Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Prepared by McChatij
Enterprises & Asaneth Amos
McNETHS FOODS
McNETHS FOODS 08067080180
Page 1
18-Dec-18
Profile||Investment||Financial Indicators
Name of Business: McNeths Foods
5
Type Of Business: Food Processing and Packaging
5
Products: Powdered Whole Egg
5
Business Location: Kaduna
5
Name of Promoter: Asaneth Amos
5
Phone: 08067080180
5
Gender: Female Age: 36 email: molbome1000@gmail.com
e 5
Start-up Capital: 5
N 9,100,000 Number of Employees: 7
5
Equity: Total Value Of Equipment: N 6,500,000
N 2,500,000 5
N 2,600,000
Loan: Pre-Operating Expenses:
N 6,500,000 5
N 16,543,604
Loan Tenure: Total Turnover at the end of 3years:
36 months 5
Moratorium: Total Gross Profit at the end of 3years: N 6,243,604
3 months 5
Interest rate: Total Net Profit bf Tax at the end of 3years: N 8,648,000
9% 5
Net Profit after Tax at the end of 3years: N 5,558,600
5
Cash Balance at the end of 3years: N 23,103,370
5
Company Value at the end of 3years: N 29,018,370
5
McNETHS FOODS
Page 2
TABLE OF CONTENTS
CHAPTER
1.0EXECUTIVE SUMMARY…………………………………………………………………………………………………………………………………….………………………3-4
1.1 Objectives
1.2 Mission
1.3 Our keys to success
CHAPTER 2……………………………………………………………………………………………………………………………………………………………5
2.0 COMPANY SUMMARY
2.1 Company Ownership
2.2 Location and facilities
2.3 Contact Information
CHAPTER 3……………………………………………………………………………………………………………………………………………...……………6
3.0 INDUSTRY ANALYSIS
3.1 Challenges facing the egg Production
CHAPTER 4……………………………………………………………………………………………………………………………………………………...……7-8
4.0 START-UP SUMMARY
4.1 Start up costs
4.2 Product description and Growth Plan
4.3 Market Expansion
4.4 Market Penetration (Pricing Growth Strategy)
4.5 Future products
4.6 Service Description
4.7 Future services
CHAPTER 5……………………………………………………………………………………………………………………………………………………..……9
5.0 PRODUCTION SUMMARY
5.1 Production plan
5.2 Production cost
5.3 Production Labor
5.4 Production Process
5.5 Production System
CHAPTER 6………………………………………………………………………………………………………………………………………………….………10-12
6.0 MARKET ANALYSIS SUMMARY
6.1 Market segmentation
6.2 Market trends
6.3 Competition
6.4 Business competitive edge
6.5 Marketing strategy
CHAPTER 7…………………………………………………………………………………………………………………………………………………….…13
7.0 MANAGEMENT SUMMARY
7.1 Management team
7.2 Organizational structure
CHAPTER 8………………………………………………………………………………………………………………………………………………………..14-15
8.0 INTERNAL ENVIRONMENTAL ANALYSIS
8.0.1SWOT ANALYSIS
8.0.2 EXTERNAL ENVIRONMENTAL ANALYSIS
CHAPTER 9………………………………………………………………………………………………………………………………………………………16-21
9.0 FINANCIAL PLAN
9.1 Projected Cash Flow
9.2 Projected Income Statement
9.3 Balance Sheet Projection
9.4 Ratio Analysis
CHAPTER 10……………………………………………………………………………………………………………………………………………………….22
10.0 RISK ASSESSMENT
10.1 Financial risks
10.3 Technological Risk
10.4 Contingency plan
CONCLUSION……………………………………………………………………….……………………………………………………………………………….23
McNETHS FOODS
Page 3
CHAPTER 1
1.0 EXECUTIVE SUMMARY
McNETH Foods is focused on both egg powder and beverage production that provides for a large market
range. It also produces other by-product. It is based in Kaduna State. The founder has noticed the health
benefits of nutritious beverages and eggs. The persons who have come to start this business is Asaneth
Amos
Not only is the founder interested in meeting the demands of the customer, i also plan to create utmost
satisfaction for these customers. The founder also want to use this business as a means of creating
employment within the community it is based in and to contribute to the economy of the country. We plan
on providing products with quality and maintain this supply efficiently. This is a sole proprietorship
business that plans on distributing egg powder and beverages to restaurants, home delivery food centers,
hotels, schools, clubs, bakery and catering businesses and supermarkets. We also plan on doing this at very
affordable prices.
