BLESSMOND

AND SONS
ENTERPRISES
BUSINESS PLAN

OCTOBER, 2018.

Monday’s Compound Ofoni close,off Old Assembly Quarters Road, off Azikoro
Road, Ekeki Yenagoa,
Bayelsa State.
blessmondenterprises@gmail.com. 08035924218.
 TABLE OF CONTENTS
Executive summary 2

Business Description 4

Products and services 4

Vision Statement 4

Mission Statement 4

Business Objectives 5

The Market 6

Market Research, target market and segmentation 6

Value Proposition 7

Competition Analysis 8

SWOT Analysis 9

Business Model Canvas 10

Operations plan 11

Suppliers 12

Stock Inventory 13

Marketing and Sales strategy 14

Risk Management 17

Organization and Management 18

Financial Plan 21

Funding 22

Sales and Revenue forecast 22

1
Breakeven Analysis 23

Profitability 23

Executive Summary

Introduction
Difavour Enterprise International (DENIN) provides quality, healthy and oven-fresh delicious bread and
pastries at affordable prices to Individual consumers, families, restaurants, schools, distributors and events.
We expertly make use of quality ingredients in the production process in a hygienic environment to deliver
excellent products and services with utmost regard to customer satisfaction.

Reason for Business

DENIN bakery was established in 2015 to meet the ever growing market need for readily available fresh
and quality bread and pastries for the middle and lower class consumers in Bayelsa state. We achieve this
by the production, packaging and distribution of various kinds and sizes of bread such as Jumbo loaf, banana
bread, burger bread, big-short, medium and small size bread.

The market
A growing market exists for bakery products in Bayelsa State and Nigeria at large due to the fact that bread
is one of the most consumed staple foods in Nigeria. Our target customers are wholesale distributors,
individuals and families, corporate organizations, supermarkets, restaurants, retail shops, traders,
schools and event managers. Our present market share is 2.5% with a potential growth to 5% by the end
of 2018.

Competition
DENIN bakery’s top five competitors are Thy will bakery, Preye Jonah bakery, City delight bakery Blessed
Savor’s bakery and Emmanuel bakery. Superior quality, great customer service, wider distribution
network, wide business network, societal marketing attitude, unique packaging, and engaging in CSR are
some of our superior advantages over competitors.

2
Business Model
Our products produced and packaged in our bakery and delivered to our customers by our sales/marketing
team and customers pay on delivery. Wholesale distributors with distribution vehicles come to the bakery
to buy directly. We also, encourage clients to make bank deposits and make order. We communicate with
our customers via phone calls, SMS, social media and e-mail. The key costs associated with this business
are raw material (ingredients), packaging materials, distribution cost and diesel for power generation.

Management Team
The management team is led by the sole proprietor Andza Bartholomew as CEO/MD who also acts as the
quality control manager/production supervisor with several years of experience in the industry. Other team
members are Production manager, Account officer, Marketing/sales officer, Chief baker, Miller and bakery
workers.

Financial Snapshot

Last year (N) This year (N) Next year (N) Year 2 (N) Year 3 (N)

Sales turnover 30,998700 44,166,890 64,638,210 69,768,464 74,696,938

The business will have to sell at least 89,467units at an average price of N285 per unit to breakeven at the
5th month of the first year of operations

Capital Requirements

We are seeking a N10, 000,000.00 loan. The money will be used for distribution van, Stock (Raw materials
and packaging materials) purchase. We would deliver returns and pay off the loan in the next three years.

3
 Business Description
Difavour Enterprises International (DENIN) is into the business of quality foods and confectionaries
particularly varieties of bread in Bayelsa State. Difavour Enterprises International (DENIN) is registered
with the corporate affairs commission of Nigeria (CAC) as an Enterprise with Mr. Bartholomew Andza as
the sole proprietor. The business office is located at loveday avenue, off Lagold road, off Azikioro road,
Ekeki Yenagoa, Bayelsa State. The businesses is currently focused on the production, distribution and sales
of bread, but also undertake event catering on orders from clients, with plans of expansion to an
international standard eatery with indoor and outdoor catering services. Our bakery is approved and
registered with NAFDAC with registration number BY0055B/YEN. We are in this business to meet the
growing market need for ready availability of fresh, delicious and healthy foods and confectioneries at
affordable prices to customers, make profit and generate employment for the youths.

