SECTION 1 EXECUTIVE SUMMARY The following report and recommendation relate to the proposal by chime Okechukwu Bright to establish Frabook tech limited. The proposed project is to be fully implemented with an investment of #5000000(five million naira) to be disbursed by UBA. The business vision is to be a key player in the technology industry, contributing to the innovations needed to improve lives in a sustainable way by 2025. The proposed project will be located in Ebonyi metropolis area of Ebonyi state Based on our market survey, a ready market exists for the planned business. The funding requirement is N5000,000 This project has been subjected to SWOT and risk analysis and appropriate risk mitigant proficient The business competitive edge is the management’s rich industrial knowledge and practice orientation Conclusion and recommendation: from the point of view of the analysis of our findings, the proposed project is found to be technically feasible, financially viable and economically desirable. Table of Content Executive Summary 1.1 Vision 1.2 Company 1.3 Management SECTION 2 BACKGROUND INTRODUCTION: Technology industry in Nigeria is growing and flourishing. There is also a strong shift globally from the conventional approach to technological approach in all sectors e.g. offices that never had computers to aid in documentation now do as well as fast internet access. Thus, a lot of demand pressure is on the technology industry, resulting in a growing supply gap. This development coupled with my passion for technology business informed my decision to enter the industry in order to help fill part of the identified supply gap. We shall focus on the cloud based services; This product is specially designed to facilitate mana-gement, create or enhance web presence and improve access to internet resources for our clients and their customers plus social/information technological sector VISION AND MISSION: The vision of the Business is to establish a differentiated product with capabilities that will reduce the cost of ownership with a higher return on investment. Offering a product with enhanced features and greater capabilities that is unmatched in this emerging industry will further position FRABOOK as company of great strength with superior brand and product through technological innovation will increase the possibilities of capturing a significant market share to establish FRABOOK brand identity and products within the industry. Frabook Company Objectives Develop technological products and solutions that solve real problems for people across multiple sectors, including; healthcare, environment, education, finance, and agriculture. Help organizations and individuals to see data in new ways, discover insights, unlock endless possibilities and build impactful products. Provide ubiquitous, secure, and seamless access to information resources through reliable and robust infrastructural development. Reduce the high rate of software failures in Subsaharan Africa by transforming how organizations and companies acquire and manage software packages. Build products and services that enable product innovation, strategic material sourcing, outsourced manufacturing, integrated logistics, and integrated demand-and-supply planning within corporate organizations. Build and supply technologies that help healthcare professionals work effectively within hospitals and conduct groundbreaking medical procedures and research. The project offers a good investment benefit; we therefore recommend it for funding and implementation. The following are the specific mandates and policy directives that define the parameters within which the company operates and from which the institution derives its mandate. A growing chorus of businesses and regulators are now calling for big tech companies like ours to be broken up, while tech executives are asking for closer government regulation. Frabook is expected to face issues like other tech companies face. The idea is to tackle all such as protecting individuals and society from maltreatment with our service, promoting responsible innovation and establishing understandable and consistent parameters for monetization. Mandate To be one of the world's leading producers and providers of information, services and consumer products this inspires and fulfils curiosity. We, at Frabook Technology, are passionate about transparency, reliability, trust and outstanding customer care – we aren’t happy with our creation until you are. We take tremendous care of your needs. We understand your business goals and deliver them according to your business values. We do that by taking enormous care of our people – talented world-leading web design specialists who know how to create your online success. OWNERSHIP OF THE ENTERPRISE: The proposed business is owned by Okechukwu Chime Bright, a graduate of Geomatics