A BUSINESS PROPOSAL PLAN

ON

DEVELOPED BY

MIJU CLOTHING ENTERPRISE

OCTOBER 2022
 CHAPTER 1
INTRODUCTION
The demand for clothing has significantly increased today. This is true not just of western-
influenced fashion but also of clothing made locally. A tendency that generates variations in
women's use is the result of fashion variety. Women are currently having trouble choosing
clothing. As a result, Miju Enterprise works to develop a boutique that can aid them in addition
to responding to the government's need to generate income through company. Young, female
consumers will be offered a variety of goods and services by Miju Enterprise that have never
before been provided. The company wants to provide customers personalized attention, a
welcoming and laid-back environment, an original yet fashionable selection of clothing and
accessories, and rates that won't break the bank.

Since life and expression are two concepts that are simple to employ to represent
company target clients, the name Miju Enterprise was chosen for this reason. Customers of Miju
Enterprise appreciate fashion and seek out fashionable attire and accessories that nonetheless
enable them to stand out from the crowd. They expect a coworker but are seeking for an
unstructured, vague buying environment. This is everything we will give. Due to our dedication
to the company, we anticipate being able to access a broader market. This is as a result of the
recent trends emerging and the rising demand for women's clothing. In order to ensure client
happiness and generate lucrative profit, our company will work to meet consumer demand.

BUSINESS GOALS

• Full remodeling, stocking, hiring, and basic marketing.

• Organize a spectacular opening that is a success.
• Reach and increase awareness in 60% of the consumer market we are aiming for.
• Aim for a profit margin of 50%.
• Establish a strong mailing list and customer base.
• Produce recommendation and repeat business.
• Become a successful company with room for growth.
• Build a strong reputation as a quality retail business

Securing funding and establishing our company will be our first significant
accomplishments. Right now, this is our main priority. We intend to have our retail
operation well-established in the neighborhood and within our sector in five years. In
addition, as co-owners, we hope to see the expansion of our shop's product offerings,
 more online market penetration, and, under the appropriate set of conditions, the
development of miju enterprise in prime locations.

OWNERSHIP AND LEGAL STRUCTURE

Miju enterprise is a multi-member Limited Liability Corporation formally organized in
Lagos. Oluwabango Peace and Olamiju Gbemisola are the company’s principal owners. We hold
equal shares of ownership in the company.

SKILLS AND EXPERIENCE

ADVANTAGE OF BUSINESS OVER COMPETITORS

The fact that there aren't any stores like ours in the Ojodu region is currently our main
competitive edge. Olamiju Gbemisola, a co-owner of the business, has also been employed in the
fashion industry for more than 15 years. She has previous expertise dealing with clothes
producers, distributors, retailers, and fashion design. She is familiar with the fashion business
and can identify current trends.

Although there is no assurance that a rival will set up shop nearby, we are confident in our sense
of style, first-rate customer service, and high-quality goods. We would also be the sole specialty
clothing retailer catering to stylish older women. While other retailers provide some stylistic
alternatives, they do not only cater to the younger demographic. We are, and as such, we have a
definite advantage over our competitors.
 CHAPTER 2: MARKETING
PRODUCTS OFFERED
The apparel lines from chosen fashion designers will be sold alongside well-known name
brands by Miju Enterprise. We shall pay special attention to both our own consumers' tastes
and generational fashion trends. In addition, we will modify our inventory to satisfy the
requirements of our clientele. Our area of expertise will be the styles, hues, and fits that best
accentuate the feminine form. While clothing like formal dress, jeans, work attire, and casual
wear will be our mainstays, we'll also sell certain accessories like belts, scarves, and hats.

CUSTOMER DEMAND FOR PRODUCT

LOCATION OF BUSINESS
Miju Clothing Store does not currently have a physical location. However, we have
located a perfect location near Ojodu Berger. The shop has a square footage of about 2500.
There are two changing rooms and a gender-neutral bathroom there. With additional places
in the back for overflow, there is parking space accessible in front of the store.

