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A FEASIBILITY STUDY REPORT OF

TOM BROWN

BY

GROUP ONE (1) MEMBERS

IN

THE DEPARTMENT OF MECHANICAL ENGINEERING

FACULTY OF ENGINEERING

UNIVERSITY OF BENIN, BENIN CITY.

JUNE 2019
WRITTEN AND EDITED BY MADU JUSTICE CHIMEZIE, ARTWORK BY JEGEDE OLUWATOBI.

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ACKNOWLEDGEMENT
First of all, we would like to express our heartfelt gratitude to our CED 300
lecturers Dr,…… and ……. For deeming us fit and bestowing on us the privilege
of participating in this study as part of our endless search for wisdom and for
preparing us for the capital market.

Our thanks also go to our friends, families and relatives for their loving support
during the study. They made us successful by their financial contributions,
emotional support and prayers.

We also want to acknowledge our friends and all even in little ways made it
possible for the study to go into completion, especially Mrs. Rukayat who assisted
in the grain grinding.

And above all, this study won‟t come to completion without the guidance,
inspiration and protection by God.

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TABLE OF CONTENTS
TITLE PAGE

COVER PAGE 1

POSPONENTS 2

ACKNOWLEDGEMENT 3

TABLE OF CONTENTS 4-5

CHAPTER 1: OVERVIEW 6
INTRODUCTION 7

NAME OF FIRM/IDENTITY OF BUSINESS 8

LOCATION/ PROPOSED MARKET 8

MANAGEMENT FEASIBILITY STUDY 9

MARKETING FEASIBILITY STUDY 9

FINANCIAL FEASIBILITY STUDY 9

PARTENERSHIP LOGO 9

TYPE OF BUSINESS ORGANIZATION 11

CHAPTER 2: MANAGEMENT ASPECT 12


MANAGEMENT FEASIBILITY 13

DESCRIPTION AND NATURE OF BUSINESS 13

MISSION STATEMENT 14

VISION STATEMENT 14

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ORGANIZATIONAL STRUCTURE 14

ORGANIZATIONAL CHART 15

CHAPTER 3: MARKETING ASPECT 16


MARKETING FEASIBILITY 17

MARKETING PHILOSOPHY 17

GEOGRAPGIC SEGMENTATION 17

CUSTOMER SURVEY SUMMARY 21

PRICE STRATEGY/ MARKET SHARE AND COMPETITION 26

ADVERTISING STRATEGY 27

CHAPTER 4: TECHNICAL SUMMARY 28


TECHNICAL FEASIBILITY 29

MACHINERIES AND EQUIPMENT 29

MANUFACTURING PROCESS 31

INGREDIENTS 32

PROCEDURE 33

CHAPTER 5: FINANCIAL SUMMARY 34


FINANCIAL FEASIBILITY 35

CALCULATIONS 36

DEPRECIATION 37

NET PROFIT 37

PROCESS OF REGISTRATION 38

CONCLUSION 39

REFERENCES 40

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CHAPTER 1

OVERVIEW

FEASIBILITY REPORT ON TOM BROWN| GROUP ONE| CED 300| 400L MEE| JUNE 2019 Page 5
INTRODUCTION

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In West Africa, cereals are the main ingredients in most of the traditional weaning
foods, including Nigeria. However, since the nutrient density of these weaning
foods is low, it is almost impossible for small children to meet their needs for
calories and protein from the amount that they can ingest. Sources of good quality
protein such as meat are expensive for low-income families. Many studies have
examined how to improve the nutritional quality of traditional weaning foods using
affordable staples such as legumes.

The nutritional quality of “Tom Brown” weaning diet was assessed in this
study. “Tom Brown” diet was prepared from the combination of measured
proportions of yellow corn, groundnut, soybean and guinea corn. The nutritional
quality of “Tom Brown” was evaluated from its total nitrogen and protein contents,
compared to the contents in Basal and Reference diets. The results showed that the
total nitrogen and protein contents of Tom Brown were significantly higher,
compared respectively, to the contents in reference and basal diets.