engineering from the Federal University of Technology Owerri (FUTO). Bright has been deeply in love with technology; it’s safe to call him a tech enthusiast. Besides, he is passionate about establishing and running technological company in order to contribute to the needs of Nigerians. LEGAL STATUS: The planned business is registered with the corporate affairs commission (CAC) with number…. LOCATION AND FACILITIES: The planned company will be stationed in abakaliki LGA, Ebonyi state. The facilities to be deployed at the location include: -Establishment of an office - Laptops, desktops, mouse, wifi - Printer, cameras, generator set 2.6 PRODUCTS AND SERVICES The products of the business under consideration shall be School management systems, E-library, Web development, Cyber security. Tools like bulk sms systems, Video downloading tools, Auto-rewrite tool. Tech products like modified drones agrictural purposes, fintech and social media called Zosma. We will package appropriate customer-friendly delivery services for customers who may desire home or place of business delivery services. 2.7 BUISNESS STRATEGY: To ensure the attainment of our vision and mission, we shall adopt a business strategy weaned around the following platform: Multiple revenue model High product quality backed by strong customer case Penetration pricing Aggressive marketing campaign and demand stimulations This strategy will help us gain a comfortable and sustainable market share at start, while we will continually look at our strategy as we watch the market dynamics and operating environment. 2.8 KEY SUCCESS FACTORS The key success factors for this business are: Emphasis on high quality products Strong customer care Continuous check Cost control measures 2.8 REVENUE BASE The revenue base for the planned business is as follows Web developments,app development Revenue made from adverts on our forum app Zosma Bulk sms system Google adsense(ads from google on our platform across board) Cyber security services Deployment of our e-library to institutions etc. This revenue model is expected to fire the business a strong sustainability and profitability profile.   SECTION 3 MARKET,CLIENTS AND COMPETITORS Nature and size of the market The market for technological products in Nigeria is wide and growing. There is increasing demand for products even for industrial uses in the manufacturing industry in particular. This has created unmet supply gap. These are no restrictions on entry into the markets. The pricing pattern is more or less standardized nationwide, while these are several small and unstructured producers with few large players. For this business, we are focusing on the entire Nigeria as our target market operating from ebonyi base. TARGET CLIENTS Our target clients are big institutions, government bodies, hotels, industries, farmers. This business will keep its nose pressed on the customers groups, meeting their needs in a most appealing and customer focused manner. DIAGRAM KEY COMPETITORS AND PLAYERS There are thousands of technological companies in Nigeria ,everyone of them will be competing with us however our solace lies in the fact that we have unique products streamlined to fit the average Nigerian market. Instance is the disease identifying app we developed. Many technological companies do not have this product. Some of the key players, our target market include Andela: The first best software company in Nigeria is Andela. Andela is an American company that has operational campuses in most African nations. Flutter wave: Most of us that like using online banking platforms, won’t find it surprising to find flutter wave, at the top of this list. MTN: MTN is a popular tech company in Nigeria. I’m quite sure, 95% of Nigerians make use of their service. Etc. The presence of those key players will not pose a threat to our technological business, as we are entering the market as a structured, proactive and focused player. PROJECT PROCESS Pick daily morning, afternoon and evening and enter production into Bin card. Package for sale to customers. SERVICE DELIVERY Our service delivery will be structured with an on surpassing customers’ expectations. The departure point of our service delivery is ensuring high quality products Customer-friendly delivery and support services will be packaged to ensure customer retention and market growth QUALITY ASSURANCE Our desire for profitability will not overshadow our focus on quality. To ensure strict quality assurance compliance, we shall take the following steps: 3.7 DEMAND AND SUPPLY ANALYSIS From the market survey carried out by us, we harvested an exciting business opportunity, hence the proposed business. The survey showed that a high demand supply gap exists. This is currently responsible for the increase in the selling price of technological products or innovations. TECHNOLOGY Our business