Our Products and Services

 Bread (Jumbo loaf, special round (burger), small size (short cake), Banana bread, medium size
and big-short size).
 Pastries
 Catering training school
 Home and Office Delivery
 Consultancy

Our Vision

To be a leading food and confectionary service provider to our valued customers across Bayelsa
State, Nigeria and Africa at large, while constantly exceeding customers’ expectations.

4
Our Mission

 Providing freshly baked quality bread and pastries to our customers in a hygienic environment.

 Creating a prosperous and well respected catering company by providing unique, healthy,
consistent and exciting eating experience to all our clients in the form of restaurant, takeaway,
outdoor and event catering.

 We educate, inform and proffer help to change the eating habits of our clients thereby creating
happier and more stable communities.

 We train the less privileged (homeless and unemployed) to be chefs/chef assistants and bakers.

Business objectives

Our top five business objectives are:

 Production and sales of at least 50, 000units of our products monthly.

 Recruit at least additional five corporate clients (boarding schools) by the end of 2018.
 To increase our market share by 100% by the end of 2019.
 To generate at least 30% profit margin for the business by the end of 2018.
 To train and employ at least seven additional persons by the end the 3rd quarter of 2018.

5
 The Market

This section entails the definition of the market, identification our target customers and segmentation
Market research, size, share and growth.
The demand for Bakery products has been identified to continue to expand as the standard of living of the
over 180 million population growing at the rate of 5.7% per annum continues to surge. The supply gap
situation in Nigeria has created a market gap estimated at N 4.7 Billion annually in revenue.

A growing market exists for the production of bakery products in Bayelsa and Nigeria. Bread is one of the
fastest selling and most consumed staple foods in Nigeria. Also, there is high demand for other pastries
like cakes due to high frequency of events and occasion on a daily basis.

Bakery products are demanded all year round and are not affected by season. Our present market share is
2.5% with a potential growth to 5% by the end of 2018.

Target market and segments

Our target market and segments include:

Wholesale distributors in Yenagoa and Ogbia L.G.A

Super markets located in Yenagoa.

Restaurants located in Yenagoa and Ogbia L.G.A.

Food vendors in Yenagoa and Ogbia L.G.A.

Retail Shops and Traders in Yengoa.

Schools located in Yenagoa, Ogbia and Kolokuma Opukuma LGA.

NYSC Camp Kaiama.

6
Value proposition

We provide various kinds and sizes of fresh, quality, and healthy bread and pastries to both corporate and
individual customers at a competitive price and with a great customer service. We also provide free
professional counseling on good/healthy eating habits to clients with such peculiar needs.

7
 Competition Analysis

This section deals with identification of our direct competitors and analysis of their strengths and
weaknesses as well as our competitive advantage over our competitors.

Our major competitors are:

 Thy will Bakery Ekeki, Yenagoa.

 Blessed Savor’s Bakery Kpansia, Yeenagoa.

 Emmanuel Bakery Amarata, Yenagoa.

 City Delight Bakery Tombia-Amassoma road Etegwe, Yenagoa.

 Preye Jonah Bakery, Elebele road, Yenagoa.

Advantages over Competitors

DENIN Bread and pastries are produced in a hygienic environment with utmost regard to quality and
services that exceeds customers’ expectation. Our advantages over competitors include:

 Superior quality.
 Variety of sizes and types of bread
 Central location (the heart of the state capital).
 Competitive price
 Great customer Relationship.
 Prompt and effective delivery.
 Societal marketing attitude
 Engage in CSR

8
 SWOT ANALYSIS
STRNGTHS WEAKNESSES

 Superior Quality  Lack of delivery van

 Great Customer Relationship  High employee turnover

 Variety of products  Insufficient operating funds for stock

purchase
 Good and effective distribution network.

