BUSINESS
SUMMARY.
BUSINESS CONCEPT.
Our vision is to become the most visited, recognized and widely read online and print business and lifestyle magazine in Nigeria, Africa and the world by the year 2015 and beyond.
Our mission is as follows;
- to have one million registered online members by the year 2015,
- to provide creative and innovative solutions to the problems of small, medium and large enterprises in Nigeria and Africa through marketing and public relations,
- to reveal the great business opportunities in Nigeria and Africa,
- to make people in Nigeria and the world enjoy everything about Nigeria through our online and print magazine, THE NIGERIAN ENTREPRENEUR MAGAZINE, (www.tnemag.com).
Our would - be product is an online (internet) and print business and lifestyle magazine, which is titled, THE NIGERIAN ENTREPRENEUR MAGAZINE and WWW.TNEMAG.COM. It is a magazine which would reveal or expose the lifestyles of successful business men and women, so that young adults (Nigerian youths, who are our main target group), can learn from them and later start businesses of theirs. It would also be a magazine that would offer solutions to start-up and small business owners in Nigeria.
The main product/services we would offer for sale are advert spaces both on our online (internet) and print magazines. The online version of the magazine would be the main product in our first year of business and then we would publish the print version of the magazine in our second year of business.
CURRENT SITUATION.
We have a registered company with the Corporate Affairs Commission of Nigeria (C.A.C) with our business name as BLUE FISH ENTERPRISES (BN 2175000) and the business is based in Lagos, Nigeria. For now the business is solely owned and will be run by my humble self, Okorafor Cheta Obi. There would be room to have a board of directors and re-register the company as a limited liability company with the C.A.C.
KEY SUCCESS FACTORS.
Our marketing strategy is unique and revolutionary in the sense that we would be the first media company that rewards its registered users and readers in Nigeria. They would win cash rewards for regularly visiting and using our website and purchasing our print magazine.
Also, we would organize business seminar workshops for young adults and small business owners in Lagos, Enugu and Port- Harcourt and also run radio programs in popular radio stations. This would enable us reach our main target of having one million registered members and readers by the year 2015.
FINANCIAL SITUATION/NEEDS.
We are seeking funds/capital to start the business with a maximum amount of N500, 000 (five hundred thousand naira) or $3,125 (three thousand and a hundred and twenty-five US dollars).
The money is needed to obtain the following items;
- laptop,
- website,
- internet connection,
- digital multimedia,
- external hard drive,
- advertisement,
- transportation,
- business insurance,
- stationery,
- other costs/utilities.
BUSINESS CONCEPT.
Our vision is to become the most visited, recognized and widely read online and print business and lifestyle magazine in Nigeria, Africa and the world by the year 2015 and beyond.
Our mission is as follows;
- to have one million registered online members by the year 2015,
- to provide creative and innovative solutions to the problems of small, medium and large enterprises in Nigeria and Africa through marketing and public relations,
- to reveal the great business opportunities in Nigeria and Africa,
- to make people in Nigeria and the world enjoy everything about Nigeria through our online and print magazine, THE NIGERIAN ENTREPRENEUR MAGAZINE, (www.tnemag.com).
Our would - be product is an online (internet) and print business and lifestyle magazine, which is titled, THE NIGERIAN ENTREPRENEUR MAGAZINE and WWW.TNEMAG.COM. It is a magazine which would reveal or expose the lifestyles of successful business men and women, so that young adults (Nigerian youths, who are our main target group), can learn from them and later start businesses of theirs. It would also be a magazine that would offer solutions to start-up and small business owners in Nigeria.
The main product/services we would offer for sale are advert spaces both on our online (internet) and print magazines. The online version of the magazine would be the main product in our first year of business and then we would publish the print version of the magazine in our second year of business.
CURRENT SITUATION.
We have a registered company with the Corporate Affairs Commission of Nigeria (C.A.C) with our business name as BLUE FISH ENTERPRISES (BN 2175000) and the business is based in Lagos, Nigeria. For now the business is solely owned and will be run by my humble self, Okorafor Cheta Obi. There would be room to have a board of directors and re-register the company as a limited liability company with the C.A.C.
KEY SUCCESS FACTORS.
Our marketing strategy is unique and revolutionary in the sense that we would be the first media company that rewards its registered users and readers in Nigeria. They would win cash rewards for regularly visiting and using our website and purchasing our print magazine.
Also, we would organize business seminar workshops for young adults and small business owners in Lagos, Enugu and Port- Harcourt and also run radio programs in popular radio stations. This would enable us reach our main target of having one million registered members and readers by the year 2015.