with an eye on capturing a business sustaining share of the market will deploy appropriate technology to ensure smooth production process.7.5kva generating set will be acquired. The use of pc will enable us build data on our customers, demand, sales, operating expenses, and databank and market trends. This will enhance effective management of the firm. COMPETITIVE EDGE Our core competitive edge is the management risk knowledge of the industry and proactive orientation. Our business has nothing to contend with the unstructured micro and small produces, in the market, through our proactive orientation, we shall identify the weakness of the key players and exploit such. 4.0 MARKET NEEDS AND CUSTOMER DYNAMICS. Our business will continually scan the operating environment in order to identify changing market needs and address the customer dynamics. Factors such as current customer needs, competitors service strategies, best practices in the industry, will be keenly watched to ensure growth in our market share. To address the above, a complaints/suggestion desk will be put in place to capture complaints/suggestions (if any) from customers. Besides periodic market- specific information, market trend analysis and survey, shall be undertaken to check competition and grow our market share. SECTION 4 4.1 MARKETING PLAN 4.2 MARKETING PLAN TO BE ADOPTED The key competitors in the technology industry in the entire states are few and spread over the six western states. The other player are several unstructured micro and small poultry farmers. We are entering the market as a structured player and has plans to identify and exploit the comfortable market share use areas of focus in our marketing plan are: -aggressive awareness creation and marketing campaign - Attractive pricing policy to stimulate demand. - Direct delivery services (when preferred) to our customers - Discount offer to bulk buyers 4.3 PROMOTION AND DISTRIBUTION STRATEGY We will mount an aggressive awareness campaign to draw potential customers’ attention to our presence; we will make use of the handbills, flyers, posters to reach out to both corporate and individual customers As the business grows, improved publicity approach will be employed- print and electronic media will be put to good use .on the distribution strategy, we plan to adopt the following approach. As a technology company, it’s important to utilize modern marketing methods to increase our reach and deliver relevant content to our key demographic. Inbound marketing is a methodology that uses storytelling and remarkable content to attract our company’s best demographic – the demographic who drives revenue. our companies have a new privilege (not the right) to deliver anticipated, personal and relevant messages to people who actually want to get them. This new type of marketing recognizes customers have the power to ignore marketing and it treats people with respect to earn their attention and brand loyalty. Just like you wouldn’t make a first impression by immediately asking a customer in a showroom for the sale, we shouldn’t do that in digital marketing either.we Start by focusing on the relationship. Inbound marketing focuses on building relationships with key personas and nurturing potential customers through a process until you’ve earned their trust and are positioned as a key resource to fulfill their needs. At that point, it’s a softer and easier sell. The Inbound Marketing Methodology Inbound marketing is being adopted by thousands of companies around the world who value attracting qualified leads by offering relevant, helpful, value-added content. This proven method of marketing is directly aligned with the buyer’s journey, and unlike often-costly outbound marketing techniques, inbound strategies won’t fight for your potential customers’ attention. If your company is creating content designed specifically to address every need of your ideal customer, you will attract your revenue-driving demographic and build trust. We can do this through a 4-stage process: Attract Think of our company as a flower. As a flower, do you want to attract a house fly? No. Do you want to attract a butterfly? Possibly, but not ideally. You want a bumble bee. Anybody can visit our website, but we don’t want just anybody, and not everybody wants us. The use of inbound marketing will help our ideal customers find us when they’re looking for us. our ideal customer is researching how to solve a problem they’re experiencing, and when they discover a piece of content we wrote addressing this specific need, they will evolve from a stranger to a visitor. Examples of content that will help attract strangers: Blogging Frequent and relevant social media posts Utilizing the keywords our key demographic use in search engines Developing webpages and landing pages that address our target audience’s problems Convert Now