FEDERAL UNIVERSITY OF TECHNOLOGY, AKURE, ONDO STATE, NIGERIA.

DEPARTMENT OF CIVIL AND ENVIRONMENTAL ENGINEERING

GROUP 1

FEASIBILITY REPORT ON

SUSTAINABLE BUILDING MATERIALS SUPPY CHAIN

SUBMITTED TO

THE DEPARTMENT OF ENTREPRENEURSHIP AND MANAGEMENT,

SCHOOL OF LOGISTIC AND TRANSPORT TECHNOLOGY,
THE FEDERAL UNIVERSITY OF TECHNOLOGY, AKURE, ONDO STATE,
NIGERIA.

IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR

THE ENT 301 (INTRODUCTION OF ENTREPRENEURSHIP)

LECTURER - IN- CHARGE

DR. MRS D.F OKE

APRIL, 2024

i
ii
 GROUP 1

S/N NAMES MTRIC NO POSITION

1 OLATUNJI SAMUEL OLUWASEUN CVE/22/9956 GROUP

LEADER

2 ASOTO OPEYEMI OLUWASEUN CVE/20/5538 CONTRIBUTOR

3 EGUNJOBI CHRISTIANAH OPEYEMI CVE/20/5545 CONTRIBUTOR

4 AFOLABI AYOMIPOSI ENOCH CVE/20/5526 CONTRIBUTOR

5 OYEGBILE ADESEWA FLORENCE CVE/20/5577 CONTRIBUTOR

6 OLADEJO ABDUL-SAMAD CVE/20/5570 CONTRIBUTOR

OLUWASEGUN

7 MAKANJUOLA SODIQ OPEYEMI CVE/20/5558 CONTRIBUTOR

8 ADELEYE ABRAHAM ARISE CVE/22/9880 CONTRIBUTOR

9 ISMAIL IBUKUNOLUWA OMOTAYO CVE/20/5552 CONTRIBUTOR

10 AJINDA SUNDAY DANIEL CVE/20/5532 CONTRIBUTOR

11 ABAH JOEL OGBADA CVE/20/5518 CONTRIBUTOR

12 ODUWAYE ADEDAYO DANIEL CVE/20/5564 CONTRIBUTOR

iii
 EXECUTIVE SUMMARY

Master Build Resource is committed to becoming Nigeria's leading supplier of Building

Materials. We achieve this by:

i. Implementing innovative and sustainable extraction and processing technologies.

ii. Upholding the highest safety and environmental standards.

iii. Building strong relationships with customers and partners.

We envision ourselves as a catalyst for infrastructure development in Nigeria by providing a

sustainable building material, contributing to economic growth and job creation. We also aim to

be a responsible corporate citizen, actively participating in the social and environmental well-

being of our communities.

Master Build resource seeks loan of N15,000,000 to establish a building materials supply in

western Gate of Federal University Of Technology Akure, Ondo state. Our financial plan

outlines an approach to secure the necessary capital:

i. Equity: The project will be partially funded through founding partners contributing 70%

to the total project cost.

Debt Financing: We are discussing with potential lenders, including banks to secure a loan of

about 30% of the total project cost. The loan will be a long-term loan, and its payment will span

5 years with a 20% interest rate.

Financial Risks: The project acknowledges potential financial risks such as fluctuating bitumen

prices, operational cost increases, unexpected delays, and economic instability. Mitigation

strategies will be implemented to minimize the impact of these risks, such as securing long-term

supply contracts, cost control measures, and contingency planning.

iv
 The global supply of building materials is experiencing growth driven by infrastructure

development. In Nigeria, the demand for bitumen is projected to outpace the global average due

to government infrastructure plans, and rapid urbanization.

Master build resource is designed to achieve a production capacity of 2700 bags of cement per

year. This capacity is strategically aligned with:

i. Market Demand Analysis: Detailed market research indicates a growing demand for

building materials in Nigeria that our production capacity can effectively serve.

ii. Phased Expansion Potential: Our initial capacity can be expanded in future phases to

cater to further market growth.

ii. Optimization Strategy: We will implement efficient production processes and utilize

reliable equipment to minimize downtime and maximize capacity utilization.

iii. Financial Implication: By efficiently utilizing our production capacity, we can achieve

economies of scale, reduce production costs per unit, and become a more competitive

building materials supplier.

iv. Monitoring and Adjustment: Based on market conditions and demand fluctuations, we

may adjust operational strategies to optimize capacity utilization and maintain financial

sustainability.

