Professional Documents
Culture Documents
BY
EMUDAINOHWO EMMANUEL
CE/HND/F22/1698
SUBMITTED TO
Business Description 5
Products andservices 7
Market Research 8
Competitor Analysis 1
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Sales and Marketing Plan 1
2
Operational Plan 1
3
Management and Structure 1
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Financial Plan and Projections 1
2
Executive Summary
3-dimension blocks is a business involved in the manufacturing of building
concrete, bricks and blocks for masonry, builders association, housing
consultant, development agencies, construction workers etc.
We make block of uniform quality and sell them at a price high enough to cover
costs and make a reasonable profit.
Cement concrete blocks are modern construction materials and as such are use
in all the construction viz: residential, commercial, and industrial building
construction.
We forecasted a 40% market share. The business will generate a very high
gross margin and a modest net margin after year one and comfortable margin
after year three. By year three the business will have developed a respectable
yearly net profit.
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INTRODUCTION
Business Opportunity
The increasing need to build new residential houses, factories and offices to accommodate
Nigeria’s large population has made cement block production a very lucrative business in
the country. Over the last 10 years, building and construction sector has undergone strong
growth rates in the range of 8-10% in Nigeria (Source: National Bureau of Statistics, 2013).
Housing and construction is one of the major drivers of growth in more than 40 allied
industries, the cement block industry included. Demand for cement blocks has also risen
tremendously as a result of the demand for it in the housing and construction industry. In
addition to this, there is also increasing demand of cement blocks from government and
multi-national contractors for building purposes.
A potential cement block producer must have a good level of patience and must have time
for the job. He must also know or be willing to know about building business, as this will
help a great deal and increase his profitability in the long run. Also, the business owner must
have good networking relationship with individuals and corporate customers; he must
possess the necessary skills to:
• Manufacture concrete blocks with highest quality cement that dries quickly for
commercial production,
• Recruit skilled workforce,
• Set up the business on a dry land,
• Ensure availability of truck to deliver goods to customers’ desired location,
• Provide reliable and durable equipment for the successful operation of the business
Ironically, the market is still relatively small. There is strong competition, and the cost of
preparing cement block is high. The industry is also affected by non-availability of modern
machinery in the local market at an affordable rate. Local customs traditions, and non-
availability of infrastructural facilities are also other major hurdles in the development of the
sector. The main risks associated with the business include inability of production staff to
wet the blocks on the second day of production thereby preventing the blocks to command
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high market value, frequent rainfall to prevent blocks to congeal as at when due and
inability to service vibrating machine regularly. Volatility of the price of cement is a huge
threat in the blocking making industry. However, the business owner should ensure close
supervision of production staff and regular servicing of vibrating block molding machine.
As a start-up business, the categories of cement blocks for production are four inches block,
six inches block and nine inches block.
The business is expected to be registered with all the relevant agencies such as Corporate
Affairs Commission and Concrete Blocks Manufacturer Association of Nigeria. The business
is starting up with =N=5,000,000 (five million naira) in cash part of which would be used to
finance fixed assets, expenses and other running cost.
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Business Description
We make block of uniform quality and sell them at a price high enough to cover
costs and make a reasonable profit.
Cement concrete blocks are modern construction materials and as such are use in
construction
Our Vision
Too be among the top 3 BLOCK Making company in Nigeria by 2025
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Our Objective
Our Goal
- To be a one stop-shop for building materials in Nigeria
- To run business as a profitably
- Our Mission
To exceed the customers’ expectations in every sense by providing quality
produce in a sustainable way.
-Success Factor
1. Land
Most Block Industry owners do not own the land they work from. It
mostly belongs to farmers who they pay a lease to.
Make sure you are close to a water source like river, stream or water
way or dig a well. Water is the life blood of the business. Do not
Under any circumstance entertain the idea of buying water or the
business will crash before it takes off!
2.Machinery
You need a Lister engine. These are very expensive, so you want to
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Source for the most affordable you can find. This normally means
travelling out of town to buy one.
You need a moulding machine. This is what shapes your blocks. These
are made to order by local manufacturers.
You need a Water Pumping Machine (Looks like a small generator) This
brings in water from your source.