FINANCIAL SITUATION/NEEDS.
We are seeking funds/capital to start the business with a maximum amount of N500, 000 (five hundred thousand naira) or $3,125 (three thousand and a hundred and twenty-five US dollars).
The money is needed to obtain the following items;
- laptop,
- website,
- internet connection,
- digital multimedia,
- external hard drive,
- advertisement,
- transportation,
- business insurance,
- stationery,
- other costs/utilities.
BUDGET PLAN.
The budget plan that determines the capital amount needed is as follows;
ITEMS COSTS(N).
1. Laptop 60, 000
2. Website 50, 000
3. Internet connection (3months) 27, 500
4. Digital multimedia (3months) 50, 000
5. External hard drive 15, 000
6. Advertisement (3months) 60, 000
7. Transportation (3months) 30, 000
8. Business Insurance 80, 000
9. Stationery 10, 000
10. Other costs/utilities (3months) 100, 000
TOTAL AMOUNT N482, 500.
The budget plan that determines the capital amount needed is as follows;
ITEMS COSTS(N).
1. Laptop 60, 000
2. Website 50, 000
3. Internet connection (3months) 27, 500
4. Digital multimedia (3months) 50, 000
5. External hard drive 15, 000
6. Advertisement (3months) 60, 000
7. Transportation (3months) 30, 000
8. Business Insurance 80, 000
9. Stationery 10, 000
10. Other costs/utilities (3months) 100, 000
TOTAL AMOUNT N482, 500.
PROJECTED
INCOME REVENUE PLAN.
We would make money by the sale of advert spaces on our website and print magazine. We would also offer our monthly print magazine editions for sale.
FIRST YEAR.
Advert sales on website N 4, 300, 000
Google ad sense earnings N3,840, 000
TOTAL N8, 140, 000
SECOND YEAR
Advert sales on website 11, 400, 000
Advert sales on print version 15, 240, 000
Google ad sense earnings 8, 832, 000
Magazine (print) sales earnings(12,000 copies) 3,600, 000
TOTAL N 39, 072,000
THIRD YEAR
Advert sales on website 22, 200, 000
Advert sales on print version 15, 240, 00
Google ad sense earnings 13, 440, 000
Magazine (print) sales earnings(12,000 copies) 18, 000, 000
TOTAL N68,880,000.
STARTING BALANCE SHEET.
a. ASSETS:
Sales revenue income,
advert sales ----- N4, 300, 000
google ad sense ---- N3, 840, 000
TOTAL INCOME: N8, 140, 000
Capital introduced ---------- N500, 000
b. CURRENT LIABILITIES.
- Purchases.
laptop 60,000
website 50,000
internet connection 81,500
external hard drive 15,000
stationery 40,000
TOTAL N246,000
- General expenses;
salaries (10% of total income) 814,000
sales promotion (10% of total income) 814,000
advertisement 240,000
transportation 120,000
tax(5% 0f total advert sales) 407,000
business insurance 80,000
digital multimedia(50,000*4) 200,000
other costs/utilities 400,000
TOTAL N3, 075,000
c, LONG TERM LIABILITIES.
Investment (loan) interest N1, 595, 550.
d. Cash introduced - total assets.
e. Drawings - total liabilities.
PROJECTED BALANCE SHEET FOR THE YEAR ENDED APRIL/MAY 2013.
N
ASSETS
Capital introduced 500, 000
Income sales 8, 140, 000
CURRENT LIABILITIES
Purchases 246, 500
General expenses 3, 075, 000
LONGTERM LIABILITIES
Loan interest 1, 595, 550
3, 722, 950
Cash introduced 8, 640, 000
Less Drawings 4, 917, 050
3, 722, 950
We would make money by the sale of advert spaces on our website and print magazine. We would also offer our monthly print magazine editions for sale.
FIRST YEAR.
Advert sales on website N 4, 300, 000
Google ad sense earnings N3,840, 000
TOTAL N8, 140, 000
SECOND YEAR
Advert sales on website 11, 400, 000
Advert sales on print version 15, 240, 000
Google ad sense earnings 8, 832, 000
Magazine (print) sales earnings(12,000 copies) 3,600, 000
TOTAL N 39, 072,000
THIRD YEAR
Advert sales on website 22, 200, 000
Advert sales on print version 15, 240, 00
Google ad sense earnings 13, 440, 000
Magazine (print) sales earnings(12,000 copies) 18, 000, 000
TOTAL N68,880,000.
STARTING BALANCE SHEET.
a. ASSETS:
Sales revenue income,
advert sales ----- N4, 300, 000
google ad sense ---- N3, 840, 000
TOTAL INCOME: N8, 140, 000
Capital introduced ---------- N500, 000
b. CURRENT LIABILITIES.
