Introduction
This is a document plan on our intention to set up a bakery in Ekiugbo
Ughelli, Delta State, Nigeria the bakery will be known and JOLI-BEE BAKERY. Our mission is to operate a bakery using available
resources in our locality to run a standard bakery that will specialise in
baking of bread with high quality. For our business to be successful, we should
design our operation in a way that is customer focus by
Ughelli, Delta State, Nigeria the bakery will be known and JOLI-BEE BAKERY. Our mission is to operate a bakery using available
resources in our locality to run a standard bakery that will specialise in
baking of bread with high quality. For our business to be successful, we should
design our operation in a way that is customer focus by
creating programmes
which will make our bread to be on everyone’s table in the entire Ekiugbo
community and beyond by given special incentives to our distributors according
to sales recorded.
Registration of the
business
business
Before we begin operation, we shall ensure that our bakery is duly
registered with the Corporate Affairs Commission (CAC). We shall use the name “JOLI-BEE BAKERY LIMITED.
registered with the Corporate Affairs Commission (CAC). We shall use the name “JOLI-BEE BAKERY LIMITED.
Our value system
JOLI-BEE BAKERY will embrace the value system of
customer focus, making optimum use of available resources and manpower to
produce bread which will compete favourably in the Ekiugbo bread market and
beyond. Shall pay special attention to our corporate responsibilities by
setting up a foundation called the JOLI-BEE ORPHANAGE EDUCATION FOUNDATION
which will cater for education of orphans by liaise with different orphanages
our area of operations. The foundation will be funded by 5% of our annual
profit.
customer focus, making optimum use of available resources and manpower to
produce bread which will compete favourably in the Ekiugbo bread market and
beyond. Shall pay special attention to our corporate responsibilities by
setting up a foundation called the JOLI-BEE ORPHANAGE EDUCATION FOUNDATION
which will cater for education of orphans by liaise with different orphanages
our area of operations. The foundation will be funded by 5% of our annual
profit.
It is obvious that the bakery business is a very
challenging one considering the number of bakeries in the area and the economic
situation of the country. In addition, we will have to compete favourably with
some of the already existing bakeries in the area, especially, Godwill, Bakery,
Yoma Bakery and Yummy Bakery, but we believe that by baking quality bread,
effective distribution channels and paying attention to our corporate
responsibilities through the JOLI-BEE FOUNDATION, in no time we shall win the
heart of the people in our area of focus.
challenging one considering the number of bakeries in the area and the economic
situation of the country. In addition, we will have to compete favourably with
some of the already existing bakeries in the area, especially, Godwill, Bakery,
Yoma Bakery and Yummy Bakery, but we believe that by baking quality bread,
effective distribution channels and paying attention to our corporate
responsibilities through the JOLI-BEE FOUNDATION, in no time we shall win the
heart of the people in our area of focus.
Our bread will target medium and low income
earners, since they make up of about 90% of the population of our focus area.
We shall make sure that we produce high quality bread and try to maintain our
price within the average price of our competitors. This will believe will
reduce our profit margin, but will surely drive the sales volume up to give us
a very high turnover daily. Our
operations that be focussed on making a
profit of an average N2,000 on a daily basis which will add up to an average of
N60,000 after expenses.
earners, since they make up of about 90% of the population of our focus area.
We shall make sure that we produce high quality bread and try to maintain our
price within the average price of our competitors. This will believe will
reduce our profit margin, but will surely drive the sales volume up to give us
a very high turnover daily. Our
operations that be focussed on making a
profit of an average N2,000 on a daily basis which will add up to an average of
N60,000 after expenses.
JOLI-BEE BAKERY will be a private limited liability
company owned by shares. For a start the only shareholders of the company shall
be EBRUGBE JOB, UROJEVWE REBECCA, OKPOR
RUTH CHINEYE, OLOMU R.
UNITY, INIRA AKPOS, EFAGHENE EVELYN, EJAKPOVI PHILO and BEGGI REGINA .
Admission of other shareholders shall be subject to further decision on the
need and through votes according to number of shares of each of the
shareholders.
company owned by shares. For a start the only shareholders of the company shall
be EBRUGBE JOB, UROJEVWE REBECCA, OKPOR
RUTH CHINEYE, OLOMU R.
UNITY, INIRA AKPOS, EFAGHENE EVELYN, EJAKPOVI PHILO and BEGGI REGINA .
