EXECUTIVE SUMMERY

A motivational speaker once told us during a retreat that the way forward for Nigerian
entrepreneur is to embrace the culture of hand work, he stressed that the future lies in the things
you must have learnt to do today, those words stock and we believed them, you see one of such
hand works the speaker was making reference to is the furniture making business. Which are
items such as kitchen cabinet, wardrobe, side tool, chairs etc.

Furniture can be place in the same categories as fashion and designing, Tailoring, Hair dressing,
because a lot of craftiness is usually put at work in order to arrive at a desirable result. The
Nigerian local furniture business has blossomed over the years and it has enjoyed patronage from
the Nigerian public, just as other handy works has received patronage, furniture business is one
of those hand works that is highly reading and the truth is that no matter the competition in the
sector, the patronage is usually high.

The Nigerian furniture is in a different dimension these days, the level of craftiness has made the
business so attractive and lucrative, even to the extent where people who know nothing about
carpentry invest and employ others to do the job, woodworking business has really come to stay
and the beauty is that it is now done in a very big way.

The market is very big where both foreign (imported furniture) and local furniture can thrive,
although the business in Nigeria has been largely underrated, this explains the reason why people
go as far as importing.

We have prepared this document to provide investors with information about our company. This
includes our company goals, visions/mission, business structure, projected profit growth,
business capital requirements, investment analysis and the furniture industry trends.

1
OUR GOAL
Our goal is to become one of the leading producer of furniture in Nigeria and the ones that can
withstand international standard.
MISSION/ VISSION STATEMENT
It is believed that Nigerian prefer foreign things to home made goods, it is therefore our mission
to prove to the teaming Nigerian population that Nigeria as a country has the capacity to produce
things especially furniture that will quench their test for foreign goods at their door steps and
very affordable so that even the low income earners can afford and also to be among the top
producers of furniture in the country in the near future.

AIM
As it is with every business venturing in to any business, our aim is to make profit and provide
quality and affordable furniture for every.

BUSINESS NAME
God`s grace furniture is a partnership business set up by a group of ten (10) students of the
department of English faculty of Art Benue State University, Makurdi. Who sat and came up
with the idea of venturing into business that will bridge the gap between consumers and
producers as far as furniture is concerned in Nigeria.

LOCATION
God`s grace furniture is located at NO 55 High level behind Zineth Bank Makurdi Benue state
Nigeria. We have chosen this site for the fact that is the heart of the city were most of the
business activities takes place thereby making it easy for anyone to locate us very easily.

BUSINESS DISCRIPTION
God`s grace furniture shall specialize in the production of furniture such as kitchen cabinet,
chairs, center table, wardrobe, beds, side stool and cushions.

2
STARTUP REQUIREMENT

Shop 150,000
Cutting machine 10, 000
Screwing machine 15, 000
Adhesive gum 2000
Sewing machine 65, 000
Hammer, scissors, and measuring tape 5000
Screws and nails 5000
TOTAL 252, 000

LEGAL FORM/NATURE OF BUSINESS

God`s grace furniture is a registered business with cooperate affaires commission (CAC) in
fulfillment of the provision of the company allied matter act (CAMA) as amended in 2004.

PROCESS OF PRODUCTION
The process of producing any furniture is almost the same since the tools are the same you will
use in producing any other furniture. Our focus here shall be on side stool which is use in the
bedrooms and living rooms as seats and also as lamp standas.

 Depending on the size you want, side stool can be produce;


 Total height: 14 inches.
 Dimension of the top: 16 inches square.
 Height of legs and width: 14inches by 13.3 .
 Connections for the legs: 11 inches wide and 9.3 inches.
 Cutting of plywood according to measurement
 Application of edged tape using adhesive gum.
 Filing and smoothing the edge tape.
 Coupling of the various parts using screwing machine and screws.

3
  Cleaning of any part stained with gum using chemicals.
 Stools are ready for delivery.

SOURCE OF CAPITAL
The capital for the startup of the business shall come from the contribution of members and
possibly loan from banks.

GROWTH AND EXPANSION

We intend to started this business small so as to test our competency level and because we are
student, the huge amount required for the full operation of the business is lacking thereby
limiting our operation strength but with the intension to become one of the biggest furniture
company in Nigeria. More so, the demand of our products shall determine our sustainability.

