Executive summary ----------------------------------------------------------------------------------------------- 1
Business Structure ----------------------------------------------------------------------------------------------- 5
Industry Overview ----------------------------------------------------------------------------------------------- 12
Swot Analysis------------------------------------------------------------------------------------------------------- 14
Competitor Analysis------------------------------------------------------------------------------------------------ 17
Competitive Advantage -------------------------------------------------------------------------------------------26
Market analysis ----------------------------------------------------------------------------------------------------- 28
Target Market-------------------------------------------------------------------------------------------------------- 30
Distribution Strategy----------------------------------------------------------------------------------------------- 31
Marketing and Sales Strategy----------------------------------------------------------------------------------- 32
Communication and Advertising --------------------------------------------------------------------------------33
Pricing Strategy------------------------------------------------------------------------------------------------------ 34
Expansion Strategy------------------------------------------------------------------------------------------------- 36
Financial requirement ----------------------------------------------------------------------------------------------39
Financial projection ------------------------------------------------------------------------------------------------- 40
Cash flow statement--------------------------------------------------------------------------------------------------42
Appendix and summary----------------------------------------------------------------------------------------------43
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We also intend to expand by introducing new product line like the terra chicken cubes by 10 cubes
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TERRA SEASONING
THREE YEARS FORCASTED STATEMENT OF PROFIT OR LOSS
YEAR 1 YEAR 2 YEAR 3
N N N N N N
REVENUE 11,700,000,000 15,210,000,000 19,773,000,000
COST OF SALES
Machine maintenance 100,000,000 130,000,000 169,000,000
Marketing and advert cost 100,000,000 150,000,000 200,000,000
Raw material 2,000,000,000 2,600,000,000 3,380,000,000
Diesel 360,000,000 468,000,000 608,400,000
power 150,000,000 195,000,000 253,500,000
Consultancy
20,000,000 26,000,000 30,000,000
Staff training 20,000,000 30,000,000 40,000,000
TOTAL COST OF SALES 2,750,000,000 3,599,000,000 4,680,900,000
GROSS PROFIT 8,950,000,000 11,611,000,000
15,092,100,000
ADMINISTRATIVE EXPENSES
Salary 155,280,000 155,280,000 155,280,000
General Expenses 100,000,000 130,000,000 169,000,000
Depreciation (N2) 71,500,000 71,500,000
71,500,000
TOTAL ADMINISTRATIVE EXPENSES 326,780,000 356,780,000 395,780,000
NET PROFIT 8,623,220,000 11,254,220,000 14,696,320,000
TAXATION @30% 2,586,966,000 4,408,896,000
3,376,266,000
NET PROFIT AFTER TAX
6,036,254,000 7,877,954,000 10,287,424,000
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TERRA SEASONING
THREE YEARS FORCASTED CASH FLOW STATEMENT
YEAR 1 YEAR 2 YEAR 3
N N N N N N
OPERATING EXPENSES
RECEIPTS FROM CUSTOMERS 11,700,000,000 15,210,000,000 19,773,000,000
DIRECT COST (2,750,000,000) (3,599,000,000) (4,680,900,000)
ADMINISTRATION COST -326,780,000 -356,780,000 -395,780,000
CASH GENERATED FROM OPERATIONS 8,950,000,000 11,254,220,000 14,696,320,000
CURRENT TAX -2,586,966,000 -3,376,266,000 -4,408,896,000
NET CASH FLOW FROM OPERATING 6,036,254,000 7,877,954,000 10,287,424,000
EXPENSES
CASH AND CASH EQUIVALENT FOR THE YEAR 6,036,254,000 10,287,424,000
7,877,954,000
CASH AND CASH EQUIVALENT B/F 0 13,914,208,000
6,036,254,000
CASH AND CASH EQUIVALENT C/F 6,036,254,000 13,914,208,000 24,201,632,000
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ANALYSIS & APPENDICES
We expect to grow 30% within the first and second year and third year in terms of sales and revenue.
The figures shown in this projected statement are based on estimates of the following :
• That 2,600,000 cartons of terra by 25cubes were sold at N4500
• That the cost of raw materials were 2 billion naira in the first years
• That cost equipment and distribution trucks are 500 million naira each
• That the annual depreciation of both the equipment and the distribution trucks is N71,500,00
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