3. Materials
You need wooden pallets. This is where your blocks stay to dry out
after moulding. Bought from local makers. Start with a few hundred
pieces (200-500 pieces).
You need also
1 x Wheel
Barrow 2 x
Shovels
2 x Metal drums(To house water for your machines during
moulding.) 2 x Security chains to secure items when you leave site.
4.Storage
You have two options. Buy wood from the market and ask a carpenter to
construct a small hut for you. Alternatively and more expensively
you can buy a disused shipping container and convert. This is to store
your items like unused bags of cement when you leave for the day.
5. Daily operation
It's profitable depending on a few
factors. Location: For obvious reasons
Season: During rainy season constructions all over the country slow down
meaningless need to buy blocks and less business.
Inflation: When a bag of cement rises or falls it affects your ability to
mold and customer’s ability to build or buy blocks for doing so.
Capital: The business is very cash intensive. Everything you do you will
have to pay upfront whilst waiting for sale to recoup cost and profit.
This includes the machine operator and laborers who are all paid per
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block and types of block (there are two types) and on the day!
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This includes your sand delivery which is paid upfront.
This includes your bags of cement which you obviously buy upfront too.
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Product/service
Cement-
Interlocking
Our product is highly needed in the building and construction sector in order to tackle the
problem of building collapse cases in my society by producing concrete blocks that are
qualitative, durable and strong when compared to the ones being produced by my
competitors.
The quality, solidity, reliability, packaging and delivery of my product is one of the benefits
that makes it to stand out and unique from the ones being produced for sales by my
competitors.
COMPETITIVE ADVANTAGE
Most people in the industry produce an average of 50 9” blocks from one bag of
cement which makes block not to be strong enough for building construction
and which consequently leads to building collapse
My innovation is to produce 36 solid brocks from a cement which makes it last
long.
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Market Need
My product(concrete Blocks) is highly needed in the building and construction sector in
order to tackle the problem of building collapse cases in my society by producing concrete
blocks that are qualitative, durable and strong when compared to the ones being produced
by my competitors.
Competitor Analysis
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Our customer segment
The business as a policy will sell its products on cash down basis. However,
customers who buy in large quantities will be considered for one month’s
credit on their own merit.
Others are:
- Developing contracts with building material suppliers, well known
builders and contractors.
- Keep up to date on information on civil and construction works
initiated by local, state and federal government.
- Network with building contractors and construction engineers
- Join professional builders associations
- Word-of-mouth advertisement
- Advert in industry magazine
- Business cards
- Radio and T.V Advert
- Sponsor industry special events
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- Website and social media advert
Operational Plan
It takes 30 minutes to produce 36 blocks
Materials
Cement
Cement should comply with SABS EN 197-1.
Aggregates
Sand and stone are used for most block productions.
Water
Water that is fit for drinking is suitable. Most river and borehole water may be used.
Production
All the processes that are indispensable for a production of good quality bricks will be
adhered to during the actual production of bricks.
• Mixing - Following the batching, the aggregates together with the binder, as
well as pigment if, required, are discharged into a mixer and
thoroughly mixed before any additional water is added.
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The business will employed
1. Manger 1
2. Procurement officer 1
3. Accounts Officer 1
4. Machine Operators 5
5. Labourers 9
Total 17
Management Team
The enterprise will employ a manager who has over 5 years experience in block
making business to manage the business.
Other department will be established and personnel will employ to assist the
manager to run the enterprise.
Department like:
Production department
Marketing department
Maintenance department
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We manage the business to generate cashflow for profitability and expansion.
Our experience in the industry brings competence and credibility
My staff and I will bring operational skills, processing skills, packaging skills,
and marketing skills and customer service to the business.
GENERAL ASSUMPTIONS:
The financial evaluation of the business covers a 5-year period. The
calculations on production and finances in the report are based on the general
assumptions stated below:
- Production will be 10 months in a year.
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Financial Diagnostics
Loan Assumptions
Commercial Loan Interest rate
0.0%
Commercial Loan Term in Months
84
0.0%
In Commercial Mortgage Term in Months
240
Loan Payments as a Percent of Projected Sales
0.2%
come Statement
Gross Margin as a Percent of Sales 49.5% N
Balance Sheet
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,
3
6
6
,
0
8
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