The financial summary for the establishment of this proposed project is that a sum of N6,000,000

will be used for all the activities that are required for the successful implementation of the

project.

v
 TABLE OF CONTENTS

EXECUTIVE SUMMARY ......................................................................................................v

TABLE OF CONTENTS…………………………………………………………………….vi

CHAPTER ONE ......................................................................................................................1

1. INTRODUCTION AND BACKGROUND INFORMATION …...................................... 1

1.1 Company’s Name ……...................................................................................................... 1

1.2 Company’s Location ......................................................................................................... 1

1.3 Company’s Description ..................................................................................................... 1

1.4 Company’s Objectives ....................................................................................................... 2

CHAPTER TWO ..................................................................................................................... 3

2. MARKET FEASIBILITY ................................................................................................... 3

2.1 The Market Study and Information ................................................................................... 3

2.1.1 Market Description ......................................................................................................... 3

2.1.2 Market Analysis ............................................................................................................. 4

2.1.3 Competitive Position ..................................................................................................... .4

2.2 Distribution System ...........................................................................................................6

2.3 SWOT Analysis................................................................................................................. 7

2.4 Contribution to the Economy ........................................................................................…8

2.4.1 Potential Positive Impacts .......................................................................................... . 8

2.4.2 Potential Negative Impacts ........................................................................................... 9

CHAPTER THREE ..............................................................................................................10

3. TECHNICAL FEASIBILITY .......................................................................................... 11

3.1 Product ........................................................................................................................... 12

vi
3.2 Processing Activity ........................................................................................................ 12

3.5 Project Location and Layout .......................................................................................... 14

3.8 Utility ............................................................................................................................. 17

3.9 Manpower Power Requirement ..................................................................................... 17

3.9.1 Job Roles and Responsibilities ................................................................................... 18

CHAPTER FOUR .................................................................................................................20

4. FINANCIAL / ECONOMIC STUDY ............................................................................. 23

4.1 Financial Assumption and Financial Agreement ........................................................... 23

CHAPTER FIVE ..................................................................................................................24

5. CONCLUSION ............................................................................................................... 24

REFERENCES .....................................................................................................................25

vii
 CHAPTER ONE

1. INTRODUCTION AND BACKGROUND INFORMATION

1.1 Company’s Name: MASTER BUILD RESOURCE

1.2 Company’s Location

It is located Asunde, West gate Federal University Of Technology Akure, Ondo State. Akure is

chosen by the board of Master build resources because of the recent rapid development at the

site. The site is also known to be found in a developing area, where our target customers can be

found and it provides a road network which aids an easy distribution of construction materials

1.3 Company’s Description

Master Build responsible for supply of construction materials such as; cement, roofing sheet,

nails which can be used for the constructions of residential homes, schools, hotels, companies

and lot more. Master build will serve as a source of income generation and employment for the

vast majority of the western gate of Federal University of Technology Akure, area.

The sales of building materials is a long term investment which can last for over many years

because of the rapid growth of the university environments and the high demand of the

construction materials in the nation.

At Master Build, our client’s best interest comes first and everything we do will be guided by our

values and professional ethics. We will ensure that we hold ourselves accountable to the highest

standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning

a living in our world for our partners, employees and for our clients. Master Build was founded

by Samuel Olatunji and his other eleven course mates. They are 300level undergraduates of the

department of Civil Engineering, Federal University of Technology, Akure.

1
1.4 Company’s Objectives

In other to meet all our target projections, we have created strategic objectives which are

emboldened to:

i. Achieve 100% high quality interlock slabs that meet statutory and regulatory

specifications.

ii. Achieve minimum customer satisfaction rating of 80% through constant monitoring and

monthly feedback and analysis.

iii. Achieve minimum of 80% supplier performance evaluation annually.

iv. Ensure productivity at established targets of 90% implementation of all actions.

v. Sustain the company as a profitable company that consumers, workers, and partners are

proud of.

