Kareem Saheed

YuNu HUB E-COMMERCE BUSINESS PLAN BY KAREEM SAHEED ADENIYI (Phone no:-,-.) STATE CODE: PL/21C/1081 CALL NUMBER: NYSC/ILR/2021/261782 30th,October 2021. 1 Table of content Front page………………………………………………………………… Table of content………………………………………………………….. 1 2 1.0 Executive summary 3 1.2 The company 3 1.2.1 Business Idea 4 1.2.2 Goal 5 1.2.3 Vision 5 1.2.4 Mission 5 1.3 The Business Model Canvas (BMC) 6 1.4 Marketing strategy 8 1.4.1. SWOT Analysis 8 1.5 How YuNu will go about its application of the P’s 9 1.6 Porter’s Generic Strategies 12 1.7 Market segmentation 13 1.8 Competitive analysis 13 1.9 Management Teams 14 2.0 Operations 14 2.1 Financial Forecast 15 2.2 ABOUT KAREEM SAHEED 16 2 1.0 Executive summary YuNu HUB is an E-commerce business platform aimed at becoming the best trading and services offering platform in the country. The Hub is created to make trading processes of offering services more convenient, comfortable, and easily done anywhere, anytime and in anyplace around the world, provided there is availability of internet access in the area. The hub is developed with building good reputation through trust from clients/customers, best or reduced market prices on its goods/services rendered, quality products and services, quick deliveries of services to potential customers, and a great customer service. In our present world, individuals and organizations prefer the most convenient and most effective means of getting services rendered to them. E-commerce stores like Ali-express, Amazon was rated among the best and their inventors respectively, among the richest in our present world. Thus, YuNu HUB will provide an environment to further make Business owners and individual get the best goods and services desired as to many in our country today complain of “there is no one to trust when it’s comes to rendering services. This is or will be aided by the rising usage of social media e.g: Whatapps, Twitter, Instagram, Facebook etc. that makes advertisement easier, thus reduces greater reliance on Radio and TV advert. YuNu Hub formally known as Albatech and is already registered with SMEDAN and almost due for registration under Corporate Affairs Commission (CAC). The hub could also presently be reached on: www.albatechonlinestore.boutir.com. (Presently not on net. Subscription has expired). The hub monthly sale on average is up to N750,000 and expected to increase its capacities as years passes by. The business Hub will create an avenue for students, farmers, individuals, experts and business owners to actively and conveniently actualize their potentials through creating a direct linkage to their potential clients, thus adding positively to the income flow between the relating parties and in return affects the nation’s economy positively. The business operation is based on a day-day and seasonal business mode, as more focus will be on Sales and rendering services for the day-day business mode while the seasonal mode focuses on sales of agriculture produce (animal production). 1.2 The company This e-business is a sole proprietorship business, which is to be managed and controlled by the founder who has been in e-business for years, more than 10years experience in sales, plus 6 years’ experience in data science and database management, 7years experience in computer hardware 3 and software. Also possesses sound coordinating skills. These functions could later be assigned to the appointed manager to oversee the management of the business. 1.2.1 Business Idea My business idea is to create a Wide Online Trading store that could serve, ease and further boost the standard of living among individuals, farmers, students, experts and business owners in our country Nigeria. The Ideas • First: A platform will be created using a suitable database to connect business owners to reach out to millions of customers in their various locations. As to many in our country today complain of “there is no one to trust when it’s comes to rendering services” be it in Construction, Agriculture, Engineering, Sales, and many to mention. • Secondly: The Company YuNu Hub will create an online store that sells majorly Laptops, Phones and its accessories online, with its main target to be every tertiary institution in the country. As students in recent years happens to be the most users of gadgets like computers, phones and its accessories. • Thirdly: Advanced methodology for effective distribution of agriculture produce directly from its source or location will be instituted, focusing more on Ram during Eidul’ Adha (Muslim festival) so as to solve the problem of unavailability or scarcity of the product in most part of the North central, Southwestern and Southern part of the country Nigeria. Thus, government organization, non-governmental organizations, institutions and Individuals will be reached so that easily make orders for the product thus reduces the problem of unavailability, scarcity and the fear to travel to the source/region where they were being produced at large due to insecurity. 1.2.2 Goal Short term goal • During the first period of its wide operation across the country, the business aimed to have actualized millions of active customers across the country. Medium term goals 4 • • In the later years, the business aimed to expand its operations to other West African countries like, Benin, Togo, Ghana and Ivory Coast. The business also aimed to build and keep building on good reputation, garnered through trust, affordable prices, good and quality products/services, fast deliveries and a great customer service. Long term goal • • • Accomplish a steady cash flow and long-term business partners. Connect business owners/experts to their potential customer in their various locations. Provide jobs for hundreds of students across Nigerian tertiary institutions in its first and later years of its wide operation. 