Executive Summary
Epic Home Decor will
provide quality home and event venue decor to customers through an impeccable
personalized customer service and attention to customer. The primary focus of
both short and long-term goals for this specialty retail gift and décor business
will be to expand the customer base both locally and regionally with
provide quality home and event venue decor to customers through an impeccable
personalized customer service and attention to customer. The primary focus of
both short and long-term goals for this specialty retail gift and décor business
will be to expand the customer base both locally and regionally with
Ughelli
Metropolis and to diversify the product base in order to provide customers with
both products and services unavailable in the area. With the expanding population
in the specific target market, particular attention will be paid to the quality
and uniqueness of product lines and the quality of personalized service.
The business will be owned,
managed and operated by eight shareholders namely; Achakpekri
Omamuyovwi, Orunwa Glory,
Egedegbe Ufuoma, Onobrakpeya Avwerosuo, Obukefe Elvis, Abuza Rose, Eric Florence, Ojefia Oghenerukevwe, until
further decision by the shareholders, the ownership of the business shall be
restricted to the shareholders stated above.
managed and operated by eight shareholders namely; Achakpekri
Omamuyovwi, Orunwa Glory,
Egedegbe Ufuoma, Onobrakpeya Avwerosuo, Obukefe Elvis, Abuza Rose, Eric Florence, Ojefia Oghenerukevwe, until
further decision by the shareholders, the ownership of the business shall be
restricted to the shareholders stated above.
Registration of the Business
Before we begin operation, we shall ensure that our
decoration and beautification business is duly registered with the Corporate
Affairs Commission (CAC). We shall use the name “Epic Home Décor”.
decoration and beautification business is duly registered with the Corporate
Affairs Commission (CAC). We shall use the name “Epic Home Décor”.
Business Description
Epic Home Décor shall
specialize on home and event venue decoration retail business specializing in
quality decorations. The target market will be upper middle income professional
and dual income homeowners who long for quality home and event decorations
without investing large amounts of money. This business will operate as a
retail establishment owned and operated by eight share holders which are Achakpekri
Omamuyovwi, Orunwa Glory,
Egedegbe Ufuoma, Onobrakpeya Avwerosuo, Obukefe Elvis, Abuza Rose, Eric Florence, Ojefia Oghenerukevwe, as a
limited liability company. All purchasing, selling, marketing, inventory, and bookkeeping
will be performed by the account department in collaborations with our
out-sourced contracting firm.
specialize on home and event venue decoration retail business specializing in
quality decorations. The target market will be upper middle income professional
and dual income homeowners who long for quality home and event decorations
without investing large amounts of money. This business will operate as a
retail establishment owned and operated by eight share holders which are Achakpekri
Omamuyovwi, Orunwa Glory,
Egedegbe Ufuoma, Onobrakpeya Avwerosuo, Obukefe Elvis, Abuza Rose, Eric Florence, Ojefia Oghenerukevwe, as a
limited liability company. All purchasing, selling, marketing, inventory, and bookkeeping
will be performed by the account department in collaborations with our
out-sourced contracting firm.
All accounting and legal
services will be contracted. This will be a new business. Growth will be attained
by adding products and services. After the first year, other related businesses
will be added. After the second year a line of specialty candles and custom
made table lamps will be introduced which will be produced in-house.
services will be contracted. This will be a new business. Growth will be attained
by adding products and services. After the first year, other related businesses
will be added. After the second year a line of specialty candles and custom
made table lamps will be introduced which will be produced in-house.
Required Funds
The business shall require
the sum of 6,000,000 as startup capital which shall be funded by shareholder’s
contributions. Epic Home Décor shall be
a limited liability company in which the ownership shall be by shares which
shall be at N0.75k per share.
the sum of 6,000,000 as startup capital which shall be funded by shareholder’s
contributions. Epic Home Décor shall be
a limited liability company in which the ownership shall be by shares which
shall be at N0.75k per share.
Objectives
Epic Home Décor service shall be to provide quality home and event decorations to
upper middle income professional and dual income
homeowners who long for quality home and event decorations without investing
large amounts of money.
upper middle income professional and dual income
homeowners who long for quality home and event decorations without investing
large amounts of money.
Location
Epic Home Décor office shall be located at Post
Office Road Ughelli which is certainly a very strategic location, since the
area has a good network of roads with good The will give us opportunity to
attract qualified workforce, get easy access to materials and to our customers.
Office Road Ughelli which is certainly a very strategic location, since the
area has a good network of roads with good The will give us opportunity to
attract qualified workforce, get easy access to materials and to our customers.
Mission/Vision Statement
Epic Home Décor Mission Statement: Epic Home Decor mission is
to provide quality home and event venue decor to customers through an impeccable
personalized customer service and attention to customer.
to provide quality home and event venue decor to customers through an impeccable
personalized customer service and attention to customer.
