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Grain Business Plan
Presentation · February 2022
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CHIATECH GLOBAL LIMITED
CHIATECH GLOBAL LIMITED
7, LANDURA CRESCENT, TUDUN WADA, JOS
TEL: (07) 67887802
Email: tachiacharles@gmail.com
BUSINESS PROPOSAL
Quality Grains for Better Health
AUGUST, 2021
prepared by
Gwaska Daspan Mike M.Sc., A.C.A. Business Consultant
Page 1 of 9
7, LANDURA CRESCENT, TUDUN WADA, JOS
TEL: (07) 67887802Email: tachiacharles@gmail.com
CHIATECH GLOBAL LIMITED
EXECUTIVE SUMMARY
Chiatech Global Limited is primarily a wholesaler of various grains and agro
products in Nigeria, located in Jos, plateau State. This company is intended to
provide customers with the finest quality grains. The business is primarily
wholesale to retailers who want to buy in large quantity. We will purchase our
grains directly from local farmers and sole distributors. This allows us to buy from
the farmers with the finest output available anywhere. We plan to sell to countless
numbers of customers who are always in need of wholesale price for most of the
grain we sell in our location.
Chiatech Global Limited plans to expand her storefront and sell direct to company
in nearest future. In our expanded market, we will bring our commitment of quality,
freshness and great prices to the public. By purchasing in large quantities, we are
able to pass the savings on to our customers.
The planned set up cost of the business will cost ₦1,287,000. This is for renting of
store, buying of stock, equipments and payment of staff cost. A short-term loan
of ₦432,000 will be secured from a client for initial startup.
Chiatech Global Limited will rely on the proven knowledge, skills and experience of
its Management, who brings over a decade managerial experience to the business.
Chiatech Global Limited is established for the primary purpose of providing high
quality grains of the best Rice, Guinea Corn, Maize, Soya beans and Beans to
retailers which are considered the bread basket of the country. The enterprise
has a potential to gain reputation for offering quality grains that provides great
value to retailers.
Page 2 of 9
7, LANDURA CRESCENT, TUDUN WADA, JOS
TEL: (07) 67887802Email: tachiacharles@gmail.com
CHIATECH GLOBAL LIMITED
Chiatech Global Limited will establish its base of operations at Jos, the capital of
Plateau State, which is highly populated with a fast-growing market for grains.
Chiatech Global Limited will therefore be in a good position to capture a significant
portion of the local market for grains, since it will introduce new and better
marketing techniques.
Chiatech Global Limited will differentiate itself from other suppliers through
favourable pricing and unique promotional techniques. By specializing in just a few
of the most popular varieties, Chiatech Global Limited will gain access to the
largest segment of grain market for Rice,Wheat,Maize,Soya Beans and Beans. This
tightly focused approach will also make it easier for Chiatech Global Limited to
establish and attain the position of a grain industry leader.
This business is projected to return a profit margin of 20% in its very first month
of operations, due to the large size of the market, a competitive price for grains,
and the relatively low investment required to begin operations. The first year
(2021) sales revenue is projected to exceed 1,500,000. The profit that is
generated will be used for reinvestment in the enterprise.
OBJECTIVES
•
To establish Chiatech Global Limited as the leader in selling grain in Nigeria.
•
Increase the number of customers buying from Chiatech Global Limited by
20% over the next two months.
MISSION
The mission of Chiatech Global Limited is to offer customers the best grains at a
reasonable price.
KEYS TO SUCCESS
•
Superior products will promote customer loyalty.
Page 3 of 9
7, LANDURA CRESCENT, TUDUN WADA, JOS
TEL: (07) 67887802Email: tachiacharles@gmail.com
CHIATECH GLOBAL LIMITED
•
A location that will assure walk-in traffic.
•
A program that will create customer loyalty.
BUSINESS OWNERSHIP
Chiatech Global Limited is privately owned by Mr. Charles Tachia and managed by
him. Mr. Charles Tachia leveraged his wealth of knowledge in trading agricultural
produce. Due to our dream for the business, other investors may be allowed to coowned the business.