1.2.3 Vision • • • To be a trusted and a reliably known company throughout the world starting with Nigeria. To create a Wide Online Trading store that could serve, ease and further boost the standard of living among individuals, experts and business owners in our country Nigeria. To create job for many Nigerian youth which will further eradicate poverty and divert their attention from online scams (Yahoo Yahoo) 1.2.4 Mission • • • • • To sell quality goods for a very reasonable and a reduced cost, this will be made possible because the goods will be gotten directly from the producer or from countries where it been sold very cheap. YuNu will also sell Quality products and quality/standard service to clients. Fast deliveries: goods will be delivered 24hrs upon ordering unlike platform that delayed Trust based relationship with customers. Also taking into consideration the four P’s (Product, Price Place and Promotions). 5 1.3 The Business Model Canvas (BMC) Key Partners 1. 2. 3. 4. Partners Individuals. Experts in various fields. Business Owners. Farmers. Key Activities 1. 2. 3. Relationship 1. 2. 3. Online Sales of gadgets (Laptops, Phones and accessories). Connecting Experts/business Owner to rendering services to their Potential customers. Effective distribution of Agricultural products from farmer or producers to companies and final Consumer. Individuals-(Buyers-supplier relationship). Experts – (Strategic alliance) Business Owner – (Strategic alliance). Value Proposition 1. To create a Wide Online Trading store that could serve, ease and further boost the standard of living among individuals, farmers, students, experts and business owners in our country Nigeria. 2. To create job for many Nigerian youth. This will further enhance the process of their study monetarily and practically. 3. Connecting experts/business owners and farmers to their potential customers irrespective of their locations. Customer Relationships 1. 2. Self-services through direct advertisement on social Medias. Using fb, whatapps, twitter and instagram. Automated-services – creating a data base for active and registered customers. Customer Segments 1. Starts with focusing on some selected tertiary institutions. (Niche market). 2. Focusing on some selected number of individuals and Organizations. (Segments). 3. In later years, focusing on selected number of states in the country. (Mass market). 6 4. Expanding to our activities to neighboring countries. Key Resources 1. 2. 3. 4. 5. 6. 7. Distribution Channel Availability of agents in every of our selected locations. Availability of Mobile phones with agents and Manager for effective management of the business. Branch offices or warehouses in a few selected Locations. A Standard e-commerce website for effective running of the business. Availability of registered experts and business owner to make a hitch free rendering of services to potential customers. Availability of selected Logistic company e.g DHL, feDex and Local Pickup delivery services. Availability of substance amount of money in running the business. Cost Structure 1. 2. 3. 4. 5. 6. 1. Consistent Social media adverts using; Facebook adds, Whatapp, Twitter, Instagram, Youtube adverts. 2. Bill board and Flyers where necessary. 3. SEO ranking. 4. Referral bonuses for potential referee. Revenue Streams Cost of creating and maintaining a standard e-commerce website – N 350,000. Cost of running the sale section in its first year = N 750,000. Cost of salaries/wages for 100 agents across the selected stated for the first year - N600,000. Cost of graphic designer and branding - N 50,000. Cost of acquiring a single head office for the first year - N 150,000. Cost of other item – N10,000. Total cost - N 13, 310,000. Minimizing to 20 agents across the selected state. Cost of salaries and wages of 20 agents. - N 2,400, 000. Reduced total cost - N 3, 710,000 7 1. Direct payment or bank transfers on each product plus logistic fee. 2. At least 10% gain on each product considering the present market for the good. 3. Yearly registration by YuNu listed services providers. (experts, businessmen and farmers). 1.4 Marketing strategy Since the targeted market are: individuals, Experts and Business Owners both in and outside the country, the following medium will be employed to increase sales and gain competitive advantage among competitors using SWOT analysis. This marketing strategy will contain an internal environment scan using the marketing power of the four P’s. Also, porter’s generic strategies will be employed to gain or maintain a competitive advantage on the market. 