Tom-brown is also good for adults who always have busy schedules and may
have to leave very early in the morning to their place of work. It‟s just a 5 minutes
meal. This will save one‟s time especially if one is on the go. Also, because of its
rich contents, this fiber makes one feel fuller for long causing one to focus on his
most important tasks for the day.

Hence the Tom Brown product is highly versatile, sweeping across the entire
age grade ranging from infants or babies to consumption by Adults not even
mentioning the high nutritional values as would be discussed subsequently.

NAME OF FIRM/ IDENTITY OF BUSINESS

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The proposed name of the partnership is Edo-Taiwo & Co. and the
proposed name of product is „For You Tom Brown’ This is because for every
business a trade name is necessary to make a difference from other businesses.
Also the business is a partnership kind of venture actually involving ten (10)
persons. Moreover there are other firms that produce the product both internally
and internationally before they are duly imported, hence to create a distinguishing
factor based on quality, methodology and ingenuity, the name as indicated above
was appropriately adopted.

LOCATION/PROPOSED MARKET
The location of our firm will be 236, Ugbowo Lagos Road, Opp Uwasota
junction, Benin City. This is in the TECNO Exclusive K-Ultra Benin. The business
is located here because it is close to our target market and competitors and simply
because it is in the Ugbowo vicinity which we took our market survey and market
size evaluation.

MANAGEMENT FEASIBILITY SUMMARY


The management aspect of our proposal will preview what strategy of
management we will apply. This will give an overview of the manner we will be
managing the business and show our strategy on how we do, we operate the
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business. It is shown that we, as General Partners will be taking care of the
administrative aspects of the business. This will ensure that the success of the
business will depend on how we manage the firm and the way we perform our
tasks, duties and responsibilities.

MARKETING FEASIBILITY SUMMARY


The Marketing study covers the General business condition, competitive
condition, target market, demand and supply, product, pricing strategy, promotion
and packaging. This area talks about the structured questionnaire floated to the
respondents and the result determines the demand and supply and to know whether
our product will penetrate the target market.

FINANCIAL FEASIBILITY SUMMARY


We were all given total sum of ₦120,000 as the capital of the business.
The proponents will also make projected financial statements to somehow disclose
information on financial position, performance and cash flow of the business. A
study on whether a project is viable after taking into consideration its total costs
and probable revenues. If the revenues cover the costs of the project, then the
project is visible.
OUR BUSINESS LOGO

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Our business logo was made as we all partners decided its design on how it will
looks like. We came up with the idea of this logo that it must be simple but yet
have the sense of elegance, easy to recognize and it is appealing to the people.

We chose a square shape logo to signify as the boundless and original


perfection of management of our firm. As we, the proponents make sure that we
are updated in everything that is occurring in our business operation.

The pictorial depiction of all five active ingredients helps to appeal to the eyes
of the potential customers and remind them of the dietary benefits of the product as

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containing all six basic food nutrients ; carbohydrates, protein, fats, minerals and
vitamins.
Our catchy tagline „made just for you’ helps reassure the buyer that we have
their nutritional interest at heart and all we do is to satisfy their need.
Moreover the „100% natural tag’ denotes naturalness and no addition of
foreign additives or flavor of any kind, relying simply on natures‟ gift.

In order to wean a baby one needs a quality and nutrient packed food substance
containing all necessary nutrients that is able to equate the breast milk and keep the
baby going. Also, in case the case of adults a healthy quick breakfast cannot be
equated to anything and can never be overemphasized. All of the above is hugely
and efficiently satisfied by a single product; the Edo-Taiwo & Co
Tom brown product whose sight alone will make it irresistible.

TYPE OF BUSINESS ORGANIZATION


Edo-Taiwo & Co is a General Partnership type of business. It would be owned,
operated and sustained by ten (10) partners.
Partnership is defined is a contract, of an association of two or more persons
engaged in a certain business bind themselves to share money, property, or
industry to common fund. Both owners are equally and personally liable for the
debts from the business. All partners are responsible for the business, and they
share all assets, liabilities and profits within the partnership as a separate entity.

