WaxyShiny Investments

WAXY SHINY INVESTMENTS

Business Plan

Prepared 27 July 2019

Contact Information

waxyshiny@gmail.com

+267-71-869-149

www.waxyshiny.co.bw

Office Number 126 CBD, Gaborone, Botswana

Plot 2901 Commerce Park, Gaborone, Botswana

WaxyShiny Investments

Table Of Contents
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Executive Summary

WaxyShiny Investments is a partnership which takes advantage of the gap and opportunity
identified in the shoe polish manufacturing industry. This is, it produces a variety of shoe polish
colours only in one container which becomes easy and convenient for the customers to use.
The customer base target for the business includes students, office workers, construction
workers and guards men. The shoe polish reduces leather creasing effect, is waterproof and
gives the shoes a new shiny look hence the motive behind the name WaxyShiny because it is
made out of beeswax and makes shoes shine like never before. For marketing the shoe polish
the business intends to advertise the product to all reachable forms of media platforms through
flyers, low pricing of the shoe polish in order to increase sales and customer base, as well as
sales and discount allowance to bulk buyers.

The brand competitors consist of KIWI, Lion, Nugget and New Shine therefore as a new
emerging company the business will use the unique technique of providing shoe polishing
sampling to workers at commercial and industrial sites free of charge which will sensitize our
prospective customers about the availability of the shoe polish. The financial plan of the
business indicates that the business will have an exponential growth in profit of about 15% per
annum for 7 years and the sales forecast indicates 25% growth in sales. However, this does not
exclude the downfalls expected, the losses to be incurred as well as the expenses to be endured
thus the business has put together strategies into place to curb any effect threatening the
growth of the business.

The key staff members of WaxyShiny Investments consists of the General Manager, Miss
Olorato Monareng, the Sales and Marketing Manager, Miss Amantle Sebape and the Operating
and Production Manager, Miss Gofaone Mokwaisi and finally Miss Daisy Tshiamo Mfetane who
will be over heading the finances of the business. The business will also hire 10 production
labour team of which 7 specializes in the actual production f shoe polish and the rest in
packaging, distribution and sale of point.
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Industry Analysis

In the year 2018,the market size for shoe polish globally was valued at $4.4 billion and the
forecast shows the chances of growth in the market. Due to rapid increasing demand for
leather formal footwear, booming fashion consciousness of leather shoes in the developing
nations, trends of shoe polish industry has drastically increased as stated on
www.grandviewresearch.com.

The report emphasizes that shoe polish is expected to have a significant growth in the near
future (www.grandviewresearch.com). This is because leather casual footwear is expected to
grow at the fastest Compound Annual Growth Rate (CAGR) of 4.4% in the next coming 5 years.
To date, KIWI is the only best selling brand, despite that our company looks forward to bring an
exclusive, unique and different polish for now and future.

As an emerging, we are mainly targeting students who normally wear Toughees and
Grasshopper branded shoes, office workers, construction workers and security guards and any
field of work that wear leather shoes and need the shoe polish WaxyShiny brings. The last
targeted group is retail outlets who venture to sell shoe polish with variety of colours that is
water resistant and crease resistant shoe polish.

WaxyShiny Investments has competition regionally and globally. That is, the S.C Johnsons &
Sons based in South Africa, Nugget, Kiwi and Lion shoe polish brands.
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Description Of Venture

WaxyShiny Investments is a partnership consisting of three members, Olorato Monareng,

Amantle Sebape and Gofaone Mokwaisi. All partners are equally liable for the debts of
partnership, which means that the business itself is not a legal entity but the owners are the
legal persons. Our target market are students, office workers, construction and security
workers, and retail outlets which will benefit from our product as mentioned earlier in the
business plan. The business aims at selling 200 000 containers of shoe polish annually as we
look forward to being the number one shoe polish supplier across the continent after 5 years of
operation.

Our business is to be located near shoe shops and we intend to open at least three months
after registering with CIPA. WaxyShiny Investments looks forward to being the best quality and
classy shoe polish suppliers across the continent and worldwide. Our shoe polish is the best as
it is convenient to be bought by families and will have no need to look from different colours in
different containers. Also the less creasing effect on leather shoes of our shoe polish provides
the quality shoe polish to be bought and utilized by consumers.
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Production Plan

The business will be responsible for all parts of manufacturing as we will be doing actual
production of shoe polish. The raw materials for manufacturing shoe polish includes beeswax,
olive oil and different oxides to be used as colourants. For the production process, we are to set
up double boilers on three heaters and in each boiler a mixture of olive oil and beeswax will be
poured inside and stirred until it melts. After it melts, we add black, brown, maroon and white
oxides in order to give the polish the colour. Then we distribute the mixture into the small
containers and we allow it to harden and eventually seal as the shoe polish will be ready to go
on sale.

The equipment needed immediately for manufacturing are the double boilers, the stainless
steel burners and the stirring spoon. Our suppliers for these equipment are Webstaurant web
store of which the entire equipment will cost _. There is also a need for computers to enable e-
commerce which will cost P4699.

Our factory is also a selling point meaning customers are able to purchase the shoe polish
directly from Commerce Park. Customers can also reach our product online through e-
commerce.
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Operation Plan

WaxyShiny Investments establishment or factory site will be situated at Commerce Park while
offices will be rented out at the Central Business District (CBD). This is a good location for the
business because it is in an area where consumers can easily access it as it is next to a mall.
There is also a website, www.waxyshiny.co.bw where our international customers can purchase
our product by ordering online and we assure safety with shipment and delivery.

