If u can sell up 1.2m in a month pls go ahead, no need to adjust it cuz it means u will break even in fewer months.. So u can go with your initial selling price.
However from what u have said so far your capital cost can't be 2.5m. Capital cost consist of all equipment , land, building etc. So you have to increase d capital. It makes more sense having 2.5 as minimum equipment cost. Take your time and add up all ur capital expenditure..
Remember its only equipment cost they are asking for and not including operating cost.

If by God's grace you scale tru to d 2 stage, you will be asked to give a detailed cost of all items that make up your capital cost, operating cost etc.

following

openmine:


To be honest with you,i didnt get the grant but the questions are within my reach...
1.before you answer this question,you must find out through the internet or financial institutes if there are loan schemes setup for your kind of business...if after researching,there is no existing loan,simply write NONE but if there is,explain your findings to them.
2.If you have the support of family and friends in terms of funds,put the amount...if not,insert 0
3.Its very important that your business pays you,if not ur financers will think you business isnt working or making the required sale expectations....So its imperative that you fix a respectable amount per month just for you......my opinions though

about d 1st ques, was actually thinking if they are asking about a loan av already taken for my biz or loans that are readily available for it....

bout the 3rd ques, was thinking if u should tell them u remove a particular amount of money from ya biz; d gonna b like "biz never stand n u r already paying yaself".......

what do u guys think? kos m thinking of poultry farming

kaysy:




Thanks so much guys... @Chukwuka12, am sure my business will make up to N1,200,000/Month or even more but due to what u said i had to adjust it a little down and increased the number of months to achieve that to 18months. Meanwhile i have recalculated my minimum equipment cost that is necessary to commence business and the value am having is N7,270,000. Every value am putting here are not made up but calculated upon being reached at, furthermore @openmine said they must not be same. In Capital Expenses, i only added Office Space (N1,000,000) & Power Generator (N1,500,000) to reach at N2,500,000 while in this question "What is the minimum equipment cost that is necessary to commence trading or expand your business." i had to add every other thing including the Power Generator again cos its an equipment without which NOTHING can be done, so that why i added it again. Please what du think?? Thank You.

i have observed ur minimum equipment cost...and its too large...if ur original equipment cost is #2,500,000 ,why is ur minimal equipment cost #7,270,000...it doesnt make sense at all....
let me use this instance of an IT firm;
lets say you need
5kva generator - #150,000
10 computers - #500,000
as the equipment needed.....which is #650,000

Now,
minimum equipment cost,
2kva generator - #57,000
5 computers - #250,000
minimum or least equipment cost.....which is #307,000

its like saying i need #650,000 but i can start with #307,000 b4 the remaining is made available...
i want to believe youwin brought the question intentionally to know how much they can give you on ur first tranche or they just want to know if you understand ur business...my tots though

angelsmartty:




about d 1st ques, was actually thinking if they are asking about a loan av already taken for my biz or loans that are readily available for it....

bout the 3rd ques, was thinking if u should tell them u remove a particular amount of money from ya biz; d gonna b like "biz never stand n u r already paying yaself".......

what do u guys think? kos m thinking of poultry farming

this is the question...State the progress of any loan application
now the question is ..have you applied for any loan scheme? If not just write NONE..very simple
progress of loan scheme? since you havent applied for one then ur answer sud be NONE

bout the 3rd ques, was thinking if u should tell them u remove a particular amount of money from ya biz; d gonna b like "biz never stand n u r already paying yaself".......

now there are some businesses that take some months before production commences...but when you start,you need to pay yourself....its very important that you have a salary from you buz

@openmine... Thanks,
But if i should make my Minimum Equipment Cost to go inline with what u've said, that means my capital Expenditure would definitely be more that 40% of the total grant. I can see u'r deducing the Minimum Equipment Cost with respect to the value available at Capital Cost, but the Capital Cost requested for funds relating to Lands, Buildings & Machinery ONLY, While Equipment Cost from my observation is talking about any other Equipment that is needed for the establishment of the business and we were asked to Describe (List) These Equipments (i don't think there is anything wrong if all my equipments are severely needed for my business to commence fully) Besides, Chukwuka12 said if i scaled through to second stage, i will be asked to give detailed analysis of cost implications of everything i have written at First Stage (Which am hoping and waiting for cos i have them ready). All i have done now was to remove Power Generator from the list of Minimum Equipment Cost since it has been represented at Capital Equipment... Please what do you think?