Admission of other shareholders shall be subject to further decision on the
need and through votes according to number of shares of each of the
shareholders.
None of the shareholders or their family member
shall be qualified to work as staff of the company unless they have proven
evidence of three (3) years relevant experience on the area of their interest
and they shall undergo the normal recruitment process of the company.
shall be qualified to work as staff of the company unless they have proven
evidence of three (3) years relevant experience on the area of their interest
and they shall undergo the normal recruitment process of the company.
JOLI-BEE bakery shall drive business through
incentives to distributors based on their volume business with the company. An
incentive of 1% of total amount of bread distributed shall be given to our
distributor who do a volume higher that N100,000 in a month and 1.5% will be
given to those who did more than N200,000 per month as incentive.
incentives to distributors based on their volume business with the company. An
incentive of 1% of total amount of bread distributed shall be given to our
distributor who do a volume higher that N100,000 in a month and 1.5% will be
given to those who did more than N200,000 per month as incentive.
For a start, we will required the sum of N10,000,000
as start up capital which shall be divided into 1 million shares which means
that the shares of JOLI-BEE Bakery Limited shall be N10 per share.
as start up capital which shall be divided into 1 million shares which means
that the shares of JOLI-BEE Bakery Limited shall be N10 per share.
For a beginning, the staff strength of the company
shall be based on operational demands and volume of businesses. In essence, the
volume of business will determine the number of staff working at the company at
any given time.
shall be based on operational demands and volume of businesses. In essence, the
volume of business will determine the number of staff working at the company at
any given time.
Business description
Running a bakery in Ekiugbo will certainly be very
challenging but focuses and dedication will surely be very profitable. There
are various business challenges in running a bakery in Ekiugbo, bearing in mind
that many bakeries have tried and not been successful before. The start up with
a business such as ours is risky because it does require certain equipment that
other businesses do not Other obstacles include the permits and licenses that
we would need to get in order to operate a bakery such as NAFDAC, but once we
have passed these beginning challenges, we believe that our business will head
in a positive direction. We shall focus mainly on the baking of quality bread and
aggressive marketing strategies through our distributors and other channel
which shall be adopted based on the dynamics of the market and competitions.
challenging but focuses and dedication will surely be very profitable. There
are various business challenges in running a bakery in Ekiugbo, bearing in mind
that many bakeries have tried and not been successful before. The start up with
a business such as ours is risky because it does require certain equipment that
other businesses do not Other obstacles include the permits and licenses that
we would need to get in order to operate a bakery such as NAFDAC, but once we
have passed these beginning challenges, we believe that our business will head
in a positive direction. We shall focus mainly on the baking of quality bread and
aggressive marketing strategies through our distributors and other channel
which shall be adopted based on the dynamics of the market and competitions.
Objectives
JOLI-BEE Bakery major objective will be to bake quality bread, focus on
aggressive marketing of the bread through a well motivated group of
distributors and paying attention to our corporate responsibilities to portray
the companies in as a responsible company which is dedicated to provide quality
bread and contribute to the general well-being of the society at large.
aggressive marketing of the bread through a well motivated group of
distributors and paying attention to our corporate responsibilities to portray
the companies in as a responsible company which is dedicated to provide quality
bread and contribute to the general well-being of the society at large.
Location
The location of the bakery which is Ekiugbo is certainly a very
strategic location, since it is a suburb of Ughelli with good network of roads.
The will give the bakery opportunity to attract qualified workforce, get easy
access to raw materials and enable effective distribution of finished
products.
strategic location, since it is a suburb of Ughelli with good network of roads.
The will give the bakery opportunity to attract qualified workforce, get easy
access to raw materials and enable effective distribution of finished
products.
Our baking time
The baking process shall take place any time of the day based on market
projections and turnover. Workers shall be running shift of eight hours daily. We
shall be opening for opened for non-baking business by 5.30 a.m. – 6.30 p.m. Monday
through Saturday, and run through a business day until
projections and turnover. Workers shall be running shift of eight hours daily. We
shall be opening for opened for non-baking business by 5.30 a.m. – 6.30 p.m. Monday
through Saturday, and run through a business day until
Mission/vision
statement
statement
JOLI-BEE Mission Statement: Our mission is to serve Ughelli Metropolis with high quality bread and
a very affordable price.
a very affordable price.
