A BUSINESS PROPOSAL ON

GRAIN (MAIZE & SOY BEAN)

BUYING/SELLING

FOR TRITECH INVESTMENT LIMITED

ABEOKUTA, OGUN STATE, NIGERIA

PREPARED BY THE MANAGER

MR. BANKOLE MONDAY O.

 EXECUTIVE SUMMARY
Tritech Investment Limited is primarily a wholesaler of various grains and
agro products in Nigeria, located in Abeokuta Ogun State. This company is
intended to provide customers with the finest quality grains. The business is
primarily wholesale to retailers who want to buy in large quantity. We
will purchase our grains directly from local farmers and sole distributors.
This allows us to buy from the farmers with the finest output available
anywhere. We plan to sell to countless numbers of customers who are
always in need of wholesale price for most of the grain we sell in our
location. And we shall also export the goods to the buyers outside the
country.
Tritech Investment Limited plans to expand her storefront and sell direct to
company in nearest future. In our expanded market, we will bring our
commitment of quality, freshness and great prices to the public. By
purchasing in large quantities, we are able to pass the savings on to our
customers.
The planned set up cost of the business will cost ₦2,900,000. This is for
renting of store, buying of stock, equipments and payment of staff cost. A
short-term loan of ₦1,500,000 will be secured from a client for initial
startup.
Tritech Investment Limited will rely on the proven knowledge, skills and
experience of its Management, who brings over a decade managerial
experience to the business.
Tritech Investment Limited is established for the primary purpose of
providing high quality grains of the best Maize and Soya beans to retailers
which are considered the bread basket of the country. The enterprise has
a potential to gain reputation for offering quality grains that provides great
value to retailers.

Tritech Investment Limited will establish its base of operations at Abeokuta,

the capital of Ogun State, which is highly populated with a fast-growing
market for grains. Tritech Investment Limited will therefore be in a good
position to capture a significant portion of the local market for grains, since
it will introduce new and better marketing techniques.
Tritech Investment Limited will differentiate itself from other suppliers
through favourable pricing and unique promotional techniques. By
specializing in just a few of the most popular varieties, Tritech Investment
Limited will gain access to the largest segment of grain market for Maize
and Soya beans. This tightly focused approach will also make it easier for
Tritech Investment Limited to establish and attain the position of a grain
industry leader.
This business is projected to return a profit margin of 20% in its very first
month of operations, due to the large size of the market, a competitive price
for grains, and the relatively low investment required to begin operations.
The first year (2023) sales revenue is projected to exceed ,500,000. The
profit that is generated will be used for reinvestment in the enterprise.
OBJECTIVES
 To establish Tritech Investment Limited as the leader in selling grain
in Nigeria.
 Increase the number of customers buying from Tritech
Investment Limited by 20% over the next two months.
MISSION
The mission of Tritech Investment Limited is to offer customers the best
grains at a reasonable price.
KEYS TO SUCCESS
 Superior products will promote customer loyalty.
 A location that will assure walk-in traffic.
 A program that will create customer loyalty.

BUSINESS OWNERSHIP

Tritech Investment Limited is privately owned by Mr. Monday

Bankole and managed by him. Mr. Bankole Monday leveraged his
wealth of knowledge in trading agricultural produce. Due to our
dream for the business, other investors may be allowed to co- owned
the business.
OPERATING PLAN:

Based on a survey of wholesalers, it has been determined that the

current total annual requirement for soya beans seed is about
125,000 tonnes and 10,000 tonnes for maize seed.

Tritech Investment Limited plans to enter the market and sell a

reasonable bags of grains in a year, an average of Fifty bags of
grains(maize and Soya beans) in a month.

Tritech Investment Limited will carry out the following key operations:

- Purchasing of quality grains(Maize ans Soya beans)

- Cleaning, packaging, treatment and storage of the grains (Maize and Soya
beans)

- Grains distribution, marketing and sales

FINANCIAL PLAN

This plan outlines the amount of money Tritech Investment Limited

will need to cover both its startup and operating costs, and how
much income the business expects to generate after sales of its first
batch of grains.

The total establishment and first month operational costs of Tritech

Investment
Limited will amount to 3,925,000 as summarized in the following table:
ITEM COST (₦) (₦)
MACHINERY AND EQUIPMENT COST (FIXED COST)
Store 100,000
Transport Van 650,000
Furniture and Fittings 50,000
Total 800,000
ADMINISTRATIVE CHARGES
Van operation 20,000
Promotion and Marketing 15,000
Office Supplies 10,000
Total 45,000
GRAIN MULTIPLICATION COST (VARIABLE COST)
Purchase of 50 bags of Maize @ 23,000 per bag 1,150,000
Purchase of 50 bags of Soya beans @ 36,000 per bag 1,800,000
 Grain storage/Transport 130,000
Total 3,080,000
Grand Total 3,925,000

As regards revenue Tritech Investment Limited intends to clean and

sell up to 50 bags of grains in the first month of operation.
Sale of grains for the First Month.
Sale of grains (Maize and Soya beans) Amount(₦)

25 bags of Maize @ 2 8 ,000 per bag 700,000

25 bags of Soya beans @ 40,000 per bag 1,000,000

Total 1,700,000

On the basis of monthly production cost of N1,700,000, Tritech

Investment limited will earn a profit of equivalent to a margin of
20%.

