Sei sulla pagina 1di 14

BUSINESS PLAN FOR

McCHATIJ ENTERPRISE
SUBMITTED

BY

SULE EMMANUEL AVONG


TO
KADUNA BUSINESS SCHOOL
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF DIPLOMA IN INOVATION AND
ENTREPRENEURIAL FINANCE

Written by
Mr . Sule Emmanuel Avong
Email: djbennaijamusic @gmail.com

TABLE OF CONTENTS
COVER PAGE..............................................................................1
TABLE OF CONTENTS..................................................................2
CHAPTER
1.................................................................................3
1.0
Executive Summary............................................................3
1.1
Objectives...............................................................3
1.2
Mission, Vision and value.......................................3
1.3
Key to success.........................................................4
CHAPTER
2.................................................................................5
2.0
Company Summary............................................................5
2.1
Company Ownership..............................................5
2.2
Start Up Summary..................................................5
2.3
Company Location..................................................5
2.4
Legal Issues.............................................................6
CHAPTER 3................................................................................6
3.0
Business Description..........................................................6
3.1
Product and Services.............................................6
3.2
Quality Of Product.................................................6
3.3
Affordability Of the product..................................6
3.4
SWOT Analysis.......................................................7
3.5
Competitive Comparison......................................7
CHAPTER
4.................................................................................8
4.0
Market Analysis..................................................................8
4.1 Market Segmentation...................................................8
4.2 Lead Time......................................................................8
4.3 Target Market...............................................................9
4.4 Marketing Strategies....................................................9
CHAPTER
5 ................................................................................10
5.0 Human Resource..........................................................10
CHAPTER
6...............................................................................11
6.0
Financial Plan...................................................................11
6.1
Cash Flow Projection........................................................11
6.2
Income Statement Projection..........................................12
6.3
Balance Sheet...................................................................12
6.4
Break-even Analysis..........................................................12
6.5
Ratio Analysis.....................................................................13
6.6
Conclusion..........................................................................13

CHAPTER 1
1.0 Executive Summary
This business plan will show how a total investment of only N
5,000,000 could yield cumulative net profits in excess of N 4,000,000
over a three-year period, and average monthly sales of N 12,000,000,
while maintaining adequate levels of liquidity. The purpose of this plan
is to secure funding from BANK OF INDUSTRY to cover the start-up
costs. McChatij Enterprises start-up business is dedicated to
providing excellent and high quality movies to the residents of Kaduna
State and beyond, in a manner that generates fair and equitable
returns for present and future owners, and superior value to our
customers. We specialize in transforming creativity into motion pictures
and offering different types of movies. Over 3 million residents live in
the area. Local businesses are slowly catching up with this new
opportunity. McChatij Enterprises will offer a high quality video
product, at a reasonable price, and will deliver it to the customer's door
using mobile marketing strategy.
1.1 Objectives
The objectives for the first three years of operation include:
1. To create a video production based enterprise whose goal is to
exceed customers' expectations.
2. To increase the efficiency of our production by 10% a year.
3. To develop a successful and sustainable enterprise, surviving off its
own cash flow.
4. Achieve positive cash flow once production and marketing begins.
5. To stimulate the local economy by adding value.
1.2 MISSION, VISION and VALUE
McChatij Enterprises mission is to offer Kaduna residents and beyond
with a high quality video. We are committed to providing quality and value
that our customers expect. McChatij Enterprises will use its strategy,
staff, and systems to provide each customer with a seamless three-part
customer experience -- service product, service environment, and service
delivery -- each part of which will meet or exceed our customers'
expectations.
3

Our vision is to become a respected company -- as measured by our


customers, our employees, and the community we live in. Our values are
critical to our success. They are the strong foundation of McChatij
Enterprises define who we are, and set us apart from our competitors.
They underlie our vision of the future. These values include:
Performance excellence: We act like responsible owners, always
seeking to meet or exceed expectations.
Teamwork: We act as a team, committed to each other, and bound by
trust and loyalty.
Integrity: We treat one another, and all our stakeholders with dignity
and respect. Honesty, ethical behaviour, and integrity are fundamental
characteristics of our business conduct.

1.3 Keys to Success

Increase gross margin to more than 40%. Keys to Success


Excellent product and service that will build and maintain customer
loyalty.

A business location that will assure high company visibility and a


high flow of customers.

Our commitment to continuous improvement and total quality


services.

Increase our sales and expand our current customer base.