This business plan is meant to articulate the vision and future of our company, and to appeal to CENTRAL
BANK OF NIGERIA for startup funding of N6, 500,000 form the AGSMEIS FUND through
STERLING BANK and also for investors and external stakeholders to get involved in the course of the
business and help with its expansion in the next three years of successful running as it is a capital intensive
business. We also hope that it will serve as a guideline for the firm’s employees to move towards the goal
of the Company.
Not only do we offer products, but we offer services as well. We plan on providing home delivery services
to customers who order a certain amount of products. This offer will mostly be used by the section of our
target market that uses egg powder and beverages in large quantities like schools and bakeries.
Production site is at #4 Archie Jatau Street Kamazou GRA Kaduna. Plenty open space, cheap labors,
road connection, water availability and immediate access to markets. The funding of this business shall be
allocated to the following purposes: buying of production plants and other miscellaneous tasks. Fifty
percent gross margin is expected within 6 months of its operations withholding the chances of any
accidental or unexpected incidence and we hope to obtain the breakeven point within 1 year and 6 months.
We have considered the risks, financial, health and technology wisely
2.1 OBJECTIVES
McNETH FOODS will measure its success by its ability to achieve the following objectives:
Becoming the "Best and most hygienic food producer in the area" complying by the national
standards for food and drugs.
Turn in profits from the first six months of operations.
Maintain 50% gross margin ratio.
Winning the hearts and tastes of our beloved consumers and establishing a brand image of the
company through heavy marketing campaigns in the first one year.
McNETHS FOODS
Page 4
2.2 MISSION
McNETH FOODS mission is to:
McNETHS FOODS
Page 5
CHAPTER 2
COMPANY SUMMARY
1.1 Company Ownership
McNETH FOODS is owned by ASANETH AMOS. It is a sole proprietorship business that and intend to
make it a partnership as it expands. McNETH Foods is also liable for any business debts or claims.
McNETHS FOODS
Page 6
CHAPTER 3
3.0 INDUSTRY ANALYSIS
Poultry industry in the last 40 years has shown dramatic changes in both domestics and international
environments. Those environmental forces include are classified into 2 categories: the internal forces and
external forces. Internal and external forces include:
1. Poultry industry competitors: When the company have few competitors, it is more likely to get more
profit. For example in Nigeria, competition is today driven by a cost of manufacturing and the quality of
products sold to the customers.
2. Supplier dynamics: Suppliers of raw materials to the poultry companies are the ones the affect the costs
of poultry products. If there is development of new market and technology, the price of raw materials will
remain low.
3. Opportunities: Like in Nigeria, there are many opportunities in poultry industry. The first opportunity is
that there is small number of large scale poultry farmers, and the other ones are small scale business
farmers. So this will make businessmen to vertically integrate in the poultry business.
4. Cultural and religious forces: As we know, the presence of taboos can be a hindrance in the development
of poultry farming. However in Nigeria, there are very few, maybe none, laws or cultures that prohibit
eating poultry products. This is a good opportunity for businessmen to develop and expand their poultry
farm with in the country without any challenge.
McNETHS FOODS
Page 7
CHAPTER 4
4.0 START-UP SUMMARY
The business will be funded by STERLING BANK through AGSMEIS EMPOWERMENT
PROGRAMME initiated by the CBN. This section of the plan shows projected startup costs prior to our
opening.
