Whitening bleach
The rate of unemployment in Nigeria is on the increase. Every Nigerian graduate, particularly graduates of Engineering, wants to work for big oil companies like Shell, Chevron, TOTAL etc. However, most unfortunately, a recent article from vox.com reads thus:
“In June 2014, you had to plunk down $110 to purchase a barrel of Brent crude… By early 2015, that had dropped to $60. Today it costs just $33 to buy that barrel of oil – a level not seen since 2004. It’s a breathtaking decline.” (Vox.com – 8th February, 2016)
The above excerpt gives the reason why many of these multinationals are downsizing and people losing their Jobs and going out in the streets to search again for fresh jobs, adding to the thousands of graduates produced each year by Nigerian Universities.
From the foregoing, it is evident that we must take the bull by the horn and make every preparation to avoid being part of the number tagged “unemployed” on graduation. Hence we have decided to put together a small business that we intend to nurture to greater heights in order to have enough money to meet our needs and also possibly employ a few people and reduce the problem of unemployment that has eaten deep into the fabrics of the Nigerian economy. The business we propose to put together is the production and sales of Bleach.
Production and sales of bleach can be very lucrative. Everybody likes to wear clean white clothes but the fear of maintenance makes them choose alternative colors that are less prone to stains. However, if they can get quality bleach for an
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affordable price, it would help alleviate the problem. Bleach is also a household cleaning agent that can be put to a variety of uses. It can be a very handy material for disinfecting and cleaning toilets, floors and reduction of contact with germs. It is however are not limited only to home use, it is also very useful in laboratories, hotels, hospitals, and offices.
1.2 STATEMENT OF PROBLEM
The proposed business project seeks to address the following problems:
Increased rate of poverty and unemployment in Nigeria.
Reduction in efficacy of bleach by producers in a bid to make money
“Browning” of originally white clothes due to irregular bleaching.
1.3 AIM AND OBJECTIVES
The project is directed at providing an entrepreneur detailed procedure on how to efficiently set up and run a bleach production and sales business.
The knowledge and experience gained in the project would stir up the desire of the students for self-employment as small-scale industry (SME) entrepreneurs.
1.4 SIGNIFICANCE OF STUDY
Once the proposed project is successfully executed, it will lead to a reduction in our dependence on people (Parents and other sponsors) for money. It will also bring about a sense of responsibility since we will be making our own income and therefore plan its usage more properly. As the saying goes: “There’s no true freedom without financial freedom”. Also, we would be solving a fundamental problem of personal and environmental cleanliness.
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CHAPTER TWO
LITERATURE REVIEW
2.1 BLEACH AS A HOUSEHOLD AGENT
Bleach is used as household chemicals to whiten clothes and remove stains and as disinfectants primarily in the bathroom and kitchen. Bleach have strong bactericidal properties, and are used for disinfecting and sterilizing and thus are used in swimming pool sanitization to control bacteria, viruses and algae and any institution where sterile conditions are needed. It is also used in many industrial processes, notably in the bleaching of wood pulp. Bleach is also used for removing mildew, killing weeds and increasing the longevity of cut flowers.
The concept of entrepreneurship has been in our modern society for thousands of
years. The original entrepreneurs were, of course, traders and merchants. The first
known instance of humans trading comes from New Guinea around 17,000 BCE,
where locals exchanged obsidian, a black volcanic glass used to make hunting
arrowheads for other needed goods. These early entrepreneurs exchanged one set
of goods for another. This was known as the barter system. For instance, if Alfred
had twenty cows and Clement had eighty hens, and Alfred and Clement agreed
that one cow was worth four hens, then the trade could take place. The problem
with the barter system, however, was that in order for a trade to take place, both
parties had to want what the other party had. This “co-incidence of wants” often
did not happen. Thus, the demands of growing business and trade gave rise to a
money system.
By the year 1100, the prevailing cultural system in the Western World was
feudalism. It was a world of kings and lords, vassals and serfs, kingdoms and
manors. Long-distance trade was expanding and new worlds of foreign spices,
oriental treasures, and luxurious silks were discovered. Three hundred and fifty
years later, after weathering a Black Death and the Hundred Years War, Europe
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emerged by expanding trade to new levels and building the foundation for the start of the competitive market economy we know today.