CHAPTER 2
2.0

COMPANY OWNERSHIP
The company is a sole proprietorship ownership structure owned by
Sule Emmanuel Avong

2.1 Start Summary


The start up cost for this business is minimal. It will begin as a region
based business with little overhead. A 5million naira loan fund is needed
to cover the start-up costs, the borrowed funds will be used exclusively to
buy equipment, based on the list that will be made available. Our cashflow analysis demonstrates the company's ability to repay the loan and
meet the interest payment obligations, while maintaining adequate
liquidity and generating positive cash flow, and sufficient cash reserves for
unforeseen future events. The following equipment will be needed for
start up operation. Below is a list of equipment needed and cost:
Cameras x 2

N 1,900,000

Tripod Stand x 4

N 24,000

Camera Light x 4

N 240,000

Three Point Camera Light Kit

N 40,000

Short Gun Microphone

N 30,000

Boom Pole
Desktop Computers x 2

N 300,000
N 135,000
5

Generator

N 70,000

Channel Mixer

N 20,000

Furniture & Fixtures

N 69,000

TOTAL

N 2,898,000

2.2 COMPANY LOCATION


McChatij Enterprises is located along Sir Ibrahim Yakowa Way
Kamazou G.R.A of Chikun Local Government Area in Kaduna
State. Because there is availability of basic amenities for the production.
And also a cheap labour and high rate of customers.

2.3 LEGAL ISSUES


The company has obtained the licence to operate. All the needed
documents have been obtained and is therefore legal to operate.
CHAPTER 3
3.0 BUSINESS DESCRIPTION
McChatij Enterprises aims to capitalize on the growing entertainment
market across Kaduna state and beyond through the production and
promotion of high quality movie. Located in Kaduna, the company will
become highly profitable through the sale of home video products.
McChatij Enterprise will own and control the masters (master copies),
copyrights and licenses of its product, which will enable McChatij
Enterprises to create immediate revenue streams while growing its
movies catalogue into a large income generator.
3.1 PRODUCTS & SERVICES
The company will mainly be focused on the higher income generating
type of stories (movies) McChatij Enterprises has compiled an exciting
and diverse roster of comic and good actors, these highly talented actors
will enable McChatij Enterprises to quickly penetrate the movie
marketplace. And also cover events with its creative crew by giving it a
good state of arts and professional finishing.
3.2 QUALITY OF THE PRODUCT
The quality of the product is excellent as the type of cameras and other
equipment are high quality equipment and the CD and DVD production is
of high standard
3.3 AFFORDABILITY OF THE PRODUCT
The product is very much affordable compared with the competitors
product.
6

3.4 SWOT Analysis


McChatij Enterprises considered the following in preparing themselves
to take on long awaited life mantle of formalising its business.
Strengths

Weaknesses

Great production capability.

Financial constraints.

Quality assurance-core value

Lack of editing skills.

Great commitment and drive from


team

Need training
design.

Responsive to market trends

Opportunities

in

graphics

and

Threats

Continued increase in population.

Volatile political area.

Government policies.

3.5 COMPETITIVE COMPARISON


McChatij Enterprises will distinguish itself through the commitment it
undertakes with each of its products. Contrasting the typical scenario in
which a movie company spends more money producing the movie than
they do in its marketing and promotion, McChatij Enterprises will utilize
a stable of experienced and resourceful producers to ensure the highest
quality product within established production budgets. This, in conjunction
with the Financing and expertise necessary will guarantee the incentive
necessary to create "winning" products in the marketplace.

CHAPTER 4
4.0 MARKET ANALYSIS
McChatij Enterprises will distinguish itself from other independent
Movie production companies through its products and Marketing plan.
McChatij Enterprise will utilize the success of its products to develop high
Profits throughout the production and sales of its merchandise.

4.1 MARKET SEGMENTATION


Because McChatij Enterprises business model incorporates both B2B
and B2C customers, we have utilized a two-pronged approach to
identifying our target market. B2C customers, such as couples or families
planning a wedding or party, typically have an expressed interest in our
services, so the focus has been on using inbound marketing techniques as
well as traditional advertising to communicate our services to them.
Conversely, some potential B2B clients do not have an understanding of
the applicability and affordability of video to promote their services, so we
are actively developing this market by communicating the benefits of
video use For example, major corporations have a clear-cut market
strategy that includes web-based, print, broadcast, and radio advertising
plans which are managed by either in-house or outside agencies, but
often small- to medium-sized businesses assume that video production is
beyond their available budget or not relevant to their operations. By
outreaching to these potential customers through business associations
and government-support agencies, we will increase local awareness of
how our services can provide smaller businesses with a competitive
advantage at an affordable cost. With continued growth in the area,
opportunities to sell movies will increase.
The company will sell to
individuals, but it will also accept some occasional (events) jobs to
individuals and companies in the area.
We estimate that over 50 percent of our sales will go to individuals (retail
customers) in the case of our DVD movies by using the mobile marketing
technique (door to door) and the remaining balance to wholesale
customers. Individual consumer are those who will purchase small amount
8

of items for their personal use and business customers cover all the
wholesalers, retailers and others business who will sell them to their
customers

4.2 LEAD TIME


For our B2C customers like couples planning a wedding, we have made
the most of our ability to provide them with a finish video faster than the
industry standard. Have It Before the Honeymoons Over has become
our motto for this market segment, owing to the fact that our lead time for
this and for parties is less than one week after the video is shot. For our
B2B customers, lead times depend on the size of the project. A straight
forward shoot with minimal graphic effects for a 30-second commercial
will have lead time of one week. A complicated long-form video shoot with
multiple levels of graphic rendering will have a lead time of one month or
more.