 Wide business network.

 Engage in market research to understand

market.

 Engage in CSR

 Societal marketing attitude

OPPORTUNITIES THREATS

 New market segments not yet tapped into  High cost of raw materials and operating
cost.
 Regular and increased production and sale
 Government economic policies.
of pastries and snacks.
 Disappointment from suppliers.
 Regular and increased outdoor catering
 Withdrawal of NAFDAC accreditation.
services.

 Training and consultancy services.

9
 Business Model Canvas
Key Partners Key Activities Unique value Customer Customer
Relationships Segments
Raw material Procurement of Raw Proposition
suppliers materials, Wholesale
We provide various Prioritize customer Distributorslocated
Customers Production kinds and sizes of Delight. in Yenagoa and
fresh, quality, and Ogbia LGA.
Distributors Marketing,
healthy bread and
distribution and sales Reward Loyal Super markets in
First City pastries to both
corporate and customers Yenagoa.
Monument
individual customers consistently.
Bank (FCMB)
at a competitive price Restaurants located
Celebrate
Adolor and co and with a great in Yenagoa and
Anniversaries and
Law firm, customer service. We Ogbia L.G.A.
Birthdays of
also provide free customers. Retail Shops and
professional Traders in Yengoa.
counseling on
good/healthy eating Schools located in
Key Resources habits to clients with Channels Yenagoa, Ogbia
such peculiar needs. and Kolokuma
Human Resources Word of mouth, Opukuma LGA.
(production staff) Direct marketing by
our team, social NYSC Camp
Production Kaiama.
media marketing,
Equipment
Freelance
Raw materials marketing, Event
marketing, Sales
Power supply promotions, Trade
show marketing, Use
Distribution Van
of business cards and
Factory Building. Referrals.

Cost Structure Revenue Streams

Cost of Raw materials, Cost of power generation, Sales of Bread, Pastries and snacks
Workers’ wages, Marketing cost, Cost of
Waste bread (Fish feed)
distribution and equipment repairs and servicing.
Training and Consultancy services.

10
 Operations Plan

This section involves a detailed presentation of the day to day operational process of the business which
includes our strategy and execution as explained below

Daily operations starts by 8a.m and ends by 5p.m

Basically operations involves
 Procurement of needed raw materials and packaging materials (stock).
 Items (stock) procured are thoroughly checked to ascertain quality and stored.
 Plan and prepare for production.
 Production of bread and pastries
 Quality check and control.
 Packaging and stocking.
 Marketing and sales/distribution.

Standard Operating Procedure

Dough is prepared by mixing all the ingredients together in a mixer. The bowl is removed and mixing is
done at intervals of 40 minutes. The mixed dough is fermented for two hours, knocked back and rested for
30 to 40 minutes. The dough is cut and scaled as per the size of the loaf to be divided. The divided dough
pieces are panned and kept for final processing. When the dough attains a particular rising, they are baked
for 40 minutes at 216°C. Baked dough is cooled sufficiently, sliced (if necessary) and then packaged

Production Philosophy
Our Production Philosophy is basically to make to stock for distribution and sales. We also make to order
from clients.

Quality control
Our quality control officer ascertains the quality of each batch of product to ensure quality control and
assurance. Our quality control officer does not only ensure that product quality is not compromised but
also seeks to improve our product quality. Above all, we have a policy to ensure strict adherence to
standards and best practice.
11
Suppliers
Our main suppliers are:

 Mike Mary Concepts Ltd, Yenagoa: They supply us raw materials.