OPERATING PLAN:
Based on a survey of wholesalers, it has been determined that the current total
annual requirement for wheat seed is about 125,000 tonnes and 10,000 tonnes for
rice seed.
Chiatech Global Limited plans to enter the market and sell a reasonable bags of
grains in a year, an average of Fifty bags of grains in a month.
Chiatech Global Limited will carry out the following key operations:
- Purchasing of quality grains
- Cleaning, packaging, treatment and storage of the grains
- Grains distribution, marketing and sales
FINANCIAL PLAN
This plan outlines the amount of money Chiatech global Limited will need to cover
both its startup and operating costs, and how much income the business expects to
generate after sales of its first batch of grains.
The total establishment and first month operational costs of Chiatech Global
Limited will amount to 1,287,000 as summarized in the following table:
Page 4 of 9
7, LANDURA CRESCENT, TUDUN WADA, JOS
TEL: (07) 67887802Email: tachiacharles@gmail.com
CHIATECH GLOBAL LIMITED
ITEM
MACHINERY AND EQUIPMENT COST (FIXED COST)
Store
Transport Van
Furniture and Fittings
Total
ADMINISTRATIVE CHARGES
Van operation
Promotion and Marketing
Office Supplies
Total
GRAIN MULTIPLICATION COST (VARIABLE COST)
Purchase of 2bags of Rice @ 58,000 per bag
Purchase of 2bags of Guinea Corn @ 38,000 per bag
Purchase of 2bags of Maize @ 25,000 per bag
Purchase of 2bags of Soya beans @ 40,000 per bag
Purchase of 2bags of Beans @ 55,000 per bag
Grain storage/Transport
Total
Grand Total
COST (₦)
(₦)
100,000
650,000
50,000
800,000
20,000
15,000
10,000
45,000
116,000
76,000
50,000
80,000
110,000
10,000
442,000
1,287,000
As regards revenue Chiatech global Limited intends to clean and sell up to 10 bags
of grains in the first month of operation.
Sale of grains for the First Month.
Sale of grains
Amount(₦)
2 bags of Rice @ 68,000 per bag
136,000
2 bags of Guinea Corn @ 50,000 per bag
100,000
2 bags of Maize @ 33,000 per bag
66,000
2 bags of Soya beans @ 60,000 per bag
120,000
2 bags of beans @ 65,000 per bag
130,000
Total
552,000
Page 5 of 9
7, LANDURA CRESCENT, TUDUN WADA, JOS
TEL: (07) 67887802Email: tachiacharles@gmail.com
CHIATECH GLOBAL LIMITED
On the basis of monthly production cost of N442,000, Chiatech Global limited will
earn a profit of equivalent to a margin of 20%.
CASH FLOW
The cash flow is planned on the basis of operational plan of Chiatech Global Limited
for the First month of operation
(₦)
432,000
Beginning cash position
CASH RECEIVED
Sales of Rice
Sales of Guinea Corn
Sales of Maize
Sales of Soya beans
Sales of Beans
Total Cash Received
CASH PAID OUT
Purchase of Rice
Purchase of Guinea Corn
Purchase of Maize
Purchase of Soya beans
Purchase of Beans
Grain Storage/Transport
Office supplies
Van operation
Marketing
Total Cash Paid out
Net Cash in hand
Cash at Month end
(₦)
136,000
100,000
66,000
120,000
130,000
552,000
116,000
76,000
50,000
80,000
110,000
10,000
10,000
20,000
15,000
487,000
65,000
497,000
Chiatech Global Limited will record and present all its financial transactions in
suitable and acceptable manner that will be used for monitoring and control.
Account statements will be prepared periodically to measure performance in terms
of profit or loss that is being generated and what actions could be taken.
