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BDS Case Study -Richbol Plastics Ltd

Mubarak Sirajdeen the Managing Director of Richbol Plastics Ltd is seeking training from a BDS provider. He has completed a brief Business Plan template and a Profit & Loss statement as b
entrepreneurship and is looking for help in growing his recycling business. Please answer the questions in the second column after reading the Business Plan, Profit & Loss statement and th

Question Answer
1.What makes an excellent BDS provider?

2.Mr Sirajdeen has highlighted at least three opportunities for growth.Identify and state the merits of
three options. Describe how the company should rank and evaluate these options.

3.Raising Finance. What would you recommend as the most appropriate and achievable source of
finance to resource the three opportunities stated above? State what actions/route to finance
you would undertake to achieve the best result for the company. Provide if possible any personal
examples of raising finance for a local manufacturing company including amount
sourced,term,security,route to finance (i.e. Direct/broker/other)
4.Complete two financial templates (Stay Local-Forecast & International Forecast) given the additional
factors listed below. Please state your assumptions where applicable.

a) Automated washing and crushing recycling line. Reduces waste by 5%, saves 3% in direct labour
costs and improves quality of flakes
b) Finance for expansion is available .Assume 18% interest on short term options with capital
repayments for all facilities over 2 years
c) International expansion is estimated at 40% of total sales. Exports terms -Delivery to China 30 days /
India 45 days. Payment terms 30 days from delivery
d) All costs associated with installation of a new machine should be shown including associated stock
adjustments
e) Increased competition in local markets in months 17 and 18. f) Seasonality
effect in month 20 and month 24.
5.The Sales and Marketing plan in the example is lacking depth. Outline the main elements that need
to be understood and quantified. Briefly outline a marketing strategy for the business

6.How could the business attract large volume customers locally, regionally and across international
borders?

7.Outline five relevant forces that determine profitability of this Industry sector

8.The largest client has just phoned the sales manager to say that they has been offered a 10%
cheaper sales price from an alternative supplier. What would be your recommended advice to Mr
Sirajdeen? .Include in your answer all factors that should be evaluated before formulating a response
to the increased competition and include at least one viable method of ensuring the information from
the client is correct.

9.Outline three main ways to improve efficiency of operations in the Richbol Plastics . In what ways
might efficiency be measured and outline how the business can benefit from the information
10.Staff turnover has been 25% for the past two years. Describe three viable options which could be
implemented to attempt to mitigate this effect on the business over the next 12 months
plate and a Profit & Loss statement as best he can. Mubarak has received no formal training in
ess Plan, Profit & Loss statement and the Base Financials

4
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6

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RECYCLING NIG 1 LTD Business Plan
No. Heading Section Question
1.00 Description, uniqueness ,opportunity and plan Description of business Provide a short summary of your business and outline the Product or Service

My business is to help sustain an eco-friendly, cleaner and healthier environment through waste recycling of P.E.T plastic materials. P.E.T is a fast growing consumer plastic material commonly used in food/beverage/Packaging/automotive/Household industries. P.E.T plastic material is commonly used in bottling table
water, Viju milk, plastic Coca-Cola drinks, Lacasera drinks, vegetable oil cans, plastic goods etc. Supported by a growing population of Nigeria of about 170 million, and an increasing utilization of PET plastic materials in packaging consumer foods, PET materials are in abundance and litter the streets and drainage
hannels constituting environmental pollution and health hazards. My business simply recovers waste PET materials from the local areas and deploying a selection of ultra modern fully-automated machines to sort, crush, wash and recycle them upto the market top quality 99.7% purity level then grinds down to the
1.00A raw PET flakes . Capacities and efficiencies are critical to obtain the right quality and price within the market sector as the % purity affects the running costs of the customer's, quality of finish of the customers product, colour of the product and also manufacturing wastage. A local/regional market is in existence for PET
materials with an international market for agents and also overseas companies as raw materials for large scale moulding work.

1.10 Description, uniqueness ,opportunity and plan Uniqueness of Product or Service What benefits of the Product or Service enables your business to stand out from your competitors?

Supplier Network: Having a reliable and steady supply of raw material (waste PET Plastic bottles) is a major success factor to survive in this industry. Due to huge demands for the PET bottles, it is important to have a wide network of raw material supply from major cities so as to meet with sales demand and to offset
shortfall during rainy season when people consumption for water and fluid drops. High Quality of Cleaned Flakes: Maintaining a high quality of cleaned flakes is vital to success in this business else the product will be under-valued. When high quality and automated machineries are used in the PET recycling, high
1.10A purity flakes up to 99.7% specifications are possible with the latest equipment.This quality yields the best prices and as well as huge sales demand however care has to be taken to the volume, mix and purity of the raw inputs. ]

1.20 Description, uniqueness ,opportunity and plan Opportunities Describe the opportunities for growth within the next 12 months.

