Executive Summary
Transcription
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