TABLEOFCONTENT

Chapter Page

1.0 Table of Content 2

2.0 ExecutiveSummary 5

3.0 Introduction (Preamble)

Vision
mission
ownership
legal status
location and facilities
products
production plan
required facilities

1
EXECUTIVE SUMMARY

The company is JUTTA liquid soap Nigeria ltd. It will be registered as private liability
company by Corporate Affairs Commission at Aba, Abia State. The company will produce
Liquid soap with special innovation. The difference between the liquid soap and any other liquid
soap is that it uses alternative path that eliminate the use of corrosive/unfriendly chemical
component. This definitely makes the product stand out as the neutral effect of the additives would
have the skin naturally smooth and fresh. The Liquid soap has a combined effect as a soap and
fragrance. More so, the very low selling price for unit of quantity as packaged would attract very
high patronage. Because about 80% of the raw materials are almost costless and the others are
locally sourced from the open markets, the proposed unit prices would be sustained and might even
be reviewed downward over time. Water forms about 80% of the product which is almost free.

JUTTA liquid Soap Nig Ltd has come out with a new product that provides with a quick, easy,
and affordable method to effectively monitor washing of hand. Good physical hygiene is among
the effective preventive measures available to combat communicable diseases. Treatments of
preventable disease cause Nigeria huge money annually. Improper hand washing contribute to
about 150,000 deaths annually among children due to contamination from the environment
(UNICEF). Studies have shown that proper hand washing procedures in the environments could
cut down the spread of disease by up to 75%. The greatest contributing factor to this stems from the
inability of people to buy washing materials and reluctance to use the washing materials when
available. Existing products offer no affordable solution to buy his.

Some adults and most children find it more interesting to always apply perfume but less
interest to wash hands with soap. JUTTA liquid Soap Nig Ltd answers this problem and provides
affordable liquid soap of different sweet fragrance. This would encourage children and adults to
always use the product for hand washing, floor cleaning etc.

2
1.0 INTRODUCTION (PREAMBLE)

VISSION

To be a standard soap manufacturing company for both local and international market.

MISSION
 To establish a word class soap making business in Nigeria
 To build a house hold brand name
 To ensure our customer needs are met accurately
 To createvalueforcustomersbycontinually improvinghealthandreducing preventable
illnesses through the use of our soap.
OWNERSHIP

This company by the name JUTTA liquid Soap Nig Ltd is legally belonging to Miss Oti
Chinanu Jutta, who is the founding CEO of this company.

LEGAL STATUS

JUTTA liquid Soap Nig Ltd will be organized as a sole proprietorship, wholly owned and
operated by MISS Oti Chinanu Jutta.JUTTA liquid Soap Nigand will be registered as
private liability company by Corporate Affairs Commission at Aba, Abia State
LOCATION AND FACILITIES

Thecompany buildingislocatedat no.11 federal road, Awka Anambra state. Which is very
deserted and very okay for a company to be located in order not to be a factor of nuisance

PRODUCTS AND SERVICES

 ToiletCleanser
 LiquidSoap
 BarSoap
3
 PRODUCTION PLAN
Required facilities
 ReverseOsmosis
 BottlePackaging Machine
 PVCLabel
 60kvageneratorset
 DistributionVan
 ShrinkWrapper– Full Automatic
 Composite filters (sandandcarbon)
 Air Ultraviolet Sterilizer(AUV)
 Water Tanks (2,000L)
 Pumpingmachine
 Ozonator(8g)
 AutomatedSachet filling Machine

2.7.2 Output target and revenue base

 DevelopacompleteproductwhichmeetsregulatorystandardsbysecondmonthofYear1.
 Becomethespecialtysoapof choicefor restaurantsand daycaresacrossthe
community by the end of Year 2.
 AchievesalesofN5millionbytheendofYear2.