Due to few current PET Plastic recycling facilities in each region of Nigeria, there is a big and growing demand for these cleaned flakes as a raw material by industries engaged in plastic moulding for bottles, packaging, containers, household products, interior car parts and retail goods. Also, the export demand is high
due to the level of moulding in the international areas such as China which as a country exports product for use in other international areas but requires the raw component product. With over eight years experience in the waste PET bottle business, I know what the market wants. And because I have recycled to high
purity level, I can earn an improved revenue by (1) deploying state-of-the-art fully automated recycling line we can increase our margins towards the purity levels needed for international standards and attracts higher price with the machinery installed but mix of quality and purity is critical to obtain the percentage
1.20A price.
Also due to few recycling facilities in Nigeria, over 70% of recovered waste PET bottles are sold or exported without crushing or recycling, this offers lowered revenue per tonnage. My further processing before sales gives me a significant advantage in the local market but at reduced volume . (2) providing fast and
efficient supply on orders, my customers will prefer to buy from us so as to meet their delivery schedule and quickly repartrate their funds but quality is critical at the right volumes.

1.30 Description, uniqueness ,opportunity and plan Plan Outline your top three business objectives to achieve your growth plan

• I wish to retain financial security and stocking levels of at least 10% of the annual turnover at site in different percentage mixes in order to cover business need to prevent the lowering of efficiencies by running times of the production line to meet customers demand.
• I want to expand my recycling line by introducing an automated washing line with advanced electronic sorting machine in the next three months. This will ensure we consistently achieve high purity of cleaned flakes, boost our processing speed and enhance our brand in the market.
1.30A • I want to achieve annual recycling plant capacity of 20000 tonnes within the next 18 months with an automated packaging aspect in due course and the use of a second recycling line on the business in order that efficiencies of production can be maximised of each colour, quality and volume to meet customers
demands

1.40 Description, uniqueness ,opportunity and plan Industry Sector State your Industry-sector

1.40A Waste Recycling

2.00 Management team & staff employed Management team & staff employed State any management experience gained, outlining areas of responsibility
2.00A For nearly 8years, I have had hands-on experience managing my business. And from a very humble beginning as a start-up, and have over 14 staff at the current level including the management team, and expect this to increase by 100% on the operational side.
2.10 Management team & staff employed Management team & staff employed Describe the benefit that you and your staff bring to the business, including expertise (technical) ,track record (practical) and any relevant training in the Industry.

My management team consists of including myself ------ Mr. Emeka Okeke, has a technical degree and has over nine years practical work experience as a Process Operator in a plastic recycling plant. His hands-on practical input, industry contacts and machine operational and maintenance experience is vital to us as a
2.10A company.
down costs and improving sales and revenue. She is indeed an asset to us.
Miss. Diana Enyenihi, holds an accounting degree and an MBA in marketing. She has over 5 years working experience as Account/Finance Officer. Her wealth of accounting experience and business administration training will enable us in cutting
Mr. Ugochukwu Anisiobi, holds a bachelors degree in Political science and nearly 8years practical industry experience procuring and supplying waste PET bottles to exporting companies before establishing a mini recycling plant for
crushing PET bottles. He has over the years grown a large raw material supply network in major cities in Nigeria. He has the industry knowledge and contacts, and the required skills to make a big success of the business.

2.20 Management team & staff employed Management team & staff employed How many, full-time permanent staff are likely to be employed in the business in 12 months time?
2.20A 100% operational staff increase

2.30 Management team & staff employed Management team & staff employed How many, part-time staff (full time equivalent) staff are likely to be employed in the business in 12 months time? i.e. 1 casual person working a full week for only 6 months of the year equals 0.5 full time equivalent staff

2.30A 2-4 depending on need for holidays, days off and also sickness and also volume requirements.
2.40 Management team & staff employed Management team & staff employed How many, full-time permanent staff are likely to be employed in the business in 24 months time?
2.40A 35 people
2.50 Management team & staff employed Management team & staff employed How many, part-time staff (full time equivalent) staff are likely to be employed in the business in 24 months time?
2.50A 2-4 again depending on need
3.00 Competitor analysis & risk mitigation Competitor analysis & risk mitigation Name your three largest existing/expected competitors.
• Nampet Recycliing
• Dreamlife Consult Recyling
3.00A • Nigerian Bottling Company Recycling

3.10 Competitor analysis & risk mitigation Competitor analysis & risk mitigation Which, if any of the these, has a local presence or established distributor network?

3.10A Nampet Ventures has a localized raw material purchasing presence in my business region. But with my years of experience in the business, I already have a developed supplier network across major cities of South-south and South-east that ensures I can access adequate quantity for my recycling and sales. But the price

3.20 Competitor analysis & risk mitigation Competitor analysis & risk mitigation What main risks or challenges might affect the success of your business (other than cash flow for growth)? How might you reduce or mitigate these risks?

• Inadequate funds to introduce an automated washing and crushing recycling line machinery to meet the tonnage necessary to meet potential demand in the localised area at the right quality , volume and price. Exports markets remain closed to me until the level of quality, volume and price to provide repeat
3.20A product and at the frequencies required. The alternative is agents but margin is afffected by 10%. . * Supplier Network: Having a reliable and steady supply of raw material (waste PET Plastic bottles) is a major success factor to survive in this industry. Due to huge demands
for the PET bottles, it is important to have a wide network of raw material supply from major cities so as to meet with sales demand and to offset shortfall during rainy season when people consumption for water and fluid drops.