Vision Statement: Epic Home Decor hopes to expand its target area to the entire Delta
State and beyond through quality service and attention to customers.
State and beyond through quality service and attention to customers.
Core Values
Our core values are quality services and attention
to customers
to customers
Competitive Analysis
Epic Home Decor will have
three major competitors in the in Ughelli Metropolis which is our location.
They are Americo Interiors, Hallwood Empress Decor and Things Remembered.
Americo Interiors is located approximately 3 miles south of Ughelli Metropolis.
Due to the fact that it is located off the major traffic route, only the locals
know of its existence. The remoteness of its location is a definite weakness.
Hallwood Empress Decor is located at Otowodo on a busy side street that has
very entrance and exit points and very limited parking. Hallwood Empress Décor has
good traffic, but its poor parking and access are a definite weakness. Things
Remembered is located in the Apple Blossom Mall in Oteri. Because of its mall
presence its location is a definite strength.
three major competitors in the in Ughelli Metropolis which is our location.
They are Americo Interiors, Hallwood Empress Decor and Things Remembered.
Americo Interiors is located approximately 3 miles south of Ughelli Metropolis.
Due to the fact that it is located off the major traffic route, only the locals
know of its existence. The remoteness of its location is a definite weakness.
Hallwood Empress Decor is located at Otowodo on a busy side street that has
very entrance and exit points and very limited parking. Hallwood Empress Décor has
good traffic, but its poor parking and access are a definite weakness. Things
Remembered is located in the Apple Blossom Mall in Oteri. Because of its mall
presence its location is a definite strength.
An analysis of Epic Home
Decor competitor’s strengths and weakness can be seen on the following chart. These
factors are ranked 1, 2, 3 or 4 with 1 being the best and 4 being the worst.
Decor competitor’s strengths and weakness can be seen on the following chart. These
factors are ranked 1, 2, 3 or 4 with 1 being the best and 4 being the worst.
Factors
Americo Hallwood Things Rem.
Americo Hallwood Things Rem.
Products 2 3 3
Price 2 2 1
Quality 2 3 3
Product Selection 1 3
1
1
Customer Service 3 3
3
3
Expertise 3 3 3
Image/Reputation 2 3
2
2
Location 4 3 1
Layout 2 2 3
Appearance 1 2
2
2
Sales Method 2 4
3
3
Credit Policy 1 1
1
1
Availability 2 3
2
2
Management 2 3
2
2
Longevity/Stability 1 2
2
2
Advertising 3 3
3
3
Epic Home Décor’s strongest
competitor is Americo Interiors. Americo Interiors has four main weaknesses:
product expertise, location, advertising and customer service. Their primary
target market appears to be middle to upper middle-income customers. Many customers
of this establishment have complained of their lack of follow up after a large
sale to a first -time customer and lack of expertise in some of their product
lines. Considering their remote location, their lack of advertising and
customer follow up are their two major problems.
competitor is Americo Interiors. Americo Interiors has four main weaknesses:
product expertise, location, advertising and customer service. Their primary
target market appears to be middle to upper middle-income customers. Many customers
of this establishment have complained of their lack of follow up after a large
sale to a first -time customer and lack of expertise in some of their product
lines. Considering their remote location, their lack of advertising and
customer follow up are their two major problems.
Hallwood Empress and Things
Remembered both deal in middle and lower middle income customer. Although Things
Remembered is located in the local mall which is generally considered the best
location for foot traffic, their product quality and pricing appeals to the
customer who does not mind buying foreign made knock offs. Although their
products are attractive, they are not for the type of customer that Epic Home
Décor is targeting
Remembered both deal in middle and lower middle income customer. Although Things
Remembered is located in the local mall which is generally considered the best
location for foot traffic, their product quality and pricing appeals to the
customer who does not mind buying foreign made knock offs. Although their
products are attractive, they are not for the type of customer that Epic Home
Décor is targeting
Epic Home Décor target
market consists of a more discriminating buyer who is looking for a higher
quality home and event decoration
product line than what is available at Americo Interior. In addition Epic Home
Décor will be offering specific lines which are not carried by its major
competitor, namely: local hand-carved carving, ancient and primitive dolls.
market consists of a more discriminating buyer who is looking for a higher
quality home and event decoration
product line than what is available at Americo Interior. In addition Epic Home
Décor will be offering specific lines which are not carried by its major
competitor, namely: local hand-carved carving, ancient and primitive dolls.
