Executive Summary

Business Plan and Summary
February 2011
Names: Paul Gmajermi
Address: Konimo Village
Business Name and Address: God Cares About It Enterprise – Konimo Village
Executive Summary
Business Description
God Cares About It Enterprise is a provisions store located in Konimo that serves local villagers
in Konimo and two additional surrounding villages, approximately 2,200 people total. The
business sells a variety of everyday household and basic food items to local families in the three
communities. In addition, Konimo has a school that enrolls students from four surrounding
villages and specific products are also sold to meet the needs of students. The lack of
competition in all three villages should allow for promising profits. Without this provisions store,
locals from these three villages are required to walk approximately 25km (15.5 miles) to Yendi
town to buy everyday household items.
The business will be operated by Paul Gmajermi. He is the church leader of the Konimo church,
is married and has four children. He had a growing provisions store for four years prior to July
2010, when he liquidated his store to support his three younger brothers to go to school. Paul
currently relies on farming to support his family and hopes to reopen his provisions store with a
loan.
Kingdom Impact
Paul closes his store on Sundays for the Sabbath. When people ask him why his store is closed,
Paul tells them that he goes to church and explains to them why he does by sharing the Gospel.
The idol worshippers and Muslims in his community usually acknowledge this by simply saying,
“That’s fine.” But Paul responds, “Don’t just say fine; you come with me to church!” He has
witnessed to customers through the relationships he has built with them.
Paul also uses a hand-wind cassette player at his shop that plays Gospel music and sermons,
which will both bring people to his store and help him share the Gospel.
Paul has been the church leader and preacher of the Konimo church since 2001. He is also the
supervisor for children’s Sunday school teachers of all 18 BCA (Bible Church of Africa)
churches in the Yendi region. Each month, he preaches for two Sundays in Konimo and then
spends the next two Sundays traveling to other villages to supervise Sunday schools. When he is
away from Konimo, he arranges for a church leader from another village to preach at the
Konimo church.
Investment Required
The total investment needed to start this business is 1,418GHS which equates to $998USD. The
entire amount is for starting inventory for the business.
Business Plan
Business Overview
Business Description
God Cares About It Enterprise is a provisions store located in Konimo that serves local villagers
in Konimo and two additional surrounding villages, approximately 2,200 people total. The
business sells a variety of general goods, including household and basic food items, to the three
communities. In addition, Konimo has a school that enrolls students from four surrounding
villages, and specific products are also sold to meet the needs of students, such as pens, paper,
school books, candies, and biscuit snacks. All of the products are bought in bulk and retailed
individually in the store.
Although provisions stores often generate low margins per product and depend on a high sales
volume year-round to be decently profitable, this store’s lack of competition in all three villages
mitigates this risk and should generate promising results. Without this provisions store, locals
from these three villages are required to walk approximately 25km to Yendi town to buy
everyday household items.
Biography of Candidate
Education and Past Experience:
Paul grew up in Konimo and is married to his wife Timukan. They have four children who are
ages 12, 10, 6 and 2. Paul and his wife currently support the family through farming, cultivating
primarily yams, groundnuts, soybeans, cassava, maize, and guinea corn.
Paul started a provisions shop by the side of the main road in Konimo 4.5 years ago. He started
with 18 products and in four years had reinvested back into his business to expand to 29
products. He was able to get startup capital to launch the business from selling groundnuts, shea
nuts, and yams from his farm. The profits from shea nuts were used to build the store structure
and the rest were used to buy inventory.
In July 2010, Paul’s three younger brothers finished junior high school and needed financial
assistance to go to senior high school, which the family did not have. Paul liquidated everything
in his store to support his brothers to go to school. He also used some of the money from his
shop to support the building of the new church in Konimo. Since he closed down his store, he
has been supporting his wife and children only with the sale of yams from his farm.
Paul is one of the few program participants who speak proficient English because he completed
junior high school, but he did not have the financial means to go to senior high school. He
would like to complete senior high school and also go to Bible School in order to officially
become a pastor.
Personal Testimony:
Paul came from a family of traditional idol worshippers. When Paul was younger, he would
often stay with his grandparents in Kulkpene, a nearby village, where at the age of 12, Paul
began attending Pastor Azindow’s church. His parents became Christians first, and then he
accepted Christ at the age of 16. He met his wife at the Kulkpene church. Now he is the
unofficial pastor of the Konimo church. He does not take a salary from the church (pastors are
not salaried in Ghana), and every year, he tithes 10% of his farm produce to the church.