2.7.3 Required inputs

 Oils
 Solvents
 essential oils
 pigments
 emulsifiers
 surfactants
 stabilizers
 thickeners
 preservatives
 foaming substances
4
2.7.4 Production Process

 Put all of your oils and beeswax into the pot and place it on the stove element at
about level 3 (low).You want to heat the oils very slowly.If you heat the oils too
high it will take much longer for it to cool to the temperature to make soap.
Whiletheoilsareheatinguseabitofvegetableoiltooiltheplasticcontainerthat you will
be using as your mold.Use the freezer paper (shiny side towards the soap) to line the
bottom of the plastic container, smooth the paper as much as possible.The oil keeps
thepaper in place and the paper ensures that you can remove your soap from the mold
without sticking.Tape the edges of the freezer paper to the outer sides ofthe mold.

 Clip your thermometer on the edge of the pot and remove the pot from the
element.The temperature should be about 150o. If it is higher, don't worry, it will
cool down in time.
 Mixing the lye: Gatherthefollowingitems Lye
Distilled Water
Stir Stick
Rubber Gloves
PyrexContainer
Safety Glasses

 Whentheoilsandlyemixtureareattherighttemperatureyouarereadytobeginpouring.R
emovethe Thermometer and rinse and wash thoroughly. Set aside

 Slowly mixing the oils pour the lye mixture into the pot with the oils. Keep stirring
slowly. Stir, stir, stir… and stir some more. Some people say that if you stir too
quickly you will ruin the soap; others say if you stir too slowly you will ruin the
soap. There is much discussion about this stirring, I suppose because there is so
much of it. I stir so as not to slop any out of the pot, otherwise I have not had any
5
 problems in that regard. You have to stir for about 20- 30 minutes, I usually only
can stand to wait 20 minutes. If the mixture starts to thicken, you are just about
done, if not proceed to the next step.
 If youhaveastickblender,putitintothepotandturniton.Make sure you don't mix in
anyair, always keep the hand blender under
thesurfaceoftheliquid,youdon'twanttostirinanyair,orsplash any of the mixture.
 Add anyherbs or coloring quicklyand all at once.Usethestickblendertomixeverything
together.
 Addyourfragrance.Somefragrancesarenot designed for soap making and will seize your
soap.Always use fragranceswhichhavebeentestedincoldprocess soap or essential oils.
 Cuttingandshapingthesoap After 24 hours uncover the soap, and measure and score the top of
the soap lightly in the shape of the bars you like.Each person is different in the size of bar
that they prefer.A small bar of soap sold in the grocery store is 2"X3", but I have found 2
1/2 X 3 1/2 makes a much nicer sized bar.
2.7.5 Expected operational challenges
The operational challenges identified in this business are fire outbreak, accidental discharge of
reagents for laboratoryanalysis,sustaininginjurywithinthefactory,motoraccidentthatmayinvolvethe
truck drivers and theft.
We shall mitigate the operational challenges through insurance policy against fire, installation
of fire extinguisher and provision of First Aid Box for staff.

2.8 BUSINESS STRATRGY

 Build my own brand.
 Target my products to a specific market.
 Social media photo marketing.
 Sell my soap in local health or beauty store.

6
  Label my products clearly.
 Advertise my brand on podcast.

2.9 KEY SUCCESS FACTOER

 Abrandingcampaigntobuildawarenessof
ourproductsasthestandardforensuringgood washing compliance.
 Consistenteducationonhandwashingandpersonalhygiene.

2.0 PRODUCT SERVICE LINE

3.1 PROUCT DESCRIPTION
Theentireprocessofsoapmaking,fromstarttofinish,takesabout2dayswhichinclude mixing
the raw materials, letting it cool down and molding the mixture to obtain the finished
product.
3.2 COSTING

7
  DirectMaterialCostfor50CLBottle

DirectMaterials Qty CostPerUnit (N) Amount(N)

RawMaterial 100,000L 15.00 1,500,000.00
50clBottle 200,000 12.00 2,400,000.00
1.Capcover 200,000 1.00 200,000.00
3
PackagingCartons Nylon 8,333 2.00 16,666.00
Transportation 8,333 3.00 24,999.00
Label 200,000 1.00 200,000.00
Labor 5 18,000.00 90,000
Electricity 1,800Kwh 12.00 21,600.00
TotalCostofProduction 4,453,265.00
TotalCostperCrate 534.41
TotalCostperunit 22.27
Table3.5: OpeningStock
Stock/Item Quantity Uni Total
t
Cos
t
50clSachetNylon 150000 1
150,000.00
PackagingNylon 15000 3
Pre-
45,000.00
50clBottle 80000 12
960,000.00
75clBottle 55000 14
770,000.00
-
Bottlecaps 135000 1
135,000.00
Labels 135000 1
135,000.00
-

