developing future plans for my organization.
d.
Present
my business idea to a lending institution such as bank to get a loan for my
business.
e.
Serve
as a basis for measuring performance of my proposed business.
With
proper feasibility study, I will have a chance to think through and asses my
business idea, I will also be able to estimate if my business ideas is viable
and profitable. If I go ahead and start my business, I will have a plan of how
to do it.
2.0
CONTENT OF FEASIBILITY STUDY
A
feasibility study should cover all the important aspect to be considered before
starting a business. It a guide line to follow so that I do not overlook anything
when preparing for my new business.
2.1 INTRODUCTION
This
aspect deals with provision of background information about the proposed
business (OLAGBEMY BUILDING BLOCKS INDUSTRY AND SERVICES NIG LTD), data
collection method, the proposed name and the purpose of the business.
2.2 THE BUSINESS IDEALS
All
business is based on ideas. It is an idea on what product I’m going to produce, what service
I’m going to provide, or what goods I’m going to sell, where and how I’m going
to sell and who I will sell it to
2.3 THE MARKETING PLAN
After
developing my business idea, I should think in detail about how I’m going to
market my products or services. Marketing is every thing I need to find out who
are my customers and what they need and want. Marketing is satisfying your
customers- needs while making a profit. In my marketing plan, I write down in detail what product or services
I’m I going to sell, what prices I’m I going to charge, where my business is going to
be located and what method of distribution I’m I going to use and how I’m going to promote my business and my product
or services.
2.4 FORM OF BUSINESS
There
are difference legal forms I can chose for the purpose of this business
(Ola-Gbemmy Building Blocks Industry and Services Nig Ltd). They have
advantages and disadvantages and which form I chose depends on the
characteristics of my own business. The different forms I can choose from are:
sole proprietorship, partnership, limited company and cooperative.
But for the purpose of this business
plan, I will choose sole proprietorship.
2.5
STAFF
I need to think
about the staff I will need for my business what skill and experiences are
required? How many employees do I need in each department vis-à-vis production,
marketing, accounts and personnel?
Production department: seven (7)
employees
Marketing department: five (5)
employees
Account and personnel department six
(6) employees
MANAGEMENT TEAM: The management team is the key to successful lunching of a new business
venture; prospective I must look for a
committed and highly dedicated management team with technical management
ability and business skills and experience on lunching the product.
2.6 LEGAL RESPONSIBILITIES AND
INSURANCE
When
you are in business you have legal responsibilities. I must know legal implications of my proposed
business and also I should endeavor to
find out how insurance of my business can give me some financial security
against different kind of risks.
2.7 TECHNICAL SPECIFICATION
It
describes the facilities, plant location space requirement, inventory control
decision, purchasing and production control, administrative building, plant and
machinery, raw materials and component utilities.
2.8 COSTING
To
be able set my prices and make business plans, I need to calculate the cost of my product or
services in doing this, I need to be
conversant with market prices of similar competitive product in the market.
2.9 FINANCIAL AND ECONOMIC PLAN
All
businesses need to plan for the future. As an entrepreneur I’m expected to plan
for my profit and cash flow as well as my working capital for my own business.
It will also help me in determining the potentiality and viability of the
business from the financial and economic point of view this will include the
preparation of cash flow and, the trading profit and loss account and the
balance sheet.
2.10 REQUIRED STARTING CAPITAL
This
is the amount of money I need to start my business. I need money for equipment,
raw materials, wages, rent, and other expenses. Therefore, I need to calculate
the actual amount required to start up my business.
Initial capital needed to start the
business is N3,000,000.
Equipment N1,500,000
Raw materials N150,000
Purchasing of site N400,000
Working capital N950,000
Total N3,000,000
2.11 EVALUATION AND CONCLUSION
This
is a situation where I will use various method to evaluate the worthiness or
otherwise of the proposed investment. Such method include pay back period, average
rate of return, return on investment.
2.12
EXECUTIVE SUMMARY
The
executive summary gives an outline of my business ideas. It contains the most
important information from the rest of feasibility study. I will have to
complete all other part of the feasibility study before I feel in the executive
salary. It is important that the summary is clearly worked out and looks tidy
because it is the first impression any one reads it will get on my business
ideas.
Comments