We at Aris Laboratory Products are looking for an investor to take part in our expansion to Abuja where there's huge market for our products. Interested Investors should call the marketing manager on 07065763259. We will invite you to our office so you can have a view of what we do, our products and financial statements. You can get your money every month for a period of 6 months. This is just a brief view of business plan, we can send the complete view to your mail.


Table of Contents

Executive Summary

Background and Opportunity

Market Profile

Products

Marketing and Distribution Strategy

The Investment


Executive Summary

The business of manufacturing scouring powder is a very big and sustainable business with future potentials. Every household in Nigeria has the problem of cleaning, from their pots and utensils, to floors and toilets etc. It contains detergent in addition to its ingredients which makes it possible to wash spoons, plates and other dishes. This gives us a competitive edge over our competitors. The same goes for Potash (kanwa). Most households use Potash (kanwa) for their daily cooking. And with no competition in purified and packaged Potash (kanwa), it provides great opportunity for our business. Our target market being Abuja is the best market for our product at this initial stage because of the calibre of people there and their classes of income. Customers in Abuja buy more of our products at a higher price than in Kaduna where they buy less and at a cheaper price, that means less profit. So we have decided to concentrate on the Abuja market for the time being because of our previous successes and the acceptance for our products.
The investment required is to put in place the resources needed to enter the Abuja market officially. What we need is a rented office where we can stock our products, it will serve as our office where customers can reach us and buy our products and also serve as a meeting point for our salesmen to take products for selling and bring back their sales money to the company. We will also need to put in place the necessary marketing activities.
Considerably, the size and growth of the market for our products is very huge. Almost all household use scouring powder to clean their pots, utensils, floor, toilet, sinks, fridge etc. Not just households, but also hotels, offices, restaurants, organisations, hospitals, airports and schools use scouring powder for their cleaning and stain removal needs. In Nigeria, we have a population of about 180 million people, out of this number; scouring powder industry has a percentage market share of 55%.
The same holds for Potash (kanwa), almost every household from the low to middle to high class uses Potash (kanwa) in their homes for cooking. Not everyone eats food that contains Potash (kanwa), but rarely do you find these kind of people. At least out of 10 houses, 6-8 households use Potash (kanwa) for their cooking. And interestingly, we are the only manufacturers of this purified Potash (kanwa). We have the possibility of tapping into 40%-60% of the entire market for Potash (kanwa) users in Nigeria and Africa as a whole.
Our greatest barrier to entry of the Abuja market is the lack of a functional office. Like stated earlier, there is a need to have a place where customers can reach us to enquire or buy our products, where salesmen can take products out for selling and pay for products sold daily and also serve as a storage for our products.
The investment required to carry out this task is N250, 000. The N250, 000 investment will be used to acquire an office in Abuja and also get the necessary marketing resources we need such as Internet marketing, printing shirts/ ID cards/ Caps for salesmen, printing flyers and posters etc.

The return on investment in the first six months is N1, 728, 000. At the end of the six month in regards to the first option, the investor makes a profit of N345, 600 and continues making profit from every six months total profit because the investor has become a shareholder and possess equity of 20%. The second option is at the end of the first six months, the investor gets his/ her N250, 000 investments back and a profit of N250, 000.

The Investment

Our greatest barrier to entry of the Abuja market is the lack of a functional office. Like stated earlier, there is a need to have a place where customers can reach us to enquire or buy our products, where salesmen can take products out for selling and pay for products sold daily and also serve as a storage for our products. From our previous activities in Abuja, we have been able to accumulate a number of loyal customers but couldn’t continue to sell to them due to lack of an office and the necessary marketing resources. With an office and the necessary marketing resources, the sky is our limit. Out of the total market share in both industries (scouring powder and potash) we can acquire 10% - 30% market share in Abuja, which is big business.

The investment required to carry out this task is N250, 000. This will enable us to take advantage of this opportunity in order to reap the benefits.

Below are the cash flow projections with a time table for the required investment and likely returns:

Our goal is to have 5 salesmen in addition to the 2 sales executives we have at the moment. Each salesman will sell everyday a minimum quantity of;
30 WIN
20 Potash (Kanwa)
20 Zora Drink
Our profit from each product is; N20/ for every 1 WIN sold, N50/ for every 1 Potash (kanwa) sold, N40/ for every 1 Zora Drink sold. The table below is a forecast for the Daily sales of 5 salesmen:

Total daily cash flow = N50, 000/ day
Total profit = N12, 000/ day
Monthly profit = N288, 000
Net profit = N3, 456,000
Therefore, in 6 months our total profit is = N1, 728, 000

By making this investment of N250, 000, the business will be able to generate reasonable income that can be injected back into the business for expansion. Part of this expansion includes developing new packaging for WIN (scouring powder). We will also rent more shops in strategic locations where opportunity presents itself (Lagos and Kano); this will enable us to sell more products and also introduce new products to the market.
The investor, you will be able to make your money work for you instead of you working for money like most people do. This is a great investment for you because you are investing as an insider, as a shareholder and one of the pioneers in making this business opportunity a reality. By having certain equity in the business, you get a share in profits
The proposed equity share for you, the investor, is 20%. The investor holds a 20% equity share from the profit. This is the first option. The second option is at the end of the first six months, the investor gets his/ her N250, 000 investments back and a profit of N250, 000.
The N250, 000 investment will be used to acquire an office in Abuja and also get the necessary marketing resources we need such as Internet marketing, printing shirts/ ID cards/ Caps for salesmen, printing flyers and posters etc.
The return on investment in the first six months is N1, 728, 000. At the end of the six month in regards to the first option, the investor makes a profit of N345, 600 and continues making profit from every six months total profit because the investor has become a shareholder and possess equity of 20%.