This facility is large enough to accommodate future development when wall mounts for
items, multi-level apparel displays, and imaginative floor planning are added. Furthermore,
we will be able to run our entire firm from this site. This includes managing goods, making
deliveries, and other administrative tasks including purchasing, marketing, and finance.

MARKETING STRATEGY
We anticipate that our plan will attract customers to the Miju brand right away.
Additionally, we will work with a local PR agency to direct our media efforts in a cost-
efficient manner and assist us in creating and implementing a strategic marketing plan. The
millennial generation will be portrayed as revolutionaries and trendsetters in our marketing
message, logo, and slogans.

Our objective is to limit our marketing spending to no more than 5% of our total yearly
revenue. All the necessary connections are already in place. If local events appeal to our
target audience, we can use these tactics to capitalize on their publicity. As we have a
presence in our neighborhood, Miju Enterprise's initial marketing efforts will remain
regional. Local print and broadcast media coverage, conventional advertising, billboards, a
direct mail marketing campaign, and networking will all play a significant role in this. We
will devote a sizeable amount of our advertising budget to print and broadcast media.

Of course, we'll generate excitement and anticipation before the new shop officially opens. A
drawing for a shopping spree and fashion consultation will also be held. Entry fees will be
collected beginning at the grand opening and throughout all week. Names and contact details
will be used for upcoming marketing campaigns. The formal opening will be followed by
extensive advertising and twice-yearly direct mail marketing efforts.

PRICING STRATEGY
Our products will be sold to generate revenue. We will use suggested retail pricing
on well-known products as well as the customary key-stoning of prices, but our pricing
structure will remain flexible. Additionally, we'll use a value-based pricing structure, which
gauges how valuable things are to customers based on factors like accessibility, quality,
customer service, and styles that appeal to their needs. At deliberate intervals, end-of-season
sales, holiday and overstock sales, multi-buy discounts, and promotional coupons will be
used.
 CHAPTER 3: FINANCIAL MANAGEMENT
SOURCE OF FINANCING
For Miju retail boutique businesses to effectively launch, 150,000 naira is needed. We've
already secured 60,000 naira through individual investments and a modest gift from the
community. Currently, we are looking for business loans and extra capital from outside
angel investors. Renovations, merchandise, and operational costs including rent, electricity,
and payroll will be covered by the startup money.

ITEM EQUITY CAPITAL PERCENTAGE

SHAREHOLDERS FUNDS

OLUWABANGO PEACE 30,000 20%

OLAMIJU GBEMISOLA 30,000 20%

EXTERNAL SOURCE OF FUNDS

LOAN BANK 90,000 60%
TOTAL SOURCE OF FINANCING 150,000 100%

MONTHLY OPERATIONAL BUDGET FOR FIRST YEAR

PARTICULARS FIXED MONTHL OTHERS TOTAL
ASSETS Y

Fixed Assets
Machine & equipment 12,000.00
Renovation 10,000.00 22,000.00

Working capital
Utilities 550.00
Maintenance 200.00
Transport 5,000.00 5,750.00
Pre-Operations & Other 200.00 200.00
Expenditure
Other Pre-Operations
Expenditure
TOTAL 22,000.00 5,750.00 200.00 27,950.00

MONTHLY CASH FLOW AND RETURN OF INVESTMENT

ITEM YEAR
2021
Cash Inflow
Capital (cash) 65,000.00
Loan 50,000.00
Cash Sales 659,000.00
Collection of Accounts Receivable
Total Cash Inflow 774,000.00
Cash Outflow
Administrative Expenses
Salaries, SOCSO & KWSP 42,819.00
Rent 1,500.00
Supplies 1,000.00
Utilities 550.00
Maintenance 200.00
Transport 5,000.00
Business Insurance 500.00
Stationary and Office Expenses 250.00