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CHAPTER 2

MANAGEMENT

ASPECT

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MANAGEMENT FEASIBILITY
The Management Feasibility is the study that concerns the organizational set-
up of the business, which includes the organizational chart and the qualifications of
the people involved and manage the business. It also determines the type of the
business ownership.

The term “Management” in this section refers to the scientific and procedural
contributions of human resources towards the proposed business endeavor. This
section, therefore, determines the human resource requirements of the project.

Since organizations can be viewed as systems, management can also be


defined as human action, including design, to facilitate the production of useful
outcomes from a system. This view opens the opportunity to „manage‟ oneself, a
pre-requisite attempting to manage others.

DESCRIPTION AND NATURE OF BUSINESS


We make this product proposal for the purpose that we want to serve our
valued customers in a new product dishes that we give them a healthy food that
will greatly benefit not only for adults but also for the young ones (especially
children at the age of weaning), we add especial ingredients for our products such
as groundnuts and soya bean that beat contemporary weaning foods in nutritional
value and quantity. We would like to introduce varieties of flavors that consumers
would not normally taste of other „Tom browns‟. We believe that consumers will
patronize healthy choices instead of those „Tom browns‟ contains amount of sugar
and unhealthy ingredients.

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MISSION STATEMENT
The Partnership‟s duty is to delight its customer by producing healthy Tom
Brown with high nutritional value that serves a both adults and children to choose
and to achieve high efficiency with the resource available.

VISION STATEMENT
Edo-Taiwo & Co for You Tom Brown is a business oriented organization of
young entrepreneurs from the department of mechanical engineering, University of
Benin, Benin-City aiming to satisfy customer‟s needs through providing quality
products with affordable prices at suitable places and creative promotions.

ORGANIZATIONAL STRUCTURE
For every partnership to function properly there has to be a structure or
organization put in place. Organizational structure determines how the roles, power
and responsibilities are assigned, controlled, and coordinated, and how information
flows between the different levels of management. A structure depends on the
organization‟s objectives and strategy. In a decentralized structure, the decisions
making power is distributed and the departments and division, have different
degrees of independence. Hence the Edo-Taiwo & Co partnership for the
production of For You Tom Brown will hope to endorse and use the decentralized
structure for optimum performance and rhythmical purposes with the business
objective.

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ORGANIZATIONAL CHART

GENERAL MANAGER
EDO-TAIWO, A.S

PRODUCTION FINANCIAL MARKETING MARKETING


PURCHASING
MANGER MANAGER 1 MANAGER 2
MANAGER
EKEBAFE, G.F
MADU, J.C IDAHOSA, I.D JEGEDE, M.O AWETADE, E.
ADVERTISING
CASHIER MANAGER FIN SEC .
CHIEF
TECHNOLOGIST EDOSOMW PATRICK OSADOLOR W.D
ARASOMWAN, AN, E.E MARVELOUS,
A.G

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CHAPTER 3

MARKETING

ASPECT

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MARKETING FEASIBILITY

Marketing is the process of perceiving, understanding, stimulating, and


satisfying the customer needs, wants and expectations through the goods and
services of specially selected target market which is better than the competitors.

MARKETING PHILOSOPHY

A marketing philosophy defines the mission of a business using the


satisfaction and benefits that using that business offers; it focuses on a two-way
system of communication with the customer, so that the marketing department
understands the customer needs more clearly.

Edo-Taiwo & Co for You Tom Brown promotes healthy lifestyle, eating our
special Tom Brown gives a lot of benefits to a person‟s body and attitude as well
as to our environment. We believe that customers can have great nutritional foods
of high quality if the right attention is paid to packaging, recipes, and consistency.
Edo-Taiwo & Co will launch a first location at Ugbowo-Lagos road
, Ugbowo to serve the Ugbowo vicinity as well as the other municipalities. We will
have our different branches to build local brands to the coming years. This
marketing plan will allow the partnership to focus on marketing efforts by taking
the long view, and looking for results on a daily and weekly basis to see that the
chosen tactics are successful.

GEOGRAPHY SEGMENTATION

Geographic segmentation criteria include region, climate and population


density. Using population estimates from the latest census and information on the
competitive structure from the local chamber of commerce, Edo-Taiwo & Co

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estimated the number of potential customers and planned its operations
accordingly.