There will be use of catalytic converts to protect health of the inhabitants as well as the
chimney for the good of the environment. The business needs 3 of 250 litres double boilers,
multiple burners and a stirring spoon. An accountant and 10 trained labour production team
will be hired as they will work for 6 hours per day excluding lunch time.

The suppliers of beeswax is Tshepi Beekeeping , Webstaurant store for our equipment, Amazon
store for olive oil. The computer and telephone will be supplied by the HiFi Corp.

Raw Materials Equipment IT Support

Beeswax 3*250 Double Boiler Computers
Olive Oil 3 Stainless Steel Burners Telephone
Coloured Oxides
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Marketing Plan

As the emerging suppliers of leather shoe polish in the industry, WaxyShiny Investments stands
for redefining and redesigning the world wide known shoe polish. The market has been defined
by a psychographic profile as we consider only customers interested in leather shoes which
need polishing. We would reach them through television adverts on a daily basis, flyers to be
distributed at all big malls in the capital city and digital flyers on our Facebook page for more
information about the product. Our website will also cater for our international customers. In
order to keep customers and gain the necessary customer loyalty we will be giving free branded
merchandise that includes caps, bottles, T-shirts and pens. There will also be sales promotions
of bulk buying as well as free delivery to encourage bulk buying. We will also rebrand and
repackage every 3 years.

WaxyShiny Investments has good management as members have good leadership skills, highly
trained and morale staff and production team. We thrive to explore opportunities such as
technological advances and favourable government policies of Youth Development Fund and
CEDA. However, the weaknesses and threats faced by the company includes new and usually
weak brand, lack of resources and low start-up capital which we will work on to improve. There
is also increased competition and lack of knowledge on usage of new advanced technology
which the business will strategize to curb them.

As for the pricing strategy, we will use penetration pricing. Low prices are to be set for the
product in order to break through and reach a mass market. The goal is to capture a large sum
of the market and this eventually reduces production and distribution costs. The KIWI brand as
our competitors price their 50ml shoe polish at P10.95 and their 100ml at P19.95 which means
as we are using penetration pricing, our 50ml would be priced at P8.95 and our 100ml at
P15.95. WaxyShiny Investments markets itself as “the best shoe polish brand for all who need
the leather shine they deserve”.

The key target customers are office workers as they mostly own/wear different coloured
leather shoes which means they demand the variety shoe polish we provide. Part of a
positioning strategy includes the business making frequent visits to commercial areas such as
Fairgrounds, Commerce Park, Kgale Mews and CBD where our stalls will be placed offering free
shoe polishing sampling.
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Organisational Plan

GENERAL MANAGER

Ms Olorato Monareng

OPERATION & PRODUCTION

SALES & MARKETING MANAGER
MANAGER
Ms Amantle Sebape
Ms Gofaone Mokwaisi

3 Labours 7 Labours

(to be hired) (to be hired)

Financial Manager
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Assessment Of Risks

Like any other venture, WaxyShiny Investments is faced with competition risk because the
brand is new in the industry and may not be trusted by consumers. Therefore, to reduce risk we
will train employees to produce best quality polish, repackage oftenly and use reward schemes
to attract customers. There is also loan and interest rate risk because the business will need to
get loans from banks which include interest rate upon return. However the business maintain
adequate incoming and ongoing cash flow and the financial team will ensure strategic decisions
are made to sustain business.

Also the business exposes the health of labourers to risks as well as the environment at large is
at risk due to its production process, harmful gases or fumes escape into the atmosphere. In
order to tackle the risk, WaxyShiny Investments will provide protective gear such as masks and
gloves to workers, will include workers liability insurance to protect their health. In addition
catalytic converts will be used to convert the hazardous gases into less harmful ones in the end
protecting the environment.
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FINANCIAL PLAN

WAXY SHINY INVESTMENTS 3 MONTHS CASH FLOW FORECAST

CASH FLOW PROJECTIONS  Jan  Feb   Mar 

CASH REVENUE 700000 450000 420000
23925 31900 28710
  Revenue from Product Sales 0 0 0
93925 76900 70710
TOTAL CASH REVENUES 0 0 0
CASH DISBURSEMENTS
  Payment to Suppliers 23500 17500 18590
  Salaries and Wages 50000 50000 45000
  Promotion Expense Paid
  Professional Fees Paid 570 430 125
  Rent Payments 8870 8870 8870
  Insurance Paid 6500 6500 5600
  Telecommunications
Payment 550 600 560
  Utilities Payments 2500 3500 4000
TOTAL CASH
DISBURSEMENTS 92490 87400 82745

52026 11464 67661

CASH FLOW 0 0 5

75000 84776 75936

OPENING CASH BALANCE 0 0 0
84776 75936 67661
CLOSING CASH BALANCE 0 0 6
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INCOME STATEMENT

P P
PROJECTED SALES 373500
Less cost of goods 10741.41
Gross profit 362758.60

Expenses
Advertising 5000
Office Supplies Expenses 3000
Salaries 12100
Insurance 5500
Electricity 3000 37470

Net profit 325286.09

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WAXY SHINY INVESTMENT BALANCE SHEET AS AT 31st DECEMBER 2020

P P P
Non -current assets
Equipment 27 380
Temp investments 18 000
45380
Current Assets
Cash at bank 25000

Liabilities
Loan 15000
Working capital 10000
Total Assets 35380
FINANCED BY:
Startup capital 35380

SOURCES OF FUNDING

Waxy Shiny Investments owners intends to invest an amount of P6000 each as a startup capital.
Although money is contributed, the business will also accumulate a loan of P25000 from banks.
In addition the business looks forward to expand and convert to a private limited company so
that it sells shares to shareholders which will be P1.00 worth of a share. The members will also
accumulate funds from family members as short term loaning hence the progress of the
investment.