TOTAL
2,195,000.00
operatingActivitiesandExpenses
8
Table3.6:PRE-OPERATINGACTIVITIESANDEXPENSES
Item Description Amount

Rent Twoyears 144,000.00

Equipment SeeTable3.1forDetails 8,690,000.00
Renovation/ Forallthepainting,re- 447,000.00
demarcation fixing
Advertising To create awareness of
the business
Businessregistration NAFDACRegistration 260,000.00
TOTAL 9,541,000.00

4.0 MARKET
4.1 NATURE AND SIZE OF MARKET
Theindustryishighlycompetitiveduetothefactthatmanyplayersareinvolved. Alotof trainings on
soapmakingare going on everyday. New players are enteringthe marketona regularbasis. The major
strategy in order to become a force to reckon with is to have a well planned out sales and marketing
strategy.

Considering the large scope of our potential markets, we feel it is imperative to focus our limited
resourcesonaparticulargeographicregionwherewecanestablishdemandforourproduct.After successful
market penetration, we will begin implementation into the restaurant and hospital markets.

4.2 TargetMarketSegmentStrategy

 Our target market includes restaurants, eateries, laundry and dry cleaning
companies. Thesemarketsconsistofmediumtolarge
organizations.OrganizationssuchasMr.Biggs,
Tantalizers,ChickenRepublicandCaptainCook
representveryattractiveopportunitiesfor our products.
9
 Organizationsofthistypeareattractivebecausetheyarewellmanaged,successful,health
conscious and nationwide. Within these organizations we will target decision level
managers with the power to implement use of our product in those locations.
4.3 KEY COMPETITORS

Inthemarketweshallbecompetingwith,butnotlimited,tothefollowingproducts:
 MorningFresh
 Mama Lemon
 Harpic
 B-29BarSoap
 SunlightSoap
 CanoeSoap

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4.4 QUALITY ASSURANCE

We produce soap that can be used on both hard and soft water, with the perfect fragrance and
very okay for sensitive skin.

4.5 TECHNOLOGY

5.0 MARKETINGPLAN

5.1 TargetMarketSegmentStrategy

 Our target market includes restaurants, eateries, laundry and dry cleaning
companies. Thesemarketsconsistofmediumtolarge
organizations.OrganizationssuchasMr.Biggs,
Tantalizers,ChickenRepublicandCaptainCook
representveryattractiveopportunitiesfor our products.
 Organizationsofthistypeareattractivebecausetheyarewellmanaged,successful,health
conscious and nationwide. Within these organizations we will target decision level
managers with the power to implement use of our product in those locations.

5.2 ProductPackagingandDelivery

OurCoopwillproducealineofinstitutionalliquidsoapswitha
qualityrawmaterialsblendedinto the mixture, utilizing the brightest colors possible.
Theliquidproductwillbepackagedin
75clplasticbottleswhilethebarsoapswillbewrappedin high density nylon.
 The Opportunity
Themarketsurveyshowsthatthereisagreatdemandforsoapsforwashingand cleansing.

 PricingStrategy

The method adopted for setting our prices is prevailing market price method. We intend to have
an introductory price that is 10% less than the prevailing market price.

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SellingPrice:

S/N PRODUCT DEALER’SPRICE(N) MARKETPRICE(N)

1. ToiletCleanser(75Cl) 3,600.00 4,080.00
2. LiquidSoap(75Cl)x12 3,000.00 3,360.00
3. BarSoap(180g)x20 800.00 1,000.00

5 . 3 DistributionStrategy
We shall canvass to market men and women perceived to be dealers of similar
products. Friend, families and associates are not out left.Wewish to adopt two
approaches, first, direct sales to the customers, and secondly, to supply the dealers in
the major markets in Ondo State and the neighboring states.
As we introduce our business to various people, we shall ask them for referral to
potential buyers. This shall be handled by our marketing team. We shall also employ
the services of sales agents. Our products shall be conveyed to desired destinations
through a truck, preferably a 2.5 tonstruck.