3.30 Competitor analysis & risk mitigation Competitor analysis & risk mitigation What are there weakness in your business and how will you overcome these?
• Weak brand name
• Efficiencies - Through improved machineries, we can recycle to up to 99.7% quality specification, but this will be on fully automated. The maximum efficiency of production/purity of raw materials is that of 30% raw material cost margin to market price for a fully automated and well run facility. This quality
3.30A commands premium price and positions us to major profitable end markets at the volumes needed. It will also enhances our reputation and brand.
• Small Scale Operation

4.00 Sales and marketing plan Competitor analysis Describe how you intend to achieve knowledge of the market place for your Product or Service?
4.00A Localised presence and internet mailshots and sms text are being performed at this time. The key is to purify the raw material is education of the local community and the sorting process being performed efficiently and preferably prior to receipt by ourselves. We tend to get a 82% pure product in clear at this time
and we efffectively try to increase to 94% for clear PET flakes to be made . The % purity achieved over this level increases the possible production options and thus demands a higher price.

4.10 Sales and marketing plan Marketing Name five of your existing or expected top customers. State the nature of your relationship at this time?

• Yuyang Textile Co.Ltd, China -------Expected


• Guangzhou Qianhong Ad material Co.Ltd China --------- Expected
• Jiangsu Sixiang Silk Co.Ltd China. ------ Expected
4.10A •• Fujian Sijia Industrial Material Co.Ltd China --------- Expected
Anje Textile Co.Ltd, India. Expected
• Nigerian Bottling Company
I have an established business contact with most of them and currently negotiating supply order with some others. Issue is if the market downturns and our ability once trading to sell at volume/quality and purity.

4.20 Sales and marketing plan Market analysis and marketing plan What makes each type of customer important to your business

4.20A Domestic sales needs full range of purity but low volume to each customer and has distribution costs and also operational overheads to secure the sales. The alternatives are export thru agents or direct but if direct the costs of deliver to the country is an issue that volume is necessary and also purity and frequency of
sales to achieve the customers/price. The shipping time is 30 days to include customs release.

4.30 Sales and marketing plan Sales What is your current level of monthly sales?
4.30A 4,400,000 NGN at the end of December accounting for the shutdown production days and customers requirements. This has continued during this year at this level.
4.40 Sales and marketing plan Sales What are your expected level of monthly sales in 12 months time ?
4.40A 50,000,000 NGN , with efficiency of sales against 40% raw material.
4.50 Sales and marketing plan Sales What are your expected level of monthly sales in 24 months time ?

5.50A 60,000,000 NGN with a secondary line in place for production.

4.60 Sales and marketing plan Sales What percentage of your sales are for exports?

International Buyers: This is a very large segment of the potential future customer base at around 40% plus. They demand high purity of cleaned PET flakes which our planned machineries can deliver if sold direct but using agents results in a 10% erosion in margin. They also buy in large quantity and pay in foreign
4.60A currency.

4.70 Sales and marketing plan Market analysis and marketing plan Detail any marketing activity that you are planning to undertake and provide two specific examples of the methods employed to reach key customers. How does his differ from your competitors
My marketing strategy is as follows:
1. To engage sales agents on commission basis to find or refer customers in Asian markets for volume.
4.70A 2. To employ sales staff for direct marketing to companies engaged in PET bottle and PET flakes exports and other PET bottle manufacturing companies etc.
3. To advertise aggressively on Internet banners, online forums, trade websites like recycle.net, alibaba.com, vconnect.com and engage e-mail marketing.

4.80 Sales and marketing plan Market analysis and marketing plan What incentives have you offered, or plan to offer, to distributors / sales agents to encourage them to do good business for you (e.g. commissions, discounts). State if this is industry normal for a business of your size / age.

4.80A To engage sales agents on commission basis to find or refer customers. Amount not specified in the business plan to date.
4.90 Sales and marketing plan Market analysis and marketing plan What are your marketing costs as a percentage of sales.
4.90A 12% to date as localised and small customers and large customer base. Intention to move towards more corporate customers with higher volume production, better purity and also higher price.
4.95 Sales and marketing plan Market analysis and marketing plan State how you plan to measure the effectiveness of your marketing activity if applicable
4.95A No method currently being performed.
5.00 Operations management Operations management Describe the main three success factors necessary to thrive in your industry. (e.g. suppliers, networks, low cost, diverse customer base, production capacity.) Give examples for each

Supplier Network: Having a reliable and steady supply of raw material (waste PET Plastic bottles) is a major success factor to survive in this industry. Due to huge demands for the PET bottles, it is important to have a wide network of raw material supply from major cities so as to meet with sales demand and to offset
shortfall during rainy season when people consumption for water and fluid drops.
5.00A High Quality of Cleaned Flakes: Maintaining a high quality of cleaned flakes is vital to success in this business else the product will be under-valued. When quality and automated machineries are used in the PET recycling, high purity flakes exceeding 99.7% specifications are possible. We would require to spend
4,960,000 NGN on the final machinery required to automate the production line. This quality yields the best prices, volumes and as well as huge sales demand. Then a second line would be the strategy to maximise the margins
International Buyers: This is a very large possible segment of the customer and we hope to account for 40% plus of our sales. They demand high purity of cleaned PET flakes which our planned machineries can deliver. They also buy in large quantity and pay in foreign currency.