Vision Statement: JOLI-BEE
hope to expand its target area to the entire Delta State and beyond with the
baking of quality bread and an affordable price.
hope to expand its target area to the entire Delta State and beyond with the
baking of quality bread and an affordable price.
Core values
Our core values are customer focus and quality products
Competitive analysis
In Ekiugbo, there are no bakeries in the community
and its environs. However, all the supermarkets and small shops sell bread
baked by Godwill, Bakery, Yoma Bakery and Yummy Bakery. All these bakeries are located in outside the
community and in some cases they do not promptly distribute bread to the
community and its environs leading to scarcity of bread for some days.
and its environs. However, all the supermarkets and small shops sell bread
baked by Godwill, Bakery, Yoma Bakery and Yummy Bakery. All these bakeries are located in outside the
community and in some cases they do not promptly distribute bread to the
community and its environs leading to scarcity of bread for some days.
Based on this reason we strongly believe that baking of quality bread
that will be selling at an affordable price and being in the locality of our
target market will certainly give us a competitive edge over our competitors. Our
products would be fresher and of higher quality, thus superior to the ones of
the other bakeries since they will be delivered faster when they are still
fresh.
that will be selling at an affordable price and being in the locality of our
target market will certainly give us a competitive edge over our competitors. Our
products would be fresher and of higher quality, thus superior to the ones of
the other bakeries since they will be delivered faster when they are still
fresh.
Management team plan
The day to day operation of JOLI-BEE operation
shall be headed by a manger who must be a graduate of Business Administration
and with at least five year relevant experience at the time of recruitment.
shall be headed by a manger who must be a graduate of Business Administration
and with at least five year relevant experience at the time of recruitment.
The recruitment of the other staff shall be entrusted to the managing
director which the approval of the shareholders who will be headed by the chairman
who shall be elected for a period of five years based on the votes of the share
holders.
director which the approval of the shareholders who will be headed by the chairman
who shall be elected for a period of five years based on the votes of the share
holders.
Marketing plan
JOLI-BEE Bakery shall sell bread to it target market through a list of
highly motivated independent registered distributors. However, the company will
undertake the responsibilities of advertisement through newspapers, especially
the Urhobo Voice which is widely read in the area of operation. The bakery
shall also sell bread at a discount of 1% of the normal price to individual
shop owners who decide to come to the bakery to directly from the bakery. This
will serve as incentive for their transport expenses.
highly motivated independent registered distributors. However, the company will
undertake the responsibilities of advertisement through newspapers, especially
the Urhobo Voice which is widely read in the area of operation. The bakery
shall also sell bread at a discount of 1% of the normal price to individual
shop owners who decide to come to the bakery to directly from the bakery. This
will serve as incentive for their transport expenses.
Target Market: The
target market for JOLI-BEE Bakery is medium and low income earns who make up
about 90% of the entire population of Ekiugbo
and Ughelli metropolis.
target market for JOLI-BEE Bakery is medium and low income earns who make up
about 90% of the entire population of Ekiugbo
and Ughelli metropolis.
Need
There is no other bakery in Ekiugbo and the bakeries that supply bread
to Ekiugbo are located far away. They also have poor distribution strategies
leading to a situation where there is scarcity of bread in the locality for
some period of time. And even when they distribute, their bread will most of
the time not be fresh due to the fact that they normally travel very long
distance before reaching Ekiugbo and Ughelli metropolis.
to Ekiugbo are located far away. They also have poor distribution strategies
leading to a situation where there is scarcity of bread in the locality for
some period of time. And even when they distribute, their bread will most of
the time not be fresh due to the fact that they normally travel very long
distance before reaching Ekiugbo and Ughelli metropolis.
Pricing
The price of our bread shall be the average price of our competitor.
Though we are going to produce bread with a higher quality, we shall hang on to
a lesser profit but encourage higher turnover than our competitor, thereby
making a higher profit in the long run.