5.4 PromotionalStrategy
Ourstrategyforpenetratingthemarketisasfollows:
 PublicityandAdvertisement
Publicityandadvertisementinthiscontextinvolvecreatingpublic awareness.
 SalesMethod
Weshallgiveprioritytocustomercareandsatisfaction.Goodpublicrelationsmustbe
established.Weshallseeourprospectivecustomerstobeourrealemployers.Insellingour
products, we shallsupervise oursales agentin thesellingprocess.Everymemberof staffisa
potential marketer of our products. Appropriate commission shall be giving to members
ofstaff that could open and close a sale. We shall give some determined discount to
consistent customers, dealers and agents. As a matter of policy, we shall allow credit
facility to only accredited dealers and those who can give us a credible guarantor

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6.0 ORGANISATIONALANDMANAGEMENT

OwnershipoftheBusiness

Thebusiness is legally ownedby, Miss Oti Chinanu Jutta, who is the founding CEO of this
company.

5.2 KeyManagementStaff

 GeneralManager
 ProductionManager
 MarketingManager
 Accountant

ORGANISATIONCHART
ManagingDirector

ProductionManager(Existing)

Factory AssistantFactory
(existing)
Assistant (Proposed) Proposed Account Officer
Sales Officers (Proposed)

13
DetailsofSalarySchedule

SN Designation Noof Salary MonthlySalar AnnualSalary

staff y
1. ManagingDirector 1 N65,000 #65,000 N780,000

2. ProductionManager 1 N300,000 #30,000 N360,000

MarketingDirector 1 #30,000 #30,000 N360,000

3. Sales/Marketing 2 N12,0000 #24,000 N288,000

4. FactoryWorkers 4 N12,000 #48,000 N576,000

5. Cleaner/OfficeAssistant 1 N10,000 #10,000 N120,000

6. Drivers 2 N20,000 #40,000 N480,000

TOTALSALARY 12 N247,000 N2,964,000

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7.0 SWOT ANALYSIS
ANALYSIS
i. Strength:
Wehavequalityproductswithattractive
Packaging at affordable prices.
Wehavecompetent,efficientandloyal
Staffs that are purpose driven to Succeed.
ii. Weakness:
Presentlyhavinglowmarketshare, low
financial and equipment capacities
i. Opportunity:
Weareclosetoourtargetmarket. Also close
to the source of raw Materials.
i. Threat:
Powerfailure.Poorwatersupply and poor
maintenance culture
ofthefacilitiesbeingmanagedby
Government officials.
15
IMPLICATIONONTHEBUSINESS
Timelyproduction.Timelydeliver
yof
Products.Ourproductsareprepared
to meet needs of people, result is
good sales
There shallbe limitation tothe
level
ofourcapacity.Thislimitations
may
Affectouradvertisement,promotio
nalstrategy and, production level.
We shall be seen as part of the
communitythatoffersthecitizensnot
Only good products but also
provides employment for the
people.
Thesewillaffectourproductionsince
we largely depend on these for
production.
8.0 FINANCIALPLAN

FinancialAssumptions
Weassume inflation will be relativelystable, while the interest rate is takentobe
20%perannum to illustrate the worse scenario. Other assumptions include: Tax at 5% of net
profit, depreciation is considered using straight line method, the insurance at 5% on total
capital expense.

StartupCapitalEstimation

Table5.1:Required
StartupCapitalEstimate

ITEMS AMOUNT COMMENT

Pre-operatingExpenses 9,541,000.00
22`
OpeningStock 2,195,000.00
InitialOperatingExpenses- 2months
764,000.00

TotalStartupCapitalEstimated 12,500,000.00
SOURCESOFFUNDS AMOUNT %

PersonalFund /Equity 2,500,000.00 20%

BankLoan 10,000,000.00 80%

TotalFundsSourced 12,500,000.00 100%

16
 7.4 MonthlyProfitandLoss
Table5.3: Bi-MonthlyProfitandLossStatement(24 Months)
Components 1 2 3 4 5 6 7 8 9