2.2 WHO IS AN ENTREPRENEUR
An entrepreneur is a person who organizes and manages a business undertaking, assuming the risk for the sake of the profit.
Someone who perceives an opportunity and creates an organization to pursue it or simply someone who is looking to build a company.
It is important to understand that an entrepreneur is not necessarily someone that is self-employed (works for themselves). As more and more people become self-employed we need to understand what makes people entrepreneurs.
Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage.
2.3 ENTREPRENEURSHIP; WHAT IT INVOLVES
There are key personal characteristics that make people succeed as entrepreneurs. There are certain abilities needed such as leadership, handling failure, business sense, networking, customer service and confidence needed to become an entrepreneur.
2.3.1 Vision: The successful entrepreneur has a clear and communicable vision of the opportunity his or her business will create or exploit and is completely dedicated to making this vision a reality, even when it means taking risks.
2.3.2 Determination: The successful entrepreneur must be completely determined to succeed, even in the face of doubts of family, close friends and associates. This determination must fuel the tireless effort to make it happen.
2.3.3 Motivation: An entrepreneur lets very little get in the way of making the vision into reality.
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2.3.4 Focus: The entrepreneur must keep his or her eye on the ball at all times, never allowing precious time, energy and other resources to be distracted from the project.
2.3.5 Devotion: Entrepreneurs must be completely devoted to the project, enjoy working on the project and deeply committed to the ideas and beliefs on which the project is founded.
2.3.6 Skills: The entrepreneur must have a skill set to either develop the product or service or the skills to take an idea and figure how to make it work. Leadership, 2.3.7 Passion: An entrepreneur must really love what he/she is doing in such a way that it does not appear to be hard work, but rather something they enjoy and want to do.
2.3.8 Adaptability: An entrepreneur must be able to adapt personally and ensure that the organization has the ability to adapt to new challenges. Allow people to provide their point of view and identify issues and opportunities.
2.3.9 Display Self-awareness: An entrepreneur must be able to recognize their own strengths and weaknesses and hire their missing skills within their team.
2.3.10 Creative Thinking: The entrepreneur has to be able to think through the innovative idea and deal with the many variables facing the business - global market, technological change and diverse work force etc.
2.4 STIMULATING FACTORS FOR ENTREPRENEURIAL DEVELOPMENT
A factor that could stimulate entrepreneurial development is the availability of government support especially for small scale businesses. This encourages entrepreneurs to venture into business. Also, the rate of joblessness in a community could be a factor. When one is jobless over time, the individual tends to go out there and do something instead of folding hands and waiting hopelessly, as a result, the individual ventures into a business. A desire to be one’s one boss could be a factor. Instead of being pushed around by boss, one could decide to be
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an entrepreneur. One more factor that could stimulate entrepreneurship is the demand-supply factor. When the demand of a commodity is not properly matched by enough supply, one could venture into supplying the commodity. Finally, a stimulating factor to entrepreneurial development could be the reduction of rules, regulations and procedures framed by the government concerning entrepreneurs. When these rules are at their minimum, entrepreneurial development is stimulated.
2.5 WHO CAN BE AN ENTREPRENEUR
An entrepreneur is one who must think and see things differently from other people. Also he must possess some other vital qualities as listed below to mention but a few:
He/She must be able to look at a situation and see opportunities on how to improve it or how to do it differently.
He/She has to be very aware of all the things that are involved in business
To be an entrepreneur, you must have to want to make a difference. You can't be satisfied with the status quo.
An entrepreneur must be very committed to what he/she is doing. He/she must also be able to turn work into a hobby.
-An entrepreneur must be able to take rejection many times during the entrepreneurial journey. Many people will say "No" as they don't believe in your concept, don't like you product or they don't think you can make it work.