Describe the main component resources i.e. supplies ,stock ,raw materials that are necessary to trade.
5.10 Operations management Operations management

5.10A Raw material (waste PET Plastic bottles) . Preferably sorted into clear and coloured plastics and at large tonnage
5.20 Operations management Operations management Describe each step of operations or production process in your business

The PET bottle recycling processing operations involved in our business are:
• Sorting:
The raw materials (waste PET bottles) on procurement are first sorted according to colours and any foreign material removed
• Crushing
The sorted PET bottles are then fed to label remover machine which removes labels and stickers this is followed by crushing of the PET bottles. The crusher machine crushes these PET bottles into smaller size particles called flakes.
• Washing
5.20A These already crushed PET bottles, now crushed flakes are then fed into the hot Washer machine whose main function is to thoroughly clean these flakes by washing them via different stages.
• Drying
• Finally, the already cleaned PET flakes from the washer machines are fed to the dehydrator and hot air dryer machine. Here, the cleaned flakes are rinsed and thoroughly dried of water.
• Bagging
The cleaned and dried PET flakes are then ready to be bagged in 50kg and 100kg sizes ready for sale.

Is there an existing or expected lead time for set-up or manufacture?


5.30 Operations management Operations management If yes, give estimated lead times for each of your main products areas including an overview of your business operation i.e.: manufacturing X , delivery to site X and Supplier delivery (X=time in days)

5.30A Already existing,


5.40 Operations management Operations management Do you need to hold manufactured product / prototypes prior to undertaking this process ? If so describe what is required
5.40A No but ideally 10% of stocks are retained, so that long run production for coiours can be performed to maximise efficiency.
5.50 Operations management Operations management If you plan to manufacture or supply a product please state estimated loss (efficiency) of production (as a percentage of turnover) .Is this
5.50A NOT STATED OTHER than maximum efficiency 99.7%
5.60 Operations management Operations management Do you or your distributors need to hold finished product (stock) prior to sales being achieved? What percentage of your sales do you need to hold as stock, on average?
5.60A NOT STATED
5.70 Operations management Operations management If you package your product .State if this is an in-house or outsourced operation.
5.70A In house packaging into 50kg and 100kg sizes ready for sale. For agents and foreign companies drums are used at 250kg sizes.
5.80 Operations management Supply chain How many people will be selling your Product or Service ? i.e. sales / technical staff / agents / distributors / direct
5.80A As many as possible.
6.00 Financial Analysis Financial Analysis What is the current market value of all capital equipment (e.g. machinery, land, building) that are currently employed in the business
6.00A 7,680,000 NGN purchased in the last 12 months minus depreciation of 1,067,500 NGN resulting in 6,612,500 NGN
6.10 Financial Analysis Financial Analysis What are your current monthly wage costs (including management)
6.10A 474,400 NGN including owner as active mgmt in the business.
6.20 Financial Analysis Financial Analysis What are your current monthly operating expenses excluding wage costs (e.g. raw materials, stock)
6.20A 2,453,200 which is 79 % of sales in the last month provided BASIC ANSWER
6.30 Financial Analysis Financial Analysis What are your monthly 'other cost' ?

6.30A 223,000 NGN variable costs BASIC ANSWER or 223,000 NGN plus bank charges of 4,000 NGN for currency conversion due to international customers, plus depreciation at 88,938 NGN per month in value loss of usage of company assets.

6.40 Financial analysis Costs targets How much money do you plan to take out of the business personally (average amount per month)?
6.40A 80,000 NGN per month and 960,000 per annum.
6.50 Financial analysis Operational capital targets What payment terms from your customers are you likely to have for the next 6 months ? Is this the Industry Normal for a business of your size/age. If not please explain why?

Stated 'Free on Board (FOB) - It is the industry normal, so delivery costs have to be covered by the Customer ' -
Cash on Delivery - It is also industry normal, but for larger contractor and big companies they require terms.
6.50A Cash in Advance - customers will pay in advance if they are sure of the quality we supply and have done a satisfactory previous business with us is our hope for further expansion.

6.60 Financial analysis Operational capital targets What payment terms have you negotiated or expect to achieve from your suppliers for the next 6 months ? Is this the Industry norm for a business of your size/age. If not please explain why
For Raw material suppliers
6.60A 1. Cash on Delivery. It is industry norm
2. Collection

6.70 Financial analysis Breakeven What amount of sales per month, must you have to achieve profitability?
6.70A 3,934,000 NGN as at Month 9 which is an average raw material usage removing the month where raw material issues caused effects on margin
7.00 Financing Financing What is the minimum equipment cost that is necessary to facilitate your expansion ? (where applicable)
7.00A 4,960,000 NGN plus the costs of installation of 2 week shut down and then 4 weeks at 60% of running speed until any flow issues resolved.
7.10 Financing Financing How much money do you require or expect to need from other sources and when is this needed (i.e. Investors, bank loans, etc.)
7.10A Cost of raw material stock of 5% of sales and also finished product of 5% of sales. Current level is 3% for both raw and finished goods
7.20 Financing Financing State the progress of any current loan application
7.20A None entered into.
7.30 Financing Financing Describe any existing finance loans related to the business and the reason for these loans
7.30A 4,350,000 NGN loan capital being repaid at 50,000 NGN per month. Personal loan of 3,350,000 NGN which has no stated repayment terms.