TOTAL
SALES 10,800,0 12,990,00 15,180,00 16,980,00 14,710,00 12,960,00 11,870,0 11,755,00 12,570,000 10
0 0. 0. 0. 0. 0. 0 0. .
0.00 00 00 00 00 00 0.00 00 00
TOTAL
COSTOF 8,698,00 10,497,50 12,297,00 13,768,60 11,915,50 10,477,40 9,581,00 9,487,100 10,149,500 10
0 0. 0. 0. 0. 0. 0. .0 .
SALES .00 00 00 00 00 00 00 0 00
GROSS
PROFIT 2,102,00 2,492,500. 2,883,000. 3,211,400. 2,794,500. 2,482,600. 2,289,00 2,267,900 2,420,500. 20
0 0 0 0 0 0 0. .0 0
.00 0 0 0 0 0 00 0 0

7.5 EXPENSES
Operating
Expenses 764,000.0 743,000.00 768,000.00 714,000.00 749,000.00 734,000.00 700,000.0 659,000.00 671,000.00 6
0 0
Interest
333,333.3 333,333.33 333,333.33 333,333.33 333,333.33 333,333.33 181,818.1 181,818.18 181,818.18 1
3 8
Depreciation 277166.6
667 277,166.67 277,166.67 277,166.67 277,166.67 277,166.67 277,166.6 277,166.67 277,166.67 2
7
Rent
12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 1

TOTAL
EXPENSES 1,386,500 1,365,500.0 1,390,500.0 1,336,500.0 1,371,500.0 1,356,500.0 1,170,984. 1,129,984.8 1,141,984.8 15
.00 0 0 0 0 0 85 5 5
NET
PROFIT 715,500.0 1,127,000.0 1,492,500.0 1,874,900.0 1,423,000.0 1,126,100.0 1,118,015. 1,137,915.1 1,278,515.1 15
BEFORE 0 0 0 0 0 0 15 5 5
TAX
IncomeTax 8
35,775.00 56,350.00 74,625.00 93,745.00 71,150.00 56,305.00 55,900.76 56,895.76 63,925.76

NET
PROFIT 679,725.0 1,070,650.0 1,417,875.0 1,781,155.0 1,351,850.0 1,069,795.0 1,062,114. 1,081,019.3 1,214,589.3 19
AFTER 0 0 0 0 0 0 39 9 9
TAX

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7.6 CASH OUTFLOW
Pre-operating
Expenses 9,541,00
0.00
Opening
inventor 2,195,00 8,698,000. 10,497,50 12,297,000. 13,768,60 11,915,500. 10,477,4 9,581,00 9,487,10
y 0.00 00 0.00 00 0.00 00 00.00 0.00 0.00
TotalCost

Operating
Expenses 764,000.0 743,000.0 714,000.0 734,000. 700,000. 659,000.
0 0 768,000.00 0 749,000.00 00 00 00
Interest
333,333.3 333,333.3 333,333.3 333,333. 181,818. 181,818.
3 3 333,333.33 3 333,333.33 33 18 18
Loan
Repaymen 909,090.9 909,090.9 909,090. 909,090. 909,090.
t - 1 909,090.91 1 909,090.91 91 91 91
IncomeTax
56,305.0 55,900.7 56,895.7
35,775.00 56,350.00 74,625.00 93,745.00 71,150.00 0 6 6
TotalCash
Outflow 11,736,0 9,831,108. 12,539,27 14,382,049. 15,818,76 13,978,074. 12,510,1 11,427,8 11,293,9
00.00 33 4.24 24 9.24 24 29.24 09.85 04.85
CashBalance
(end of the 764,000. 1,732,891. 2,183,617. 2,981,568.1 4,142,798. 4,874,724.7 5,324,59 5,766,78 6,227,88
month) 00 67 42 8 94 0 5.45 5.61 0.76

7.8 CASH INFLOW

Table5.4:Bi-MonthlyCashflowPlan(24Months)
Components Pre 1 2 3 4 5 6 7 8
Startup

CashatHand
(beginningof 764,000.0 1,732,891.6 2,183,617.42 2,981,56818 4,142,798.94 4,874,724.7 5,324,595. 5,766,785.61 6
month) 0 7 . 0 45 ,
2
2
7
,
8
CashSales
10,800,000 12,990,000. 15,180,000.00 16,980,000. 14,710,000.0 12,960,000. 11,870,00 11,755,000.0 1
.00 00 00 0 00 0.00 0 2
,
5
7
0