The antique reproduction accent
furniture and display pieces will be of a higher quality and wider variety. The
custom-made lamps that Epic Home Décor will be offering will offer customers an
elegant alternative to the mass produced lighting fixtures that are offered at
most primitive/folk art retailers. In addition, the primitive dolls and
hand-carving and local painting will offer a quality alternative to collectors
in the area. However, the most important competitive advantage that Epic Home
Décor will offer its customers is superior customer service with an emphasis on
custom ordering when the customer wants a product that is not carried.
furniture and display pieces will be of a higher quality and wider variety. The
custom-made lamps that Epic Home Décor will be offering will offer customers an
elegant alternative to the mass produced lighting fixtures that are offered at
most primitive/folk art retailers. In addition, the primitive dolls and
hand-carving and local painting will offer a quality alternative to collectors
in the area. However, the most important competitive advantage that Epic Home
Décor will offer its customers is superior customer service with an emphasis on
custom ordering when the customer wants a product that is not carried.
Management Team Plan
The
day to day operation of Epic Home Décor shall be carried out by the
shareholders of the company which shall be headed by Achakpekri Omamuyovwi who
is a season professional in the interior and exterior decoration with seven (7)
years experience in several home and event management companies which include
her four (4) years experience with the famous International Home Enabled
Decoration Company. Other shareholders shall be assigned different function
according to their expertise and interest. Decision on staffing shall be strictly
based on need arising from the operation of the business.
day to day operation of Epic Home Décor shall be carried out by the
shareholders of the company which shall be headed by Achakpekri Omamuyovwi who
is a season professional in the interior and exterior decoration with seven (7)
years experience in several home and event management companies which include
her four (4) years experience with the famous International Home Enabled
Decoration Company. Other shareholders shall be assigned different function
according to their expertise and interest. Decision on staffing shall be strictly
based on need arising from the operation of the business.
Marketing Plan
As with all new retail
businesses, marketing is the life blood of existence. Because of the unique specialty
of the product lines and services, the primary marketing plan will entail
taking a more personalized approach. Instead of using mass media to capture the
market, over 75% of the advertising budget will be dedicated to marketing to
existing customers and new customers on a more personalized basis through
direct mailings and customer rewards for re peat patronage. By focusing on the individual
customer, it is hoped that a loyal clientele will develop.
businesses, marketing is the life blood of existence. Because of the unique specialty
of the product lines and services, the primary marketing plan will entail
taking a more personalized approach. Instead of using mass media to capture the
market, over 75% of the advertising budget will be dedicated to marketing to
existing customers and new customers on a more personalized basis through
direct mailings and customer rewards for re peat patronage. By focusing on the individual
customer, it is hoped that a loyal clientele will develop.
In addition to a personalized
marketing campaign, Epic Home Décor will add services that are important to its
target market, i.e., bridal and special occasion gift registry, unique custom
made lamps and a special order department. Therefore, by marketing quality
products that resurrect the aura and ambience of the past plus providing the
personalized service.
marketing campaign, Epic Home Décor will add services that are important to its
target market, i.e., bridal and special occasion gift registry, unique custom
made lamps and a special order department. Therefore, by marketing quality
products that resurrect the aura and ambience of the past plus providing the
personalized service.
As a secondary strategy to
marketing, the owner will become actively involved in key community organizations
and will sponsor events that are important to customers in the target market.
By becoming an active member of the business organizations, Epic Home Decor
will not only establish itself as a business that cares about the community but
also a business that is willing to give back to the community that assures its
financial success
marketing, the owner will become actively involved in key community organizations
and will sponsor events that are important to customers in the target market.
By becoming an active member of the business organizations, Epic Home Decor
will not only establish itself as a business that cares about the community but
also a business that is willing to give back to the community that assures its
financial success
Target Market: The target market for Epic Home Décor is upper
middle income professional and dual income homeowners in Ughelli Metropolis.
middle income professional and dual income homeowners in Ughelli Metropolis.
Pricing
The prices of our materials shall be the average
price of our competitor’s price. Though we shall be providing a higher quality service, we shall hang on to a
lesser profit but encourage higher turnover than our competitor, thereby making
a higher profit in the long run.
price of our competitor’s price. Though we shall be providing a higher quality service, we shall hang on to a
lesser profit but encourage higher turnover than our competitor, thereby making
a higher profit in the long run.
The following shall be our proposed average price
of some of the different home and event decorations:
of some of the different home and event decorations:
S/N
|
MATERIALS
|
PROPOSED PRICE (
|
1
|
Home decorations
|
300,000
|
2
|
Marriage Ceremonies
|
150,000
|
3
|
Birthday Parties
|
70,000
|
4
|
Anniversaries
|
100,000
|
5
|
Seminars
|
100,000
|
NOTE: The prices
stated above are just estimated average of the different services which are
subject to change, depending on our customer’s choice.
stated above are just estimated average of the different services which are
subject to change, depending on our customer’s choice.
