NAME: ODO, BLESSING NNEDINSO

REG NO: MOUAU/ABM/14/23466

DEPARTMENT: AGRIBUSINESS AND

MANAGEMENT

COLLEGE: CAERSE

YEAR OF STUDY: 400 LEVEL

TYPE OF BUSINESS: SALES

PROPOSED LOCATION OF BUSINESS: ABIA STATE

CONTACT TELEPHONE: 07089073588

EMAIL ADDRESS:

HOME ADDRESS ABUJA

NAME OF SUPERVISOR: MR. CHIBUZOR OKPOKIRI

NAME AND ADDRESS OF INTERSHIP: CAERSE

STATE OF ORIGIN: ENUGU STATE

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 VEGETABLE SALE BUSINESS PLAN

1.0 EXECUTIVE SUMMARY

1.1 Business overview

Nneodo vegetable store is a model about to be located in Umuahia, Abia State; serving

people from all works of life. To be established in April 2018, the business will be

operating a storefront as well as a production unit, specializing in fruit and vegetables.

The establishment seeks to expand operation by opening a production unit in Umuahia,

and expand the existing confectionery into a wholesale establishment. This business will

serve the host of communities, workers and students attending the nearby institutions.

Umuahia city is a very popular destination because of the concentration of homes,

businesses and educational institutions. The company is into the sale of a large variety of

vegetables according to customer taste and requirement. All our products are harvested

fresh everyday with locally grown.

The business will be registered as a sole-proprietor business with the name “Nneodo

Vegy Stores”. Miss. Nnedinso Blessing Odo, with an extensive experience in vegetable

production and business management, will serve as the managing director of the business.

The company plans to expand operations and business by increasing its production

capacity at the end of second year of business activities.

What We Intend To Sell

NNEODO VEGY STORE offers freshly prepared fruit drink .

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Financial Summary of the feasibility study

The business will be started largely by owner’s funds. It plans to fund its expansion

through a grants friends or family. The funds are mainly required to open a production

unit and expand into a larger wholesale establishment.

Business Opportunity

In Umuahia and the eastern region, were there are high-end fruit drink production that

offer confectionary house delivery services, this provides NNEODO VEGY STORE with

a unique experience and opportunity to introduce its special products to the market.

NNEODO VEGY STORE will serve individual and retail market of 25,000 potential

customers and a wholesale market of a 20 restaurants, cafes, etc.

Competitive Strategy:

The visible competitors of NNEODO VEGY STORE in Umuahia city are neighbouring

market traders in the town. NNEODO VEGY STORE will be providing the Umuahia city

and community with assorted fresh leafy and non-leafy vegetables made from local

supplies. NNEODO VEGY STORE customers’ value proposition is to provide individual

and business customers in the environment with vegetables based on fine quality,

processing as well as storage instructions.

As a differentiated service provider, NNEODO VEGY STORE will be positioned at a

lower price point to penetrate the market.

Founder:

Mrs. Odo Blessing Nnedinso is the founder of NNEODO VEGY STORE. Mrs. Odo

Blessing Nnedinso is vastly experienced in the vegetable production n sales having

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worked CHIDEX FARMS. She is an undergraduate student of Agribusiness and

Management at Michael University of Agriculture, Umudike. Blessing takes prides in her

absolute customer service and enormous experience, NNEODO VEGY STORE is sure to

gain attraction in the State.

Advantage of the Business

The businesses of NNEODO VEGY STORE will serve as a source of living to the

founder. It will also provide employment to three (3) individuals. As a vegetable store, it

will be a place of succour to individuals who love fresh vegetables for the events, home

and healthy dietary purpose also for food mineral and vitamin supplements.

Business Overview

The name of our business is NNEODO VEGETABLE STORE, which will be located at

Umuahia city. We specialized in production and distribution of fruit drink.

1.2 Mission and Vision

Vision - Provide quality Vegetables to consumers at affordable prices while ensuring fair
returns to the producers.
Mission - Continue to serve our farmers & our consumers.
It will be achieved by establishing a direct linkage between farmers and customers. Fresh &
Fresh wants to be market leader in the organized Nneodo retail business in Hyderabad.
Fresh & Fresh is only concerned with the A-grade produce procurement from vendors, thus
minimizing company’s risk.

1.3 Business Objectives

NNEODO VEGY STORE considers its business as a start-up, but one that will expand.

The company’s objective is to start the business in one location and then add new

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branches in different areas. We are a part of the food industry with the intention of

maintaining a friendly environment. Excellent customer service, high knowledge of the

business, and experience will be at the core of the NNEODO VEGY STORE business.

Objective 1: To achieve a sales turnover of N1,250,000 in the first year. A gross profit of

N600,000. by the end of year one of our business operation.