that we attracted the right customer to land on our site, the next step is to convert our visitor into a lead. This can easily be done digitally, without employing the use of our sales team. Remember, we don’t want to push away the visitor by asking them to make a purchase too quickly. This is the stage where we develop the relationship and earn our visitor’s trust. Open the conversation in a way that works best for them. Maybe it’s gathering their information on a landing page form by offering them something in return, for example: a downloadable guide, eBook, or white paper. Once we’re able to connect with visitor, nurture the relationship by providing relevant information about solutions to their needs and nurture them to become leads. Examples of tools that will help convert visitors to leads: Calls-to-Action Landing Pages Forms Virtual messaging and chats CRM Close For our salespeople eager to make the ask, the first two steps may feel like you’re delaying a potential sale. It’s important to have patience and keep in mind that not everyone who becomes a visitor transitions into a qualified lead. And qualified leads don’t all become customers. It all depends on their position in the buyer’s journey.In the situations when the lead are qualified and would be an ideal customer of ours, how can we effectively transition the relationship into one where a sale is made? You do this through effective use of big data, lead nurturing, email, and lead scoring. For example, our emails should have relevant calls to action, and the lead nurturing campaign should be guiding them further through the buyer’s journey until finally your lead becomes a customer. Examples of tools that will help convert leads to customers: Pipeline management Lead nurturing Email Predictive lead scoring Delight This stage is crucial but is often overlooked by companies focused so intently on new customers. It’s critical to build and grow our customer satisfaction and retention rates. our customers have higher expectations of our business because of the level of respect we treated them with throughout their process to become a customer. We wont fail them now. We will Continue to engage and delight our customers by asking them questions, offering them special content, and deliver them the tools to continue to be successful with their products. The happier our customer is, the more they will buy and serve as brand ambassadors in their own networks. Examples of tools that will help delight customers into becoming promoters: Smart content designed exclusively for existing customers Virtual and real conversations Customer-only specials Workflows What is the Buyer’s Journey? We’ve all been in a store with an overzealous sales person showing us the newest product on the shelf, pushing us to buy it, making us uncomfortable and eager to remove ourselves from the situation. We were only there to browse after all. On the flip side, how frustrating is it when you’re shopping for something specific and you walk in the store and see mostly empty shelves? Whether you are window shopping or ready to make a purchase, both stages are equally important in the buyer’s journey. According to HubSpot, the buyer’s journey is the process buyers go through to become aware of, evaluate, and purchase a new product or service. This journey is a three-step process: Let’s break down these stages: Awareness Stage: the buyer realizes they have a problem. Consideration Stage: the buyer defines their problem and researches options to solve it.
Decision Stage: the buyer chooses a solution. Here is a scenario where each stage is clearly illustrated: Awareness Stage: I work for a technology company having a hard time reaching my target market oversees. Consideration Stage: I see that inbound marketing would be a good fit for our company, but I’m not sure I have the bandwidth to implement a new strategy. Decision Stage: I can try to get by with what we’ve always done, but I’m still not reaching those potential clients. Or I can hire an agency dedicated to supporting their clients through inbound marketing. I’ll hire the agency. It’s important to be aware which phase our potential client is currently in, and it will help us determine the content they should receive. If a potential client is familiar with our product, should they receive the same content we would provide a stranger in the Attract phase of inbound methodology? Perhaps a blog or guide about your services would be a better fit because they are in the consideration stage of the buyer’s journey. If we’re unsure what kinds of challenges and problems our customers are facing in their awareness stage of the buyer’s journey, it’s a good idea to get a better understanding. Ask them questions through online surveys or hold interviews. Your company’s salespeople are also good resources to help you understand what your