2
 CHAPTER TWO

2. MARKET FEASIBILITY

2.1 The Market Study and Information

Market studies on building materials typically encompass various aspects such as trends,

demand, supply, pricing, key players, innovations, and sustainability factors. Here's a breakdown

of some key points we will be considering:

Market Trends: Investigate current trends in the building materials industry. This might include

shifts towards sustainable materials, increased use of smart technology, or changes in consumer

preferences for certain aesthetics or functionalities.

Demand Analysis: Analyze the demand for different types of building materials in various

sectors such as residential, commercial, and industrial construction. Consider factors influencing

demand such as population growth, urbanization, and infrastructure development.

Supply Chain Dynamics: Examine the supply chain for building materials, including raw

material sourcing, manufacturing processes, distribution channels, and logistics. Identify any

bottlenecks or challenges that could impact supply availability.

Competitive Landscape: Research major players in the building materials market, including

manufacturers, suppliers, distributors, and retailers. Assess their market share, product offerings,

pricing strategies, and competitive advantages.

Price Analysis: Study pricing trends for different types of building materials, including

fluctuations in raw material costs, pricing strategies of manufacturers, and price competitiveness

among different suppliers.

3
Regulatory Environment: Understand regulations and standards governing the production, sale,

and use of building materials. This could include building codes, environmental regulations,

safety standards, and certifications for sustainable materials.

Innovation and Technology: Explore innovations in building materials technology, such as

advances in energy efficiency, durability, and recyclability. Highlight any emerging materials or

construction techniques that could disrupt the market.

Sustainability and Green Building: Assess the growing importance of sustainability in the

building materials industry. This might involve analyzing the market for eco-friendly materials,

green building certifications, and sustainable construction practices.

Consumer Preferences: Survey consumer preferences and buying behavior regarding building

materials. Consider factors such as brand reputation, product quality, environmental impact, and

cost-effectiveness.

Future Outlook: Provide insights into the future outlook for the building materials market,

including anticipated growth trends, challenges, and opportunities. Consider factors such as

technological advancements, economic conditions, and regulatory changes.

4
2.1.2 Market Analysis

The table below shows the possible yearly growth progression of interlocked to be supplied to

our customers over the period of five years. The table shows an increase of 1.05% per year

YEARS 2024 2025 2026 2027 2028

BUA 450 Bags 500 Bags 550 Bags 570 bags 600 bags

CEMENTS

DANGOTE 450 Bags 520Bags 550Bags 570 bags 600 bags

CEMENT

ROOFING 20 Bundles 24 26 Bundles 28 Bundles 30 Bundles

SHEET Bundles

NAIL 20 Packets 30 Packets 40 Packets 50 Packets 60 Packets

2.2 The Marketing Programme

The marketing and sales strategy for our company will be based on generating long-term

personalized relationships with customers. In order to achieve that, we will ensure that we offer

top notch interlocking services at affordable prices compared to what is obtainable in Akure. We

are not ignorant of the fact that there is stiffer competition in the interlocking industry; there are

loads of interlocking industry jostling for contracts which is why we have been able to hire some

of the best marketing experts to handle our sales and marketing. Our sales and marketing team

will be recruited based on their vast experience and they will be trained on a regular basis so as

to be well equipped to meet their targets and the overall business goal of Master Build. Master

5
Build is set to make use of the following marketing and sales strategies to attract clients and win

interlocking contracts;

i. Introduce our building materials supply company by sending introductory letters

alongside our brochure to corporate organizations, realtors, religious organizations and

key stake holders in the real estate industry, and residence by informing them of Master

Build and the services we offer.

ii. List our business on yellow pages ads (local directories).

iii. Attend relevant international and local expos, seminars, and business fairs et al. - Create

different packages for different category of clients in order to work with their budgets and

still deliver excellent design and services.

iv. Leverage on the internet and different social media platforms e.g. LinkedIn, Facebook,

Instagram, Twitter, Tiktok, and WhatsApp to promote our business.

v. Encourage word of mouth marketing and referrals from loyal and satisfied clients.

vi. Engraving our logos on interlocks with the consent of the customer. 6

vii. Place adverts on both print (newspapers and magazines) and electronic media platforms

viii. Sponsor relevant community based events / programs.

ix. Install our Bill Boards on strategic locations all around Futa environment.

x. Engage in roadshow from time to time in targeted neighborhoods.

xi. Distribute our fliers and handbills in target areas.