2.6 SUPPLY SIDE THEORY
According to investopedia, the supply-side theory is an economic theory holding that bolstering an economy's ability to supply more goods is the most effective way to stimulate economic growth. According to Supply Side "theory," tax cuts
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should go to the wealthy for only they can afford to use the extra income to invest in the economy -- to increase its capacity to "supply" goods.
2.7 DEMAND SIDE THEORY
Demand side theory is an economic theory that advocates use of government spending and growth in the money supply to stimulate the demand for goods and services and therefore expand economic activity.
Demand Side Theory, says that if taxes are to be cut, they should go to those who earn the least amount of money. The reason is that low-income workers spend virtually all of their incomes. Money given to them goes right back into circulation, fueling a boom in consumer spending.
2.8 CHALLENGES OF AN ENTREPRENEUR
The following are some of the challenges of an entrepreneur:
• Negative Mindset: The battle always starts in the mind. Our own fear, excuses and just basically anything that paralyses us from moving forward to our destiny is to cultivate in our mind (feelings like ‘I don’t know if I can do this’ or ‘I am not qualified enough to start this’).
• Lack of support: lack of support from government in provision of basic amenities and lack of moral supports from family members could be a challenge to an entrepreneur.
• Lack of financial resources: lack of financial resources for an entrepreneur may lead to discouragement. Hence, abandonment of the proposed project.
• Feelings of wanting to give up: because a business takes time to grow and it usually takes a lot of effort to make it work, the entrepreneur may develop
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feelings of wanting to give up, especially when he does not see positive results.
• High cost of raw materials and other inputs: when the cost of raw materials is expensive, if available, the purchase of these materials poses a great problem to the entrepreneur. The upkeep of the business becomes its downfall because the cost of running the business through the purchase of raw materials is high.
• Unfavorable market fluctuation: could also be a challenge. When the market is not stable, which is mostly the case, the entrepreneur is affected negatively.
• Unfavorable Government Policies: When the government makes policies that are against the importation of certain raw materials, it affects production adversely.
2.9 BRIEF HISTORY OF BLEACH PRODUCTION
Humans have been whitening fabrics for centuries, ancient Egyptians, Greeks and Romans bleached materials, as early as 300 B.C. Soda Ash prepared from burnt seaweed, was used to clean and whiten clothes. During the middle ages, the Dutch prepared bleach for fabrics, spread out in large fabrics in a process called crafting, whereby fabrics were spread out in large fields for maximum sunlight exposure.
Texture mills travels as far away as Scotland, shipped their materials to the Netherlands for bleaching, the practice quickly spread throughout Europe and bleaching fields were documented in Britain. A bleaching company using Dutch method went into operation in Scotland in 1728.
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In this process, fabrics were soaked in a large solution for several days, then washed clean. The fabrics were then spread out on the grass for weeks to dry. This was repeated five or six times until the desired whiteness was achieved.
2.10 PRODUCT IDENTIFICATION AND SELECTION
There was a wide range of products that came to mind when we thought of setting up a small scale business. However, we selected bleach for some reasons.
There is a rising demand for bleach as a result of the high number of white collar jobs in the society. These people are likely to wear formal clothes like suits (with white shirts) which cannot be washed thoroughly without bleach especially after long work hours. There is also a magnanimous number of homes present in Port Harcourt as well as industries and hotels. All these would need bleach for work.
• Homes: Most households in the city would find bleach very useful in the sense that they would need it for their laundry purposes, for disinfecting and washing floors, sanitary wares (water closets, wash-hand basins etc.)
• Hotels: Hotels would need to maintain a high level of hygiene because of the relatively high number of people they serve. They need to whiten their beddings and towels, and also disinfect their floors and sanitary wares.
• Offices: Most offices would want to impress their clients with a clean and hygienic environment. Also, companies that provide sanitation services would find our bleach very useful for carrying out their duties.
• Hospitals: Hospitals must make sure that their surrounding is safe for patients, therefore they can make use of bleach as a disinfectant to mop their floors, wash hospital clothing (i.e. bed sheets, clothes and curtains) and also for washing bathrooms and toilets.
