Building Materials Business Proposal & Feasibility Report
TABLE OF CONTENTS FOR BUILDING MATERIALS BUSINESS PLAN
Business Description 4
Name of firm 4
Legal status 4
Location of business 4
Target market 5
Market Analysis 5
Market Strategies 5
Promotion strategies 5
Competitive Edge 6
SWOT Analysis 6
Legal, Environmental, Socio-Economic and Regulatory Issues 7
Risk Analysis 8
Financial Plan 9
Project cost 9
Funding requirement 10
Projected sales 10
Staff/labour requirement & cost 10
Projected Income statement 11
Projected cash flow statement 12
Projected balance sheet 13
Profitability analysis 14
Break Even Point Analysis 15
Other considerations 16
Economic justification 16
Commercial Viability 16
1.0 EXECUTIVE SUMMARY OF THE BUILDING MATERIALS BUSINESS PROPOSAL IN NIGERIA
1.1 Company and Project
The following report and recommendation relate to Lucky Nigeria Building Material.
1.2 Project Cost
The planned project is to be fully implemented with an investment of N23,470, 000 with a fixed capital of N7,470,000 and a working capital of N16,000,000.
1.3 Project Location
The proposed project is to be located in Calabar, Cross River State Because of good available market and access road.
1.4 Projects Vision
This project vision is to be a major dealer and a household name in the sale of high quality building materials products to our esteemed customers in the whole of Cross River and neighbouring States
1.5 Market Potential
There is a ready market for the planned project. The level of demand for the product is quite high by virtue of the fact that Calabar is a city with high concentration of people.
1.6 Financial Position
The financial position reveals a good liquidity and stability. The project turnover for 2016, 2017 and 2018 respectively is N31,420,000; N36,133,000; and N41,552,950. Net profit for 2016 is N4,850,000, increasing to N5,683,000 in 2017 and N6,694,700 in 2018.
1.7 The funding requirement is N23,470,000 which is expected to come from the Federal Government as grant for the Amnesty re-integration programme.
1.8 the project competitive edge is the series of entrepreneurship training undergone under the re-integration programme as the residual knowledge of the entrepreneur.
1.9 Profitability Indicators
7.0 Conclusion and Recommendation
From the point of analysis of our finding, the proposed project/business is found to be technically feasible, financially viable and economically desirable. The project offers good investment benefit. We therefore highly recommend it for funding and implementation.
Business Description in the building materials business plan
Our business will focus on the sales of high quality and assorted building material items from local and international manufacturers for domestic and industrial uses.
To be a major dealer and a household name in the sale of high quality building materials products to our esteemed customers.
To deliver quality building materials products that will meet the building needs of esteemed customer at competitive prices.
Name of firm (Please insert)
The registration of the planned business with Corporate Affairs Commission will be undertaken as soon as fund for the implementation of the project is available to give the business a legal status.
Location of the business & reasons
The promoter wishes to locate the business in Calabar area of Cross River State because of existence of good infrastructure and large population.
Our product range will include Cement, Roofing sheets, Ceiling, Doors, Rods, WC & accessories, wheel barrows, paints, and other accessories.
Target Market Group
Our target customers will include individuals involved in one building or construction work or another, building contractors, corporate bodies, etc.
The high demand of building material item has occasioned high level competition in the business. To survive the competition, we plan to offer high quality products as well as excellent service delivery.
Market Analysis of the Building materials business plan
Building materials items are in high demand as average of 30 persons in our target market area per day has one building related work to do. Increasing economic activities occasioning rapid development as well as the changing lifestyles in tune with modern trends has positively affected the demand of building material items. Therefore, there exists a ready market for building and construction materials.
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