Marketing Expenses
Promotion & Advertisement 600.00
Sales Commission 300.00
Operations Expenses
Utilities 550.00
Maintenance 200.00
Transport 5,000.00
Other Expenditure
Pre-Operations
Deposit 1,550.00
Business Registration & License 60.00
Motor Vehicle Insurance & Road Tax 800.00
Other Pre-Operations Expenditure 800.00
Fixed Assets
Purchase of Fixed Assets – Others 94,000.00
Hire-Purchase Down Payment
Principal 581.73.00
Interest 9,362.80.00
Tax Payable 24,908.36.00
Total Cash Outflow 190,532.00
Cash Surplus (Deficit) 583,468.00
Beginning Cash Balance
Ending Cash Balance 583,468.00

INCOME STATEMENT
ITEM YEAR 2021

Raw Materials
Opening Stock 1,200.00
Current Year Purchases 146,400.00
Ending Stock 1,100.00
Materials Purchase Used 145,300.00
Salaries, EPF & SOCSO 55,829.00
Overhead
Depreciation of fixed assets 22,000.00
(operations)
Utilities 6,600.00
Maintenance 2,400.00
Total Overhead 31,000.00
Production Cost 352,829.00

BALANCE SHEET FOR TWO YEAR PERIOD PROFIT AND LOSS)

ITEM YEAR 2018

Sales 659,000.00
Cost of Sales
Opening Stock of Finished Goods 146,400.00
Ending Stock of Finished Goods
Gross Profit 512,600.00
Expenses
Administrative Expenses 1,810.00
Marketing Expenses 1,200.00
Business Registration & License 60.00
Motor Vehicle Insurance & Road 800.00
Tax
Other Pre-Operations Expenditure 600.00
Interest on Hire-Purchase
Interest on Loan (5%) 9,362.80
Depreciation of Fixed Assets 600.00
Total Expenditure 14,432.80
Net Profit Before Tax 498,167.20
Tax (5%) 24,908.36
Net Profit After Tax 473,258.84
Dividends (30%) 141,977.65
Profit 331,281.19

BREAK EVEN BREAK

This break-even analysis is based on the foundation of a single product or service.

To calculate the break-even point in units we use the formula:

Break-even point (units) = fixed costs ÷ (sales price per unit – variable cost per unit

PERSONAL BALANCE SHEET AND MODE OF COMPENSATION

 CHAPTER 4: OPERATIONS
OPERATION PLAN
Miju Boutique will be open seven days a week from 10 a.m. to 6 p.m. as a retail
location. Monday through Thursday, Friday and Saturday from 10 a.m. to 8 p.m., and Sunday
from 12 p.m. to 6 p.m. We will extend store hours over the holidays and at important
occasions. At this time, the retail area will occupy roughly two thirds of the building's space.
The remaining space will be used for administrative and stock reasons.

MANPOWER EMPLOYMENT
Three part-time employees will work in the sales department at Miju Boutique.
These positions are still open. However, we believe that the labor market is such that it won't
be difficult to find qualified workers. Our sales representatives will receive an hourly rate in
addition to commission. To promote staff retention, we will offer bonuses via sales
incentives and carry out an annual evaluation.

INSURANCE

MACHINE AND EQUIPMENTS

NO MACHINE / EQUIPMENT PER UNIT QUANTITY TOTAL
(RM) (RM)

1. Rack 180.00 12 2,160.00

2. Sofa 970.00 1 970.00
3. Table 200.00 2 400.00
4. Mannequin 200.00 3 600.00
5. Cash Machine 833.00 1 833.00
6. Hunger 1.60 1500 2,400.00
7. Mirror 69.00 6 414.00
8. Computer 1150.00 2 2,300.00
9. Laser jet Printer 573.00 1 573.00
10 Bench / chair 225.00 6 1,350.00
TOTAL 12,000.00
PRODUCT DELIVERY
The basis for growing our consumer base will be our store space. We will also oversee a
direct mail campaign that targets our top 50% of clients and highlights any internal sales and
promotions.

CHAPTER 5: CONCLUDING STATEMENT