Kaysy, kindly note that your minimum equipment cost can not be greater than your capital cost..
Like I said earlier add up your capital cost land, building, generator and so on.. Den for your minimum equipment cost mention the most important equipments needed and it still can't be greater than the 40%.
I don't no the business you are into, but what YOUWIN wants is that u are expected not to use more 40% of their grant on capital cost, meaning that any extra cost of capital will be on you... You will have to contribute any thing above the 40%.
Hope this helps.

chukwuka12:
Kaysy, kindly note that your minimum equipment cost can not be greater than your capital cost..
Like I said earlier add up your capital cost land, building, generator and so on.. Den for your minimum equipment cost mention the most important equipments needed and it still can't be greater than the 40%.
I don't no the business you are into, but what YOUWIN wants is that u are expected not to use more 40% of their grant on capital cost, meaning that any extra cost of capital will be on you... You will have to contribute any thing above the 40%.
Hope this helps.

Ok, Noted... let me resume work on it again... Be Right Back

thanks @openmine

I think another critical place is the "additional information" field.... what are the qualities u think needed here kos from my own understanding , it seems to b the main biz marketing

chukwuka12:
Kaysy, kindly note that your minimum equipment cost can not be greater than your capital cost..
Like I said earlier add up your capital cost land, building, generator and so on.. Den for your minimum equipment cost mention the most important equipments needed and it still can't be greater than the 40%.
I don't no the business you are into, but what YOUWIN wants is that u are expected not to use more 40% of their grant on capital cost, meaning that any extra cost of capital will be on you... You will have to contribute any thing above the 40%.
Hope this helps.

SECONDED

kaysy:
@openmine... Thanks,
But if i should make my Minimum Equipment Cost to go inline with what u've said, that means my capital Expenditure would definitely be more that 40% of the total grant. I can see u'r deducing the Minimum Equipment Cost with respect to the value available at Capital Cost, but the Capital Cost requested for funds relating to Lands, Buildings & Machinery ONLY, While Equipment Cost from my observation is talking about any other Equipment that is needed for the establishment of the business and we were asked to Describe (List) These Equipments (i don't think there is anything wrong if all my equipments are severely needed for my business to commence fully) Besides, Chukwuka12 said if i scaled through to second stage, i will be asked to give detailed analysis of cost implications of everything i have written at First Stage (Which am hoping and waiting for cos i have them ready). All i have done now was to remove Power Generator from the list of Minimum Equipment Cost since it has been represented at Capital Equipment... Please what do you think?

i believe @chukwuka12 has answered your question....

angelsmartty:
thanks @openmine

I think another critical place is the "additional information" field.... what are the qualities u think needed here kos from my own understanding , it seems to b the main biz marketing

Your additional information is where you write down the stuffs that the 'space constraints' prevented you from putting up....you can also summarise your intent in starting up ur business and your aspirations in the years to come!

Yes Ooooo... my questions has been answered... back to work. Thank you so much for all the answers. KAYSY

**Modified**
@openmine & Chikwuka12 and other YouWin 2013 Winners, kindly review my latest computations, think i just understood what u guys have been saying hence i have this values on ground now... Please review it. Thanks

kaysy:
Yes Ooooo... my questions has been answered... back to work. Thank you so much for all the answers. KAYSY

**Modified**
@openmine & Chikwuka12 and other YouWin 2013 Winners, kindly review my latest computations, think i just understood what u guys have been saying hence i have this values on ground now... Please review it. Thanks

It looks much more realistic, personally I think it OK, however I will still say DAT if u where OK with your initial 1.2m per month u can leave it at that, or 1m.
But its OK.

@kaysy,ur presentation is ok...though i wud have prefered ur earlier amount of sales per month and months...

@kaysy I think you've gat something good... pls any idea when this submission of form will end?

Which one be "certified Youwin Advisors" again?
Nigerians can love title sha.... Nobody is certified by Youwin to advise people...

wyzak:
Hello Guys,
Winning a Youwin grant isn't rocket science, you just have to understand the business of your business. Its just like your final year project defense, Lecturers can tell those that didn't write their projects themselves and that is why most people don't pass the second stage at Youwin.

Before you apply, do not rush it, try and fully understand your business first by writing proper business plan. Let our Certified Youwin Advisors teach you how to put your business idea or concept down on paper first. "Writing Your Winning Business Plan" is a live online training course you can attend on a laptop or mobile device at www.wyzak.com

Remember you would be competing with MBA holders and other certified individuals this time around, sentiments wont win you the grant. Get prepared in 3 days, we will help you get shortlisted.

Visit www.wyzak.com today

[b]Which one be "certified Youwin Advisors" again?
Nigerians can love title sha.... Nobody is certified by Youwin to advise people...

wyzak:
Hello Guys,
Winning a Youwin grant isn't rocket science, you just have to understand the business of your business. Its just like your final year project defense, Lecturers can tell those that didn't write their projects themselves and that is why most people don't pass the second stage at Youwin.