What amount of funds are you seeking from the bank or financier? Break this figure down into relevant categories: Capital expenditure Working Capital Note: amount of working capital must be sufficient to fund operating
7.40 Financing Financing expenses for a growing business and is typically 30% of available funds (including personal and external funding)

7.40A Funding for machine, stocking and cashflow for the 40% export sales value as 30 day terms and also 30 days for delivery to China and 45 days to India.
8.00 Additional Information
Others see trash and distance themselves but therein lies huge opportunity. Hence, my PET bottle recycling is practically a waste to wealth creation.
From a humble beginning of selling waste PET bottles, My recycling plant currently sits on an acre of land, well fenced with a bore-hole for cheap and steady water, and a warehouse.
8.00A
Now, I want to grow my capacity and introduce a state-of-the-art automated washing line to ensure high purity of cleaned flakes. I have the experience and raw material supplier network to make it succeed.
Question Heading Section

1.0 Description, objectives and Description of business


uniqueness of product or
service

1.1 Objectives

1.2 Industry Sector


1.3 Industry Sector not shown

1.4 Product or Service

1.5 Uniqueness of product or service

2.0 Sales and Marketing plan Marketing


2.1 Marketing

2.2 Sales
2.3 Sales
2.4 Sales
2.5 Sales

3.0 Management team & staff Management team & staff employed
employed

3.1 Management team & staff employed

3.2 Management team & staff employed

3.3 Management team & staff employed

3.4 Management team & staff employed

3.5 Management team & staff employed

4.0 Competitor analysis & risk Competitor analysis & risk mitigation
mitigation
4.1 Competitor analysis & risk mitigation

5.0 Operations management Operations management

5.1 Operations management

5.2 Operations management


6.0 Financial Analysis Financial Analysis

6.1 Financial Analysis


6.2 Financial Analysis

6.3 Financial Analysis


6.4 Financial Analysis

7.0 Financing Financing

7.1 Financing
7.2 Financing
8.0 Barriers to Growth First

8.1 Second

8.2 Third

9.0 Training First


9.1 Second

9.2 Third

9.3 Other
10.0 Additional Information Additional Information
Question

Explain the type of business you’re in.


Provide a short summary of your business and outline your product or service

Describe the opportunities for growth and outline your top three business objectives for the
next 12 months.

Select your Industry-sector


If not shown above please state Industry Sector

State Product or Service

What benefits of the product or service enables your business to stand out from your
competitors?

Does your product or service meet a particular need or demand (your competitive advantage
,if any? explain)
Name five of your existing or expected top customers, How will you attract these customers to
your point of sale and state the nature of your relationship at this time?

What is your current level of monthly sales? (Naira)


What is your forecast of level of sales over the next year?
What is your forecast of level of annual sales in 24 months?
What percentage of your sales are for exports?

Describe the benefit that you and your staff bring to the business, including expertise
(technical) ,track record (practical) and any relevant training in the Industry.

State any management experience gained, outlining areas of responsibility

How many, full-time permanent staff are likely to be employed in the business in 12 months
time?
How many, part-time staff (full time equivalent) staff are likely to be employed in the business
in 12 months time? i.e. 1 casual person working a full week for 6 months equals 0.5 full time
Equivalent
How many, full-time permanent staff are likely to be employed in the business in 24 months
time?
How many, part-time staff (full time equivalent) staff are likely to be employed in the business
in 24 months time?
Name your three largest existing/expected competitors.
Which, if any, have a local presence or established distributor network?
What main risks or challenges might affect the success of your business (other than cash
flow for growth)? How might you reduce or mitigate these risks?

Describe the main three success factors necessary to thrive in your industry. (e.g. suppliers,
networks, low cost, diverse customer base, production capacity.) Give examples for each

Describe the main component resources i.e. supplies ,stock ,raw materials that are necessary
to trade.

Is there an existing or expected lead time for set-up or manufacture?


If yes, give estimated lead times for your main products or service including an overview of
your business operation i.e.: manufacturing X , delivery to site X and Supplier delivery (X=time
in days)
What is the current market value of capital equipment (e.g. machinery, land, building) that are
currently employed in the business
What are your current monthly wage costs (including management)
What are your current monthly operating expenses excluding wage costs (e.g. raw materials,
stock)
What are your monthly 'other cost' ?
What is the minimum equipment cost that is necessary to facilitate your expansion ? (where
applicable)
How much money do you require or expect to need from other sources and when is this
needed (i.e. Investors, bank loans, etc.)
State the progress of any current loan application
Describe any existing finance loans related to the business and the reason for these loans
State the most important barrier to growth in your business

State the next most important barrier to growth

State the third most important barrier to growth

From the drop down menu choose the training support that you would find most valuable
From the drop down menu choose the training support that you would find the next most
valuable
From the drop down menu choose the training support that you would find the third most
valuable
State any other training that you would find valuable
Please add any additional information / comments that you feel relevant (maximum 100
words)
Response

My business is to help sustain an eco-friendly, cleaner and healthier environment through waste recycling of P.E.T plastic materials. P.E.T is a fast growing c
/Household industries. P.E.T plastic material is commonly used in bottling table water, Viju milk, plastic Coca-Cola drinks, Lacasera drinks, vegetable oil can
areas and deploying a selection of ultra modern fully-automated machines to sort, crush, wash and recycle them up to the market top quality 99.7% purity le
to obtain the right quality and price within the market sector as the % purity affects the running costs of the customer's, quality of finish of the customers prod
in existence for PET materials with an international market for agents and also overseas companies as raw materials for large scale moulding work.

Supplier Network: Having a reliable and steady supply of raw material (waste PET Plastic bottles) is a major success factor to survive in this industry. Due to
material supply from major cities so as to meet with sales demand and to offset shortfall during rainy season when people consumption for water and fluid dr
vital to success in this business else the product will be under-valued. When high quality and automated machineries are used in the PET recycling, high pu
quality yields the best prices (10% higher) and as well as huge sales demand however care has to be taken to the volume, mix and purity of the raw inputs.