average customer’s buyer journey looks like. Below are sample questions recommended used to discover more about your target customer’s buyer journey: Awareness Stage Consideration Stage Decision Stage How do buyers describe their goals or challenges? What categories of solutions do buyers investigate? What criteria do buyers use to evaluate the available offerings? How do buyers educate themselves on these goals or challenges? How do buyers educate themselves on the various categories? When buyers investigate your company’s offering, what do they like about it compared to alternatives? What concerns do they have with your offering? What are the consequences of inaction by the buyer? How do buyers perceive the pros and cons of each category? Who needs to be involved in the decision? For each person involved, how does their perspective on the decision differ? Are there common misconceptions buyers have about addressing the goal or challenge? How do buyers decide which category is right for them? Do buyers have expectations around trying the offering before they purchase it? How do buyers decide whether the goal or challenge should be prioritized? Outside of purchasing, do buyers need to make additional preparations, such as implementation plans or training strategies? Once we identify our buyer’s journey, we be sure to provide relevant content for each stage that is tied back to the 4 stages of inbound marketing methodology. If we’re serving up the right content at the right time for our potential customers, we’re going to edge out the competition and gain the trust of our customers. Remember, no one likes to be sold, so we use inbound marketing to educate and build trust with potential customers and our existing database. As a technology company, you’re faced with finding an audience who exists beyond the borders of your geographic location. We can help our customers find us by using inbound marketing. 4.4 ALLIANCES At start up, we do not intend to go into alliance with any organization, however as the business grows, consideration could be given to alliance arrangement depending on market dynamics. 4.5 MARKET POSITIONING: We will position our self as structured, proactive and focused technology firm. The enterprise will create a peculiar leading edge profile to itself. In general, we will want to be seen by our customers, competitors, business partners and general public as: -a reliable promoter of quality products/services -a quick, flexible and proactive market player -a transparent, responsible and customer- focused producers 4.6 SERVICE DELIVERY STRATEGY To ensure that we capture and retain a comfortable market share, we plan to adopt service delivery strategy that will be appealing to our customers, -customer care will be emphasized -after sales follow up efforts will be carried out, feels the pulse of customers’ satisfaction. -we will adopt an image branding package for bulk egg sales -we shall develop a database on our customers to enable us monitor their need, dynamics and expectations. 4.7 SWOT ANALYSIS In order to have a comprehensive project analysis and assessment, we have subjected this proposal to SWOT analysis A STRENGTHS Our business in managed by a management with rich industry knowledge and proactive orientation. -the centrality of our location gives us high market visibility. -the enterprise is entering the market as a structured player. We will build on those strengths. B WEAKNESSES -The global financial meltdown may affect start up demand for our products. - Birds are open to diseases that can negatively affect the stocks and operations. We are addressing this weakness through aggressive marketing, fair pricing, customer care and continuous check on the health of the birds. C OPPORTUINITIES -the enterprise can go into meat processing. -there are opportunities for exporting our products in the Ecowas market. We hope to exploit these opportunities as the business grows. D THREATS -increases competition due to the entry of more structured producers -government policy that may negatively affect the industry. -introduction of new and mandatory regularities. To check these threats, the farm will continuously emphasize high quality products, strong customers and grow the market share. On the government policy, we will proactively keep abreast of government policies and continuously scan the operating environment to checkmate possible threats. 