6
2.3 Distribution System

The distribution system that we are going to use is the Dual Distribution System. This system

involves two channels of distribution:

i. Producer – Retailer – Consumer

ii. Producer - Consumer We will be using these methods because during the production of

our interlocks, we will be producing based on the customized designs of the consumer

and then, delivering the products to them (producer to consumer) or producing some sets

of designs for other consumers where we will be delivering the products through the

wholesalers

RETAILER

PRODUCER

CONSUMER CONSUMER

7
2.4 SWOT Analysis

A number of risks have been identified in running sales of building materials in Nigeria and we

would attempt to proffer mitigation strategies to the identified risks. A major mitigation strategy

is working with suppliers whose base of operations is close to ours in other to militate against

raw materials delivery breakdown After several considerations, the company came to the

decision of evaluating the core areas, strength and weakness of the organization by carrying out a

well detailed research and analysis to serve as a set of guidelines for the company’s operation.

The management of the company itself performed the whole operation. The result of the analysis

was presented as shown below:

STRENGTH
The strength of our company includes:

i. A well structured marketing strategy

ii. Affordability of Services

iii. Dynamism and Creativity

iv. Qualification and Experience of Personnel

v. A well detailed and organized financing system

WEAKNESS
i. Master build resources are new to business

ii. Unavailability of required capital

OPPORTUNITIES
The proximity of the industry to the major deposits of limestone

8
THREAT

Just like any other business, the major thread which is likely to be faced is economic downturn.

Others are;

i. Competition from already established companies.

ii. Breach of agreement (either by government or traditional rulers)

iii. Theft.

2.5 Contribution to the Economy

A number of risks have been identified in running sales of building materials in Nigeria and we

would attempt to proffer mitigation strategies to the identified risks. A major mitigation strategy

is working with suppliers whose base of operations is close to ours in other to militate against

raw materials delivery breakdown

2.5.1 Potential Positive Impacts

Positive impacts on sales of building materials can arise from various factors, including:

i. Construction Boom: Economic growth, urbanization, and population expansion often

lead to increased construction activity, driving up the demand for building materials.

ii. Government Initiatives: Government policies promoting infrastructure development,

affordable housing projects, or energy-efficient construction can stimulate demand for

specific types of building materials.

iii. Technological Advancements: Innovations in building materials, such as eco-friendly

options, high-performance materials, or those with advanced features like energy

efficiency or durability, can attract customers and drive sales.

9
 iv. Consumer Trends: Changing consumer preferences towards sustainable, eco-friendly, or

aesthetically pleasing building materials can create new market opportunities for

manufacturers and retailers.

v. Natural Disasters: After natural disasters like hurricanes, earthquakes, or floods, there's

often a surge in demand for construction materials for rebuilding and repair efforts.

vi. Infrastructure Projects: Large-scale infrastructure projects, including roads, bridges, and

public buildings, require significant quantities of building materials, boosting sales for

suppliers.

vii. Seasonal Factors: Seasonal fluctuations, such as higher demand for construction materials

during the spring and summer months, can influence sales patterns.

viii. Supply Chain Improvement: Streamlining the supply chain, reducing lead times, and

optimizing inventory management can enhance efficiency and positively impact sales.

ix. Marketing and Branding: Effective marketing strategies, branding efforts, and customer

engagement initiatives can increase brand visibility and attract more customers, driving

sales growth.

2.5.2 Potential Negative Impacts

i. Economic Downturn: During economic recessions or downturns, construction activity

typically decreases, leading to lower demand for building materials as consumers and

businesses postpone or scale back construction projects.

ii. Regulatory Changes: Changes in building codes, environmental regulations, or trade

policies can affect the demand for certain types of building materials or increase

compliance costs for manufacturers, potentially dampening sales.