Consequent on the above explanations, it is obvious that selecting bleach production and sales as a business venture is a step in the right direction as there is a ready market and hence profitability is guaranteed.
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CHAPTER THREE
METHODOLOGY
3.1 DETERMINING THE FACILITY LOCATION
Choosing a business location is perhaps the most important decision a small business owner or startup will make, so it requires precise planning and research. It involves looking at demographics, assessing your supply chain, scoping the competition, staying on budget, understanding state laws and taxes, and much more.
Considering that we are starting on a small scale, and also that bleach production (on a small scale) does not really require a large space and gigantic equipment we intend to operate from the comfort of our student hostel.
However, on a long term basis, we may consider the following factors:
Brand Image: We shall consider if the location is consistent with the image we intend to maintain.
Competition: We shall consider that there are other bleach brands in the locality.
Local Labour Market: Does the area have potential employees? What will their commute be like?
Plan for Future Growth: We would need to look for a building that has extra space in it since we would need to expand in future.
Proximity to Distributors: They need to be able to access us easily.
Safety: We shall consider the crime rate in the area for the safety of the employees.
Hidden Costs: Very few spaces are business ready. Costs like renovation, decorating, IT system upgrades, and so on must be considered.
Finances: Costs and expenditure have to fall within the specified budget.
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Business Friendliness: We shall consider if the area is business friendly as related to the kind of business we are venturing into as per these considerations, an approximate location for expanding can include the centre of the Port Harcourt metropolis, along Aba road.
3.2 BUSINESS NAME AND TYPE
The name of the business is Whitening. We needed to make the name catchy in order to capture customer’s attention. The business is a partnership of four (4) persons, in which the liability will be equally shared among the four (4).
3.3 REGISTRATION
This business will be duly registered with the Corporate Affairs Commission (CAC) in Port Harcourt, in accordance with the stipulated terms and agreement required for the registration of a Partnership Company. Registration for just a business name with the CAC costs N15, 000 only. Transactions here are limited to N10million. For corporate registration, this costs N70,000, with an unlimited amount for transaction. As it is a small business, we are registering just the business name.
Registration has to be done Federal Internal Revenue Service (FIRS). One percent (1%) of the company’s annual income is to be paid to the FIRS.
The business would also have to be registered with Chambers of Commerce for it to be recognized.
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CHAPTER FOUR
RESULT AND DISCUSSION
4.1 MARKETING, HIRING AND BUSINESS ADVANCEMENT
Consumers do not buy what you sell. They buy what has value to them. In order to be in business, a businessman must find a way to make his customers see reason why they need his product.
4.2 SELLING AND MAKING MONEY
Below is given a breakdown of our cost of production, compared with selling price in order to show our profit margin:
Table 4.1: Expenditure (Per batch of 40 bottles)
S/NO MATERIALS/ EQUIPMENT COST (N)
Water (20 Litres) -
Caustic Soda (1kg) 200
Chlorine (1kg) 1200
Bucket -
Stirrer -
Miscellaneous 200
Packaging (40 0.5L Bottles) 800
TOTAL: 2,400
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We inquired about the current market price of bleach and found that:
0.5 Litre Hypo sells for N150
0.5 Litre Jik sells for N180
We decided to fix our wholesale price of whitening bleach at N110 so that our distributors can have a profit.
4.3 ORGANISING THE PRODUCT CENTRED FUNCTION RESEARCH AND DEVELOPMENT
In any business, research and development must be done regularly especially if the business owners intend to stay in business. Usually, at the point of entry into the business of production and sales of any commodity, there are other people producing and selling a similar commodity. One thing that makes people choose a new product over another which they are already used to is its efficacy. The product must also stand out in terms of packaging. Also, as time goes on, other people will begin to tow the same li0ne of business especially if it appears lucrative. Once again, what makes people stay in business at this point is their ability to constantly improve on their product in diverse forms. A good example can be seen in the case of Gala sausage roll. Gala ruled the market for so many years and were probably complacent. This was not until other brands like Beefie, Bigi, Fill-up and Rite came into the market and Gala has not recovered ever since. This can be traced to their inability to improve on their product in the face of competition.