18
 Equity
2,500,00
0.00

LoanProceed
10,000,0
00.00

TotalCash
Inflow 12,500,0 11,564,00 14,722,89 17,363,617. 19,961,56 18,852,798. 17,834,7 17,194,5 17,521,7
00.00 0.00 1.67 42 8.18 94 24.70 95.45 85.61

8.0 BUSINESSRISKANDMITIGATIONFACTOR

8.1 IdentifiedRisks
Thewaterprocessingfactoryisassociatedwithsomeriskswhichinclude:
i. Firehazard/outbreak
ii. Machinebreakdown
iii. Employeeaccident
iv. Vehiclebreakdown
v. Equipmentsafety

8.2 MitigationStrategies
i. FireHazard/Outbreak
Fire Hazard or Outbreak refers to a situation when the factory and/or its machinery
ignite as a result of error committed by member of staff.
In order to prevent such occurrence, the management shall ensure strict compliance to
instructions on the usage of the machineries. All electrical appliances must be switched
off before the company closes for the day. Industrial fire extinguisher must be installed
at strategic point in the factory.

19
ii. MachineandVehicleBreakdown
Machine and vehicle breakdown is a situation where these equipments cease to function
due to technical fault
In order to avoid these situations, control measures must be put in place to provide
adequate servicing for all machines.
iii. EmployeeAccident
To curb this accident, operators must be well trained and vast in the used of the
equipment. He/she must be sensitive and conscious to the factory environment.
Secondly, men and women of good medical records shall be employed. However, First
Aid Boxes shall be made available in the company.

8.3 SafetyoftheEquipmentLocation
The equipments are safe and secure due to the tight security arrangement put in place by the
Cooperative Society coupled with the security surveillance of the industry park.

9.0 CONCLUSION

As an enterpernure I hope to bring in the best products to the market and be among the highest
completion with the highest rate of sales

Always experiment. Be resourceful. Learn from my mistakes. Keep the basic chemistry of soap
in mind as I seek to improve the quality of the product(s) and create new blends.

Know and develop my market. Support my staff and my customers. When in doubt, do the
generous thing. We are all like plants, reaching for sun and water and greater prosperity. True
prosperity, however, comes not in the form of things, but in family, friends and a healthy
environment in which to flourish. If 1can build a business that supports the village populace,
20
 providing rewarding work and increased cash flow, I can build a sustainable future for the
generations to come

10.0 APPENDICES
SalesForecast

Table2.2:SALESFORECAST(Bi-monthly)

P P2 P P P P P P P P1
1 3 4 5 6 7 8 9 0
50Cl Qty
Bottle 8,000 10,000 12,000 14,000 12,000 10,000 9,000 9,500 10,000 12,000 14
Price/
Unit 650 650 650 650 650 650 650 650 650 650 65
Amt
5,200,000 6,500,000 7,800,000 9,100,000 7,800,000 6,500,000 5,850,000 6,175,000 6,500,000 7,800,000 9,
75Cl Qty
Bottle 10,000 12,000 14,000 15,000 13,000 12,000 11,000 10,000 11,000 12,000 1,
Price/
Unit 420 420 420 420 420 420 420 420 420 420 42
Amt
4,200,000 5,040,000 5,880,000 6,300,000 5,460,000 5,040,000 4,620,000 4,200,000 4,620,000 5,040,000 58
Sachet Qty
14,000 14,500 15,000 15,800 14,500 14,200 14,000 13,800 14,500 15,500 17
Price/
Unit 100 100 100 100 100 100 100 100 100 100 10
Amt
1,400,000 1,450,000 1,500,000 1,580,000 1,450,000 1,420,000 1,400,000 1,380,000 1,450,000 1,550,000 1,
TotalRevenue
10,800,00 12,990,00 15,180,00 16,980,00 14,710,00 12,960,00 11,870,00 11,755,00 12,570,00 14,390,00 11
0 0 0 0 0 0 0 0 0 0 0

21