Company Structure
The business is a Sole Proprietorship with no government or legal issues.
Paul obtains his entire provisions store inventory from Yendi town, mostly from a wholesaler
named Abu Aruna, who is a Muslim and is able to get his goods in bulk wholesale prices from
Kumasi, a southern town in Ghana.
Marketing
Industry and Market Overview
Tamale is the largest city in the Northern Region of Ghana, and Yendi is the next largest town,
situated approximately 150km east of Tamale. A paved road (1.5 hour drive) connects Tamale
and Yendi and runs through a series of small villages along the way. Konimo is one of the
smaller villages close to Yendi (about 25km away). Oftentimes, the locals from these villages do
not have easy access to the market in Yendi town to buy everyday household items, and
therefore some individuals who are able to travel to Yendi will buy items and bring it into the
villages to retail in smaller quantities. Because of the lack of access to a bigger town market,
provisions stores in the villages are frequented by local villagers year-round. However, a proper
provisions business is difficult to start because it requires a large amount of upfront capital;
therefore, very little competition exists in the villages for a provisions store, especially one with
a building structure.
Customers
The customers will be local villagers from Konimo and two other communities: DC Kura and
Kulgoduli. The populations of these villages are as follows:
Konimo: 500
DC Kura: 1000
Kulgoduli: 700
In addition, Konimo has the only school that caters to the above three villages and another
village called Yapala, which is farther away. Paul estimates that he gets around 10 to 15 school
children who visit the store during their break times each day, and even more during exam times
because they need to buy paper and pens.
Because the store is right by the main road from Tamale to Yendi, customers also include
travelers, especially during farming season when villagers from Sambu pass by Konimo on the
way to their farms.
Competition
Paul has almost no competition in Konimo and the surrounding villages. He has no competitors
in Konimo. In DC Kura, there are three small kiosks that sell only a handful of products in
small quantities. During June and July, because of farming, these kiosks are closed. In
Kulgoduli, there is one man who sells a few products in small quantities from a table. Paul is the
only one who has a building structure and enough inventory to meet customers’ needs.
Pricing and Distribution
Paul will sell products to his customers from his store, which will be open 7am to 6pm Monday
to Saturday and sometimes in the evenings on Sundays as needed. During farming season in
May, June, and July, the store will be open in the morning and evenings, but closed from 9am to
3pm to allow Paul time for farming, since there are no customers during this time anyway. The
prices for these products are:
Name of Product or Service
Key soap
Sunlight
Geisha
Medisoft
Ameen soap
Cabolic soap
Sugar
Battery
Maggi
Milk Ideal
Chewing gums
Milo
Lipton Tea
Frytol O.9
Frytol bottles
Malt n Milk
Parlays biscuits
Glucous
Pens
Ceilling fang
Calipals
Tomatoes big
Tomatoes small
Blade/Super-max
Matches
Omo
Sardines
Nasco
Anapuna salt
Minerals
Malta
Unit Price
in Cedis
2.50
0.60
1.10
0.50
0.50
0.50
6.00
3.00
2.50
1.20
2.00
3.80
1.60
3.50
1.50
0.30
0.20
0.20
0.25
2.00
0.60
1.00
0.40
0.30
0.50
0.25
1.40
1.00
0.30
0.70
1.20
Promotion
Paul’s store is painted a bright green and blue and is the only house or structure in Konimo and
surrounding villages with bright colors rather than the dirt brown of the mud structures. Because
his store is situated on the main paved road between Tamale and Yendi, his store is very
recognizable from afar.
Paul will also use a hand-wind cassette player to play Gospel music and sermons, so that people
attracted by the music will stop by his store.
Paul plans to run a radio advertisement for four days in the first month to announce the
reopening of his store. He expects that once people are informed, they will spread the word by
word of mouth. Paul also plans to promote his products once he grows his inventory by
announcing sales and special deals (i.e. buy 10, get 1 free) on the radio.
Financial
Startup Costs
Startup costs include only initial inventory for the store to operate.
One-Time and Startup Items
Tools and Equipment (see below)
Equipment Installation & Prep.
Starting Inventory
Veterianary Fees
Advance Rent
Other Fees (legal, etc.)
Licenses and Permits
Initial Advertising & Promotion
Operating Cash
Cedis
0
Total Start-up Expenses
1,418
1,418
$
$0.00
$0.00
$998.24
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$998.24
Investment Required
The total investment needed to start this business is 1,418GHS which equates to $998USD. The
entire amount is for starting inventory for the business.