Light Manufacturing
Waste Recycling

Product

Due to few current PET Plastic recycling facilities in each region of Nigeria, there is a big and growing demand for these cleaned flakes as a raw material by
products, interior car parts and retail goods. Also, the export demand is high due to the level of moulding in the international areas such as China which as a
component product. With over eight years experience in the waste PET bottle business, I know what the market wants. And because I have recycled to high
automated recycling line we can increase our margins towards the purity levels needed for international standards and attracts higher price with the machine
Also due to few recycling facilities in Nigeria, over 70% of recovered waste PET bottles are sold or exported without crushing or recycling, this offers lowered
advantage in the local market but at reduced volume . (2) providing fast and efficient supply on orders, my customers will prefer to buy from us so as to mee
right volumes.

P.E.T plastic material is commonly used in bottling table water, Viju milk, plastic Coca-Cola drinks, Lacasera drinks, vegetable oil cans, plastic goods etc. Su
utilization of PET plastic materials in packaging consumer foods, PET materials are in abundance and litter the streets and drainage channels constituting en
eradicate.
Yuyang Textile Co. Ltd, China (expected),Guangzhou Qianlong Ad material Co. Ltd China (expected),Jiangsu Sixiang Silk Co. Ltd China( expected)
Fujian Sijia Industrial Material Co. Ltd China (expected), Anje Textile Co. Ltd, India.(expected), I have an established business contact with most of them and
downturns and our ability once trading to sell at volume/quality and purity.
4,400,000 NGN at the end of December accounting for the shutdown production days and customers requirements.
55,200,000 NGN
63,900,000 NGN with a secondary line in place for production part way through the year
International Buyers: Currently 10% of Sales on a direct basis.However,this is a very large segment of the potential future customer base at around 40% plu
can deliver (estimated marketing time is six months) and demand a 3% price reduction. There is the option of using agents to market on our behalf (10% com
pay in USD
My management team consists of including myself Mr. Mubarak Sirajdeen, has a technical degree and has over nine years practical work experience as a P
contacts and machine operational and maintenance experience is vital to us as a company. Miss Ngozi Opera , holds an accounting degree and an MBA in m
wealth of accounting experience and business administration training will enable us in cutting down costs and improving sales and revenue. She is indeed a
and nearly 8years practical industry experience procuring and supplying waste PET bottles to exporting companies before establishing a mini recycling plan
network in major cities in Nigeria. He has the industry knowledge and contacts, and the required skills to make a big success of the business.

For nearly 8years, I have had hands-on experience managing my business. And from a very humble beginning as a start-up, and have over 14 staff at the cu
the operational side.
100% operational staff increase

2-4 depending on need for holidays, days off and also sickness and also volume requirements.

35 people

2-4 again depending on need

Nampet Recycliing,Dreamlife Consult Recycling, Nigerian Bottling Company Recycling


Inadequate funds to introduce an automated washing and crushing recycling line machinery to meet the tonnage necessary to meet potential demand in the
to me until the level of quality, volume and price to provide repeat product and at the frequencies required. The alternative is agents but margin is affected by
(waste PET Plastic bottles) is a major success factor to survive in this industry. Due to huge demands for the PET bottles, it is important to have a wide netw
offset shortfall during rainy season when people consumption for water and fluid drops.

Supplier Network: Having a reliable and steady supply of raw material (waste PET Plastic bottles) is a major success factor to survive in this industry. Due to
material supply from major cities so as to meet with sales demand and to offset shortfall during rainy season when people consumption for water and fluid dr
High Quality of Cleaned Flakes: Maintaining a high quality of cleaned flakes is vital to success in this business else the product will be under-valued. When q
exceeding 99.7% specifications are possible. We would require to spend 4,960,000 NGN on the final machinery required to automate the production line. Th
a second line would be the strategy to maximise the margins
International Buyers: This is a very large possible segment of the customer and we hope to account for 40% plus of our sales. They demand high purity of cl
quantity and pay in their local currency.

Raw material (waste PET Plastic bottles) . Preferably sorted into clear and coloured plastics and at large tonnage

No but ideally 10% of stocks are retained, so that long run production for colours can be performed to maximise efficiency.
7,680,000 NGN purchased in the last 12 months minus depreciation of 1,067,500 NGN resulting in 6,612,500 NGN

474,400 NGN including owner as active mgmt. in the business.


2,453,200 NGN which is 79 % of sales in the last month provided

223,000 NGN variable costs or 223,000 NGN plus bank charges of 4,000 NGN for currency conversion due to international customers, plus depreciation at
4,960,000 NGN plus the costs of installation of 2 week shut down and then 4 weeks at 60% of running speed until any flow issues resolved.

Cost of raw material stock of 5% of sales and also finished product of 5% of sales. Current level is 3% for both raw and finished goods

None entered into.