Start-up expenses for McNETH FOODS include pre-launch marketing of cover flyers, a direct mail
campaign, and the normal legal expenses for consultation and permitting. Other current assets include
office and store furniture, shelving, and tools.
PARTICULARS QTY N
Centrifuge 2 600,000
Total 6,500,000
Miscellaneous Assets
Other miscellaneous assets required are fans, weighing balance, tables, chairs, furniture etc
which would cost N100,000
Raw and Packing Materials
The major raw material required is fresh eggs is N2,500,000. Prior confirmed arrangements for this
quantity are necessary. Packing material like poly-lined paper bags, corrugated boxes, labels etc. shall be
needed.
McNETHS FOODS
Page 8
Cost of the Project and Means of Financing
ITEMS N
Total 9,100,000
Means Of Finance
Total 9,100,000
Filtration
Packing
We offer egg powder and beverages like Tamba beverage (finger millet) and other fonio products to our
target market. We plan to take pride in the uncompromising quality of our products. We also offer egg
shells as by products. This is mostly used in making feeds. McNETH FOODS shall produce high quality,
contaminant-free products to satisfy the taste of our beloved costumers. The products shall be distributed
McNETHS FOODS
Page 9
into a number of distributors - supermarkets, public markets, bakeries, restaurants and in the company’s
own retail space for easy access for marketing agents and consumers. In brief our products are;
Main products
a) Egg powder
b) Tamba(finger millet)
c) Fonio and other fonio products
By-products
a) Egg shells and fonio dust
McNETH Foods tend to expand its market by selling its existing products to new markets; this will be done
by reaching its product outside our current location.
McNETHS FOODS
Page 10
CHAPTER 5
5.0 PRODUCTION SUMMARY
5.1 Production plan
The egg processing operation separates eggs into different kinds of egg products: egg white, egg yolk,
whole egg and several mixes i.e. by adding sugar or salt. The pasteurized liquid egg is either packed as a
final product or, in case of egg powder production; it goes via pipelines into a spray dryer plant
The first month of business will be used to set up the office. There will be no sales activity during this
period of time. Revenue will begin to occur during the second month; however it will only trickle in
until the four month when it will become more steady. It will not be until the middle of year two when
things begin to settle and become more like an established business in terms of dividing time between
serving clients and attracting new ones. McNeths Foods will receive revenue from sales of products.
Sales Forecast
Year 1 (N) Year 2 (N) Year 3 (N)
Sales
Egg Powder 15,221,604 15,221,604 16,543,604
Total Sales 15,221,604 15,221,604 16,543,604
McNETHS FOODS
Page 11
Production labor
Details of Salary Schedule
Staff Salary
Schedule
MONTHLY
NAME DESIGNATION SALARY(N)
Asaneth Amos CEO 30,000.00
Sule Emmanuel Manager 25,000.00
Cashier 20,000.00
Skilled worker Operator 15,000.00
Skilled worker Operator 15,000.00
Unskilled worker Supervisor 20,000.00
Security/Cleaner 12,000.00
TOTAL 137,000.00
McNETHS FOODS
Page 12
CHAPTER 6
6.0 MARKET ANALYSIS SUMMARY
6.1 Market segmentation
This section divides the market into similar groups with common characteristics so as to identify a
lucrative market segment for the products.
Generally, the potential market segments for the poultry farming business are as listed below: Formal
market sector
Hawkers
6.4 Competition
THREAT FROM CUSTOMERS
INTENSITY OF RIVALRY
The intensity of rivalry is centered on factors such as price, reliability, quality, and brand recognition.
The intensity of rivalry in the Industry is relatively high as evidenced by the high frequency of
marketing campaigns, internet advertising, and number of new players entering the market, new
strategic alliances being formed and the subsequent closure of certain poorly performing businesses in
the market.
Sales strategy
CHAPTER 7
7.0 MANAGEMENT SUMMARY
7.1 Management team
The management team is simply the proprietor and the employee team.