 Marvel Chucks Yenagoa. They supply us raw materials.
 Ositex, Yenagoa: They supply us raw materials.
 Jossy plastics Ltd Onitsha: they supply us packaging materials.
Our supplier base is diversified in order to mitigate any risk of disappointment from any particular
supplier.
Plant & Equipment/Assets

Equipment Purchase price Purchase date

Steam tube oven 2,350,000.00 2015

Milling machine 280,000.00 2015

Mixing machine 250,000.00 2015

Baking pans 400,000.00 2015

Slicing machine 220,000.00 2015

Meat grinding machine 130,000.00 2015

Bread shelves 120,000.00 2015

Stainless steel table 60,000.00 2015

Weigh scale 10,000 2015

Generator (18.5KVA) 390,000.00 2015

Bakery Building 6,000,000 2018

12
Stock Inventory (Raw Materials/Packaging materials)
Inventory item Unit price (Naira) Quantity needed Total cost (Naira)
(monthly)

Flour 11,500per bag 320bags 3,680,000

Sugar 16,200per bag 50 bags 810,000

Flavour 70,000 10 700,000

Butter 20 150,000
7,500

EDC 10 250,000
25,000

Improver 10 115,000
11,500

Yeast 25 315,000
12,600

Honey 5 200,000
40,000

Vegetable Oil 8 120,000

15,000

Packaging materials 1,160,000

Small size 10bags (100,000pcs) 350,000

35,000per bag

Big-short size 5bags (50,000pcs) 350,000

70,000per bag

Jumbo size 3bags (30,000pcs) 360,000

120,000per bag

Banana bread size 10bags (10,000pcs) 100,000

10,000per bag

13
Technology/Software
 Accounting software to be custom built for DENIN by Mario 5 web studio at the cost of thirty
thousand naira only (N30, 000.00).
 Purchase and installation of P.O.S at the cost of seventy thousand naira (N70,000.00)
 DENIN website to be built by Mario 5 web studio at the cost of seventy five thousand naira (N70,
000.00).

Marketing and Sales Strategy

Product strategy: Our quality, oven fresh, nutritious and healthy (100% bromated and saccharine free)
bread and pastries are of different shapes and sizes in order to meet the needs of the different market
segments and satisfy consumers preferences. All our products are attractively and uniquely well packaged
in a hygienic environment, produced with state of the art equipment and delivered in an excellent manner
that exceeds customers’ expectations thereby, creating delicious memories (our unique selling
proposition).

 Jumbo loaf: this is a family size loaf of bread that is highly nutritious and satisfying prepared with
quality ingredients.

 Banana bread: this is an attractively and uniquely banana shaped loaf of bread
 Small (Short Cake) loaf: this small but rich in quality bread is affordable for low income earners.
 Medium Size loaf: this is also rich in taste and affordable for low income earners.
 Big-short loaf: this is deliciously made to satisfy hunger.
 Burger loaf: this is a special round bread of 7 loaves in one package that looks unique and tasty.
 Pastries: Our cakes and other pastries are deliciously prepared with quality ingredients, uniquely
flavoured and shaped based on order

Pricing strategy: At DENIN Bakery customers pay same for more value for our bread and pay less for
more value for pastries and other services. Our quality, oven fresh, nutritious and healthy (100% bromated
and saccharine free) bread and pastries with excellent services are offered to our clients for the same price
14
as that of competitors due to the fact that the prices of various sizes of bread are regulated (standardized)
by the Master Bakers association of Nigeria.

The unit prices of the various loafs of bread are:

Distributors price Retailers price Retail price

Jumbo loaf 400 450 500
Special round (burger) 300 350 400
loaf
Small (short cake) loaf 55 70 80
Banana bread 150 200 250
Medium loaf 80 100 120
Big-short loaf 170 210 250

The average unit price of our bread is N228.With this pricing strategy, variable cost and other expenses are
covered and our return on investment stands at a minimum of 30%.

Distribution strategy: Our distribution strategy involves both direct and indirect distribution channels. We
do this by

 Engaging wholesale distributors who come to our bakery with their own distribution vehicles.
 Delivering to our vendors with our company distribution vehicles.
 Delivering retailers with our company distribution vehicles
 Delivering to our corporate clients
For now, we hire bus to deliver our products to customers while we are planning to acquire a distribution
van for the business. Our distribution vehicle will be attractively well branded with our company name,
colour, logo and unique selling proposition ……….creating delicious memories.

Our payment mode is cash and carry. Clients are also encouraged to pay directly to our corporate bank
account and then place order.