- Purchases.
laptop 60,000
website 50,000
internet connection 81,500
external hard drive 15,000
stationery 40,000
TOTAL N246,000
- General expenses;
salaries (10% of total income) 814,000
sales promotion (10% of total income) 814,000
advertisement 240,000
transportation 120,000
tax(5% 0f total advert sales) 407,000
business insurance 80,000
digital multimedia(50,000*4) 200,000
other costs/utilities 400,000
TOTAL N3, 075,000
c, LONG TERM LIABILITIES.
Investment (loan) interest N1, 595, 550.
d. Cash introduced - total assets.
e. Drawings - total liabilities.
PROJECTED BALANCE SHEET FOR THE YEAR ENDED APRIL/MAY 2013.
N
ASSETS
Capital introduced 500, 000
Income sales 8, 140, 000
CURRENT LIABILITIES
Purchases 246, 500
General expenses 3, 075, 000
LONGTERM LIABILITIES
Loan interest 1, 595, 550
3, 722, 950
Cash introduced 8, 640, 000
Less Drawings 4, 917, 050
3, 722, 950
PROJECTED THREE
YEARS PROFIT AND LOSS STATEMENT.
YEAR 1 (N). YEAR 2 ( N ) YEAR 3 ( N ).
SALES INCOME 8, 140, 000 39, 072, 000 68, 880, 000
Capital introduced 500, 000 3, 722, 950 19, 249, 265
Cost of goods sold 2, 400, 000 12, 000, 000
GROSS PROFIT 8, 640, 000 40, 394, 950 76, 129, 265
OVERHEADS
Office space/rent 700, 000
Laptop/computers 60, 000 120, 000 420, 000
Website 50, 000 50, 000 50, 000
Internet 81, 500 189, 500 379, 000
Digital multimedia 200, 000
External hard drive 15, 000
Salaries/wages 814, 000 2, 880, 000 13, 200, 000
Furniture/fittings 250, 000 700, 000
Advertisements 240, 000 800, 000 1, 200, 000
Sales promotion 814, 000 3, 907, 200 6, 888, 000
Transportation 120, 000 600, 000 1, 200, 000
Tax 407, 000 1, 953, 600 3, 444, 000
Insurance 80, 000 525, 700 2, 140, 000
Stationery 40, 000 120, 000 200, 000
Other costs 400, 000 800, 000 1, 200, 000
3, 321, 500 12, 896, 000 31, 021, 000
Operating profit 5, 318, 500 27, 498, 950 45, 108, 265
INTEREST EXPENSE
Investment interest 1, 595, 550 8, 249, 685 13, 532, 480
NET PROFIT 3, 722, 950 19, 249, 265 31, 575, 785
YEAR 1 (N). YEAR 2 ( N ) YEAR 3 ( N ).
SALES INCOME 8, 140, 000 39, 072, 000 68, 880, 000
Capital introduced 500, 000 3, 722, 950 19, 249, 265
Cost of goods sold 2, 400, 000 12, 000, 000
GROSS PROFIT 8, 640, 000 40, 394, 950 76, 129, 265
OVERHEADS
Office space/rent 700, 000
Laptop/computers 60, 000 120, 000 420, 000
Website 50, 000 50, 000 50, 000
Internet 81, 500 189, 500 379, 000
Digital multimedia 200, 000
External hard drive 15, 000
Salaries/wages 814, 000 2, 880, 000 13, 200, 000
Furniture/fittings 250, 000 700, 000
Advertisements 240, 000 800, 000 1, 200, 000
Sales promotion 814, 000 3, 907, 200 6, 888, 000
Transportation 120, 000 600, 000 1, 200, 000
Tax 407, 000 1, 953, 600 3, 444, 000
Insurance 80, 000 525, 700 2, 140, 000
Stationery 40, 000 120, 000 200, 000
Other costs 400, 000 800, 000 1, 200, 000
3, 321, 500 12, 896, 000 31, 021, 000
Operating profit 5, 318, 500 27, 498, 950 45, 108, 265
INTEREST EXPENSE
Investment interest 1, 595, 550 8, 249, 685 13, 532, 480
NET PROFIT 3, 722, 950 19, 249, 265 31, 575, 785
PROJECTED THREE
YEAR BALANCE SHEET.
YEAR 1(N) YEAR 2 (N) YEAR 3 (N).