4.8 PROJECTED SALES: Bases on our demand estimation, we give the following sales projection. TABLE S/N REVENUE BASE 2017 2018 1 Web development 800,000 1000,000 2 E-library 1000,000 1,500,000 3 Deployment of school management system 200,000 500,000 TOTAL 2,000,000 3,000,000   SECTION 5 5.0 ORGANISATION AND MANAGEMENT 5.1ORGANISATIONAL STRUCTURE Our firm is a limited liability company and as a startup enterprise, will adopt a slim organizational structure to check excessive payroll costs. The day to day running of the farm will be undertaken by the promoter, as the chief executive officer assisted by the market director and the finance/admin officer. As the business grows, appropriate efforts will be made to hire more hands to meets the needs of the business. The organizational structure is indicated here under Chief executive officer (CEO) and chief operations officer (COO) Product manager Chief technology officer (CTO) and VP of engineering hybrid Chief marketing officer (CMO) and community manager hybrid Sales manager Chief financial officer (CFO) Business development manager. 5.2 SHAREHOLDERS AND DIRECTOR This business is a LLC registered with the corporate affairs commission, to this extent the promoter is the CEO and there are shareholder/directors. 5.3 MANAGEMENT TEAM The enterprise will be managed by the promoter, Chime okechukwu bright, a graduate of the federal university of technology OWERRI from department of surveying and geoinformatics. I have vast and rich experience in the technology industry. I will be supported by the Chief technology officer (CTO) and the Chief marketing officer (CMO). These two positions will be held by two good hands with qualification. 5.4 EXTERNAL SUPPORT Our business is discussing with a consulting firm that focus on business development and support services, to offer us over a period of three years, strong management and support services. This arrangement we behave will give the farm strong foundational management culture to be built upon as the enterprise grows. 5.5 PERSONNEL PLAN We will adopt a slim personnel plan at start-up. As the business grows, more hands in with the needs of the business will be engaged. 5.6 VALUES AND NORMS OF THE ENTERPRISE To ensure a sustainable and strong market presence and in order to drive our vision, we shall adopt the following norms and values. -to strive to do the best for the benefit of our customers -to be transparent and uphold integrity in our dealings -to see our employees as our most valuable assets -to do our business within the ambit of the laws of the nation. -to be ethical in all our dealings.   SECTION 6 6.0 LEGAL REGULATORY, SOCIAL AND ENVIRONMENTAL ISSUES 6.1 LEGAL ISSUES We have undertaken a legality check on the proposed business. The enterprise has completed plans to be registered with corporate affairs commission, under the company registration. 6.2 REGULATORY ISSUES The enterprise will comply with the all relevant regulatory requirements law gloves, nose mask and fire extinguishers will be provided. Necessary business premises permits will be secured. Relevant taxes and levies to the state and local government shall be paid as at when due. 6.3 SOCIAL ISSUES The establishment of the planned enterprise will generate a lot of social benefits. -jobs and wealth creation -people empowerment and poverty reduction. -support to the development agenda of vision 2020 and the millennium development goals (MDGs) -check rural-urban migration and enhance rural industrialization. 6.4 ENVIRONMENTAL ISSUES We will run an environmentally friendly company. The firm will be kept neat appropriately and regularly disinfected. other wastes generated in the course of the production activity shall be promptly and effectively discharged. In summary, the firm will be run in a way that enhances environmental sustainability. SECTION 7 7.0 FINANCIAL PLAN 7.1 PROJECT COST The total cost is estimated at #500,000.00 to be disbursed by UBA. The details of the inputs are: 1. An Internet Modem 2. A Router 3. A Network Switch 4. An Uninterruptable Power Supply (UPS) 5. VoIP Phones 6. Desktop and Notebook Computers 7. Headsets 8. Servers 9. Multi-Function Printers 10. A Projector or a Big Screen TV 11. Office space 12. Business registration 13. Business plan development 7.2 FUNDING PLAN The total project cost of #500,000 is to be funded from loan supported by UBA SME center. The proposed funding gives a total debt of equity ratio of 50:20. The term loan is estimated to carry an interest rate of 6%. There will be one month moratorium from the startup of commercial operation and repayment period of 12 months. 7.3 FUNDING REQUIREMENT: The funding requirement for this project is #500,000 as the promoter (entrepreneur) has already committed and procured the required inputs for smooth take off of the business. 