MONTHLY
NAME DESIGNATION SALARY(N)
Asaneth Amos CEO 30,000.00
Sule Emmanuel Manager 25,000.00
Cashier 20,000.00
Skilled worker Operator 15,000.00
Skilled worker Operator 15,000.00
Unskilled worker Supervisor 20,000.00
Security/Cleaner 12,000.00
TOTAL 137,000.00
ORGANOGRAM
CEO
MANAGER
CASHIER SUPERVISOR
Strength
Weakness
Capital intensive. Starting a Egg powder processing business requires a large capital funding.
Outbreak of disease and drought can affect the entire business.
Opportunities
Threats
More competition
Avian diseases
High feed ingredients prices
Threat of import.
ITEMS N
Miscellaneous 100,000
Total 9,100,000
Means Of Finance
Total 9,100,000
ASSUMPTION
1. Interest rate is at 9% on an annual reducing balance method.
2. Moratorium is assumed at three(3) months
ASSUMPTION
1. Interest rate is at 9% on an annual reducing balance method.
2. Moratorium is assumed at three(3) months
S a le s 400,000 850,000 900,000 1,000,000 1,050,304 1,075,020 1,031,000 1,310,000 1,135,000 2,070,150 2,300,000 2,300,130 15 , 2 2 1, 6 0 4
E q u ity 2,600,000
Dire c t Cos t Of S a le s 500,000 680,000 620,000 610,000 690,000 640,000 620,000 700,000 500,000 600,000 620,000 520,000 7,300,000
P a yroll 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 960,000
In s u ra n c e 65,000
De p re c ia tion 0 0 0 0 0 0 0 0 0 0 0 195,000 19 5 , 0 0 0
Oth e rs 100,000 0 0 0 0 0 0 0 0 0 0 0 10 0 , 0 0 0
NDIRE CT CO S T S / O v e rh e a d s
Re n t 200,000 0 0 0 0 0 0 0 0 0 0 0 200,000
Ba n k c h a rg e s 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12 , 0 0 0
IT AL CO S T S /F IXE D AS S E T S 0 0 0 0 0 0 0 0 0 0 0 0 -
E q u ip m e n t 6,500,000 0 0 0 0 0 0 0 0 0 0 6,500,000
Loa n Re p a ym e n t 180,556 180,556 180,556 180,556 180,556 180,556 180,556 180,556 180,556 1, 6 2 5 , 0 0 4
T O T AL
CAS H P AID 7 , 9 0 1, 5 0 0 782,750 723,500 7 11, 5 0 0 788,500 747,500 720,500 800,500 6 0 1, 0 0 0 698,000 7 14 , 0 0 0 6 3 1, 9 5 0
O UT B
- CAS H O N
398,500
HAND[B e g in465,750
n in g o f m o n 442,250
th ] C 730,750 992,554 1,320,074 1,630,574 2,140,074 2,674,074 4,046,224 5,632,224
S a le s 1,310,000 1,310,000 1,031,000 1,000,000 1,050,304 1,075,020 1,031,000 1,310,000 1,135,000 2,070,150 2,300,000 2,300,130 15 , 2 2 1, 6 0 4
1, 3 10 , 0 0 0 1, 3 10 , 0 0 0 1, 5 0 0 , 0 0 0 1, 0 0 0 , 0 0 0 1, 0 5 0 , 3 0 4 1, 0 7 5 , 0 2 0 1, 0 3 1, 0 0 0 1, 3 10 , 0 0 0 1, 13 5 , 0 0 0 2 , 0 7 0 , 15 0 2,300,000 2 , 3 0 0 , 13 0 2 3 , 12 1, 6 0 4
Dire c t Cos t Of S a le s 500,000 680,000 620,000 610,000 690,000 640,000 620,000 700,000 500,000 600,000 620,000 520,000 7,300,000
P a yroll 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 960,000
In s u ra n c e 65,000
De p re c ia tion 0 0 0 0 0 0 0 0 0 0 0 195,000 19 5 , 0 0 0