In view of the foregoing, we intend to regularly improve on our business ideas, we also intend to organize regular promos and advertisements to keep our customers and also attract more potential customers. However, for now, we will talk about the current production process for an everyday bleach under the following sub-headings: materials & equipment, method. We shall also discuss on how we intend to improve the product.
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4.3.1 Materials & Equipment
The following materials are required in the production of bleach (20 Litres):
• Caustic Soda (1kg)
• Chlorine (1kg)
• Clean Water (Preferably distilled)
• Soda ash (Optional)
For our production process, we did not use Soda ash. The use of soda ash has its
pros and cons. Soda ash makes the bleach more efficacious but it is corrosive.
This is the reason why prolonged use of some bleaches lead to weakening of
fabrics. Other equipment needed for the production process are:
• Twenty-litre Bucket
• Stirrer
4.3.2 Method of Production
The main components of bleach are caustic soda (NaOH) and Chlorine (Cl2). They combine chemically to form Sodium Hypochlorite (which has the
bleaching effect), salt (Nacl) and a molecule of water.
2NaOH + Cl2 NaOCl + NaCl + H2O
The method of production for twenty litres of bleach is as given below:
Pour some of the water into a bucket
Pour the Caustic Soda (1kg) and Chlorine (1kg) into the water and allow to dissolve.
Stir the solution with a stirrer in order for it to mix properly.
Add the rest of the water to fill up the bucket and to dilute it a little
Cover the bucket and leave for about 12 to 24 hours in order for the solute to precipitate.
Decant the clear liquid above and filter the remaining solute to get more of the liquid.
Allow the product to settle again then filter to remove all remaining particles and the bleach is ready.
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Some pictures of the production process carried out by our group members is shown in Appendix A of this work.
With time, we shall also consider adding fragrance to the product to distinguish it from other regular bleaches.
4.4 SEEKING A MENTOR
There is a saying, “If you keep doing what you’ve always done, you’ll keep getting what you’ve always got.”
A mentor is someone who can help you move to the next level, solve problems, think differently, view new possibilities, clear wasted steps and energies, select new habits to replace old habits, meet new people, change to a whole new way of living life and doing business. A mentor is usually someone you admire and in whose footsteps you might want to follow.
For our infant bleach business to start off on the right foot and grow, we need a mentor who will guide us on the right steps to take.
4.5 REQUIRED FINANCIAL ASSISTANCE AND HOW TO SECURE IT
The business has to be internally funded at its initial stages since the cost is not much. For later expansion of the business, we intend to partly fund it from the savings generated from operating the business over five (5) years. We shall also seek external funding. Applying for sponsorship would not be difficult, especially as the business is a profitable venture. Proposals will be sent out to friends and family, and government assisted funding. Proposals will contain the business breakdown and statement of accounts. We also intend to get a loan from Bank of Industry (B.O.I) and Microfinance bank.
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4.6 SECURING LAND, BUILDING, AND ACCESS ROAD
On a long term basis, we may need to secure land and a permanent site. This will of course come when we are fully absorbed into the market and making enough money to expand. Owing to the exorbitant prices of land in Rivers state and the cost of building a new apartment, we may have to resort first to renting an apartment and then later on, especially when we begin to mechanise the process, purchase and develop a piece of land with suitable access routes so that the factory can be easily reached by our distributors and customers.
4.7 HOW TO PROCURE EQUIPMENT (LAND AND MACHINES) AND
NEW MATERIALS
As regards land and machines, we intend to manually produce our bleach and manage it on a small scale for the first five years, after which we consider expansion through mechanization which is capital intensive. To raise the funds needed for the expansion, we plan to save some part of the money from the running of the business over five years. Family and friends would also be contacted. Proposals will be sent out to some companies for sponsorship. We shall also need assistance from Bank of Industry. However, the requirement is that we must belong to a co-operative and or at least have a worthy financial statement, showing that we are competent enough, that the business is viable, and that it will expand overtime in order to ensure the repayment of the loan in record time. This however can only be done when we have been in business for a while. More details of the expansion procedure are given in chapter 5 of this work.