Before you apply, do not rush it, try and fully understand your business first by writing proper business plan. Let our Certified Youwin Advisors teach you how to put your business idea or concept down on paper first. "Writing Your Winning Business Plan" is a live online training course you can attend on a laptop or mobile device at www.wyzak.com

Remember you would be competing with MBA holders and other certified individuals this time around, sentiments wont win you the grant. Get prepared in 3 days, we will help you get shortlisted.

Visit www.wyzak.com today

[/b]Which one be "certified Youwin Advisors" again?
Nigerians can love title sha.... Nobody is certified by Youwin to advise people...

wyzak:
Hello Guys,
Winning a Youwin grant isn't rocket science, you just have to understand the business of your business. Its just like your final year project defense, Lecturers can tell those that didn't write their projects themselves and that is why most people don't pass the second stage at Youwin.

Before you apply, do not rush it, try and fully understand your business first by writing proper business plan. Let our Certified Youwin Advisors teach you how to put your business idea or concept down on paper first. "Writing Your Winning Business Plan" is a live online training course you can attend on a laptop or mobile device at www.wyzak.com

Remember you would be competing with MBA holders and other certified individuals this time around, sentiments wont win you the grant. Get prepared in 3 days, we will help you get shortlisted.

Visit www.wyzak.com today

angelsmartty:
@kaysy I think you've gat something good... pls any idea when this submission of form will end?

January or February..... For sure... So submit, leave d rest to God, and go on with your usual business until we hear from them....

openmine:
@kaysy,ur presentation is ok...though i wud have prefered ur earlier amount of sales per month and months...

chukwuka12:


It looks much more realistic, personally I think it OK, however I will still say DAT if u where OK with your initial 1.2m per month u can leave it at that, or 1m.
But its OK.

Thanks so much for your advise and guide, really do appreciate... Ready to submit soon.... Meanwhile i think i wana leave that N885,556 & 18Months break-even period the way it is after due considerations of some factors of safety & maximum elasticity period to reach profitability. What do you think..??

Tnx 2all Youwin1, 2 & unique Youwin 3 lol that has contributed towards achieving successful candidate for Youwin 4.

Lemmi Point out some observations base on my personal view pls:

1. Youwin Ideal Candidate
In UW stage1; You might not be selected base on the proffessionality of ur application. Uw is looking for pple with the rite biz mind set, adequate biz base knowledge and rite passion for success and sustenance of ur proposed biz. That's why there is a 1 one week training after selection.
Me I didn't get my break even well in stage1 but bc of the training in stage2 "I did great".
2. Salary
Don't present urself too money conscious by wanting to pay ur self salary from month 1 wen u've not started anytin production (eg. Poultry pple). I started paying myself from month 4.
3. On Additional Relevant Information.
This part is very important. Pls do ur best here by demonstrating passion and commitment towards realization of ur proposed biz.
4. Counterpart Contribution
U'll ve to show the amount u're contributing to ur biz. Just as uw will be paid on tranches. So ur contribution can be spread too. I wrote 3m contribution which will be accounted tru purchase of my land n building of structures.
5. New Biz
Weather u're writing on new biz or not, pls showcase some steps u re doing to finance or start ur biz. Very important. Nobody will empower an idol person or mind or idea. Don't just write all ur idea futuristic.
6. Marketing
Pls demonstrate ur biz based knowledge on strategies to market ur ideas. Wat a waste if u can produce n dnt knw how to sell?
7. How much Do you want from Youwin
Be realistic with ur propose amount because the amount u quote will be use against u in later stage (interview stage)
8. Management Experience
A small demonstration of managerial experience will get u selected in stage1 but lack of adequate relevant knowledge will get u disqualify in later stages or reduction of ur quoted amount.
9. Employment.
UW is geared towards job creation. So ur best innovative idea without creating appreciatable number of jobs is simply self empowerment n won't scale tru.
10. God Factor
Nothing generally succeed without God backing. Apart from ur knowledge and intensive write up. U need God to ensure ur success. While u prepare, remember to put God first and lemmi Him know that ur wealth is to advance His kingdom and not just for ur belly Kingdom.
GoodLuck to all of You.
In Nigeria, No new Govt will sustain the initiative of another Govt. So its back on us to ensure we Vote GEJ 2015 to keep the Youwin3&4 Dream Alive. #GoodLuck

You welcome daddyfowl, u started it we just helping out, tanx to you too
Your points gives everyone a good summary of what is expected... Nice one..

daddyfowl:
Tnx 2all Youwin1, 2 & unique Youwin 3 lol that has contributed towards achieving successful candidate for Youwin 4.