4.3 TARGET MARKET


The target market McChatij Enterprises is very diverse, but will clearly
target the intended market, based on cultural/traditional and social
preferences. McChatij Enterprises will have distribution lines in the
North East region and Central region, and therefore target the residents of
those regions.

4.4 MARKETING STRATEGIES


Packaging
Designing and packaging should be attractive and perfect because they
gear the product and door to door sales.
Place
We focus on the states of North West and central region.

CHAPTER 5
7 HUMAN RESOURCE
Staffing is on a per-project basis. Sourcing is typically done through
repeat hires and referrals. McChatij Enterprises only has one
permanent person on the Management Team aside the proprietor that
has 5 years of movie production and directing experience including, the
making of and the production of Movies. The years of experience we
hope to gain & maintain in both the business and creative sides of
Movie publishing operations will enable McChatij Enterprises to
generate profitable revenue for years to come. Our management is
expected to use resources wisely, operate profitably, pay debts, and
abide by laws and regulations. Our management philosophy is based
on team work, responsibility, and mutual respect. People who will work
at McChatij Enterprises want to work at McChatij Enterprises
because we have an environment that encourages creativity and
achievement. Staffing includes
Cinematographer
Lighting Assistant
Sound Engineer
Actors/Actresses
Video Editor
Animator/Graphic Designer

10

CHAPTER 6
6.0 FINANCIAL PLAN
McChatij Enterprises will generate over N9, 000,000 in sales revenue in
2016 and N16, 000,000 in 2017. Within 5 years McChatij aims to be
making N25, 000,000 per year.
The financial projections in this business plan are developed on the cash
basis of accounting below:
Revenue and Expenses Assumptions:
Number of Project (Movie) per year

CD/DVD Production Output in Year 1

150,000

CD/DVD Production Output in Year 2

200,000

CD/DVD Production Output in Year 3

220,000

Selling Price

N 80

Labour wages (mobile marketing) per CD/DVD

N 20

Actor/Editors and others year 1

N 2,500,000

Actor/Editors and others year 2

N 3,000,000

Actor/Editors and others year 3

N 4,000,000

Other Expenses

N 100,000

Depreciation for the 3 years period

2%,5%,6% respectively

Taxation on net profit

10%

11

6.2 Projected Income Statement

INCOME
Cash Sales
Cost Of Goods
Gross Profit

YEAR 1

YEAR 2

YEAR 3

Forecast
11,820,000
2,508,000
9,312,000

Forecast
16,590,000
9,240,000
7,350,000

Forecast
17,900,000
8,940,000
8,922,100

1,744,000
30,000
60,000
10,950
100,000

5,748,000
60,000
19,615
100,000

3,180,000
113,000
60,000
21,594
120,000

4,452,950

6,052,615

3,494,594

3,767,050
137,905
3,390,345

1,297,385
125,739
1,171,646

5,427,506
542,751
4,884,755

EXPENSES
Labour
Assembly
Utilities
Depreciation
Others

TOTAL EXPENSES
NET PROFIT
Tax

NET PROFIT AFTER TAX


6.3 Balance Sheet Projection

ASSETS
Equipment
Cash
TOTAL ASSETS

YEAR
YEAR
YEAR
1
2
3
2,898,00 2,887,05 2,867,43
0
0
5
8,878,71 8,198,10 11,607,3
9
8
40
11,776, 11,085, 14,474,
719
158
775
12

125,000

LIABILTIES
Rent(Equity)

200,000
4,027,77
7
201,392
6,721,97
9
11,776,
719

Loan
Interest
Net Worth
TOTAL LIABILITIES

200,000
2,361,10
9
118,063
8,405,98
6
11,085,
158

200,000
694,441
34,734
13,545,6
00
14,474,
775

6.4 Break-even Analysis


McChatij Enterprises is expected to break even in the second month of the first year of
operations. With the sales of 1,400 units

6.5 Ratio Analysis


YEAR 1
Return on Investment

28.9%

Return on Equity

5.9%

Debt Ratio

35.9%

Current Ratio

6.6

YEAR 2
10.6%

33.7%
17%

22.4%
48%

YEAR 3

4.1%

5%
30.2%

6.3%

Conclusion

To have a successful business there are a couple of methods that the


business must consider first.
(1) They must know their target market and by knowing this they have a
competitive advantage that allows them to have an edge on the
competitors.
(2) They must also know their value chain which is a series of
transactions between all participants that influences the final product.
The value chain is a place where the businesses need to be in order to
identify the needs of its target market.

13

14

Potrebbero piacerti anche