4.8 AVAILABILITY OF POWER SUPPLY
Owing to the nature of the production process, power supply would not be a problem especially at the initial stage. The small scale production process does not need any form of electricity supply. However, on a long term basis when
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mechanization would be needed and also when we are searching for a permanent location for the business, we shall need to consider a location that has adequate power supply.
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Table 4.2: Income
COST per Gross Income Net Income per Total Net Income for
bottle ( N ) per bottle ( N ) bottle ( N ) 40 bottles( N )
60 110 50 2000
Since an investment of N 2,400 is estimated to yield a profit of N 2000, our percentage profit is about 83.33% which is quite impressive.
4.9 DETERMINING STAFF REQUIREMENT, RECRUITMENT, TRAINING AND DEVELOPMENT.
In the first year, we would not need to recruit any staff as the business is just starting. We will do all the running around on our own in order to raise funds for expansion. However, from the second year, we would recruit two staff to help us distribute the product as our production rate would have increased. As all managerial skills would be handled by the four of us, the qualification for recruitment would be O’ Level certificate, and basic marketing skills would be an advantage. We intend to pay our distributors N 11 per bottle as an incentive to make them work harder.
It is often said: “The only thing worse than training staff and losing them is not training staff and keeping them”. Hence we intend to organize regular training for our staff in order for the business to grow overtime. We also plan to sign a two year contract with our distributors, subject to renewal.
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4.10 PLANNING FOR THE GROWTH OF THE BUSINESS
In order not to remain static, we project selling one batch (40 bottles) per day initially and a minimum of three to five batches (120-200 bottles) per day after the first one year. Below is a table showing our plan for expansion.
Table 4.3: future expansion projections
NUMBER OF BATCHES AND INCOME (40 bottles/batch, 0.5L)
Year
No. of Profit/day Per week Per month Per year [13
batches/day ( N ) ( N ) (₦) months] (₦)
1. 1 2,000 12,000 48,000 624,000
2. 3 6,000 36,000 144,000 1,872,000
3. 3 6,000 36,000 144,000 1,872,000
4. 4 8,000 48,000 192,000 2,496,000
5. 5 10,000 60,000 240,000 3,120,000
The financial projection above shows that the business is profitable, makes enough money to sustain itself and will expand overtime.
In order to further expand the business after the fifth year, we would need the following:
- Permanent Site: Over the course of the first five years, we expect a large increase in our customer base. This would require increased production rate, and hence a bigger space to accommodate large industrial equipment, administrative offices, warehouse, and distribution vehicles. The cost of acquiring 10 plots of land at Elele LGA, Rivers state is estimated at four million naira (N4 million) considering current price and future evaluation.
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- Mechanization: The large increase in production would require mechanization. This can be sub-divided into two
a. The mixing process which would be done by a 6000L capacity industrial mixer. A suitable industrial mixer is the Dafeng DF6000L that goes for $5000 only (N1.82million).
Fig. 4.1: 6000 litres capacity Dafeng DF6000L industrial mixer
b. The bottling process which would be handled by a bottling facility in the same premises estimated to cost two million naira only (N2 million)
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Fig. 4.2: Industrial bottling facility
Acquisition of distribution trucks: There would be need for distribution trucks to convey our goods from the factory situated in a relatively remote area to the main town.