CASH FLOW
The cash flow is planned on the basis of operational plan of Tritech
Investment Limited for the First month of operation
(₦) (₦)
Beginning cash position 1,700,000
CASH RECEIVED
25 bags of Maize @ 2 8 ,000 per bag 700,000
25 bags of Soya beans @ 40,000 per bag 1,000,000
Total 1,700,000
CASH PAID OUT
Purchase of 25 bags of Maize @ 23,000 per bag 575,000
Purchase of 25 bags of Soya beans @ 36,000 per bag 900,000
Grain storage/Transport 65,000
Total
Total Cash Paid out 1,540,000
Net Cash in hand 160,000
Cash at Month end 1,760,000
Tritech Investment Limited will record and present all its financial
transactions in suitable and acceptable manner that will be used for
monitoring and control. Account statements will be prepared
periodically to measure performance in terms of profit or loss that is
being generated and what actions could be taken.

A forecast profit and loss account for Tritech Investment Limited at

the end of the first month indicates a good profit of ₦16,000 from
its operations. The cash flow forecast analyzed based on the first
month of operation shows cash balance of ₦1,760,000. These
statements show that Tritech Investment Limited will have more
than sufficient cash that will be required to put its planned
operations into effect and to also meet its capital needs.
Profit & Loss Account of Tritech Investment Limited as at 31st
December Year 1

Sales 1,700,000

Opening Inventory -

Purchases 1,540,000

Closing Inventory -

Cost of Sales (1,700,000)

Gross Profit 310,000

Expenses:

Admin Expenses 45,000

Storage 10,000 55,000

Net Profit 255,000

The financial transactions outlined in the profit and loss account and
the cash account are supplemented by a projected balance sheet,
 which shows the assets and liabilities of Tritech Investment
Limited or its financial viability at the end of Year
1. Tritech Investment Limited will have nil accounts payable, since
grains and other direct material purchase will be paid for fully
during Year 1. Similarly, accounts receivable will be nil because
all seed will be sold by end of Year 1. The balance

sheet also indicates a healthy net worth or owner’s equity of

₦1,297,000. This is what the enterprise will be worth in financial
terms at the end of Year 1.
Tritech Investment Limited Balance Sheet as at 31st December Year 1
₦ ₦
ASSETS
Non-Current Assets
Transport Van 650,000
Furniture and Fittings 50,000
Store 100,000
Current Assets
Cash in hand 1,700,000
TOTAL ASSETS 3,925,000
EQUITY AND LIABILITIES
Owner‘s equity 3,925,000
TOTAL EQUITY AND LIABILITIES 3,925,000

Break Even Point

BEP= Fixed Cost
Contribution Margin

8
0
0
,
0
0
0
1
0
,
2
0
0
=78 bags

The analysis above shows that Tritech Investment Limited needs

to sell a total of about 78 bags of grains such that the revenue from
sales equals exactly the total costs incurred. The planned number of
bags to be sold need to be increased to achieve the target combined
output level of 78 bags of grains.
MARKETING AND SALES PLAN
Tritech Investment Limited will offer the same or better quality seed
than other suppliers in the market, but sell at a more reasonable price.
The enterprise will charge significantly less for its grains than
other companies because of its lower overhead expenses and fewer
employees it will engage.
As part using
market of thisa strategy,
preferredTritech
mode ofInvestment Limited
word-of-mouth will promote its grains in the
advertising.
The enterprise will popularize its brand image in the form of attractive
spikes of grain and the associated slogan of “Quality Grains for Nation's
Future”, which will be promoted vigorously.
MANAGEMENT PLAN
Tritech Investment Limited plans to keep wage and salary expenses
low, at least initially. To achieve this objective, all job functions will
be performed by the Director since he posses the required skills and
experience. The remaining staff will be daily waged workers, and casual
Labourers who will be hired during the busy periods.The business will use its
profit to provide attractive working conditions and appropriate incentives
that will keep its dedicated staff in the enterprise in the long run.
CONCLUSIONS
Tritech Investment Limited will endeavour to attain leadership in the supply
of quality grains in the market. The pursuit of high quality grains will be the
driving force in the business. To achieve this, the enterprise will use the
dedication, experience and skill of its management. Extensive promotional
activity will help to ensure that Tritech Investment Limited customers
perceive that they are buying the best quality grains, on time, and at a
reasonable price. Tritech Investment Limited is poised and positioned to
take advantage of this commercial opportunity in buying and selling of
grains.

NOTE:

Price for Soya beans per ton in Europe is $704.45

Price for maize per ton is 810.28.