Lemmi Point out some observations base on my personal view pls:

1. Youwin Ideal Candidate
In UW stage1; You might not be selected base on the proffessionality of ur application. Uw is looking for pple with the rite biz mind set, adequate biz base knowledge and rite passion for success and sustenance of ur proposed biz. That's why there is a 1 one week training after selection.
Me I didn't get my break even well in stage1 but bc of the training in stage2 "I did great".
2. Salary
Don't present urself too money conscious by wanting to pay ur self salary from month 1 wen u've not started anytin production (eg. Poultry pple). I started paying myself from month 4.
3. On Additional Relevant Information.
This part is very important. Pls do ur best here by demonstrating passion and commitment towards realization of ur proposed biz.
4. Counterpart Contribution
U'll ve to show the amount u're contributing to ur biz. Just as uw will be paid on tranches. So ur contribution can be spread too. I wrote 3m contribution which will be accounted tru purchase of my land n building of structures.
5. New Biz
Weather u're writing on new biz or not, pls showcase some steps u re doing to finance or start ur biz. Very important. Nobody will empower an idol person or mind or idea. Don't just write all ur idea futuristic.
6. Marketing
Pls demonstrate ur biz based knowledge on strategies to market ur ideas. Wat a waste if u can produce n dnt knw how to sell?
7. How much Do you want from Youwin
Be realistic with ur propose amount because the amount u quote will be use against u in later stage (interview stage)
8. Management Experience
A small demonstration of managerial experience will get u selected in stage1 but lack of adequate relevant knowledge will get u disqualify in later stages or reduction of ur quoted amount.
9. Employment.
UW is geared towards job creation. So ur best innovative idea without creating appreciatable number of jobs is simply self empowerment n won't scale tru.
10. God Factor
Nothing generally succeed without God backing. Apart from ur knowledge and intensive write up. U need God to ensure ur success. While u prepare, remember to put God first and lemmi Him know that ur wealth is to advance His kingdom and not just for ur belly Kingdom.
GoodLuck to all of You.
In Nigeria, No new Govt will sustain the initiative of another Govt. So its back on us to ensure we Vote GEJ 2015 to keep the Youwin3&4 Dream Alive. #GoodLuck

So when you setup a new branch and appoint a manager, you will tell him or her not to take salary until the 4th month. Is that it?

Pls don't give people bad advice. I have been an observer in an international business plan competition where someone got disqualified on this point.

You are a staff. Pay yourself and others from day 1. This adds realism to your business. You won't impress anybody in a panel by telling them you won't take a salary.

stagger:


So when you setup a new branch and appoint a manager, you will tell him or her not to take salary until the 4th month. Is that it?

Pls don't give people bad advice. I have been an observer in an international business plan competition where someone got disqualified on this point.

You are a staff. Pay yourself and others from day 1. This adds realism to your business. You won't impress anybody in a panel by telling them you won't take a salary.

Pls using my poultry example, kindly tell us wat d biz will be doing on mnt 1 dat require him or her to collect salary?

kaysy:




Thanks so much for your advise and guide, really do appreciate... Ready to submit soon.... Meanwhile i think i wana leave that N885,556 & 18Months break-even period the way it is after due considerations of some factors of safety & maximum elasticity period to reach profitability. What do you think..??

the way I see it,Youwin wants you to break even within 12months not more Dan dat(my opinion though)....have u considered seasonality in ur business.?
if you arrived at 1.3million @6months,fine...its ur business and you know how it works....but 18months is very long....if I know Youwin,dey may not want 2 wait till 18months....still don't know d kind of business dat u r into...

openmine:

the way I see it,Youwin wants you to break even within 12months not more Dan dat(my opinion though)....have u considered seasonality in ur business.?
if you arrived at 1.3million @6months,fine...its ur business and you know how it works....but 18months is very long....if I know Youwin,dey may not want 2 wait till 18months....still don't know d kind of business dat u r into...

you are absolutely right. wanted to comment on the same issue. let ur break even point be within 12 months if not , u might be disqualified

So far so well from all contributors

My little contributions...

1. A GOOD PROPOSAL should take a reasonable length of time, except if you already have one, so do not be in a hurry to submit
2. Consider every section as important as the others including the financial. We were told during our training that candidate concentrated on the financial without connecting their business idea together, hence their proposals were not selected.
3. Content is King: Research well about you chosen sector to have information (content) to craft you answers as professional as possible.