1.4.1. SWOT Analysis SWOT is common method of analyzing market environment. It helps in measuring the company’s resources to the environment in which the company is to be operated. SWOT stands for: strength, weaknesses, opportunities, and treat. Strength Opportunities Weaknesses Treats Strengths With my educational background, skills and great experiences in ICT (Computer software and Hardware), programming Data Science, Database management, Project management, online and physical trading (sales and agriculture), I would: • • Create, connect and inspire individuals, experts and business owners to their various potentials. Using my project management skills, programming skills, database and online trading skills I would create a platform that will be standard and will perform the aforementioned goal. 8 • Organize and train youths on the above listed skills and opportunities. Weakness • Being a new company, it will not be easy to compete with already existing platforms like: Jiji, Konga, jumia, Ali express, ajebomart etc, thus new improvision will be made on the weaknesses of the already existing platforms. Opportunities • Creating the best business environment that could further improve the countries trading system. Treats • 1.5 Competitors How YuNu will go about its application of the P’s Product Place Price Promotion Product Discussing the Brand name, Quality, Packaging, Technical backup and support, Warranty. 1. On Sales The company will solely base its product on Laptops (New and first grade UK used laptops), Phones (Majorly UK used and a little of new Samsung and iPhones) and its accessories because Nigerians due to its present state of its economy, people mostly prefer to go for pre-used gadget that serve the same function as the new do than going for the new itself. The brand name remains for all products since the company is producing its own product. 9 Quality products will be sold considering the fact that fakes products are very common in our communities. Top notch packaging will be employed so as cope and supersede the existing mode. With the pool of experience and skilled in computer hardware and software, technical support will be instituted to give adequate backups when needed within the given months of warranty on each product. Price Pricing strategy, retail Prices, discounts, seasonal pricing and Bonding. On YuNu pricing strategy, price of our product will be constantly monitored and regulated based trends in market prices, we will also ensure that the prices of our product are lower than the regular market prices in other competing platform and retail stores. Also, discounts will be provided on the number of goods bought, the higher the quantity of goods purchased the higher the discount. There will also be changes is prices of commodity on seasonal bases, for students, the prices of commodities will fully be regulated during summer holidays, because this period is when penultimate (300L or 400L) students tends to get systems for their project, also during the ending of each month when salaries are being collected by workers. Also, prices of services rendered will be regulated when demand for a service is higher than its supply. Place Distribution Channels Distribution centers Warehousing Logistics Basically the channel of distribution will definitely be an online mode, since the company operate on E-commerce business. The present address (URL) is www.albatechonlinestore.boutir.com. Still subjected to changes, because great modifications have to be done to attain a very good standard. The warehouse and 10 the distribution center are presently in Ilorin, because it’s one of the states in the North central, goods can easily be conveyed to the south, to North, to the East and western region of the country. Logistics companies like DHL, FedEx will be in place for long distance or international deliveries, while local logistics companies and pick up will be sought in cases of short distance deliveries, depending on the delivery choice of the customer. Promotion Advertisement, sales promotion, public relation and publicity, marketing communication budget. Public Relation Advertisement Sales Promotion Marketing communication budget Promotion is an important part of the marketing mix because its aid communication between the company an its customer, the marketer and the marketing place. The public relation aspect consists of matters such as sponsorship programs, fairs an event, the company will undergo several sponsorship programs such as seminars on IT, Business enlightens programs etc. Also, series of online sales promotions especially on social media platform will be carried out using students so as to quickly get the information across wide range of places. Also, agents preferably tertiary institution students will be available in every location in the country to represent and perform the role of making weekly, monthly and one on one adverts on social medias, he/she will also be responsible for ensuring goods got to customers in their respective location using a standard delivery agencies/company e.g., DHL, FedEx, Local Picks up etc. Schools and organizations will always be visited to make adverts and actualize new customers. Also, a database will be created through collection of data by registration on experts and business owners on services they render, their locations, experiences and years of operations to set up a reliable. On services platform, lists of partnered/registered business experts, businesses, companies will be available with descriptions, location, past works done and customers review. All arranged in their 11 respective sections of either sales, Construction, Health, engineering, mechanics, handiworks, Logistics, transportation and agriculture. 1.6 Porter’s Generic Strategies Using porter’s generic strategies to gain or maintain a competitive advantage on the market. It comprises of three strategies. 