MARKETING STRATAGY
We intend to carry out a hostile advertisement in order to create awareness of our services by
printing stickers and pasting them on buses and other public places and also engaging in social
media advertisement which serves as a very good platform for reaching many people at once.
Social media plat form such as Facebook, Wathsapp, Instagram etc.

COMPETITORS

There are competitors of this product in Benue state and beyond. Most of the furniture we used
are imported and there are a whole lot of furniture designer and because we are new in the
market it will a big challenge for us to take over the market at ones. We hope to withstand
furniture of other furniture designers around the outskirts of the city and importing of foreign
furniture in the state and country at large, making it a highly competitive business.

BUSINESS ORGNISATIONATIONAL STRUCTURE

Roles and Responsibilities of Members in the Organization

1. General Manager: He/she shall be the Chief Executive Officer (CEO) of the business venture and
shall oversee the general affairs of the business. He/she shall also handle matters such as policy

4
 formulation, government policy implementation and employeees’ welfare and management,
directives in inputs acquisition, general supervision and the report to the owner of the business on
the progress and cases of threats to the business.
2. Marketing Manager: He/she will manage the general exercise having to do with marketing such as
strategy promotion/advertising style and the channels of distribution.
3. Accountant: He/she shall be responsible for keeping financial records of the company such as daily
records of sales, personal records, receipts, and payments made on behalf of the company.
4. Machine operator: He/she shall be responsible for the operation of the machines in the production
house.
5. Secretary: He/she will be saddled with the responsibility of keeping all records of any kind for the
company
6. Agents: They will be charged with the responsibility of carrying out sales exercises as directed by
the marketing director.
7. Driver: He shall be an experienced driver who drives the company’s van to acquire inputs and to
distribute products at designated points and to any place else as directed by the general manager.

Minimum Qualification for Each Member of the Organization is Carted Below:

S/N RANK MINIMUM QUALIFICATION
1 General manager B.Sc Economics or related course
2 Marketing manager OND Marketing
3 Accountant OND Accounting
4 Machine operator SSCE
5 Secretary OND Secretary Studies
6 Agents SSCE
7 Driver SSCE

5
 Management Organization Chart

BOARD OF DIRECTORS

GENERAL MANAGER

OPERATOR MARKETING MANAGER

SECRETARY ACCOUNTANT MACHINE OPERATOR

DRIVER AGENT

6
 Financial Projection
For a start, we expect to be producing 4 pieces of side stool per day.
Cost of production
This can be seen in the figure below:
S/N ITEM DESCRIPTION PRICE/QUANTITY PER MONTH (₦)
1 Cutting machine 50,000 50, 000
2 Sprayer 100,000 100, 000
3 Plywood 18000 (2) 300, 000
4 Edge tap 2,000 50, 000

5 Screw and nails 2,500 35000

6 Adhesive gum 2000 20000
7 Screwing machine 56, 000 65, 000
Total 720, 000

S/N TYPE OF WORK WORKERS SALARIES PER MONTH (₦) TOTAL (₦)
1 Manager 1 30,000 30,000
2 Marketing Manager 1 20,000 20,000
3 Accountant 1 15,000 15,000
4 Machine Operator 3 10,000 10,000
5 Secretary 1 10,000 10,000
6 Agent 3 9,000 9,000
7 Driver 1 15,000 15,000
Total 100, 900

Total cost of production ꞊ Cost of items plus salaries of the workers

Cost of items ꞊ ₦720, 000
Salaries ꞊ ₦100,900
Total ꞊ ₦820, 900

7
Income
Price per stool Income of the day (₦) Income of the month (₦)
5000 5000 x 5 25 x 28
Total 25000 700, 000

Profit or loss analysis

Total cost of production
Total income
Interest
Financial projection
The interest of the business as estimated per month is 300, 000.
Therefore, in one year the business will be ₦3, 6000, 000
Hence, the business will make ₦ in one year
Hence, the business is viable.

Challenges of the business

1. Paucity of finance: When personal saving and facilities from relatives and friends are not
enough, medium terms sources such as equity and debentures and risk capacity are very vital for
the growth and expansion of the venture. If finances are not available, the business may have a
problem of growth.
2. Poor demand: The business can be successful when there is large demand for the services. A
large market is quite useful than available technology.

CONCLUSION
From the above we are able to capture the possibilities of furniture business flourishing in
Nigeria, and from all indications it is obvious that in a society where there are no job
opportunities the option is to learn handwork which can put food on one`s table there by making
him a responsible citizen of that community.