BAG MAKING BUSINESS PLAN IN NIGERIA
Executive Summary:
KUVUKI bag-making industry is an enterprise that will be introduced into the market and make changes in the line of the fashion industry. Our products and services will display the company’s reputable name through itself, which offers not-so-ordinary leather bags.
As planned, our products will be made so that the bag strap can also be used as a belt. Our creativity outshines other bag-making industries in this line of business in that their products can only be used for one purpose. Despite our products serving two purposes, our cost will be pocket-friendly to our customers.
The management of KUVUKI bag-making industry is not only focusing and striving hard for customer satisfaction alone but also on developing innovative accessories, specifically bags in the fashion industry. Another is to be socially responsible with marketing efforts to gain profit. Kuvuki bag-making industry will not only give you the pride of using a quality leather bag but also the confidence to buy Nigerian-made products.
Business Description:
KUVUKI bag-making business is a manufacturing enterprise of leather products such as bags, men’s wallets, ladies’ hand purses, and belts. It is located in Sango, Ibadan, Oyo state. It’s located in this area because our raw materials from our suppliers are located there at a lesser cost. Our P.O Box is 4354, and the mobile hotline is +234 705647354. As we progress in this line of business, we will expand other units.
Our Business Vision:
To become the Nigerian’s largest producer and exporter of leather bags in 2023
Our Business Mission:
Satisfaction of customers through quality products and services
Why should you buy our products and services?
From strategic planning, our products will be pure quality leather products made from animal skin. Our products will compete with other leather-making products internationally. Our products will be of quality value and economical.
Our Products:
- Leather Bag
- Leather Belt
- Lady’s Purse
- Leather Wallet
Business Location:
Our business location will be in Sango, Ibadan, Oyo state for affordable labour cost, proximity to raw materials, and easy distribution to one of the largest markets in Ibadan, Dugbe. We also have direct customers who come to the company to purchase and deliver the products independently instead of taking the products to them. Since people are very style conscious, our distinctiveness will always factor in and set new industry trends.
Market Positioning
We owe our valued customers the luxury bags and other quality leather materials they always wanted. We have just one product that will surely satisfy them and, in return, positively impact the company’s good image. As stated in our business plan, our expectations for the business will move from 50% to 80% and expand across the country’s boundaries in the next seven years.
Financial plan:
This business is economically feasible and viable. Below will show the details.
| Equipment | Quantity | Rate | Amount #’000 |
| Leather stitching machines | 30 | 90,000 | 2,700 |
| Sewing machines | 20 | 12,000 | 2,40 |
| Electrification | 1 | 100,000 | 100 |
| Packaging machine | 25 | 7,000 | 175 |
| TOTAL | 3215 |
| Materials (per month) | Quantity | Rate | Amount #’000 |
| Leather | 600 meters | 1,030/meter | 618 |
| Zipper | 500 meters | 350/bundle | 175 |
| Buckles | 800 meters | 600/piece | 480 |
| cloth | 600 meters | 200/meter | 120 |
| TOTAL | 953 |
Capital Employed :
| Utility | Amount #’000 |
| Raw Materials | 953 |
| Salaries and Wages | 600 |
| Utility Expenses | 300 |
| Other Expenses | 101,600 |
| Equipment | 3215 |
| TOTAL | 106,668 |
The breakdown of the raw materials is added to the expense the organization pays to the manufacturer.
Market Analysis:
Local industry in Nigeria is facing difficult times today. From December-August 2020-2021, Nigeria’s leather export declined 32% due to the Covid’19 outbreak. Frequent Economic recession is another reason for the decline in exports, but now the Nigerian government is also thinking about rebates and tax relaxation for the exporters. So, this move can boost our economy and the leather industry, particularly exporters.
Competitive Analysis:
| Strengths | High qualities with affordable prices, Multi-purpose, low cost of production and manufacturing |
| Weakness | Has no established name, lack of promotion |
| Opportunities | People seek versatile and durable products. Bags are items of necessity. Women and men cannot do without leather carriage |
| Threats | There is fierce competition from the older companies in the market, and preferences differ. |
Primary Competitors:
- Versace
- Louis Vuitton
- Nike
- Michael Khors
Expected Profit:
In years to come, we expect our return on investment (ROI) to be #300,000,000 per annum, with a 10% increase every three years.
Management Team:
We have a formidable team that positively influences the organization’s growth and performs different tasks.
Mr. Gbenga Komolafe: This is our operations manager. He has overall responsibility for the financial success of the business. The operations manager handles external relations with community leaders and vendors
Mr. Eze Okon: This individual is our quality control manager. This is a key function in any industry and, in particular, one that deals in food products
Mrs. Grace Aliyah is the accountant of the organization. She is responsible for monthly income statements and balance sheet, collection of receivables, payroll and cash management.
Dr. (Mrs) Ajoke Abe is our office manager; she also serves as our human resource director. This employee, in general, will oversee everything not involved in the production and may also handle some marketing strategies.
Mrs. Cynthia Ubom is our receptionist, sometimes called the frontline person. She handles phone calls, handles the mail, does the billing, and performs many other tasks as required.
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