Stand-by Generator: There would also be need for a 40KVA stand-by generator to power the facility in case of power failure. This is estimated to cost about one million naira only (N 1 million)
Employment of new Staff: We would need to recruit the following staff:
i. One (1) Accountant (N50,000 salary per month)
ii. Two (2) truck drivers (N30,000 salary each per month)
iii. Four (4) Factory staff (N25,000 salary per month)
iv. Two (2) security personnel (N20,000 salary per month)
Note that the salaries estimated above are the starting salaries of the staff and are subject to review overtime depending on business income and staff input. Below is a breakdown of the cost of running the business after implementing the above measures in terms of CAPEX (Capital expenditure) and OPEX (Operational expenditure)
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TABLE 4.4a: breakdown of capex
ITEM QUANTITY COST (N)
Land 10 plots 4 million
Building 1 unit 6 million
Industrial Mixer 1 unit 1.82 million
Bottling Facility 1 unit 2 million
Generator 1 unit (40kVA) 1 million
Distribution Trucks 2 unit 2 million
TOTAL: 16.82 million
TABLE 4.4b: breakdown of opex (monthly)
ITEM QUANTITY COST (N)
Salaries 9 250,000
Caustic Soda 1 tonne (bulk purchase) 150,000
Chlorine 1 tonne (bulk purchase) 1 million
Petrol for two trucks 480 litres ( N 145.5/L) 69,600
(20L/day)
Diesel for generator 360 litres ( N 180/L) 64,800
(15L/day)
Bottles 40,000 units ( N 20/bottle) 800,000
Miscellaneous 60,120
TOTAL: N 2, 394,520
At this point in the business, our production rate is projected to be ten thousand (10,000) bottles per week (5,000 litres divided by 0.5L per bottle). Also, we hope
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to sell our product at N120 per bottle to maintain the quality. The breakdown of our gross profit is given below:
Selling Price/bottle = N120
No. of bottles/month = 40,000 bottles
Total Sales/month = N120 x 40000 = N4.8 million
After subtracting operational cost (N 2,350,000), our net profit is given as:
N (4 800 000 – 2 350 000) = N 2 450 000 (monthly)
Summing this monthly income for the entire production year (13 months), we arrive at an annual profit of N 31,850,000 taxable income.
At this rate, we should be able to recover our CAPEX within a year or two of operation.
4.11 MAINTAINING COMPETITIVENESS THROUGH NETWORKING
It is often said that a good product markets itself. However, some extra measures need to be put in place to make sure that there is a free flow in the distribution chain. Advertisements, promos and other offers are a necessary tool. Also, in the twenty-first century, one of the best growth strategies for businesses is network marketing. This can especially be seen in recent times as brands like Trevo, Syntek Global, Longrich, and even Smart perfumes now apply the network marketing strategy. Hence we will find a way to create a network of distribution where everyone benefits and the product sales also expands tremendously overtime.
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CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
5.1 CONCLUSION
Following the illustrations given in the earlier chapters of this work, it is clear that the business of Bleach production and sales is very viable if handled and managed properly. Here, we showed how we can move from an initial monthly
operational cost of N57, 600 (yielding a net profit of N48,000), to a monthly operational cost of N288,000 (yielding a net profit of N240,000) by the fifth year, after which we intend to get a permanent site and further expand the business through mechanization.
5.2 RECOMMENDATION
Following the exponential increase of the rate of unemployment in Nigeria, entrepreneurship appears to be the best way out for young school leavers to build their future and become self-reliant. Setting up and running this business is not at all daunting and enables anyone involved to make ends meet. If it is properly managed, it will go in a long way to build the economy and reduce the rate of unemployment as people who are roaming the streets jobless would be gainfully employed. We hereby recommend that young school leavers should consider entrepreneurship as it is the best way out of the dire economic situation in the nation.
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REFERENCES:
Alagba, A. D (2011) Entrepreneurship and Small Business Management, School of General Studies, University of Port Harcourt,pg 107-220
Allis, R. (2014) The History of Entrepreneurship, www.statrupguide.com Dan P. and Keller T. (2013) Tips for Choosing Your Business Location,
www.sba.gov
Gray, F. (2009) The Truth Shall Make You Rich, Penguin Group, United States Grime, K. and Allen, C. (1990) Laundry Bleaches and Activators, Chemistry
and Industry1st edition,pg 36-45
Investopedia (2016) Supply-Side Theory, www.investopedia.com Mooray, K. (2012) What It Takes to Be an Entrepreneur,
www.teachingkidsbusiness.com
Tracy, B. (2010) No Excuses! Vanguard press, New York
Vox.com (2016) “Crude Oil Trends”pg 4
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