Financial Plan
Capital Requirement and Equipment
The level of investment is based on the objectives
of the project
of the project
Required Capital Investment
Capital Investment Item
|
Qty
|
Unit price (
|
Total (
|
Rent (Office & Store)
|
1
|
120,000
|
120,000
|
Furniture and fittings
|
–
|
50,000
|
50,000
|
Vehicles
|
2
|
1,000,000
|
2,000,000
|
Power system
|
1
|
200,000
|
200,000
|
Decoration materials
|
–
|
1,000,000
|
1,000,000
|
Other tools
|
–
|
500,000
|
500,000
|
Total
|
|
|
3,870,000
|
Operation Costs
(a) Estimated costs of materials for sixty-five (65)
different decorations and event management jobs for a month.
different decorations and event management jobs for a month.
S/N
|
MATERIALS
|
Estimated events
|
Cost (
|
Monthly expenses
|
Yearly expenses
|
1
|
Home decorations
|
6
|
150,000
|
900,000
|
10,800,000
|
2
|
Marriage Ceremonies
|
12
|
75,000
|
900,000
|
10,800,000
|
3
|
Birthday Parties
|
30
|
35,000
|
1,050,000
|
12,600,000
|
4
|
Anniversaries
|
10
|
50,000
|
500,000
|
6,000,000
|
5
|
Seminars
|
7
|
50,000
|
350,000
|
4,200,000
|
Subtotals
|
3,725,000
|
44,700,000
|
General cost (Overheads)
Cost items
|
Expenses
|
|
Monthly
|
Yearly
|
|
Salaries
|
240,000
|
2,880,000
|
Utilities
|
15,000
|
180,000
|
Marketing
|
12,000
|
144,000
|
Administrative Expenses
|
18,000
|
216,000
|
Cleaning and toiletries
|
5000
|
60,000
|
Miscellaneous
|
20,000
|
240,000
|
Depreciation
|
5,000
|
60,000
|
Sub-total
|
315,000
|
3,780,000
|
Total Operating Cost for a year = Operation Cost
+ General Overhead
+ General Overhead
=
N 44,700,000 + N 3,780,000
=
N 48,480,000
Ø Production costs assumed sixty-five (65) different
decorations and event management jobs for a month..
decorations and event management jobs for a month..
Ø Depreciation on fixed assets assumes 4-years life
of assets written off at 25% year for all assets.
of assets written off at 25% year for all assets.
Ø Direct costs include materials includes every
material used in the course of carrying out the operations
material used in the course of carrying out the operations
Revenue
S/N
|
MATERIALS
|
Estimated events
|
Cost (
|
Monthly income
|
Yearly income
|
1
|
Home decorations
|
6
|
300,000
|
1,800,000
|
21,600,000
|
2
|
Marriage Ceremonies
|
12
|
150,000
|
1,800,000
|
21,600,000
|
3
|
Birthday Parties
|
30
|
70,000
|
2,100,000
|
25,200,000
|
4
|
Anniversaries
|
10
|
100,000
|
1,000,000
|
12,000,000
|
5
|
Seminars
|
7
|
100,000
|
700,000
|
8,400,000
|
Subtotals
|
7,425,000
|
89,100,000
|
Profitability Analysis Table
Profitability item
|
Per month
|
Per year
|
Revenue
|
7,425,000
|
89,100,000
|
Less: General Cost
|
315,000
|
3,780,000
|
Less: Operating Cost
|
3,725,000
|
44,700,000
|
Profit
|
3,385,000
|
40,620,000
|
Source of Fund
Funds
from shareholders at the rate ofN0.75k
per share
from shareholders at the rate of
per share
Share of Profit
30% of profit shared to shareholders
Investment
45% of the profit shall be invested in different
sectors based on shareholders’ decision
sectors based on shareholders’ decision
Company Reserve
25%
shall be left in the company account as reserved funds.
shall be left in the company account as reserved funds.
Conclusion
Everyone
likes well beautified and decorated home and well planned and designed event
venue. It is usually referred to as either a sign of affluence, importance
and/or class. It is generally accepted that a well planned /decorated event or
well decorated home shoes the class of the people attending the event or living
in the home. As and entrepreneur, beautification and decoration business is
certainly a very lucrative business to venture into. Although there are several
challenges and competition in the beautification and decoration business in
Nigeria, a special focus on customer service and delivery of quality, one is
sure to achieve success in the business of beautification and decoration.
likes well beautified and decorated home and well planned and designed event
venue. It is usually referred to as either a sign of affluence, importance
and/or class. It is generally accepted that a well planned /decorated event or
well decorated home shoes the class of the people attending the event or living
in the home. As and entrepreneur, beautification and decoration business is
certainly a very lucrative business to venture into. Although there are several
challenges and competition in the beautification and decoration business in
Nigeria, a special focus on customer service and delivery of quality, one is
sure to achieve success in the business of beautification and decoration.
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