7.4 PROJECTED INCOME STATEMENT 2020(#) 2021(#) Turnover 5000,000 6000,000 Cost of sales 3000,000 4000,000 Gross margin 4000,000 5000,000 Less operating expenses Salaries and allowances 2,280,000 2,280,000 Transport and travelling 240,000 250,000 Telephone and postages 72,000 75,000 Interest on loan 30,000 30,000 Depreciation 10,000 10,000 Electricity/gas 40,000 40,000 Administrative expenses 15,000 2,687,000 15,000 Total operating expenses 2,687,000 2,700,000 Net operating project 7.7 PROJECTED CASHFLOWS STATEMENT CASHFLOW PRE-OPERATIONAL 2020(#) 2021(#) CASH INFLOWS OWNERS (CONTRIBUTION)EQUITY - - - - Loan capital - 500,000 500,000 Sales revenue - - - Turnover - 5000,000 6000,000 Pre-operational 105,000 - - Total cash inflows 105,000 5,500,000 6,500,000 CASH OUTFLOWS 2020(#) 2021(#) Pre-operational Expenses 105,000 Fixed assets - Acquisition - Cost of sales - 3000,000 4000,000 Operating expenses - Less depreciation 2,800,000 3,800,000 Stock replacement Loan repayment 250,000 250,000 Total cash outflows (105,000) (5,500,000) (6,500,000) Net cash flow 3,765,845 2,765,845 Opening cash balance - 3,765,845 3,153,98 Closing cash balance - 3,765,845 3,153,98 7.6 PROJECTED BALANCE SHEET 2020(#) 2021(#) Capital employed Fixed asset(at cost) 1,895,000 1,895,000 Less: depreciation 10,000 10,000 Net book value 1,885,000 1,885,000 Current assets Balance in hand and at bank 3,765,845 3,153,983 Stocks 202,005 513,702 3,967,850 3,667,685 Less: current liabilities Outstanding loan balance 250,000 Net current assets 32,150 Net assets 217850+fixed assets 217850+fixed assets Financed by Owners’ equity Retained profit Owners fixed 7.7 PROFITABILITY ANALYSIS The profitability indicators nearest to draw the investors’ attention to the viability of the project are shown below. 2020(#) 2021(#) Turnover(N) 5000,000 6000,000 1000,000 1000,000 Return on turnovers(N) 8.9 8.9 Return on equity(owners contribution) 67% 67% Return on total investment 66% 66% BREAK-EVEN ANALYSIS BEP = FC 1– VC/S Where BEP = break-even point FC = fixed cost VC = variable cost S = sales (turnover) I = constant FIXED COST(#) VARIABLE COST(#) Salaries & allowances 2,250,000 Transport and travelling 240,000 Transport & postages 72,000 Interest on loan 30,000 Depreciation 10,000 Electricity/gas 40,000 Administrative expenses 15,000 Total 2,335,000 352,000 By substitution, BEP = FC/ (1-vc/s) = 2,335,000/ (1-352,000) = 7,565,050 = 352,000/7,565,000 = 0.0465 1-0.047 = 0.953 = 2,335,000/0.953 = #2,450,157.00 Interpretation out of the first year turnover of N5,000,000, the enterprise will break even at the sales of N,2,450,157 of 40% of the year’s turnover, this shows that the project is highly viable as it will turn in profit after 40% of the annual sales have been made.   SECTIION 8 8.0 RISK ANALYSIS, CONTINGENCY PLAN AND EXIT STRATEGY 8.1 risk analysis and mitigants This project has been subjected to risk analysis, some identified and appropriate mitigants preferred to avoid planned business being disrupted Identified risk Mitigants Stiff competition due to the entry of more structured players For stiff competition due to more structured players, marketing campaign, customer care, and high quality product emphasis. 8.2 We are aware that the projections embodies in this plan is based on a number of assumption, this assumptions are subjected to deviations that may impact the outcome to this extent, we have made some contingency plan 1 increase in production/operating cost Where there is an increase in the production / operating cost, we plan to adopt strong cost control measures to keep the operating cost inline 2 low demands Were the demand for our product turns out to be below projections. We plan to adopt the following projections -offer discount to bulk buyers - initiate slight price reduction -mount aggressive marketing campaign to stimulate demand -enter in alliance in other to have more sales outlet 8.3 exit strategy The exit strategy open to any investor to the project is prompt payoff of the procured loan or buying off of any shares held by the investor. We plan to achieve this strategy through careful and efficient cash flow management. Besides, we can execute private placements for willing investors to pay off investors planning exit on our part. We do not intend to exit the business rather expansion, and diversification will be pursued when the business attains a suitable growth posture SECTION 9.0 9.0 other considerations, conclusions / recommendations 9.1 economic justifications From our analysis, the planned project has been found economically justifiable. In that it creates job, wealth reduces poverty and empower people. The project is also in tandem with spirit of vision 2020 the national economic empowerment and development strategy (NEEDS), as well as the millennium development goals. 9.2 conclusion /recommendation From the point of view of our analysis and findings, the proposed project is found to be technically feasible, financially viable and economically desirable. The project offers good investment benefits to both the promoters and investors. We therefore, have no hesitation in recommending the project for funding and implementation. =2.55+(30÷2│13) 5⁄3 =255+(15-13) 5/3 =255+2(5/3) =255+10/3 =255+3.33 =28.83 30.5+(30/2-18) 5/5 30.5+(15-18) 30.5(-3) 30.5-3.0 = 27.5

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