4. Like the OP always say... God Factor is key. As it is often said "Luck is what happen when preparation meets opportunity". Do work out every detail as much as you can before the deadline. This way you will have a better idea of all areas of you proposed business and put forth a compelling application

5. Please as has been advised already the guy whose break-even is 18 month should reduce it to fall within 12 months. This is the right thing to do in the context of Youwin otherwise a company could break-even for up to 8 years like MTN did.

Note: Take every level in Youwin as the final stage because you can only talk of second stage after scaling through the first stage. Besides I have the feeling that Youwin4 will be more competitive as the trend has shown.

I will make time to make more contributions as time ticks.

I will make time to make more contributions as time ticks.

Bluedahlia:

in calculating the break even do you add up the grant been given and is it compulsory to exhaust the grant since you MUST spend only 40% on equipment?
thanks for your quick response you are indeed an Angel

let assumed you in order to produce 500,000 unit you need
Materials 4,057,500
Labour 90,000
Electricity 60,000
Fuel 15,000
Repair and maintenance 50,000
Factory overheads 108,000
FACTORY COSTS 4,380,500
Administrative overheads 310,000
Sales costs 25,000
Distribution costs 324,000
OPERATING COSTS 5,039,500
Interests 192,000
Depreciation 128,000
PRODUCTION COSTS 5,349,500

and you need 2659500 as capital

selling price is 20 naira therefore you need to sell 400,000 unit to break even

kaysy:
@openmine... Thanks,
But if i should make my Minimum Equipment Cost to go inline with what u've said, that means my capital Expenditure would definitely be more that 40% of the total grant. I can see u'r deducing the Minimum Equipment Cost with respect to the value available at Capital Cost, but the Capital Cost requested for funds relating to Lands, Buildings & Machinery ONLY, While Equipment Cost from my observation is talking about any other Equipment that is needed for the establishment of the business and we were asked to Describe (List) These Equipments (i don't think there is anything wrong if all my equipments are severely needed for my business to commence fully) Besides, Chukwuka12 said if i scaled through to second stage, i will be asked to give detailed analysis of cost implications of everything i have written at First Stage (Which am hoping and waiting for cos i have them ready). All i have done now was to remove Power Generator from the list of Minimum Equipment Cost since it has been represented at Capital Equipment... Please what do you think?

as openmine said almost all business will have a minumum requirement
as openmine give you example of IT firm while another guy give example of fish found.
let me give you examples of two guys that won in 2013, i just finished listing in a radio programme

one printing press
1) you need 2 large printer at 1.5 million each
2) 6 computer at 300,000
3)rent at 250,000
4)Gen 750,000

however he can start with half of that money by buying just one printer instead of required two and 2-3 computers

thus he capital requirement was around 40% of the maximum allocation

while he need only 2 million as operational cost
namely labour just 10-15 people at full capacity (20-50k as salary) mainly papers,ink and few other stuff

while the other guy is chicken farm
his capital requirement is less just 1 million
rent 300k
construction of cages 300k
feeders etc 400k

however he require more for his operations

therefore is not a most to have 40% at capital requirement because business need are different some are labour intensive while other are capital intensive

Done.... Thanks so much to everyone who contributed meaningfully towards helping us to achieve our dream, God will contribute meaningfully to ur dreams... Today is 1st of December 2014... The day i have set aside to submit my YouWin Business Proposal. Thanks again. KAYSY

kaysy:
Done.... Thanks so much to everyone who contributed meaningfully towards helping us to achieve our dream, God will contribute meaningfully to ur dreams... Today is 1st of December 2014... The day i have set aside to submit my YouWin Business Proposal. Thanks again. KAYSY

Woah!!!! Kaysy that was really nice of u not to submit in a hurry....
Best time to submit....
Now u a perfectly good to go, next is God's favour.... Cheers

abbakacici:



let assumed you in order to produce 500,000 unit you need
Materials 4,057,500
Labour 90,000
Electricity 60,000
Fuel 15,000
Repair and maintenance 50,000
Factory overheads 108,000
FACTORY COSTS 4,380,500
Administrative overheads 310,000
Sales costs 25,000
Distribution costs 324,000
OPERATING COSTS 5,039,500
Interests 192,000
Depreciation 128,000
PRODUCTION COSTS 5,349,500

and you need 2659500 as capital

selling price is 20 naira therefore you need to sell 400,000 unit to break even

please where did interest and depreciation come from?

blink182:
please where did interest and depreciation come from?

interest assuming you have a loan (existing biz) while depreciation not to sound technical is the money to set aside every year inorder to buy new equipment.

example you buy a machine for 2 million, and the machine is expected to last 5 years thus every year to side aside 400k therefore at the end of the 5 years you will save enough to buy a new machine.