TABLE OF CONTENT

List of table’s executive summary

Executive Summary

CHAPTER ONE

1.0 INTRODUCTION

i. Mission
ii.Vision

iii.Project Description

1.2 Location of the company

1.3 Economic and social justification of the product

1.4 The objectives of the business

1.5 Financial resources

1.6 Managers performance and development

1.7 Environmental impact assessment

CHAPTER TWO

2.0 MARKET ANALYSIS

2.1 Market survey

2.2 Market segmentation

2.3 Pricing policy

2.4 Promotion Strategies

1
CHAPTER THREE

3.0 Projected financial plan

3.1 Equipment Acquisition
3.2 Facility Needs
3.3 The production Process
3.4 Production Capacity
3.5 Quality control
3.6 Personnel remuneration
3.7 The pre-project cost
3.8 Short term goals

3.9 Long term goals

3.10 Risk Analysis

CHAPTER FOUR

4.0 FINANCIAL PROJECTIONS

4.1 Underlying Assumptions

4.2 Revenue Projection

4.3 Projected Cash flow statement

4.4 Economic benefit

CHAPTER FIVE

5.0 FINANCIAL EVALUATION AND DECISION

2
5 Underlying Assumptions
5.1 Revenue Projection
5.2 Projected Cash flow statement

5.3 Socio-economic benefit

CHAPTER SIX

6.0 FINANCIAL PROJECTIONS

6.1 Underlying Assumptions

6.2 Revenue Projection

6.3 Projected Cash flow statement

6.4 Socio-economic benefit

List of tables

Table 1 Machineries and equipment

Table 2 Personnel remuneration

Table 3 Project costs

Table 4 Revenue projection

Table 5: Sources of fund

Table 6: Cash Flow

Table 7: Social Benefit

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 EXECUTIVE SUMMARY

The project’s nature of the business is the production of automatic bell system with
voice announcement for schools and colleges. In today’s life, everyone gives
importance to time. Everything should be performed in time and accuracy.
Nowadays, school/college bells are operated manually. After every class, an
employee is engaged into operating the bell. Hence, there is a big question of
accuracy. Automatic bell system helps us to avoid this. This design takes over the
task of ringing the bell in schools as the bell would ring automatically with voice
announcement at the schedule time. The raw materials for the production of
product are electronic components and local raw materials. The production
capacity of the project is projected at 120 units per year. The estimated derivable
income would be £28,514.85

The technical financial and economic projections of this business have been
considered in detail. Therefore, the market prospects are bright with positive and
overwhelming indications for expansion. At full capacity, this project will employ
a minimum of 10 personnel that would be involved in the business operation of the
project.

The company would record gross profit of £26,584.75. After payment of company
tax of 5%, it would have a net profit of £25,255.51.

It is confident that both market share and revenue projections will, at a minimum,
be achieved in the projected time frame. The ultimate success of Nice-Tech Global
will depend upon management’s ability to develop an innovative product line and
cost-effectively deliver the line to a large and receptive market.

Nice-Tech Global guiding corporate philosophy will encompass high quality,

innovative products, unparalleled service, and competitive prices.

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 CHAPTER ONE
1.0 INTRODUCTION

Automatic bell system project is great money making potential projects. A bell is a
percussion instrument used in schools and farmlands and hospitals.

In schools, the bell indicates when it is time to go to class in the morning and when
it is time to change lessons. Present day bells in schools are carried out manually.
After every class, an employee is engaged in alarming bell, inaccuracy, human
error and inconsistencies are the drawback of manual system. Automatic bell
system helps us to avoid these. This design takes over the task of ringing the bell in
schools has the bell will ring automatically at the scheduled time with a voice
announcement. It has a real time clock which tracks over the time.

In farmland, the bell can be used as bird’s scarer to chase away quelea birds and
other pests to enhanced farm productivity.

In hospital, the bell can be used to call the attention of patients, nurse,
administrative staff right from director desk.

i. MISSION

To offer the best product that will add value and comfort to the need of the client
and provide unparalleled Customer Service through embracing sound, ethical
business practices.

ii. VISION

To be known for quality, progress and generate employment opportunity.

1.1 PROJECT DESCRIPTION

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The business idea is about designing of automatic Bell system for schools and
farmers to:

i. Help schools automate their time table by ringing bell automatically

when it is time for school activities.

ii. Serve as birds scarer on farmland for farmers.

iii. It makes work easier for the hospital personnel.