ASSETS
Capital introduced 500, 000 3, 722, 950 19, 249, 265
Income sales 8, 140, 000 39, 072, 000 68, 880, 000
CURRENT LIABILITIES
Purchases 246, 500 729, 500 1, 749, 000
General expenses 3, 075, 000 14, 566, 500 41, 272, 000
LONGTERM LIABILITIES
Loan interest 1, 595, 550 8, 249, 685 13, 532, 480
3, 722, 950 19, 249, 265 31, 575, 785
Cash introduced 8, 640, 000 42, 794, 950 88, 129, 265
Less Drawings 4, 917, 050 23, 545, 685 56, 553, 480
3, 722, 950 19, 249, 265 31, 575, 785
YEAR 1(N) YEAR 2 (N) YEAR 3 (N).
ASSETS
Capital introduced 500, 000 3, 722, 950 19, 249, 265
Income sales 8, 140, 000 39, 072, 000 68, 880, 000
CURRENT LIABILITIES
Purchases 246, 500 729, 500 1, 749, 000
General expenses 3, 075, 000 14, 566, 500 41, 272, 000
LONGTERM LIABILITIES
Loan interest 1, 595, 550 8, 249, 685 13, 532, 480
3, 722, 950 19, 249, 265 31, 575, 785
Cash introduced 8, 640, 000 42, 794, 950 88, 129, 265
Less Drawings 4, 917, 050 23, 545, 685 56, 553, 480
3, 722, 950 19, 249, 265 31, 575, 785
PROJECTED THREE
YEAR CASH FLOW STATEMENT.
YEAR 1 (N) YEAR 2 (N) YEAR 3 (N)
RECEIPTS
Invoiced sales 8, 140, 000 39, 072, 000 68, 880, 000
Capital introduced 500, 000 3, 722, 950 19, 249, 265
8, 640, 000 42, 794, 950 88, 129, 265
PAYMENTS
Running costs 3, 321, 500 15, 296, 000 43, 021, 000
Loan payments 1, 595, 550 8, 249, 685 13, 532, 480
4, 917, 050 23, 545, 685 56, 553, 480
NET CASH FLOW 3, 722, 950 19, 249, 265 31, 575, 785
OPENING BANK
CLOSING BANK 3, 722, 950 19, 249, 265 31, 575, 785
YEAR 1 (N) YEAR 2 (N) YEAR 3 (N)
RECEIPTS
Invoiced sales 8, 140, 000 39, 072, 000 68, 880, 000
Capital introduced 500, 000 3, 722, 950 19, 249, 265
8, 640, 000 42, 794, 950 88, 129, 265
PAYMENTS
Running costs 3, 321, 500 15, 296, 000 43, 021, 000
Loan payments 1, 595, 550 8, 249, 685 13, 532, 480
4, 917, 050 23, 545, 685 56, 553, 480
NET CASH FLOW 3, 722, 950 19, 249, 265 31, 575, 785
OPENING BANK
CLOSING BANK 3, 722, 950 19, 249, 265 31, 575, 785
PROJECTED THREE
YEAR PROFITABILITY RATIOS.
YEAR 1(N) YEAR 2 (N) YEAR 3 (N)
a. Net profit as % of sales 46% 49% 46%
YEAR 1(N) YEAR 2 (N) YEAR 3 (N)
a. Net profit as % of sales 46% 49% 46%
b. R.O.I (Return
on investment) 86% 90% 72%
c. Gross profit as % of sales 106% 103% 110%
e. Current ratio (asset/liabilities) 1.8 1.8 1.6
c. Gross profit as % of sales 106% 103% 110%
e. Current ratio (asset/liabilities) 1.8 1.8 1.6
LOAN PAYMENT
ARRANGEMENT.
Capital needed to start the business is N500, 000 (five hundred thousand naira ) or $3, 125 ( three thousand and a hundred and twenty - five U.S dollars at an exchange rate of N160 to 1 USD).
Thirty percent (30%) of the operating profit (profit after overheads/expenses), would be set aside for the board of directors to share. This is an equity style investment on a 60:40 ratio. 60% for the business idea owner and 40% for the capital/fund provider.
Any individual who wants to quit the equity business arrangement, his or her shares would be bought out by the other party.
Capital needed to start the business is N500, 000 (five hundred thousand naira ) or $3, 125 ( three thousand and a hundred and twenty - five U.S dollars at an exchange rate of N160 to 1 USD).
Thirty percent (30%) of the operating profit (profit after overheads/expenses), would be set aside for the board of directors to share. This is an equity style investment on a 60:40 ratio. 60% for the business idea owner and 40% for the capital/fund provider.
Any individual who wants to quit the equity business arrangement, his or her shares would be bought out by the other party.
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