10
 iii. Material Costs: Fluctuations in the prices of raw materials, such as lumber, steel, or

concrete, can impact the affordability of building materials for consumers and

contractors, leading to decreased sales volume.

iv. Competition: Intense competition within the building materials industry, including from

global suppliers, online retailers, or alternative construction methods, can pressure prices

and margins, affecting sales revenues.

v. Environmental Concerns: Growing awareness of environmental issues may lead to shifts

in consumer preferences towards sustainable, eco-friendly materials, potentially reducing

demand for traditional building materials that are perceived as less environmentally

friendly.

vi. Technological Disruption: Advances in construction technology, such as 3D printing or

prefabrication techniques, could disrupt traditional building material markets by offering

alternative solutions that require fewer materials or different types of materials.

vii. Natural Disasters: While natural disasters can stimulate short-term demand for building

materials for reconstruction efforts, they can also disrupt supply chains, damage

infrastructure, and weaken consumer confidence, leading to decreased sales in the

affected regions.

viii. Seasonal Variations: Seasonal factors, such as harsh weather conditions during winter

months, can impede construction activity and slow down sales of building materials.

ix. Consumer Confidence: Changes in consumer sentiment, such as concerns about job

security or economic uncertainty, can lead to reduced spending on construction projects

and lower demand for building materials.

11
x. Credit Availability: Tightening credit conditions or higher interest rates can make it more

difficult for consumers and businesses to finance construction projects, resulting in

decreased demand for building materials.

12
 CHAPTER THREE

3. TECHNICAL FEASIBILITY

3.1 Product
The major product of the company is sales of various kinds of building materials such as;

Cement (Dangote and Bua), Roofing sheet, nail ( roofing, concrete etc), reinforcements of

different diameter (8mm, 10mm,12mm, 16mm etc)

3.2 Marketing strategies

Implementing effective market strategies for selling building materials in remote areas requires

creativity, adaptability, and a deep understanding of local market dynamics. Here are some

strategies tailored to address the unique challenges and opportunities of remote areas:

i. Localized Marketing: Tailor marketing efforts to resonate with the specific needs and

preferences of customers in remote areas. This could include highlighting the durability

of materials in harsh climates, emphasizing affordability for smaller projects, or

showcasing how certain materials address common local challenges.

ii. Partnerships with Local Businesses: Forge partnerships with local construction

companies, hardware stores, or home improvement contractors to extend your reach and

leverage their existing networks and knowledge of the local market.

iii. Mobile Sales Units: Deploy mobile sales units or pop-up shops equipped with a selection

of building materials to travel to remote areas and engage directly with customers. This

approach brings the products closer to customers who may have limited access to

traditional brick-and-mortar stores.

13
 iv. E-commerce with Last-Mile Delivery: Invest in an e-commerce platform that offers last-

mile delivery services to remote areas. Ensure that the platform is user-friendly, mobile-

responsive, and capable of handling orders from customers in areas with limited internet

access.

v. Community Engagement: Engage with local communities through outreach programs,

workshops, or informational sessions on construction techniques, home improvement

tips, or the benefits of using specific building materials. Building trust and rapport within

the community can lead to repeat business and word-of-mouth referrals.

vi. Value-Added Services: Provide value-added services such as free consultations, project

planning assistance, or after-sales support to differentiate your offering and build

customer loyalty.

vii. Localized Distribution Centers: Establish localized distribution centers or warehouses

strategically located in or near remote areas to reduce transportation costs and improve

the availability of building materials.

viii. Bulk Purchasing and Group Discounts: Offer incentives such as bulk purchasing

discounts or group buying options to encourage collective purchasing by contractors,

community groups, or local governments undertaking large-scale projects.

ix. Digital Marketing and Social Media: Leverage digital marketing channels and social

media platforms to raise awareness, showcase products, and engage with potential

customers in remote areas. Targeted advertising campaigns can reach specific

demographics or geographic regions effectively.

x. Customer Feedback and Adaptation: Continuously gather feedback from customers in

remote areas to understand their evolving needs and preferences. Use this feedback to

14
 refine product offerings, adjust pricing strategies, and tailor marketing messages

accordingly.