Below is the map of Ugbowo where the business is hoped to be established;

Ugbowo is among nine other wards of Egor Local Government of Edo State. Egor
Local government Area has a current population of 399,899. However according to
the last population censor the population and other demographics given by the
National Population Commission of Nigeria and the National Bureau of Statistics,
the following demographics in the next page was obtained, properly scrutinized
and evaluated carefully.

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EGOR L.G.A MAP

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EGOR L.G.A DEMOGRAPHIC

 After analysis of age group, it was observed that Egor Local Government
Area Council has a highest population demographic between the ages of 15-
64 years (i.e. 61.6%) of the total population. Interestingly females comprise
of 50.4% of the population, hence more child bearing population implying
more babies and thus more customers. Of all the Ten (10) wards of Egor
Local Government area which include;

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 Egor
 Evbareke
 Ogida/Use
 Okhoro
 Oliha
 Otubu
 Ugbowo
 Uselu i
 Uselu ii
 Uwelu

Ugbowo ward had the highest working class population and a considerate
population of weaning mothers. Moreover Traffic in Ugbowo appears to be the
highest because of the presence of Federal Institutions and parastatals and hence
high population density. Hence after studying the above carefully Edo-Taiwo &
Co decided that the Ugbowo axis will be best suited for establishment of the
business.

CUSTOMER SURVEY SUMMARY/ SURVEY OF MARKET SIZE AND


VALUE

To fully understand and analyze the problem the client‟s preferences, we


conducted a survey to collect pertinent data. The survey was conducted within
the perimeters of University of Benin Ugbowo Campus and uwasota junction,
where we asked fifty (50) people to answer a number of questions in the form
of questionnaire.

The result of the survey is displayed in the below;

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All graphs are plotted in percentage.

What category of gender do you fall into?

70

60

50

40 Column 1
Column2
30
column 3

20

10

0
MALE FEMALE

What age category do you fall into?

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40

35

30

25
Column 1
20
Column2
15 column 3

10

0
0-15 16-30 30-45 45-60 60+

Do you have children?

120

100

80

YES
60
NO
Column1
40

20

0
0-15 15-30 30-45 45-60 60+

What did you or do use in weaning them?

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40

35

30

25
Column3
20
Column2

15 Column1

10

0
cerelac rice-wheat mix wheat mix wheat gram mix others

What do you value most in a wean-mix?

45

40

35

30

25 Column3
percentage
20
Column1
15

10

0
Texture Smell Appearance Taste Quality Other

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Do you have time to prepare a very comprehensive breakfast?

90

80

70

60

50 percentage
Column1
40
Column2
30

20

10

0
YES NO

Will you give a new product that combines quality with simplicity a chance?

100

90

80

70

60
Column3
50
Column1
40 Percentage2
30

20

10

0
YES NO

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From the data gathered from the questionnaire it is obvious that a large
percentage of the population is consuming a wean-mix (in the case of those with
children) and quick breakfast (in the case of the working class). Interestingly these
two categories make a huge majority of those that filled the questionnaire, hence
signifying a potential large market. A more encouraging fact is the interest shown
by people in trying a new product that blends quality with simple preparation
(which essentially is what Edo-Taiwo & Co. For You Tom Brown offers) as
indicated by the last plot; an incredible ninety (90%) percent affirmative.

From the above analysis, „Edo-Taiwo & Co for You Tom Brown‟ has a
potentially large market ranging from the busy working class to the considerable
percentage of the population with babies of weaning age range.

PRICE STRATEGY/MARKET SHARE AND COMPETITION

The starting price that the proponents will offer to the target market is cheaper
than the other competitor because of the availability of the raw needed for the
production. The partnership follows certain calculations arrive at the suggested
retail price. The price will be based on the cost directly incurred in manufacturing
the product, cost of raw materials plus overhead cost. The proponents will sell the
„For You Tom Brown‟ with a minimum cost of ₦900 each. It depends on its size,
due to some environmental factors that may affect the future financial status of the
business. The price of the product will be least competitive for those who will buy
it as compared to the range of ₦1,150 to ₦ 2,300 that similar other products sell
for. As a result of this decreased price as compared to contemporary products,
„Edo-Taiwo & Co For You Tom Brown‟ hopes to beat and wade off competitors
hence attracting more customers who would opt to a more quality yet cheaper
product.