Installations have been carried out in Nigeria e.g

1. Federal university of technology, Minna.

2. Godshield private School, Kaduna.

3. Taidop College, Abeokuta.

4. Ansarudeen Colege, Isolo Lagos.

5. Aduvie International College Abuja.

6. Intercontinental College Kano.

7. Top Medical Centre Minna.

8. Sunshine Academy, Ibadan.

9. Royalseed High School, Jebba.

10. etc

1.2 LOCATION OF THE COMPANY

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The company is located in Minna, Nigeria and presently being leased and we are
renting on annual basis until we are able to relocate to more suitable facilities.

1.3 ECONOMIC AND SOCIAL JUSTIFICATION OF THE PROJECT/

CRITICAL SUCCESS FACTORS OF THE BUSINESS

i. AVAILABILITY OF TECHNOLOGY

The key operatives of the project shall be trained on industrial activities.

ii. AVAILABILITY OF RAW MATERIALS

The raw materials used for the production of the business products are
electronic components.

iii. AVAILABILITY OF LABOUR

High rate of unemployed labour (skilled and unskilled) exist in the country. The
presence of Tertiary Institutions has produced a huge amount of competent to
be tapped from.

iv. COMPETITION

Few numbers of businesses engaged in sales of automatic bell system which are
imported technology and most of them are not compactable with our system.
Therefore, there exists low competition in the production of automatic bell
system that is compactable with our system. The project has carried out SWOT
analysis and has identified its strengths, weakness, opportunities and threats to
enable it strive in the competitive business environment, stampeding others for
optimum performance

v. AVAILABILITY OF MARKET

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 The entire sub-Sahara Africa is the potential market for the product. It will be
fully exploited within next decades.

vi. ACCESS TO INFRASTRUCTURE

The project business location has an easy access to water, electricity,

communication networks, road and internet facilities.

1.4 THE OBJECTIVES OF THE BUSINESS

1. To produce automatic bell system that automate time keeping with

optimum quality.

2. To become a leader in the production of automatic bell system with voice

announcement.

3. To achieve good return on investment.

4. To penetrate the product market and gain at least 40% of market share.

5. To keep marketing expenses down to 15% of Gross sales per turn over.

6. To ensure continuous study of the product and marketing strategies used

by existing competitors.

7. To enhance quest for value added.

8. To continuously increase production capacity and generate employment

for our youths.

1.5 FINANCIAL RESOURCES

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To recoup back business 80% of Net Profit at the end of the business period in
order to relief itself the burden of future use of borrowed capital. Inventories (raw
materials, work in progress, finished goods) every month. To always ensure cost
minimization and profit maximization.

1.6 MANAGERS PERFORMANCE AND DEVELOPMENT

To operate a system of remuneration base on job content, qualification and know

how.

To introduce a training program for personnel and to also make full use of control
on performance of labour and materials utilisation. Finally, to introduce an
incentive scheme to improve productivity.

1.7 ENVIRONMENTAL IMPACT ASSESSMENT

The project had carried out Environmental Impact Assessment (EIA) this will
reveal that the product production process will not pose any danger on the
environment. The machineries and equipment are noiseless because they will be
modern equipment and will not pose danger to users.

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 CHAPTER TWO

2.0 MARKET ANALYSIS

In this project, market has been identified as the most priority; it must be consider
in ascertaining the uncertainties in the estimates. In that regard the followings are
very important to the survival of the project.

2.1 MARKET SURVEY

This project carried out market survey and observed that, there is high preference
for automatic bell system in our schools than manual bell as a result of time
accuracy, effectiveness, consistencies and efficiency for learning.

2.2 MARKET SEGMENTATION

This project shall be segmented into the following percentage distribution.

Central Africa - 15%

West Africa - 25%

East Africa - 20%

North Africa - 20%

South Africa - 20%

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Total 100%

2.3 PRICING POLICY

Using appropriate method of products costing the company has cost its products at
average sum of £200 per unit for schools.

2.4 PROMOTIONAL STRATEGY

The project will employ different promotional strategies by advertising products on

radio, television, newspaper, online etc.

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 CHAPTER THREE

3.0 PROJECTED FINANCIAL PLAN

3.1 EQUIPMENT ACQUISITION: The Company will purchase machineries and

equipment for the production of the product.