Page 6 of 9
7, LANDURA CRESCENT, TUDUN WADA, JOS
TEL: (07) 67887802Email: tachiacharles@gmail.com
CHIATECH GLOBAL LIMITED
A forecast profit and loss account for Chiatech Global Limited at the end of the
first month indicates a good profit of ₦65,000 from its operations. The cash flow
forecast analyzed based on the first month of operation shows cash balance of
₦497,000. These statements show that Chiatech Global Limited will have more
than sufficient cash that will be required to put its planned operations into effect
and to also meet its capital needs.
Profit & Loss Account of Chiatech Global Limited as at 31st December Year 1
Sales
552,000
Opening Inventory
-
Purchases
432,000
Closing Inventory
-
Cost of Sales
(432,000)
Gross Profit
120,000
Expenses:
Admin Expenses
45,000
Storage
10,000
Net Profit
55,000
65,000
The financial transactions outlined in the profit and loss account and the cash
account are supplemented by a projected balance sheet, which shows the assets
and liabilities of Chiatech Global Limited or its financial viability at the end of Year
1. Chiatech Global Limited will have nil accounts payable, since grains and other
direct material purchase will be paid for fully during Year 1. Similarly, accounts
receivable will be nil because all seed will be sold by end of Year 1. The balance
Page 7 of 9
7, LANDURA CRESCENT, TUDUN WADA, JOS
TEL: (07) 67887802Email: tachiacharles@gmail.com
CHIATECH GLOBAL LIMITED
sheet also indicates a healthy net worth or owner’s equity of ₦1,297,000. This is
what the enterprise will be worth in financial terms at the end of Year 1.
Chiatech Global Limited Balance Sheet as at 31st December Year 1
₦
ASSETS
Non-Current Assets
Transport Van
Furniture and Fittings
Store
Current Assets
Cash in hand
TOTAL ASSETS
EQUITY AND LIABILITIES
Owner‘s equity
TOTAL EQUITY AND LIABILITIES
₦
650,000
50,000
100,000
497,000
1,297,000
1,297,000
1,297,000
Break Even Point
BEP= Fixed Cost
Contribution Margin
= 800,000
10,200
=78 bags
The analysis above shows that Chiatech Global Limited needs to sell a total of
about 78 bags of grains such that the revenue from sales equals exactly the total
costs incurred. The planned number of bags to be sold need to be increased to
achieve the target combined output level of 78 bags of grains.
MARKETING AND SALES PLAN
Chiatech Global Limited will offer the same or better quality seed than other
suppliers in the market, but sell at a more reasonable price.
The enterprise will charge significantly less for its grains than other companies
because of its lower overhead expenses and fewer employees it will engage.
Page 8 of 9
7, LANDURA CRESCENT, TUDUN WADA, JOS
TEL: (07) 67887802Email: tachiacharles@gmail.com
CHIATECH GLOBAL LIMITED
As part of this strategy, Chiatech Global Limited will promote its grains in the
market using a preferred mode of word-of-mouth advertising.
The enterprise will popularize its brand image in the form of attractive spikes of
grain and the associated slogan of “Quality Grains for better Health”, which will
be promoted vigorously.
MANAGEMENT PLAN
Chiatech Global Limited plans to keep wage and salary expenses low, at least
initially. To achieve this objective, all job functions will be performed by the
Director since he posses the required skills and experience. The remaining staff
will be daily waged workers, and casual Labourers who will be hired during the busy
periods.The business will use its profit to provide attractive working conditions and
appropriate incentives that will keep its dedicated staff in the enterprise in the
long run.
CONCLUSIONS
Chiatech Global Limited will endeavour to attain leadership in the supply of quality
grains in the market. The pursuit of high quality grains will be the driving force in
the business. To achieve this, the enterprise will use the dedication, experience
and skill of its management. Extensive promotional activity will help to ensure that
Chiatech Global Limited customers perceive that they are buying the best quality
grains, on time, and at a reasonable price. Chiatech Global Limited is poised and
positioned to take advantage of this commercial opportunity in buying and selling of
grains.
Page 9 of 9
7, LANDURA CRESCENT, TUDUN WADA, JOS
TEL: (07) 67887802Email: tachiacharles@gmail.com
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