Objective 2: To open three additional branches in Umuahia by our two years in business.

1.4 Success Factors

Starting a vegetable sales business might not be an enormous task after all. This means

that you might even decide to get into this trade without training, provided you will hire

experts. Anybody can set this business up, if they have the required start-up capital. It

means that the possibility of having countless fruit drink business is high. Our critical

success factors include:

1. Offering quality, fresh products at an affordable price.

2. Offering event and home delivery services to clients.

3. Meeting up with customer’s specific requirements.

1.5 Current Status

NNEODO VEGY STORE Company as a sole-proprietorship is in the commencement

stage of operation. We intend to acquire business shop, fruit processing equipment

storage machine, personnel, etc, to fast track the operation of the business.

1.6 Legal Requirement

In order to be a recognized and government licensed business establishment, we are

processing the necessary documents needed to register the business with the Corporate

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Affairs Commission (CAC). And to obtain a business name, we budget to spend

N15,000. And also to obtain business permit or operation license from the local

Government authority, we intend to spend N2,000 per annum.

1.7 Contribution to Local and National Economy

This project will benefit the owner, government and the general public in the following

ways;

 It will be a source of income and wealth creation for the owner. It will also serve

as a source of livelihood to the employees.

 The community where the business is sighted will benefit from having access to

obtaining freshly prepare fruit drink for their daily refreshment.

 The project will generate direct and indirect employment opportunities, as the

business grows also the number of employees grows.

 The state and nation will benefit from the business contribution to the Gross

National Product, reduced dependency on the government for employment

opportunities.

2.0 MARKETING PLAN

2.1 Product Description / Service Description

NNEODO VEGY STORE vegetables will be stored in a cool dry environment to retain

its freshness.

Neatly packaged vegetables are distributed to supermarkets, hotels, schools, companies,

eateries, kiosks, shops, and events that may require special supply. We may decide to

expand fruits to diversify your business.

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2.2 Follow Up

Mrs. Odo Blessing Nnedinso keeps contact of customers to always call after making a

supply to find out when they are about to run out of stock and restock them. Also other

people in the business so there may also be a need to sell to trustworthy customers on

credit. This is a way to win customer loyalty.

2.3 Challenges in the Business Industry

The challenge actually is mostly that of time. Vegetables are mostly perishable therefore

cannot last more than 5 days. But if there was a way to store these vegetable to stay

longer and still retain the nutritional values then it will be easier to to meet an ever

growing demand.

2.4 The Opportunity

Vegetables are everybody needs and there is no way that you buy vegetables that it is

taken unless the it is not fresh but if you are selling fresh vegetables and people know that

all you sell is fresh vegetables, people must buy and NNEODO VEGY STORE is a home

of fresh leafy and non-leafy vegetables that most people can easily afford.

2.5 Target Market

NNEODO VEGY STORE is a vegetables business which is well-loved by many ranging

from children, youth and adult within Umuahia. These vegetable are taken in different

forms before or after the main meal or can actually be served as part of or alongside the

main dish.

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3.0 PRODUCTION/OPERATIONAL PLAN

3.1 Description of the location

Type of Items Space Type of Power/utilities accessibility

location needed needed building
Urbani 15x20 Well There should Access
modern room ventilated be power and roads to
market storage enable
facilities customers
installed and delivery
trucks

Vegetable crops, are of different types, and they range between leaf vegetables, root
vegetables, fruit vegetables, pod vegetables, seed vegetables, flower vegetables, and bulb
or stem vegetables.

Some Leaf Vegetables are:

 Cabbage
 Uziza
 Utazi
 Lettuce
 Spinach
 Uha
 Fluted pumpkin
 pumpkin

Some podded vegetables include:

 Okra
 Pea
 Peanut
 Soybean
 Groundnuts
 Fluted pumpkin

Some bulb or stem vegetables include:

 Onion
 Garlic
 Chives
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3.4 Production process

Selected vegetables are bought from different markets placed in the store for customers to

come and buy.

3.6 Production capacity

The present resource which the company has can sell 2500 assorted vegetables

3.7 Proposed price list

s/n Product Descriptive Cost price Selling price

1 Vegetable Leafy and non-leafy 20 50

3.9 Records/stock control

Mrs. Odo Blessing Nnedinso will adopt the First in – First out (FIFO) inventory method.

Vegetables need to be used up within days before some negative storage and

environmental conditions begin to set in there by affecting its palatability.

We will start with a manual method of record keeping and as the business grows ICT

method will be introduced

3.10 Record keeping documents

S/N Books kept Reason

1 Financial record
Accounting books, Daily sales
record, Daily Purchase record, loss
account, balance sheet and payrolls
2 General records
Correspondence records, phone
books, newspapers and manual and
other publications
To record financial matters such as daily
sales, purchases, cash payment and credit
sales and staff salaries.
To keep record of general day to day
transaction of business.