S/N ITEMS QTY NEW UNIT TOTAL REMARKS

PURCHASED COST (₦) COST (₦)

1. Work station 2 New 70,000 140,000 Required

2. Computer Programmer 2 New 320,000 640,000 Required

3. Sound Box 1 New 10,000 10,000 Required

4. Electric Tools Screw 1 New 30,000 30,000 Required

Drilling Machine

5. Workshop Tools box 1 New 55,000 55,000 Required

6. Battery (12v 200Ah) 2 New 120,000 240,000 Required

7. AUTOOL 1 New 40,000 40,000 Required

DigitalBattery Analyzer

8. Inverter and MPPT 1 New 150,000 150,000 Required

9. Solar Panel 4 New 80,000 320,000 Required

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 TOTAL 1,625,000

Table 1: Machineries and Equipment

3.1 FACILITY NEEDS

Machineries and equipment acquisition = ₦1,625,000 approximately £3,217.83

3.2 THE PRODUCTION PROCESS

The raw materials are sourced from the supplier with emphasis on specification.

3.3 PRODUCTION CAPACITY

With availability of required human resources, machines and equipment utilities

and raw materials, the project will operate at 60% production capacity.

MONTHLY

It will produce 100 units of automatic bell system.

ANNUALLY

1,200 Units of automatic bell system will be produced.

3.4 QUALITY CONTROL

At every stage of production from start to finish the project would be carefully
monitored and benchmark against best practice. This will guarantee some level of
quality.

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 3.5 PERSONNEL REMUNERATION

S/N RANK TITLE NO OF MONTHLY ANNUAL

STAFF PAY (₦) PAY (₦)
REQUIRED

1. Production Manager I 1 30,000 360,000

2. Production Manager II 1 30,000 360,000

3. Accountant/Secretary 1 27,500 330,000

4. Marketer 1 28,000 336,000

6. Technician 1 15,000 180,000

7. Furniture and fittings 200,000

8. Rent 200,000

TOTAL 1,966,000.00

£3,893.07
Table 2: Personnel Remuneration

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3.6 TOTAL PROJECT COST

In calculating the pre-project cost, consideration must be given to the

following:

MACHINES AND EQUIPMENT, PRODUCTION COST AND OPERATING

EXPENSES

Cost of machineries and equipment ₦1,625,000.00

Working Capital ₦450,000.00

Business Registration with ₦17,000.00

Cooperate Affairs Commission
(CAC)

Trade mark Reg. with Federal ₦150,000.00

Ministry of trade and investment

Miscellaneous Expenditure (6%) ₦293,700.00

Total ₦2,535,700.00 approx. £5,021.20

Table 3: Project Cost

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3.7 SHORT TERMS GOALS:

1. Build a small team to develop a minimum viable product.

2. Launch and expand.
3. Get revenues.
4. Pay my employees very well.
5. Relax and live doing this thing that I love.
6. Learn more about Tech entrepreneurship, by reading books and articles on the
daily basis.
7. Get myself out there and start networking with people.
8. Validate my idea and understand it complete.

3.8 LONG TERMS GOALS:

The entire geo-political zone of Nigeria is potential market for the products which
will be fully exploited within the next ten years.

3.9 RISK ANALYSIS

1. Every industrial project with inadequate source of raw material is bound to fold
up at best produce at very low capacity.

2. Non performing machineries can ruin business

3. It has been identified that good management skills is a solid foundation for every
business that must succeed. Lack of it can crumble the business within a short
time.

4. The success of the business hangs on the ability to sale its products at a
reasonable price.

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 CHAPTER FOUR

4.0 FINANCIAL PROJECTIONS

4.1 UNDERLYING ASSUMPTIONS

i. At the end of business period 60% of the net profit shall be recoup back
into business to relieve the company from the burden of future use of
borrowed capital.

ii. Supply of products will always equate demand at every point in time.

iii. Ensure good return on investment.

4.2 REVENUE PROJECTION

PRODUCTION UNITS PERIODS AMOUNT (₦) AMOUNT (£)

UNIT PRICE (₦)
CYCLE

Monthly 12 24 days 100,000 1,200,000 2,376.24

Yearly 120 288 days 100,000 14,400,000 28,514.85

Table 4: Revenue Projection

This revenue projection is based on all quantity produced which will equal
to quantity sold.

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4.3 ECONOMIC BENEFITS

The continuous existence of this project in Nigeria will enhance

1. Industrialization in Nigeria Economy.

2. Utililization of local and foreign raw materials.

3. Creation of job opportunities.

4. Revenue acquisition.

5. It will promote sub-Saharan Africa advocacy.

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 CHAPTER FIVE

5.0 FINANCIAL EVALUATION AND DECISION

5.1 PROJECTED CASH FLOW

YEAR YEAR YEAR

2019 (₦) 2020 (₦) 2021 (₦)

OPENING BALANCE - 7,280,000.00 10,502,000.00

CASH INFLOW

Owner’s capital 2,583,000.00 - -

Bank loan 3,000,000.00 - -

Sales 14,400,000.00 14,400,000.00 14,400,000.00

Others - - -

Total cash inflow 19,983,000.00 21,680,000.00 24,902,000.00

CASH OUTFLOW

Loan repayment 1,000,000.00 1,000,000.00 1,000,000.00

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Loan Interest 50,000.00 50,000.00 50,000.00