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ADVERTISING STRATEGY

Promotion is the ingredients used to inform and persuades the customers to buy
the proponents product. Advertising, personal selling, displaying tarpaulins in
some popular place where most people come in, giving fliers for the walk-ins,
brochures so that the customer will be aware in our product proposal and sales
promotions are the major promotional activities. Also since this business is new to
the industry customers will be given discounts and other promos in its 1st week of
operation. The proponents also used social networking sites such as Facebook,
Twitter, and Instagram in promoting the product in a wider range of customers to
avoid spending too much with the promotional tools. In this promotion, any form
of promotions will be executed by the company. As the promotional strategy, the
proponents will make sure that the name of the business and the product itself will
seize the attention of their target market. In this way we are able to attract other
potential consumers regarding the product.

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CHAPTER 4

TECHNICAL

SUMMARY

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TECHNICAL FEASIBILITY

Technical feasibility considers the technical requirements of the proposed


project. The technical requirements are then compared to the technical capability
of the organization. The systems project is considered technically feasible if the
internal technical capability is sufficient to support the project requirements.

Edo-Taiwo & Co deemed it necessary to make a proposal on the technical


aspects of the project; this includes machines, tools, materials and technical know-
how. The following diagrams gives pictorial depiction of materials and tools
employed.

MACHINERIES AND EQUIPMENT

Mortar & pestle Flour mill

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Gas cylinder Sift Tray

Frying pan Stainless steel frying spoon

High power Blender

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Measuring Spoon

MANUFACTURING PROCESS

Making the Tom Brown takes a lot of initial experimentation.

The general procedures in making our products are outlined below:

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What makes up Tom brown mix is a mixture of cereals (yellow corn, guinea
corn and millet) and legumes (soybeans and groundnuts). The cereals and legumes
add a variety of nutrients beneficial to baby's good health to the meal.

INGREDIENTS REQUIRED;

Yellow corn Soya Beans Guinea Corn

Groundnut Millet

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In fact for a 100g serving size there is 298 Calories, 27g of Carbs (37%), 15g of
Fat (46%) and 13g protein (18%).

PROCEDURE

1. Buy dried corn from the market, then roast it on fire until its turn brown and
just before it starts popping like popcorn, remove it, leave to cool ( You can
fry the two different types of corn together).
2. Fry your groundnut (1 Derica is okay depending on how much cereals
you're using).
3. Fry the millet and the soya bean. You have to fry everything separately.
4. After frying the soya beans, grind softly with mortar and pestle to remove
the shaft, blow the shaft away with your mouth
5. Leave everything to cool.
6. Combine all the ingredients together, if you have a high powered blender
you can blend the mixture with your blender but if not, take it to the local
mill to blend. The mixture should be blended dry (do not add water!)
7. Your Tom Brown mixture is ready! Pour it inside a dry container and
prepare it

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CHAPTER 5

FINANCIAL

ASPECT
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FINANCIAL FEASIBILITY

Startup Capital = ₦120,000

The following tables present the financial projections of the feasibility study;

INGREDIENTS QUANTITY UNIT UNIT TOTAL


(cups) COST COST
Groundnut 20 Cups ₦ 100 ₦ 2,000
Yellow Corn 100 Cups ₦ 80 ₦ 8,000
Guinea Corn 100 Cups ₦ 80 ₦ 8,000
Millet 50 Cups ₦ 80 ₦ 4,000
Soya Beans 50 Cups ₦ 80 ₦ 4,000
TOTAL ₦ 26,000