15
One of our sales strategies is engaging the services of commissioned sales persons and telephone solicitors.
All sales persons are assigned specific sales target per week and those that meet and exceed their targets
are rewarded accordingly.

Process Strategy: At DENIN, customer satisfaction is accorded utmost priority where we ensure that every
customer enjoys an excellent and great buying experience. This we ensure by prompt and effective delivery
system. We ensure customers orders are met within one hour at most for made to stock products.

For make to order from clients’ products we take orders at least 48hrs prior to the delivery time agreed
upon. Products are supplied or delivery only when payment receipt has been confirmed for clients who
make bank deposits or transfers.

Promotion strategy: We communicate our unique value proposition to customer through the following
channels:

 Word of mouth
 SMS and phone calls
 Email
 Online advertising via Facebook page, whatsapp groups, instagram, LinkedIn.
 Attractively well Branded Distribution Van
 Hand Bills and Banners
 Freelance marketing
 Event marketing
 Sales promotions
 Trade show marketing
 Use of business cards.
 Discount to loyal customers
 Compensation for damaged products or unsatisfied customers.

Referral Strategy: We encourage our customers to refer other prospective customers by ensuring that;
 Every of our customers enjoy a great and excellent customer service experience from our well
trained team. At DENIN, we ensure that all employees treat all our customers with utmost respect
and regard.
16
  We keep a Biodata of all our clients and celebrate them on special occasions such as birthdays and
wedding anniversaries.
 We reward our loyal customers with a free gift every quarter.
 In addition, we reward any customer that refers another customer to us with a unique gift.

Peoples Strategy: DENIN gives priority attention to customer satisfaction and always seeks to exceed their
expectation through quality and excellent service delivery, knowing well that a satisfied customer will
always want to return. To achieve this, our employees are well trained and keep being retrained to adhere
to best standards. We also consistently motivate by rewarding excellence in our employees and give them
incentives periodically.

Physical Environment Strategy: Our bakery environment is clean, hygienic and convenient for customers
to transact business with us. It is centrally located at the heart of the state capital and easily accessible by
customers.

Risk Management

This section deals with Potential risks that could affect the business and how to mitigate such risks.

 Disappointment from Raw Material suppliers; this risk would be minimised as we already have
diverse suppliers within Yenagoa and outside Bayelsa State. We are also planning to get our raw
materials especially flour directly from the manufacturing company.
 Fire outbreak; this will be managed by training our staff on health and safety and the proper way
to handle equipment with minimum risk. In addition, the business will be properly insured.
 Damaged/burnt bread: we reduce this risk by ensuring that our bakers are well trained and work
under good supervision. Further, damaged bread are sold to fish farmers as fish feeds.
 Withdrawal of NAFDAC accreditation: we ensure strict adherence to NAFDAC guidelines and
regulations as well as constantly maintain best practice to avoid this risk.

17
 Organization and Management

Our management team consists of qualified and well trained personnel with relevant skill and experience
in the Food industry:

The CEO/MD is Bartholomew Andza, a graduate of Food Science/Technology and a certified member of
Nigerian institute of food science and technology (NIFST). In addition to several entrepreneurship trainings
he has attended, he has over 18years of experience in this industry haven worked in several reputable
organizations before venturing into his own business. Amongst others, he worked in the quality
assurance/control department of Lobi cassava flour mills to check product quality at various stages of
production. He worked in the nutrition/dietetic department of Federal Medical Centre, Yenagoa to counsel
patients on special diet, obese, overweight/weight watchers. He worked as Marketing Executive at a new
Manna. He has also worked as Food and Beverage manager and as a senior Chef in several hotels in Abuja
and Yenagoa before starting his own restaurant (DENIN kitchen) in 2013 and later DENIN bakery in 2015.
He also acts as the Quality control Manager as well as production supervisor for now.

The Production manager is Mr. Williams Uji, an experienced baker and caterer with a diploma in catering
services from Landmark Catering institute Port Harcourt. He has previously worked as a supervisor
chivicks fast foods Omoku, 2013-2015, Rivers State and as an assistant manager, Bonny Delight eatery,
2010- 2013.