3.3 Firm size and company’s organogram

For a start, the company can begin operations with at least 15 personnel. This workforce could

increase with the increase in demand or sales of the company.

Below is a tentative organogram of the company;

GENERAL

MANAGER

SALES AND LEGAL

MARKETING LOGISTICS
DEPARTMENT

 Human resources and Admin Lawyers Drivers

Manager Security men
 Sales representatives Cleaner
 Accountants

15
3.4 Project Location and Layout Location:

The building has the required facilities and is located where the raw materials and amenities

like water, electricity, and an averagely ranked road and drainage system are readily

available. This proves to be a perfect site of establishment with less cost and commendable

facilities

3.5 Utility
i. Electricity

ii. Good road networks to easy transportation of our services

3.6 Manpower Power Requirement

We are aware of the importance of building a solid business structure that can support the

picture of the kind of world class business we want to own. This is why we are committed to

only hire the best hands within our area of operations. As a matter of fact, profit-sharing

arrangement will be made available to all our senior management staff and it will be based on

their performance for a period of five years or more as agreed by the board of trustees of the

16
company. In view of the above, we have decided to hire qualified and competent hands to

occupy the following positions;

i. General manager

ii. Lawyer

iii. Human Resources and Admin Manager

iv. Sales and marketing representatives

v. Accountant

vi. Security men

vii. Cleaners

viii. Drivers

3.6.1 Job Roles and Responsibilities General Manager:

i. Increases management’s effectiveness by recruiting, selecting, orienting, training,

coaching, counseling, and disciplining managers; communicating values, strategies,

and objectives; assigning accountabilities; planning, monitoring, and appraising job

results; developing incentives; developing a climate for offering information and

opinions; providing educational opportunities.

ii. Responsible for providing direction for the business

iii. Creating, communicating, and implementing the organization’s vision, mission, and

overall direction – i.e. leading the development and implementation of the overall

organization’s strategy.

iv. Responsible for signing checks and documents on behalf of the company

v. Evaluates the success of the organization

17
Lawyer:

i. Offers legal advice for the good of the firm

ii. Drafting and negotiating construction contracts

iii. Assisting with construction proposals

iv. Submitting construction claims

Human Resources and Admin Manager:

i. Responsible for overseeing the smooth running of HR and administrative tasks for the

organization

ii. Defines job positions for recruitment and managing interviewing process

iii. Carries out staff induction for new team members

iv. Responsible for training, evaluation and assessment of employees

v. Responsible for arranging travel, meetings and appointments

vi. Oversees the smooth running of the daily office and factory activities.

Security men:

i. They are in charge of securing the building, products and staffs from perpetrators

Cleaners:

i. They ensure the company’s environment is neat and tidy

Drivers:
i. They will be in charge of transferring the finished products to the customers

18
Worker’s list and Salaries
Position Number Monthly Total salary Total salary
salary per per month per annual
Required
person

General Manager 1 120,000 120,000 1,440,000

Lawyer 2 75,000 150,000 1,800,000

Human Resources and 2 60,000 120,000 1,440,000

Admin Management

Sales Representatives 5 40,000 200,000 2,400,000

Security 2 35,000 70,000 840,000

Accountant 1 70,000 70,000 840,000

Driver 1 40,000 40,000 480,000

Cleaners 1 20,000 20,000 240,000

Total 1 460,000 460,000 9,440,000

19
Our Products

20
 CHAPTER FOUR

FINANCIAL / ECONOMIC STUDY

4.1 Financial Assumption and Financial Agreement

The following financial realistic assumptions were made during the various planning of the
proposed project:
i. The establishment and inception of the project will require a capital of ₦ 50,000,000.

ii. 70% of the ₦ 50,000,000 will be provided by the partners and 30% will be secured from

the bank as a loan.

iii. The 30% loan sourced from the bank will be made at 20% interest opportunity cost of

capital.

iv. The loan from the bank will be agreed upon by the partners to be paid annually, and the

payment would start in the first year of the establishment of the firm.

v. 5 plots of land would be leased for the start-up of the project. Buildings and facilities

would be erected on the said land. The lease fee of ₦ 2,500,000 will be paid every 10

years.

vi. Saving will be set apart each month for the repayment of the loan from the bank. vii.