Oth e rs 8,500 8,500 8,500 8,500 8,500 15,000 10,000 8,000 8,500 7,000 14,000 5,000 10 0 , 0 0 0
NDIRE CT CO S T S / O v e rh e a d s
Re n t 300,000 0 0 0 0 0 0 0 0 0 0 0 300,000
Ba n k c h a rg e s 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12 , 0 0 0
IT AL CO S T S /F IXE D AS S E T S 0 0 0 0 0 0 0 0 0 0 0 0 -
E q u ip m e n t 0 0 0 0 0 0 0 0 0 0 0 -
Loa n Re p a ym e n t 180,556 180,556 180,556 180,556 180,556 180,556 180,556 180,556 180,556 180,556 180,556 180,556 2 , 16 6 , 6 7 2
T O T AL
CAS H P AID 1, 19 2 , 0 5 6 782,750 723,500 7 11, 5 0 0 788,500 747,500 720,500 800,500 6 0 1, 0 0 0 698,000 7 14 , 0 0 0 6 3 1, 9 5 0
O UT B
7,300,404
CAS H O7,418,348
N HAND[B e g7,945,598
in n in g o f m o8,722,098
n th ] C 9,010,598 9,272,402 9,599,922 9,910,422 10,419,922 10,953,922 12,326,072 13,912,072
CAS H
P O S IT IO N[
End of 7 , 4 18 , 3 4 8 7,945,598 8,722,098 9 , 0 10 , 5 9 8 9,272,402 9,599,922 9 , 9 10 , 4 2 2 10 , 4 19 , 9 2 2 10 , 9 5 3 , 9 2 2 12 , 3 2 6 , 0 7 2 13 , 9 12 , 0 7 2 15 , 5 8 0 , 2 5 2
m o n th ]A - B
+ C
S a le s 1,400,000 1,050,000 1,031,000 1,070,000 1,050,304 1,075,020 1,031,000 1,031,000 1,135,000 2,070,150 2,300,000 2,300,130 16 , 5 4 3 , 6 0 4
1, 4 0 0 , 0 0 0 1, 0 5 0 , 0 0 0 1, 0 3 1, 0 0 0 1, 0 7 0 , 0 0 0 1, 0 5 0 , 3 0 4 1, 0 7 5 , 0 2 0 1, 0 3 1, 0 0 0 1, 0 3 1, 0 0 0 1, 13 5 , 0 0 0 2 , 0 7 0 , 15 0 2,300,000 2 , 3 0 0 , 13 0 16 , 5 4 3 , 6 0 4
Dire c t Cos t Of S a le s 500,000 680,000 620,000 610,000 690,000 640,000 620,000 700,000 500,000 600,000 620,000 520,000 10 , 3 0 0 , 0 0 0
P a yroll 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 137,000 960,000
In s u ra n c e 65,000
De p re c ia tion 0 0 0 0 0 0 0 0 0 0 0 195,000 19 5 , 0 0 0
Oth e rs 8,500 8,500 8,500 8,500 8,500 15,000 10,000 8,000 8,500 7,000 4,000 15,000 10 0 , 0 0 0
NDIRE CT CO S T S / O v e rh e a d s
Re n t 300,000 0 0 0 0 0 0 0 0 0 0 0 300,000
Ba n k c h a rg e s 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12 , 0 0 0
IT AL CO S T S /F IXE D AS S E T S 0 0 0 0 0 0 0 0 0 0 0 0 -
E q u ip m e n t 0 0 0 0 0 0 0 0 0 0 0 -
Loa n Re p a ym e n t 180,556 180,556 180,556 180,556 180,556 180,556 180,556 180,556 180,556 180,556 180,556 180,556 2 , 16 6 , 6 7 2
T O T AL
CAS H P AID 1, 19 2 , 0 5 6 782,750 723,500 7 11, 5 0 0 788,500 747,500 720,500 800,500 6 0 1, 0 0 0 698,000 7 14 , 0 0 0 6 3 1, 9 5 0
O UT B
15,671,522
CAS H 15,879,466
O N HAND[B e g16,146,716
in n in g o f m o16,454,216
n th ] C 16,812,716 17,074,520 17,402,040 17,712,540 17,943,040 18,477,040 19,849,190 21,435,190
CAS H
P O S IT IO N[
End of 15 , 8 7 9 , 4 6 6 16 , 14 6 , 7 16 16 , 4 5 4 , 2 16 16 , 8 12 , 7 16 17 , 0 7 4 , 5 2 0 17 , 4 0 2 , 0 4 0 17 , 7 12 , 5 4 0 17 , 9 4 3 , 0 4 0 18 , 4 7 7 , 0 4 0 19 , 8 4 9 , 19 0 2 1, 4 3 5 , 19 0 2 3 , 10 3 , 3 7 0