4,350,000 NGN loan capital being repaid at 50,000 NGN per month. Personal loan of 3,350,000 NGN which has no stated repayment terms.
Inadequate funds to introduce an automated washing and crushing recycling line machinery to meet the tonnage necessary to meet potential demand in the
to me until the level of quality, volume and price to provide repeat product and at the frequencies required. The alternative is agents but margin is affected by

Supplier Network: Having a reliable and steady supply of raw material (waste PET Plastic bottles) is a major success factor to survive in this industry. Due to
material supply from major cities so as to meet with sales demand and to offset shortfall during rainy season when people consumption for water and fluid dr
Efficiencies delivery by machinery and operating controls and standards to meet right price point. The quality of the product determines the potential custom

Strategies for Growth


Reaching Customers / Increasing Market Share

Reducing Production costs (Manufacturing Industry)

Managing staff
Others see trash and distance themselves but therein lies huge opportunity. Hence, my PET bottle recycling is practically a waste to wealth creation.
From a humble beginning of selling waste PET bottles, My recycling plant currently sits on an acre of land, well fenced with a bore-hole for cheap and steady
the-art automated washing line to ensure high purity of cleaned flakes. I have the experience and raw material supplier network to make it succeed.
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
CASH FLOW YEAR 1
Actual Actual Actual Actual Actual Actual
Sales 450,000 450,000 700,000 700,000 675,000 675,000
450,000 450,000 495,000 700,000 675,000 675,000
Loan 8,000,000 0 0 0 0 0
Equity Contribution 200,000 0 0 0
8,650,000 450,000 495,000 700,000 675,000 675,000
Production Cost 280,000 280,000 420,000 436,800 448,000 453,600
Repairs & Maintenance 0 40,000
Salary 60,000 60,000 60,000 60,000 60,000 60,000
Depreciation 0 0 0 0 0 0
Supplies 100,000
Utilities 50,000 5,000 5,000 5,000 5,000 5,000
Advertisemnet 20,000 10,000 10,000 10,000 10,000 0

INDIRECT COSTS / Overheads


Rent 400,000 0 0 0 0 0
Legal 10,000
Stationery 50,000
Insurance 150,000 0 0 0 0 0
CAPITAL COSTS/FIXED ASSETS 0 0 0 0 0 0
Equipment 6,560,000 0 0 0 0
OTHER COSTS 0 0 0 0 0 0
Bank Charges 1,050 500 400 300 500 800
Loan Repayment 0 0 0 95,000 95,000 95,000
Interest 0 0 0 0 0 0

TOTAL CASH PAID OUT B


7,681,050 355,500 495,400 607,100 618,500 654,400
CASH ON HAND [Beginning of month] C - 968,950 1,063,450 1,063,050 1,155,950 1,212,450
CASH POSITION [End of month] A-B+C 968,950 1,063,450 1,063,050 1,155,950 1,212,450 1,233,050
TOTAL COSTS Profit & Loss items (before adjustments) -670,000 95,000 0 188,200 152,000 116,400
Total Cash Flow After 12
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
months

Actual Actual Actual Actual Actual Actual


750,000 750,000 561,000 567,600 577,500 528,000 7,384,100
750,000 750,000 561,000 567,600 577,500 528,000 7,179,100
0 0 0 0 0 0 8,000,000
0 0 0 0 0 0 200,000
750,000 750,000 561,000 567,600 577,500 528,000 15,379,100
462,000 470,400 476,000 481,600 490,000 448,000 5,146,400
60,000
60,000 60,000 60,000 60,000 60,000 60,000 720,000
0 0 0 0 0 19,950 19,950

5,000 5,000 5,000 5,000 5,000 5,000 105,000


0 0 0 10,000 10,000 10,000 90,000

0 0 0 0 0 0 400,000

0 0 0 0 0 0 150,000
0 0 0 0 0 0 -
0 0 0 0 0 0 6,560,000
0 0 0 0 0 0 -
1,000 1,000 1,000 1,000 1,000 1,000 9,550
95,000 95,000 95,000 95,000 95,000 95,000 855,000
0 0 0 0 0 0 -

NET CASH
623,000 631,400 637,000 652,600 661,000 698,950 #REF!
1,233,050 1,360,050 1,478,650 1,402,650 1,317,650 1,234,150
1,360,050 1,478,650 1,402,650 1,317,650 1,234,150 1,063,200
223,000 214,600 20,000 11,000 12,500 -74,950 287,750
CASH FLOW YEAR 2 Month 1 Month 2 Month 3 Month 4

Actual Actual Actual Actual


Sales 990,000 990,000 990,000 1,155,000
990,000 990,000 990,000 1,155,000
Loan 0 0 0 0
Equity Contribution 0 0
990,000 990,000 990,000 1,155,000
Production Cost 560,000 700,000 448,000 980,000
Repairs & Maintenance 100,000
Salary 60,000 60,000 60,000 60,000
Depreciation 0 0 0 0
Supplies 0
Utilities 5,000 5,000 5,000 5,000
Advertisemnet 10,000 10,000 10,000 10,000

INDIRECT COSTS / Overheads


Rent 400,000 0 0 0
Legal 0
Stationery 20,000
Insurance 115,000 0 0 0
CAPITAL COSTS/FIXED ASSETS 0 0 0 0
Equipment 0 0 0
0 0 0 0
Bank Charges 1,000 1,000 1,000 1,000
Loan Repayment 95,000 95,000 95,000 95,000
Interest 0 0 0 0

TOTAL CASH PAID OUT B


1,366,000 871,000 619,000 1,151,000

CASH ON HAND [Beginning of month] 1,234,150


C 858,150 977,150 1,348,150
CASH POSITION [End of month] A-B+
C 858,150 977,150 1,348,150 1,352,150