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3.11 Pre-operating activities and expenses

ITEM Description TOTAL AMOUNT

Rent ₦3,000/month ₦36,000
Business registration ₦15,000
Total ₦51,000

3.12 Milestones

We want to achieve the following milestones as part of our business objectives

S/N Activity Funding Budget Period of

accomplishment
1 Go into production of Personal + loan ₦3,500,000 3year
vegetables in a larger scale
2 Introduction of home Personal + loan ₦2,000,000 1year
delivery
3 Acquisition of a larger Personal ₦200,000 2year
store space

3.13 Sales Plan

NNEODO VEGY STORE will make use of events, retail shops and restaurants within

Umuahia as a sales force.

3.15 Organization and management

NNEODO VEGY STORE is a sole proprietor business. The business proprietor and

owner is Mrs. Odo Blessing Nnedinso .

Position Function
Chukwuma Blessing Coordinates the day to day activities of the business
In charge of purchases, sale and delivery of raw materials
and products.

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4.0 FINANCIAL ANALYSIS

In our projections we assume that

Inflation rate will balance the fluctuation during the year

Interest rate is expected to stabilize at ₦300.00 per dollar through the year.

My existing asset are worth ₦300,000. Will require the sum of ₦750,000 for equipment

raw materials and some overhead bills for a month

4.1 Start-Up Cost

The Start-up plan for this project is as follows:

Items Details Amount

Pre-operating expenses ₦51,000
Initial stock ₦20,000
Initial operating expenses 1month ₦26,000
Total project cost ₦97,000

4.2 Source of funds

The funding requirement for this project is ₦750,000 and the company is counting

₦300,000 into the project.

Source Amount Percent

Personal fund ₦40,000 40
Family and friends ₦60,000 60
Total project cost ₦100,000 100

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4.3 Business Risk

1. Spoilage: due to the fact that goods are perishable with time.

2. Industry accident: this includes cuts, burns among other industrial injuries may

take place.

I will adopt the following strategies to mitigate them;

1. Developed ideas on how to innovate products that are distinct to those in the

market imperishability.

2. The company has liaised with the nearby clinics in case of emergency cases.

3. Inconsistence of government policy etc. and the company tend to tackle all this

appropriately.

4.4 S.W.O.T Analysis

Factors Implications
Strength There will be good patronage for
Location has massive above average our product
income population that will
patronize us

Weakness 1. We will need more capital to improve

Lack of capital to develop on our financial leverage
Operation is still at a small scale 2. We will undergo regular training and
on the business operations.

Opportunities The product will be easily

Accessing the grass root accessed

Threats A lot of resource is dedicated

High operational cost

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4.5 OPERATING ACTIVITIES AND EXPENSES

FACTORS P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 TOTAL

TRANSPORT AND DELIVERY 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
TELEPHONE 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
PURCHASE OF CONSUMABLES 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000
TOTAL 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 312,000

4.6 COST AND SALES FORCAST

Store Size 15 X 15ft

Cost (₦) Income (₦)
Per day sales(Naira)/day 5500
Per month sales(Naira) 165000
Infrastructure( Naira ) 60000
Fixed cost/month
Rent (Monthly) 3000
Phone bill 1000
Raw materials 20000
Labor cost (1 Delivery boy) 10000
Miscellaneous 5000
Total monthly 39000

Margin in Nneodo business 30%

Minimum sales required/month 115500
Minimum sales required/day 3850
Profit/day 1650
Profit/month 49500
BCR(month) 2.6052632

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5.1 Benefit Cost Ratio (BCR)

BCR gives the rate at which a business operation within a given period of time can

generate the investment made expressed as the ratio of Net positive cash flow and net

negative cash flow a project will be accepted if it is po.sitive

𝑁𝑒𝑡 𝑝𝑜𝑠𝑖𝑡𝑖𝑣𝑒 𝑐𝑎𝑠ℎ 𝑓𝑙𝑜𝑤 49500

𝐵𝑒𝑛𝑒𝑓𝑖𝑡 𝐶𝑜𝑠𝑡 𝑅𝑎𝑡𝑖𝑜 (𝐵𝐶𝑅) = = = 1.269230
𝑁𝑒𝑡 𝑛𝑒𝑔𝑒𝑡𝑖𝑣𝑒 𝑐𝑎𝑠ℎ 𝑓𝑙𝑜𝑤 39000

5.2 Summary/conclusion

The project has a positive Benefit Cost Ratio return on investment. The implication is

that, the project will be a very profitable business if implemented.

We will therefore like to be supported to commence the project implementation as it will

benefit all involved, proprietor, and general public.

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