Variable costs will be rising yearly by 10%.

vii. Revenue is estimated to rise yearly by 12%

viii. Interest will be calculated using declining balance with equal installments.

ix. Salaries will be paid monthly to the labour force through the Human Resource Manager.

The other workforce such as Chief Executive Officer, Chief Technology Officer and

other board members might not require a monthly salary because they are the partners

that set up the firm.

21
 x. All the equipment, technologies and software that is used will last for a longer period of

time before renewal. xii. The firm will collaborate with established companies and firms

in the land management industry so that there would be access to their funding,

resources and doors to new markets when the opportunities arises.

In arriving at financial estimates, various findings and realistic assumptions were made.

They are:

i. The initial capital outlay will be contributed by the group of friends.

ii. Variable costs will be rising yearly by 5%

iii. Revenue will be rising yearly by 6% Based on the findings and assumptions, various

measures of investment worthiness were undertaken and results are the following:

Table 1: Estimated cost and returns to the project

Initial Capital outlay Cost

Land acquisition 1,500,000
Building 3,340,000
CAC registration 50,000
Start-up expenses 35,000,000
Total 40,000,000
Operating expenses
Salaries 9,440,000
Electricity 50,000 600,000
Advertisements 60,000
Total 10,100,000
Summary of the costs
Fixed cost 40,000,000
Total 50,000,000
SOURCES OF FUNDING PERCENTAGE TOTAL

22
 Partners equality 70% 35,000,00

Loan from banks 30% 15,000,000

TOTAL SOURCES OF FOUNDING 100 50,000,000

Year Cost (#) Revenue Increment Discoun NPV @ 22% Discount cost @ Discount factor @ Discount VPV @
benefit t factor 22% 56% factor @

@ 22% 22%

0 50,000,000 - 50,000,00 1 50,000,00 50,000,000 1 50,000

1 8,692,500 3,732,000 28,627,500 0.8197 23,465,163.934 71,250,000 305,901,639 0.6410 18,376,

2 9,601,990.9 41,798,400 32,1964,091 0.6719 21,631,557.2 64,512,166.76 28,082.773.448 0.4109 13,229,9

3 10,596,518.4 46,863,328 36,668,096 0.5507 19,972,381.8 5,835,575.665 25,807,957.494 0.2634 9,552,9

4 11,684,345.4 52,511,746.56 40,827,401.16 0.4514 18,429,516 52,743,028.57 23,703,754.506 0.1689 6,893,7

0

5 12,883,931.0 58,781,830.32 45,897,899.3 0.3699 16,982,188.4 47,670,448.57 21,749,233.278 0.1689 4,978,6

5 3

1,338,161.91 50,480,742.934 79,453,140,.05 12,993,388.2626 3,021,4

23
 CHAPTER FIVE

5. CONCLUSION
In conclusion, the feasibility study conducted for Master Build Resource has provided invaluable

insights into the potential success and viability of the company. Through detailed analysis of

market demand, technical requirements, financial considerations, and operational challenges, a

comprehensive understanding of both present opportunities and prospects has been attained. The

findings of the study strongly advocate for the establishment of Master Build Resource.

The increasing demand of building materials presents a promising market opportunity.

The technological assessment affirms the feasibility of building materials outlining the necessary

cost, marketing schedules, and staffing requirements for success. Additionally, financial

projections indicate potential for long term revenue, with careful management and adherence to

regulatory frameworks ensuring legal compliance and stakeholder confidence. The financial

assessment of the study affirms that the business is profitable. Since the NPV was positive, it

indicates that the sales and supply of building materials is expected to generate more cash

inflows than outflows, resulting in profit.

24
 REFERENCES
Asekunowo, V.O., Fakokunde, T. O. and Adebayo, O. (2024). Essentials of Entrepreneurship.

(2nd Ed.)., Federal University of Technology, Akure.

How to Start sales of building materials Business In Nigeria. Business Finance Daily. Retrieved

04 February 2024, from https://businessfinancedaily.com/2017/07/30/how-to-start-

interlocking-paving-stone-productionbusiness-in-nigeria/amp/

Jiji (2024). Images: Building Materials and Tools.

25