Though we are going to produce bread with a higher quality, 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 price of some of the brand of bread
we hope to produce:
we hope to produce:
|
S/N
|
BRAND
|
PROPOSED UNIT PRICE (
|
|
1
|
Eco-Joli
|
40
|
|
2
|
Deli-Joli
|
60
|
|
3
|
Grad-Joli
|
80
|
|
4
|
Super-Joli
|
100
|
|
5
|
Exclusive-Joli
|
120
|
Distribution
Our major distribution shall be through a list of
highly motivated independent registered distributors. However, the company will
undertake the responsibilities of advertisement through newspapers, especially
the Urhobo Voice which is widely read in the area of operation. The bakery
shall also sell bread at a discount of 1% of the normal price to individual
shop owners who decide to come to the bakery to directly from the bakery. This
will serve as incentive for their transport expenses.
highly motivated independent registered distributors. However, the company will
undertake the responsibilities of advertisement through newspapers, especially
the Urhobo Voice which is widely read in the area of operation. The bakery
shall also sell bread at a discount of 1% of the normal price to individual
shop owners who decide to come to the bakery to directly from the bakery. This
will serve as incentive for their transport expenses.
Financial plan
Capital Requirement and Equipment
The level of investment is based on the objectives of the project
Required Capital Investment
|
Capital Investment Item
|
Qty
|
Unit price (
|
Total (
|
|
Land & Building
|
1
|
3,000,000
|
3,000,000
|
|
Firewood oven
|
1
|
300,000
|
300,000
|
|
Mixer
|
1
|
300,000
|
300,000
|
|
Power system
|
1
|
200,000
|
200,000
|
|
Trays
|
100
|
1,000
|
100,000
|
|
Tins (1kg
size) |
100
|
100
|
10,000
|
|
Tins (1/2 kg size)
|
100
|
50
|
5,000
|
|
Furniture and fittings
|
–
|
50,000
|
50,000
|
|
Delivery van
|
2
|
2,000,000
|
2,000,000
|
|
Slicing machine
|
1
|
20,000
|
20,000
|
|
Other tools
|
–
|
20,000
|
20,000
|
|
Total
|
|
|
6,005,000
|
Production and Operating Costs
(a) Direct Materials, Supplies and Costs in N
|
Cost of items
|
Qty/day
|
Unit cost
|
Pdn cost/day
|
Pdn cost/wk
|
Pdn cost/mth
|
Pdn cost/yr
|
|
Direct costs
|
|
|
|
|
|
|
|
Wheat flour
|
2 bag
|
1,500
|
3,000
|
18,000
|
72,000
|
864,000
|
|
Salt
|
1 kg
|
20
|
20
|
120
|
480
|
5,760
|
|
Sugar
|
1 kg
|
100
|
100
|
600
|
2,400
|
28,800
|
|
Yeast
|
6 kg
|
20
|
120
|
720
|
2,880
|
34,560
|
|
Improver
|
4 kg
|
20
|
80
|
480
|
1,920
|
23,040
|
|
Water
|
200 l
|
0.5
|
100
|
600
|
2,400
|
28,800
|
|
Vanilla
|
1 btl
|
10
|
10
|
60
|
240
|
2,880
|
|
Cooking fat
|
2 l
|
30
|
60
|
360
|
1,440
|
17,280
|
|
Packaging materials
|
10 pkts
|
20
|
200
|
1,200
|
4,800
|
57,600
|
|
Other materials
|
|
|
1,000
|
7,000
|
28,000
|
336,000
|
|
Sub-total
|
|
|
4,690
|
29,140
|
116,560
|
1,398,720
|
General cost (Overheads)
|
Cost items
|
Pdn cost/day
|
Pdn cost/wk
|
Pdn cost/mth
|
Pdn cost/yr
|
|
Salaries
|
5,000
|
30,000
|
120,000
|
1,440,000
|
|
Utilities
|
700
|
4,200
|
16,800
|
201,600
|
|
Sales & distribution
|
2,000
|
12,000
|
48,000
|
576,000
|
|
Administrative Expenses
|
1,000
|
6,000
|
24,000
|
288,000
|
|
Cleaning and toiletries
|
200
|
1,200
|
4,800
|
57,600
|
|
Miscellaneous
|
500
|
3,000
|
12,000
|
144,000
|
|
Depreciation
|
200
|
1,200
|
4,800
|
57,600
|
|
Sub-total
|
9,600
|
57,600
|
230,400
|
2,764,800
|
Total Operating Cost for a year = 1,398,720 + 2,764,800
=
N 4,163,520
Ø Production costs assumed 288 days per year with daily capacity of
producing 3,000 loaves of bread.
producing 3,000 loaves of bread.
