Вы находитесь на странице: 1из 9

MILE TWO NKWEN

BAMENDA

E-mail: tangwap2004@yahoo.com/tangwap2010@gmail.com
Tel: 75-00-53-48/93-23-51-98

TANGWA Paul BUDZE


16 April 2012

TABLE OF CONTENTS
Business Overview

BUSINESS OVERVIEW
In September 2008 I formed a Palm Oil sales business that started the oil complex today called TPL2.
This business was located in Bamenda Cameroon. I formed this business as a proprietorship. Others involved
in this business were: Sewoyeba Loveline, Lukong Tangwa Anthony and Monica kilirgha
The main goal of this business was to create employment and improve on the living standards of the people
involved likewise giving nutritional balance to local consumers.
Financing was arranged through home equity loans on terms that it shall be paid within a period of three years
on no interest for the betterment of the family.
TPL2 PALM OIL was formed as a proprietorship business, in April 2012 in Bamenda Cameroon, by
TANGWA Paul BUDZE in response to the following market conditions:
The population growth and opportunities that exist in the need/demand for Palm Oil.
The need for use of efficient distribution and financial methods in these overlooked markets.
He has several customers who are willing to place large orders within the next three years.
Several other prospective customers have expressed serious interest in doing business within three years.
Paul previously owned a company that was active in the Oil markets. Over the past few years I spent much
time studying ways to improve overall performance and increase profits. This plan is a result of that study.
The basic components of this plan are:
<Product>

Competitive pricing

Expand the markets

Increased advertising

Lower my unit costs,

Thereby achieving higher profits.

To this end, he needs investment from private individuals and/or companies. A total of 1, 531, 600Fcfa is being
needed which will be used to finance working capital, plant and equipment. The business will be incorporated
and common stock issued to investors. The business will be run as a proprietorship.
Tangwa Paul now able to adequately address the markets i have targeted. I have adjusted my staff,
redirected my advertising and sales force, and have added the products necessary to meet the needs and
expectations of my customers.
TPL2 PALM OIL believes very strongly in technical, financial, business and moral excellence. To
secure a stable future for all those connected with TPL2 PALM OIL have set the following long term goals:

MARKETING PLAN
TPL2 PALM OIL intends to offer PALM OIL. This PALM OIL offers my customers the best possible solution
as it:
<Product>
1

Offers the lowest price on the market

Is the most technically advanced

Offers more useful features

Saves them time and money

Offers our users better value per francs spend

Provides an alternative way to achieve a similar task.

Provides a service which is not presently available in this area.

Is strengthened by a team with combined experience of three years.

Saves them time and money

Provides an alternative, cost effective way for them to realize a similar goal.

<Service>

<Product>
The Palm Oil has a useful life of five to ten years. To distribute this product so that it remains usable for my
customers, i must use the following methods of storage and transportation:

Overnight delivery

Incorporate preservatives

Transportation within one day to distributors.

Specially padded containers.

Targeting new Markets


To continue my growth, i will be using the following methods to expand my markets and to increase my new
areas of doing business:

Customer contact - find out their needs

Look for complementary products

Trade shows

Market surveys

Research & development

INFRASTRUCTURE AND GOOD NEEDED FOR STARTUP

Item

Description

Incorporation Costs

Registration/memorandu
m
Computer System
Laptop
Intangible assets
Transportation fees
Furniture
Benches
Equipment
and Drum Jack, Key and
tools
funnels
Transport element
Truck
Office Equipment
Calculator/others
Another fixed assets Containers
Deposit of rent
Commodities
Total
Investment

Store house
Volume of Oil
of

Value (F CFA)

Availability
(yes/No)

60.000

Yes

150.000
60.000
25.000
35.000

Yes
No
Yes
Yes

90.000
5000
14000/28000/2000/60
0
20.000
1,040,000

No
Yes
No
Yes
No

1,531,600

SWOT ANALYSIS
Strengths:
Location - next door to supplier, on major artery, and by the market.

Pricing - Low cost seller, known for aggressive pricing policy.

Delivery transport overnight to anywhere in the region.

Management - Everyone has but ordinary level certificate.

Weaknesses
Service mixed low quality and medium together for customers.

Dedication pay no attention to low scale baying customers.

Machinery sale in small drums to dose who do not know the difference.

Overhead - Spend lavishly on drinking and not taking it into account.

OPPORTUNITIES
Palm Oil
The distinctive competitive advantages which TPL2 PALM OIL brings to this market are: Experience in this
market. I have four years of hands-on experience in this Business.
Sophistication in finance and distribution. This results in my being the low cost supplier in these price sensitive
markets.
The philosophy of TPL2 PALM OIL is to price not just according to my costs, but also
according to what the market will pay.
3

My targeted minimum gross profit margin for a category must be 20%.


By pricing to the market, I will achieve higher sales and therefore increase my buying power. As
the amounts of my purchases increase, my per unit costs of transportation decrease and I will
achieve higher discount levels from my suppliers. Through these economies of scale, many items
currently on the market can be sold with lower prices, yet a higher net profit.

Product pricing will include a range of quantity discounts as well as an early payment discount.

Rather than being strictly regional, I will expand into the national market.
A level and policy of Capitalization that will allow me to fully address the respective markets with
comprehensive marketing and customer service plans.
By keeping my overhead low, I will be able to funnel my profits back into operations thus
avoiding high debt ratios or lost sales opportunities.
A quarterly direct mail campaign directed at both current customers and prospective new
customers consisting of an informative newsletter.
I will print complete four-color catalogs on a yearly basis. Price lists will be updated as needed.
I intend to be aggressive in trade magazine advertising.