Admin/Account officer is Anita Chichi Agbiandoo. She is a graduate of Sociology at the University of
Mkar, Mkar, Benue State where she also served as the financial secretary of the Nigerian Sociology and
Anthropology students association. She has previously worked at the social welfare department, Federal
Medical Centre Yenagoa, Otuoke outreach and as a computer operator at Terdoofan computer centre,
Gboko, Benue State.

18
Below is a table that shows a summary of other team members of DENIN Bakery.

Team Profile

S/N Job title Name Qualification/skills

Production manager Williams Uji Diploma in Catering

services

3 Admin/Account Officer Anita Chichi B. Sc. Sociology

4 Marketing/Sales Officer Blessing Edidiong School Cert.

5 Chief Baker Mgba Ahondhemba Skilled/School Cert.

6 Miller Operator Solomon Tsegen Skilled/School Cert.

7 Bakery worker Morrison Steven Unskilled

8 Bakery worker Joel Eriobu Unskilled

9 Bakery worker Love Isaiah Unskilled

10 Bakery worker Esther Ebidou Unskilled

11 Bakery worker Tom Enoch Unskilled

12 Bakery worker Richard Saibo Unskilled

13 Bakery worker Prosper Kurokaowei Unskilled

19
DENIN Bakery’s Organogram

Managing Director

Quality control
Officer/Supervisor Production Manager Admin/Account officer

Marketing/Sales officer

Chief Baker Miller

Bakery workers

20
 Financial Plan

Below is DENIN financial plan including cost targets, Funding, sales and revenue forecast and Breakeven
analysis.

Costs targets

Capital equipment required (Distribution Van): N2, 500, 000.00

Operating expenses (wages, raw materials and packaging materials) for one year:

Raw Materials (Ingredients) N32, 730,500.00

Packaging Materials N13, 920,000.00

Gross staff wages N3, 200,000.00

Marketing and sales costs N220, 000.00

Utility N162, 000.00

Telephone and IT communication N75, 000.00

Miscellaneous N120, 000.00

Distribution / delivery / transportation N170, 000.00

Diesel for production N280, 000.00

Equipment Maintenance/repairs N180, 000.00

Accounting and legal N50, 000.00

Owner’s wages N440, 000.00

Recruitment Training and Payroll expenses N160, 000.00

21
Total Operating Cost N51, 737500.00

Funding

This is an existing business which the owner has already invested a total sum of eight million, five hundred
thousand naira (N8,500,000) and needs a total sum of ten million naira (N10, 000,000.00) loan from Bank
of industry (BOI) fora successful operation (stabilization)/expansion.

The ten million naira (N10, 000,000.00) loan would be used for:

Capital Expenditure: Distribution Van N2, 500, 000.00

Working Capital:

Raw materials N6, 340, 000.000

Packaging Materials N1, 160, 000.00

Sales and Revenue forecast

Last Year (N) This Year (N) Next Year (N) Year 2 (N) Year 3 (N)

Revenue 38, 030,275 44,166,890 64,638,210 69,768,464 75,696,938

Cost of goods 35,349660 37,985,745 51,680,510 55,212,100 60,068,582

sold

Gross profit 2,680,615 6,181,145 13,957,700 14,556,364 15,628,356

Net Profit 1,700,615 5,031,145 12,310,700 12,771,108 13,875,471

(before tax)

Taxes 106,719 251557 632,036 638,556 693,774

(business)

22
 Net Profit 1,593,896 4,779,588 11,678,664 12,132,552 13,181,697
(after tax)

Summary of Breakeven Analysis

Sales Price (average) N228

Variable cost N213

Contribution N15

Fixed cost N1,342,000

Breakeven 89,467units

Sales turnover to breakeven N20,398,476.00

Please, see appendix for detailed financial forecast.

Profitability/Return on Investment.

The business will breakeven in the 5th month. Thus, this business is very viable and worth investing. The
loan will be repaid within three (3) years period.

23