GOD’S FOUNDATION BOUTIQUE NIG LTD.

GOD’S FOUNDATION BOUTIQUE NIG LTD.

P.O. Box 1819, Sango Ota Ogun State

E-mail: walex 2097@yahoo.com

Tel: 08068440211, 08024229292.   

PREPARED BY

AJAGBE JOSEPH A.

H/BA/10/2205

SUBMITTED TO

MR. A.A. TAIWO

DEPARTMENT OF BUSINESS ADMINSTRATION

AND MANAGEMENT

THE FEDERAL POLYTECHNIC ILARO

OGUN STATE.

FEBRUARY 2012

AN ADEQUATE BUSINESS PLAN FOR GOD’S FOUNDATION BOUTIQUE NIG. LTD.

1.0             GENERAL DESCRIPTION OF THE PROJECT

An Essential Requirement for Setting up this Business.

The decision of an investor to com

mit the limited resources at his disposal to an investment opportunity will definitely depend upon connection that his decision is the best available opportunity from which his wealth can be maximized. The basic assumption is that investor would not invest in any venture unless they expect to be appropriately compensated for having done so. Thus, the investor’s ability to make comparison with much degree of accuracy between the expected return and the anticipated risk will, to a large extent, determine the correctiveness of the investor 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 of whether you should start your business or not.

b.                 Organize your ideals so that you will start and run your business in the best way.

c.                  To assist the entrepreneur in developing future plans for the organization.

d.                 Present your business ideal to a lending institution such as bank to get a loan for your business.

e.                  Serve as a basis for measuring performance of proposed business.

          With proper feasibility study, you will have a chance to think through and asses your business idea, you will also be able to estimate if your business idea is viable and profitable. If you go ahead and start your business, you 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 you do not overlook anything when preparing for your new business.

2.1     INTRODUCTION

          This aspect deals with provision of background information about the proposed business (GOD’S FOUNDATION BOUTIQUE NIG. LTD), data collection method, the proposed name and the purpose of the business.

2.2     THE BUSINESS IDEAS

          All business is based on an idea. It is an idea on what  product you are going to produce, what service you are going to provide, or what goods you are going to sell, where and how you are going to sell and who you are going to sell it to

2.3     THE MARKETING PLAN

          After you have developed your business idea, you should think in detail about how you are going to market your products or services. Marketing is every thing you need to find out who are your customers and what they need and want. Marketing is satisfying your customer’s needs while making a profit. In your marketing plan, you write down in detail what product or services you are going to sell, what prices you are going to charge, where your business is going to be located and what method of distribution you are going to use and how you are going to promote your business and your product or services.

2.4     FORM OF BUSINESS

              There are difference legal forms you can chose for the purpose of this business (God’s Foundation Boutique Nig Ltd). They have advantages and disadvantages and which form you chose depends on the characteristics of your own business. The different forms you can choose from are: sole proprietorship, partnership, limited company and cooperative.

2.5             STAFF

          You need to think about the staff you need for your business what skill and experiences are required? How many employees do you needs in each department vis-à-vis purchasing, marketing, accounts and personnel?

Purchasing department: five (5) employees

Marketing department: three (3) employees

Account and personnel department three (3) employees

MANAGEMENT TEAM: The management team is the key to successful lunching of a new business venture; prospective entrepreneur 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. You must know legal implications of your proposed business and also you should endeavor to find out how insurance of your business can give you 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 administrative building, plant and machinery, raw materials and component utilities.

2.8     COSTING

          To be able set your prices and make business plans, you need to calculate the cost of your product or services in doing this, you 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 you are expected to plan for your profit and cash flow as well as your working capital for your own business. Is also helps 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, the trading profit and loss account and the balance sheet.

2.10   REQUIRED STARTING CAPITAL

          This is the amount of money you need to start your business. You need money for equipment, furniture, wages, rent, and other expenses. Therefore, you need to calculate the actual amount required to start up of your business.

Initial capital needed to start the business is N500,000.

Equipment                               N100,000

Raw materials                           N150,000

Rent                                            N 100,000

Working capital                        N150,000

Total                                        N500,000

2.11   EVALUATION AND CONCLUSION

          This is a situation where various method will be used 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 your business idea. It contains the most important information from the rest of feasibility study. You will have to complete all other part of the feasibility study before you 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 your business ideas.