Consideration will also be given to attending trade shows around the country.

With this level of capitalization, should an unexpected downturn occur, I will be able to continue
operations on a positive scale.
COST
My books will initially be maintained manually. TPL2 PALM OIL seeks at a future point to use a
computerized accounting package to monitor her financial performance. This information will be
compiled at the end of each month for preparation of financial statements. Each month these statements
will be reviewed against my performance and appropriate action taken to adjust costs or my budget. If i
find that I am continually over budget, my first step will be to reevaluate my markup on products and
then to recheck my costs to make certain that I am obtaining the best possible prices.
In the last column, estimate how important each competitive factor is to the customer. 1 = critical; 5 =
not very important.

Importance
to customer

FACTOR

Me

Strength

Weakness

Competitor A

Products

TPL2 Palm Oil

Good

New

Old in business

Price

Very flexible

Important

Lack of customers

Not an issue

Quality

Superb

Important

Lack of transportation

Up to the task

Selection

Grade one

Always the
best

Still new in the market

Have many customers

Service

Sales

One on one
contact

Lack of communication

Huge capitals

Reliability

Very reliable

Always

Lack of customers

Heavy stuck

FACTOR

Me

Strength

Weakness

Competitor A

Importance
to customer

Stability

Very stable

Good

Risk

Heavy stuck

Expertise

Much experience Good

Not much

Longevity

Company
reputation

Always at the
service of
customers

New in business

Always with stuck

Location

Mile two Nkwen Good

Not yet well known

Best location

Appearance

Very hygienic

Much of color

Dirty area

Sales method

One on one with


Excellent
customers

Lack of customers

Capitalistic

Credit
policies

No credit to
individuals

Good for
business
strength

No regular customers yet Huge credit supplies

Advertising

By flyers/Radio

Attractive

Lack of funs

Image

Sticker logo

Good
Lack of funs
market face

Week

Good

Location dose that for


them

n/a

STARTUP FINANCIAL PLAN


ITEM
Commodities
Fixed Asset
Other fixed asest
Intangible Assets
TOTAL
INVESTMENT
NEEDED

DESCRIPTION
Volume of Oil
Containners
Truck for tansporting oil around
Farm to Market Transportation

OF

VALUE
1,040,000
148.000
90.000
60.000
1,338,000

HUMAN RESOURCE
Manager

Sales Girl two

MANAGER: Tangwa Paul is the manger with a qualification of Baccalaureate Technique F3 and has done
Information Technology to the level of Diploma. He is the general manager and Owner of the
business and is in charge of overseeing the affairs of the business.
ASSISTANT MANAGER: Lukong Tangwa Anthony is the assistant manager and his role is to coordinate
and see into the better functioning of the business from the store level. His relation with the
manager is father and son. (my Father) He is a retired Civil servant.
MARKETING DIRECTOR:
Shiynyuy Arthur-Loic is the marketing director whose role is to insure the
proper and sufficient supply of oil to all targeted customers and also follow up and control the
sales personnel. He has no formal relation with the manager and has CAP in Accounting. His
beginning salary is 15.000 FRS.
SALES GIRLS:
Sewoyeba Loveline and Minica Kilirgha are sales girls whose role is to deliver supplies
and collect money from our customers. Their relations with the manager are wife and mother
respectively.

PRODUCTION PLAN
The Palm Oil is highly produced within the months of March, April, May and June in the area of my business
coverage. The best time to buy and stuck is within this period because the price witness a drop in purchasing
AND GOOD QUALITY Palm Oil is also available
After this period the price starts to increase gradually until the months of November, December,
January and February that prices are really high and is the period whereby Palm Oil sellers make good profit
from their stuck to repay back their loans.

FINANCIAL PLAN
To
payable

whom

Unit cost

Qty

Year One

Unit Cost QT

Year two

Unit Cost

14000

1120000

28000

Qty

Year three

Fixed assets
Containers/variet
y

14000

228000

168000

Store counter

25,000

25,000

Total Fixed

12

264.000

51500

56400

56400

12

9600

1300

12

15600

25.000

12

300.000

35.000

12

420.000

384000

48000

12

576.000

52.000

12

624.000

38400

3800

12

45600

4200

12

50.400

12

240.000

20

12

Taxation

49500

49500

51500

Consumable bills

520

12

187200

800

Salary

15000

12

180,000

Transportation

32000

12

Council ticket

3200

12

Total
variable/Expen
diture

1079100

Miscellaneous
exp

205000

Selling cash

1120000

12

11328000
13440000

Profit margin

2112000

Net Profit

827900

Net Profit is obtained by


Eg:

218000

22.000

20.000

12

50.000

240.000

Store rent

944000

1120000

253000

Buying cash

50.000

1,430,400

1,222,700

230.000

250,000

1.400,000

12

16.800.000

1.600.000

12

1.650.000

12

19.800.000

1.900.000

12

3.000.000

1.547300

19.200.000
22.800.000

3.600.000
1.919.600

profit margin (Total variable/expenditure + Miscellaneous Exp)


2112000 (1079100 + 205000) = 827900

These outlays will enable me to operate at a level that will allow me to meet my
conservative sales goals for the first year. This will also allow me to outright purchase these
items rather than finance or lease them. This will also help guide my business for the next three
years.
NB The successful realization of this my business plan has been thanks to the office of
NCYIS at mile four Nkwen Bamenda Cameroon.