Table 1

OTHER TOOLS QUANTITY UNIT UNIT COST TOTAL


& EQUIPMENTS COST
Mortar and Pestle 2 Pcs ₦ 2,500 ₦ 5,000
Gas cylinder 1 Pc ₦ 6,900 ₦ 6,900
Tray 4 Pcs ₦ 700 ₦ 2,800
Sift 3 Pcs ₦ 550 ₦ 1,650
Frying Pan 2 Pcs ₦ 450 ₦ 900
Stainless frying spoon 4 Pcs ₦ 300 ₦ 1,200
Apron 5 Pcs ₦ 1,200 ₦ 6,000
Working Table 2 Pcs ₦ 7,000 ₦ 14,000
Measuring Spoon 2 Pcs ₦ 900 ₦ 1,800

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TOTAL ₦ 40,250

Table 2

OTHER EXPENSES TOTAL COST


PACKAGING ₦ 4,500
GRINDING ₦ 5,000
SHOP RENT ₦ 15,000 ( six months)
ADVERTISING COST ₦ 5,000
REGISTRATION FEE ₦ 500
TOTAL ₦ 29,500

Table 3

PURCHASE EXPENSES = COST OF INGREDIENTS + COST OF OTHER


TOOLS AND EQUIPMENTS + COST OF OTHER EXPENSES;

PURCHASE EXPENSES = ₦26,000 + ₦40,250 + ₦29,500 = ₦95,750

Initial Startup Salary = ₦1,000

Total Initial Startup Salaries = (₦1,200 × 10 Partners) = ₦12,000

TOTAL EXPENDITURE = PURCHASE EXPENSES + TOTAL INITIAL


STARTUP SALARIES;

TOTAL EXPENDITURE = ₦95,750


+ ₦12,000
₦107,750

DEPOSIT IN BANK = Startup Capital – Total Expenditure;

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₦ 120,000
- ₦ 107,750
₦ 12,250

Therefore Deposit in Bank = ₦12,250

SALES AND REVENUES

Price per product = ₦900

Total Revenue = total sales = (₦ 900 × 250) = ₦225,000

Calculating Depreciation;

Adopting the „Units of Product Depreciation Method‟;

Fixed cost = cost of tools and equipment = ₦ 40,250

From statistical evaluation, Taking 10% of fixed cost;

Depreciation =

Since depreciation is non-cash item or non-cash expense, it is added to the net


profit.

Hence NET PROFIT = (REVENUE – TOTAL EXENDITURE) +


DEPRECIATION

NET PROFIT = ₦225,000


- ₦107,750
+ ₦4,025

₦121,275

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With the above sum of Net Profit, the business promises to be profitable, and
hence worth a try.

PROCESS OF REGISTRATION

The process of registration of business name was done with the corporate affairs
commission (CAC) located at Godwin Abbe way, off limit road/ junction, Sapele
Road, Benin City, Edo state. The proponents submitted all documents and details
to CAC with regards to the business as enumerated below;

I. The proposed name of the business.


II. The reservation of name form
III. The nature of the business.

Since the business also entails food product proper permit and documentation was
obtained from the National Agency for Food and Drug Administration and Control
(NAFDAC).

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CONCLUSION

The Edo-Taiwo & Co For You Tom Brown is a partnership of enterprise


consisting of 10 students. The profits earned from the proposed business will be
equally shared between the proponents. The business will be set up as a medium
scale enterprise because it has the potential to grow and expand into a large scale
enterprise. The Edo-Taiwo & Co For You Tom Brown is sorely hinged on
satisfying the customers need while ensuring that quality and price is not held at a
compromise. Our explicit and hygienic methodology of producing the product
coupled with nutritional blend of cereal and legumes and a very eye-catching
packaging leaves the Edo-Taiwo & Co For You Tom Brown a product to be beaten
and well sought out for. With the affirmative answers from the survey we carried
out and the potential large market in our well-chosen location, we can confidently
say that competitors will have a good run for their investment

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REFERENCES

● King C. 2009. An evidence based guide to weaning preterm infants. Paed &
Child Health. 19.9.

●Report from the National Population Commission, 2006 Census data, VOL I,-
Edo state statistics.

●Marriott LD, Foote KD. 2003. Advances in the nutrition of preterm infants. J R
Soc Promot Health. 2003 Sep;123(3):159-64. Review.

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