Ø Depreciation on fixed assets assumes 4-years life of assets written off
at 25% year for all assets.
at 25% year for all assets.
Ø Direct costs include materials, supplies and other costs that directly
go into production of bread
go into production of bread
Ø Total monthly days assumed are 24-days.
Ø The valuation currency used is Naira.
Production Costs
|
BRAND
|
Qty/day
|
pdn unit cost/day
|
pdn cost/day
|
pdn cost/wk
|
pdn cost/mth
|
pdn cost/yr
|
|
Eco-Joli
|
1210
|
20
|
24,200
|
145,200
|
580,800
|
6,969,600
|
|
Deli-Joli
|
710
|
30
|
21,300
|
127,800
|
511,200
|
6,134,400
|
|
Grad-Joli
|
460
|
40
|
18,400
|
110,400
|
441,600
|
5,299,200
|
|
Super-Joli
|
310
|
50
|
15,500
|
93,000
|
372,000
|
4,464,000
|
|
Exclusive-Joli
|
310
|
60
|
18,600
|
111,600
|
446,400
|
5,356,800
|
|
Total
|
3,000
|
200
|
98,000
|
588,000
|
2,352,000
|
28,224,000
|
Revenue
|
BRAND
|
Qty/day
|
pdn unit cost/day
|
pdn cost/day
|
pdn cost/wk
|
pdn cost/mth
|
pdn cost/yr
|
|
Eco-Joli
|
1210
|
40
|
48,400
|
290,400
|
1,161,600
|
13,939,200
|
|
Deli-Joli
|
710
|
60
|
42,600
|
255,600
|
1,022,400
|
12,268,800
|
|
Grad-Joli
|
460
|
80
|
36,800
|
220,800
|
883,200
|
10,598,400
|
|
Super-Joli
|
310
|
100
|
31,000
|
186,000
|
744,000
|
8,928,000
|
|
Exclusive-Joli
|
310
|
120
|
37,200
|
223,200
|
892,800
|
10,713,600
|
|
Total
|
3000
|
400
|
196,000
|
1,176,000
|
4,704,000
|
56,448,000
|
Profitability Analysis Table
|
Profitability item
|
Per day
|
Per week
|
Per month
|
Per year
|
|
Revenue
|
196,000
|
1,176,000
|
4,704,000
|
56,448,000
|
|
Less: Production Cost
|
98,000
|
588,000
|
2,352,000
|
28,224,000
|
|
Less: Operating Cost
|
9,600
|
57,600
|
230,400
|
2,764,800
|
|
Profit
|
88,400
|
530,400
|
2,121,600
|
25,459,200
|
Source of Fund
Funds from shareholders at the rate of N10 per share
Corporate Responsibility
Donation to Joli-Bee Orphanage Education Foundation
5% of annual profit = N 1,272,960
Share of Profit
30% of profit shared to shareholders
Investments
10% shall be invested in City-Scope Flour Limited
10% shall be invested in Covenant Suite &
Hotels Limited.
Hotels Limited.
10% shall be invested in First Bank of Nigeria Plc
Shares
Shares
10% Shall be Placed of Fixed Deposit Account at
Zenith Bank Plc at the rate of 12% per annum.
Zenith Bank Plc at the rate of 12% per annum.
Company Reserve
25% shall be left in the company reserve account at
First Bank Plc Patani Road Branch.
First Bank Plc Patani Road Branch.
Conclusion
Bread is a very common food eaten by almost every
family in Nigeria and Ughelli metropolis in particular. It is generally
accepted as a very nutritive food and it is taken by most people in the morning
along side tea as their breakfast and as a fast and ready to eat meal at any
other time of the day, especially by people who are either very busy or too
lazy to cook. Bread making is a business that one can start in Nigeria at
different level. One can even decide to start from the home, using the kitchen
oven and other available resources in the home. This is certainly a very
lucrative business for entrepreneur in Nigeria.
family in Nigeria and Ughelli metropolis in particular. It is generally
accepted as a very nutritive food and it is taken by most people in the morning
along side tea as their breakfast and as a fast and ready to eat meal at any
other time of the day, especially by people who are either very busy or too
lazy to cook. Bread making is a business that one can start in Nigeria at
different level. One can even decide to start from the home, using the kitchen
oven and other available resources in the home. This is certainly a very
lucrative business for entrepreneur in Nigeria.
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