m o n th ]A - B
+ C
Expenses
Payroll 960,000 960,000 960,000
Depreciation 195,000 195,000 195,000
Bank charges 12,000 12,000 12,000
Insurance 95,000 95,000 95,000
Rent 200,000 300,000 300,000
Balance Sheet
Current Assets
Cash 7,300,404 15,580,252 23,103,370
Total Current Assets 7,300,404 15,580,252 23,103,370
Long-term Assets
Long-term Assets 6,500,000 6,305,000 6,110,000
Accumulated Depreciation 195,000 195,000 195,000
Total Long-term Assets 6,305,000 6,110,000 5,915,000
Total Assets 13,605,404 21,690,252 29,018,370
Our Key Our Key Activities Our Our Customer Relationships Our
Partners *Materia Valu expectations: Credit, SOR- Customer
*(CBN/HB/N l e Proposition Contractual, Mutual, formal& Segments Our
Y SC- sourcing *Value Cordiality Customer
YIEDP) *Production fo Segment
*Distribution. r money At the moment we offer; Ranges from
*Mr. *Quality 1. Formal, Cordial, SOR lower class,
Emmanuel Distribution & Patronage considerations middle class
Cliffe Channel: Whole & Variety 2. After sell service and few
consultant seller- Retailer- *Affordability 3. Free products. proportion of
consumer. *Healthy living the high class.
*Improved IQ. Integration of Model:
Our Customer *Reduces Bad Debt and sustains Our most
SUPPLIERS
Relation: Problem our Revenue Stream important
1. Apia Farms
Cordial, s solved: *Cost Effectiveness it is quit Customers are
2.Dan Alheri
formal *Malnutrition cheaper than bad Debt. people of
Farms
, &mutual. *Obesity/stress different age
PARTNER *Heart/ BP group:Childre
Our Key issues
KEY n, Teens &
Resources *mental
RESOURCE Our Channels the obese,
1. OUR Value retardation
*Finance CCC Preference: Calls, SMS, pre
Proposition
*Legal/Licens letter natal and post
Requirement Our products:
es natal mothers
*Research 1 Whole
*Raw and the aging
*Internet, powdered egg Our efforts:
Materials *Professionals We currently utilize; phone calls, group.
*Repair 2 Tamba
Flour social media & formal
&Maintenance 2. Machines communications.
. 3. Raw Material Our Best CCC: calls, letter/social
Customer
4. Human media.
Satisfaction:
Resource. *Feeding
*Healthy living Cost effective CCC: S/media,
Our Dist. *Development SMS & mails.
Channel: & Growth
*Van, mini trucks. Integration plan: We are hoping
to have CCC unit.
Customer
relation:
*contractual/hire.
*Revenue stream:
*Equity/Loan
Our Cost Structure Our Revenue Streams
Most important cost: Equipment and Machineries, Customers are willing to pay 350 to 500 naira
internet Current payment is at 370 naira
Most Expensive activity: Marketing And Sale Preferred payment Cash and few for Bank
Most expensive Resource: Human Resource, power Number of stream 3, Contribution ; 30%, 30%
40%
To have a successful e-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.