1. Cost leadership 2. Differentiation 3. Focus Differentiation Cost leadership Focus 1. The cost leadership method works with reduce or low-cost advantage. It solely relies on cost effectiveness which enables the company (YuNu) to keep the prices on the same level as the competitors or lower the price to attract more customers. Thus, buying gadgets in large quantity directly from companies in the UK, Canada, and China will be essential so as to get discounts. On the services category, since we are relating directly with the farmer (Headsmen’s), expert, an business owner, Lower can price can easily be maintained. List of competitors in Nigeria • • • • • • • • Jumia Konga Jiji Ajebo Market Kara PayPorte Printiyo Store. Obiwezy. 12 2. Differentiation strategy: on this, price will not be concentrated on, rather we concentrate on fulfilling or bringing up with something unique. The unique about YuNu is in the aspect of creating an avenue for Expects, Business Owner, Trader, Artisans to effective using the platform to gain millions of customers. Also, training the youth on the new skills and usage of IT. The company will also, using the medium to create hundreds of jobs to Nigeria youth. Achieving this will not allow the company to be in low-cost position. 3. Focus study: Using this strategy, in its first year of its operation, YuNu will focus specifically on Higher institution students, Business organizations, Artisans in selected locations in selected states of the country. Focusing on some periods of the month, and some seasons of the year. Thou this might not be very essential in later years since the future target market is very broad. 1.7 Market segmentation Based on my research it was discovered that 20% of people aged between 5 – 15years, 70% of the population aged between 18 – 45years of age, and 10% of people above 45years uses gadgets like phones, laptops and accessories. With the above findings, it was concluded that students cover a greater percentage of those aged between 18 – 45years, thus higher concentration will be on secondary and tertiary institution students. While working class population will equally be concentrated upon in the services segment. 1.8 Competitive analysis Greater development will be made to the inadequacies of already existing companies that offers the same services aimed. List of competitors and their shortcomings 1. Jumia; established in the year 2012, often rated as Nigeria amazon but with no good customer services, ineffective an No platforms to connect experts and business owners with their potential customers. 13 2. Jiji: Established in the year 2014 with no good customer services, ineffective an no platforms to connect experts and business owners with their potential customers, delays in delivery products. 1.9 Management Teams Owing to the experience and pool of skills of the CEO, in fields like business, database management, Data science, Agriculture, Computer hardware and software, programming and project coordination. Experienced and skilled individuals will also be screened and employed to further contribute to the success of the company. The management teams will comprise: • • • • • • 2.0 The Director The Sale manager The Logistics Manager The Services Manager The IT manager The branch agents. Operations This is already discussed above using the four p’s. The present address (URL) is www.albatechonlinestore.boutir.com. Still subjected to changes, because great modifications have to be done to attain a very good standard. The warehouse and the distribution center are presently in Ilorin, because it’s one of the states in the North central, here goods can easily be conveyed to the south, to North, to the East and western parts of the country. The company is already registered on SMEDAN with No;….. approaches have been made to be registered with cooperate affair commission CAC. 14 2.1 Financial Forecast Items Year 1 (N) Year 2 (N) Year 3 (N) Total revenue N3,347,000. N5,280,000. N32,950,000. Cash at bank N153,000 N20,000. N50,000 Rent for Premises. N 150,000 N 180,000 N 250,000 N 350,000 N 350,000 ----------- N50,000 N150,000 N200,000 Having 10 agents across the selected locations. Having 20 agents across the selected state. Having 100 agents across selected location. Cost: N 600,000 Cost of salaries and wages of 20 agents. = N1,200, 000. Cost: N6,000,000. Running cost N750,000. N1,000,000 N10,000,000. Total expenditure N1,900,000. N2,880,000 N16,450,000. Gross profit N847,000 N1,200,000 N10,000,000. Tax, depreciation, etc.) N167,000 N264,000. N1,647,500. Net Profit N722,000. N950,000. N9,500,000. Equipment 1. Website 2. IT experts/Branding Salaries and wages Note; 1. The above salary is calculated if each agent is paid N5,000 by the ending of each month which is still subjected to changes if sales rise. 2. The salaries are calculated based on if the company sells eight products in a month for the first year, 10 products sold per month for the second, and 67 products sold per month for the third year. 15 3. And profit per product in the first year is N8,822, profit per product in the second year is N10,000 while profit per product in the third year is N7,999. Contact Kareem saheed or mail-for more details or for more Comprehensive business plan.: ABOUT KAREEM SAHEED • • • • • • ND, HND, Mathematics and Statistics. Bsc. Statistics. Diploma in computer fundermentals Data Scientist Software and Hardware Engineer Business Oriented. CEO Albatech.(YuNu Hub). SKILL SET • • • • • • Programming (R, python and C programming language) Data scientist using: R, python, SPSS, STATA, SAS, EXCEL, Q-GIS. Computer Hardware and Software Engineering. E-commerce website developer. Database management using access, SQL, mySQL. Business Management (founder YuNu HUB and Albatech) 16