TOTAL COSTS Profit & Loss items (before adjust -280,000 215,000 467,000 100,000
Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11

Actual Actual Actual Actual Actual Actual Actual


1,171,500 1,188,000 1,155,000 1,188,000 1,188,000 1,254,000 1,270,500
1,171,500 1,188,000 1,155,000 1,188,000 1,188,000 1,254,000 1,270,500
0 0 0 0 0 0 0
0 0 0 0 0 0 0
1,171,500 1,188,000 1,155,000 1,188,000 1,188,000 1,254,000 1,270,500
994,000 1,008,000 980,000 1,008,000 1,008,000 1,064,000 1,078,000

60,000 60,000 60,000 60,000 60,000 60,000 60,000


0 0 0 0 0 0 0

5,000 5,000 5,000 5,000 5,000 5,000 5,000


10,000 0 0 0 0 10,000 10,000

0 0 0 0 0 0 0

0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
1,000 1,000 1,000 1,000 1,000 1,000 1,000
95,000 95,000 95,000 95,000 95,000 95,000 95,000
0 0 0 0 0 0 0

1,165,000 1,169,000 1,141,000 1,169,000 1,169,000 1,235,000 1,249,000

1,352,150 1,358,650 1,377,650 1,391,650 1,410,650 1,429,650 1,448,650


1,358,650 1,377,650 1,391,650 1,410,650 1,429,650 1,448,650 1,470,150

102,500 115,000 110,000 115,000 115,000 115,000 117,500


Total Cash Flow
Month 12
After 12 months
Actual
1,155,000 13,695,000
1,155,000 13,695,000
0 -
0 -
1,155,000 13,695,000
980,000 10,808,000

60,000 720,000
39,000 39,000

5,000 60,000
10,000 80,000

0 400,000

0 115,000
0 -
0 -
0 -
1,000 12,000
95,000 1,140,000
0 -
NET CASH

1,190,000
#REF!
1,470,150
1,435,150

61,000 1,353,000
CASH FLOW YEAR 3 Month 1 Month 2 Month 3 Month 4

Actual Actual Actual Actual


Sales 990,000 990,000 1,310,100 1,320,000
990,000 990,000 1,310,100 1,320,000
Loan 0 0 0 0
Equity Contribution 0 0
990,000 990,000 1,310,100 1,320,000
Production Cost 560,000 700,000 1,111,600 1,120,000
Repairs & Maintenance 100,000
Salary 60,000 60,000 60,000 60,000
Depreciation 0 0 0 0
Supplies 0
Utilities 5,000 5,000 5,000 5,000
Advertisemnet 10,000 10,000 10,000 10,000

INDIRECT COSTS / Overheads


Rent 400,000 0 0 0
Legal 0
Stationery 5,000
Insurance 115,000 0 0 0
CAPITAL COSTS/FIXED ASSETS 0 0 0 0
Equipment 0 0 0
0 0 0 0
Bank Charges 1,000 1,000 1,000 1,000
Loan Repayment 95,000 95,000 95,000 95,000
Interest 0 0 0 0

TOTAL CASH PAID OUT B


1,351,000 871,000 1,282,600 1,291,000

CASH ON HAND [Beginning of month] 1,470,150


C 1,109,150 1,228,150 1,255,650
CASH POSITION [End of month] A-B+
C 1,109,150 1,228,150 1,255,650 1,284,650

TOTAL COSTS Profit & Loss items (before adjust -265,000 215,000 123,500 125,000
Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11

Actual Actual Actual Actual Actual Actual Actual


1,323,300 1,323,300 1,310,100 1,336,500 1,343,100 1,369,500 1,376,100
1,323,300 1,323,300 1,310,100 1,336,500 1,343,100 1,369,500 1,376,100
0 0 0 0 0 0 0
0 0 0 0 0 0 0
1,323,300 1,323,300 1,310,100 1,336,500 1,343,100 1,369,500 1,376,100
1,122,800 1,122,800 1,111,600 1,134,000 1,139,600 1,162,000 1,167,600

60,000 60,000 60,000 60,000 60,000 60,000 60,000


0 0 0 0 0 0 0

5,000 5,000 5,000 5,000 5,000 5,000 5,000


10,000 10,000 10,000 10,000 10,000 10,000 10,000

0 0 0 0 0 0 0

0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
1,000 1,000 1,000 1,000 1,000 1,000 1,000
95,000 95,000 95,000 95,000 95,000 95,000 95,000
0 0 0 0 0 0 0

1,293,800 1,293,800 1,282,600 1,305,000 1,310,600 1,333,000 1,338,600

1,284,650 1,314,150 1,343,650 1,371,150 1,402,650 1,435,150 1,471,650


1,314,150 1,343,650 1,371,150 1,402,650 1,435,150 1,471,650 1,509,150

125,500 125,500 123,500 127,500 128,500 132,500 133,500


Total Cash Flow
Month 12
After 12 months
Actual
1,155,000 15,147,000
1,155,000 15,147,000
0 -
0 -
1,155,000 15,147,000
980,000 12,432,000

60,000 720,000
40,000 40,000

5,000 60,000
10,000 120,000

0 400,000

0 115,000
0 -
0 -
0 -
1,000 12,000
95,000 1,140,000
0 -
NET CASH

1,191,000
#REF!
1,509,150
1,473,150

60,000 1,155,000