Financial Plan
Assumptions
All products costs from bulk quantities have been broken down into per unit costs. All products
are sold with a per unit sales price, as applied within the sales projection.
Business will not be impacted significantly by the rainy season, since products are household
items used year-round. However, June, July and August are “lean” months in Yendi when
people are farming and are low on cash because the harvest does not begin until September and
most food products are at a peak seasonal price. Therefore, a conservative estimate has been
made that during those three months, the provisions shop receives half the sales volume that it
normally would.
Projected Income & Expenses
God Cares About It Enterprise
Year
(all amounts are in Cedis)
1
2
3
Incom e
Key soap
840
840
840
Sunlight
605
605
605
Geisha
554
554
554
Medisoft
504
504
504
Ameen soap
560
560
560
Cabolic soap
378
378
378
1,613
1,613
1,613
Sugar
Battery
1,512
1,512
1,512
Others
13,161
13,161
13,161
Gross Sales
19,727
19,727
19,727
16,767
Expenses
Cost of Goods Sold
16,767
16,767
Wages
0
0
0
P ensio n Fund @ 14% o f emplo yees' wages+150 per mo nth
0
0
0
So cial Insurance @ 4.00% o f wages
0
0
0
M edical Insurance @ 3.60% o f wages
0
0
0
Occupatio nal Trauma (injury) tax @ 0.02% o f wages
0
0
0
Revenue Tax @ 6.00% o f gro ss sales
0
0
0
280
280
280
Plastic bags
21
21
21
Radio Advertisement
20
0
0
546
936
148
17,634
18,004
17,216
Cash Profit
2,093
1,723
2,511
Loan Proceeds
1,418
Start-up Costs
1,418
Cash Flow (Cum ulative)
2,093
3,816
6,327
Transportation: Fuel for Motorbike
Loan Payments
Total Expenses
Projected Cash Flow
God Cares About It Enterprise
(all amounts are in $)
Year
1
2
3
Key soap
$591.55
$591.55
$591.55
Sunlight
$425.92
$425.92
$425.92
Geisha
$390.42
$390.42
$390.42
Medisoft
$354.93
$354.93
$354.93
Ameen soap
$394.37
$394.37
$394.37
Cabolic soap
$266.20
$266.20
$266.20
Sugar
$1,135.77
$1,135.77
$1,135.77
Battery
$1,064.79
$1,064.79
$1,064.79
Others
$9,268.63
$9,268.63
$9,268.63
$13,892.58
$13,892.58
$13,892.58
Incom e
Gross Sales
Expenses
Cost of Goods Sold
$11,808.00
$11,808.00
$11,808.00
Wages
$0.00
$0.00
$0.00
P ensio n Fund @ 14% o f emplo yees' wages+150 per mo nth
$0.00
$0.00
$0.00
So cial Insurance @ 4.00% o f wages
$0.00
$0.00
$0.00
M edical Insurance @ 3.60% o f wages
$0.00
$0.00
$0.00
Occupatio nal Trauma (injury) tax @ 0.02% o f wages
$0.00
$0.00
$0.00
Revenue Tax @ 6.00% o f gro ss sales
$0.00
$0.00
$0.00
$197.18
$197.18
$197.18
Plastic bags
$14.79
$14.79
$14.79
Radio Advertisement
$14.08
$0.00
$0.00
$384.51
$659.15
$104.23
$12,418.56
$12,679.13
$12,124.20
$1,474.01
$1,213.45
$1,768.38
$2,687.46
$4,455.85
Transportation: Fuel for Motorbike
Loan Payments
Total Expe nses
Projected Cash Flow
Cash Profit
Loan Proceeds
Start-up Costs
Cas h Flow (Cum ulative)
$998.24
$998.24
$1,474.01
Loan Information
Loan Amount (Principal)
One-time Service Fee Percentage
Number of Years
Months before First Payment
Monthly Payment Amount
Total of all Payments
Total Service Fee Paid
Cedis
1,418
$
$998.24
78
$54.93
1,630
213
$1,147.89
$149.65
15.00%
1.75
5
Loan to be paid back in 21 monthly installments of 78GHS over a 1.75 year period. First
payment to be due at the end of the 6th month.
Action Plan
Date
Item
3/11
Go to Yendi to get inventory for store
3/11
Visit FM radio station in Yendi to run radio advertisement