Machinery and Equipment 1,625,000.00 - -

Advertising 250,000.00 250,000.00 250,000.00

Website 50,000.00 30,000.00 30,000.00

Postage 20,000.00 20,000.00 20,000.00

Tax (5%) 30,000.00 30,000.00 30,000.00

Stationery 30,000.00 25,000.00 25,000.00

Trade mark Reg. 150,000.00 - -

Business registration with CAC 17,000.00 2000.00 2000.00

Provision for depreciation 325,000.00 325,000.00 325,000.00

(20%)

Personnel Remuneration 1,556,000.00 1,556,000.00 1,556,000.00

Material Cost 7,200,000.00 7,440,000.00 7,680,000.00

Workshop Rent 200,000.00 200,000.00 200,000.00

Utility Maintenance 200,000.00 250,000.00 250,000.00

Total Cash outflow 12,703,000.00 11,178,000.00 11,418,000.00

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Closing Balance 7,280,000.00 10,502,000.00 13,484,000.00

5.2 PROJECTED NET PRESENT VALUE (NPV)

Required Rate of Return at 5%

Year 1 (£) Year 2 (£) Year 3 (£)

13,729.37 18,862.62 23,065.32

5.3 PROJECTED PROFITABILITY INDEX (PI): 5.03

5.4 PROJECTED PAYBACK PERIOD (PBP)

The payback period would be in the first year of investment.

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5.5 LOAN AMORTIZATION SCHEDULE

SCHEDULED
MONTH BALANCE PRINCIPAL INTEREST
PAYMENT

3,000,000.00
1
3,000,000.00 89,763.19 77,540.82 12,222.37
2
2,922,459.18 89,763.19 77,856.73 11,906.46
3
2,844,602.45 89,763.19 78,173.93 11,589.26
4
2,766,428.53 89,763.19 78,492.42 11,270.77
5
2,687,936.11 89,763.19 78,812.20 10,950.98
6
2,609,123.91 89,763.19 79,133.30 10,629.89
7
2,529,990.61 89,763.19 79,455.69 10,307.49
8
2,450,534.92 89,763.19 79,779.41 9,983.78
9
2,370,755.51 89,763.19 80,104.44 9,658.75
10
2,290,651.07 89,763.19 80,430.79 9,332.40
11
2,210,220.28 89,763.19 80,758.48 9,004.71
12
2,129,461.80 89,763.19 81,087.50 8,675.69
13
2,048,374.31 89,763.19 81,417.86 8,345.33
14
1,966,956.45 89,763.19 81,749.56 8,013.62
15
1,885,206.88 89,763.19 82,082.62 7,680.57
16
1,803,124.26 89,763.19 82,417.04 7,346.15
17
1,720,707.22 89,763.19 82,752.81 7,010.37
18
1,637,954.41 89,763.19 83,089.96 6,673.23
19
1,554,864.45 89,763.19 83,428.48 6,334.71
20
1,471,435.97 89,763.19 83,768.38 5,994.81
21
1,387,667.59 89,763.19 84,109.66 5,653.53

22
22
1,303,557.93 89,763.19 84,452.33 5,310.86
23
1,219,105.60 89,763.19 84,796.40 4,966.79
24
1,134,309.20 89,763.19 85,141.87 4,621.32
25
1,049,167.33 89,763.19 85,488.75 4,274.44
26
963,678.58 89,763.19 85,837.04 3,926.15
27
877,841.53 89,763.19 86,186.75 3,576.44
28
791,654.78 89,763.19 86,537.89 3,225.30
29
705,116.89 89,763.19 86,890.46 2,872.73
30
618,226.43 89,763.19 87,244.46 2,518.73
31
530,981.98 89,763.19 87,599.90 2,163.29
32
443,382.07 89,763.19 87,956.80 1,806.39
33
355,425.28 89,763.19 88,315.14 1,448.05
34
267,110.14 89,763.19 88,674.95 1,088.24
35
178,435.19 89,763.19 89,036.22 726.97
36
89,398.97 89,763.19 89,398.97 364.22

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 CHAPTER SIX

6.0 CONCLUSIONS AND RECOMMENDATIONS

Our business shall focus to generate ample revenue, gain market share and
later diversify. We plan to introduce automatic bell system to all schools, farms
and hospitals which already has been successfully installed in some schools
in Nigeria. We also believe we can come into profits much before expected.

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