Olusola Olarewaju

BUSINESS PROPOSAL ON ONE-STOP SHOP FOR MAKING BRANDED T-SHIRTS CHAPTER INTRODUCTION 2 COMPANY SERVICE 4 TECHNOLOGY 6 MARKET ANALYSIS 7 INDUSTRY AND BUSINESS MODEL 11 MARKET COMPETITION 13 OPERATIONS AND REGULATIONS 15 MARKETING AND SALES STRATEGY 17 MANAGEMENT AND PRODUCTION TEAM 19 CRITICAL RISK FACTORS/ENVIRONMENTAL ISSUES 21 FINANCIAL ANALYSIS AND PROJECTIONS 24 CONCLUSION 27 INTRODUCTION Clothing is the general act of making cloths for people and it comes in different shapes, sizes, textures and designs depending on the culture, tradition, geographical location and weather. Clothing has evolved in the history of man. People can be identified by the style and design of their clothing depending on their culture and geographical location. A style of clothing now gives a group of people or an individual an identity. For the sake of this proposal we will focus on clothing as regards to T-shirts. Clothing which is under the Textile industry is an indispensible sector in a society or a nation. People have 3 major basic needs: Food, shelter and clothing. People must wear cloths everyday even if they are at home. It is a basic need that people patronize on a regular basis. And no matter the quantity of cloths you have in your possession, you will always want to get more and also renew them. The business of looking good or outward impression is a major business that has impacted on the clothing business. People judge you and have immediate impression of you by how you look. That is why the entertainment and showbiz sector spend a fortune on clothing. Company brands also advertise or create awareness through clothing. Organizations both big and small create awareness through clothing too especially T-shirts. T-shirt is a generally accepted design of cloth that is worn by all categories of people irrespective of the gender, culture, beliefs and affiliation. T-shirts are now branded by individuals and organizations to communicate a message or a belief or a product or a service and so on. T-shirts is kind of clothing that has one of the highest usage in the world. T-shirts are of different types; some are round neck, V-neck, basic half sleeve, long sleeve, crew neck, polo collar, yoke neck, ringer, cap sleeve, the pocket, turtle neck, hooded and many more. Due to the versatility of T-shirts it is a major brand and it is on very high demand in the society on a daily basis. Nigeria is a country with a very large population of more than 200million people and the age bracket with the largest population are youths, which gives a very large market for T-shirts. Also Nigeria is a country that does a lot of ceremonies with numerous campaigns and they make use of T-shirts on a continuous basis. T-shirt business is a very important and indispensible business in Nigeria. It is always on high demand; therefore it is a very lucrative business. It is a type of cloth that is used by all categories of persons of the society ranging from children, teenagers and adults- both male and female. COMPANY SERVICE NAME OF COMPANY: EFE LOUIS PRINTS VISION: Clothing the world with style THE SERVICE OF THE COMPANY: Concept design, manufacturing and delivery of branded T-shirts within 48 hours The one stop shop of making branded T-shirt is a business design that is meant to meet the need of clients getting their branded T-shirt with their peculiar preference within a few hours of placing an order and also being delivered to their door step. Many people and organizations want to have their T-shirts to have a certain style or design but have difficulty in getting it done exactly the way they want it. Some also have difficulty in getting their T-shirts done and delivered in a short period. Then some clients also want it delivered to their doorstep. Our business model is created to solve these problems, bridge these gaps and meet all these needs. A client walks into our office tells us their concept or idea and we design it. After producing their mental picture or concept in the form of a design then we forward their conceptualized design to the production line. Our production line which comprises of highly professional people that handle our machines and also our tailors makes it possible to give our clients a production output that not only looks like their concept but it is also done in few hours. The timing of production will depend on the quantity of T-shirts that is to be produced, however because our production line is functioning 24 hours with staffs on different shifts we are duty bound to deliver the T-shirts within a 48 hour period. Our client then picks up their finished product within some hours and if they want it delivered to their doorstep within some hours, it is done with our dispatch bikes. We are also using dispatch bikes to deliver our T-shirts to our clients so as to avoid the excuse of the hindrance that heavy traffic on the roads might bring. Our company service covers all kinds of designs, types of T-shirts and also texture of the material to be used for the T-shirts. The sector of making T-shirts has many parts; there are companies that sell the materials for making the T-shirts, there are those that sell the unbranded T-shirts, there are those that only brands the T-shirts by imprinting on it and those that sell already commonly branded T-shirts but not with your peculiar preference. Our company combines all these many parts of this sector to produce your preferred choice of brand and still deliver it to you if there is a need for that at shortest possible time. When there are orders for a specific design in large quantity, we would print out a sample for our client to verify and authenticate if it meets their request before we mass produce. TECHNOLOGY The equipments and gadgets to be used by the company are to allow for smooth operations of the company. These machines and gadgets are for the production line, administrative purposes and delivery purposes. The production equipment and others required to have a smooth operation in the company includes – 1. Borderless Machine 2. Industrial Presser 3. Industrial Sewing machine 4. Industrial button hole machine 5. Industrial Joining machine 6. Industrial weaving machine 7. Electric cutting machine 8. A 30KVA Generator: 5M 9. Solar panel and Inverter 10. Laptops 11. A3 colour printing machine 12. Screen printing machine 13. Motor bikes 14. Company phones 15. POS Machines 16. CCTV camera and Television MARKET ANALYSIS Nigeria has a population of more 200 million people. That is the largest market in Africa and one of the largest markets in the world. Nigeria also has the largest population of youths in Africa and also one of the largest in the world. While T-shirts can be worn by any age bracket but there is an added advantage because it most worn by the youths. Our plan as a company is to begin in Lagos, Nigeria and spread to other parts of the country, West Africa and then to Africa. There are over 22 million people in Lagos state alone and this population is bigger than many countries. Lagos state has a growth rate of over 5% to 8% per annum. An extension of our market is the neighbouring state; Ogun state. The border towns of Ogun state and Lagos state has another market reach of about 3 million people. And we will be extending our services to them too. Lagos state as a city has one of the largest economy in Africa. It has the largest earning category of people in Nigeria. Business transactions done in Lagos state on a daily basis is in billions of Naira. With consistent increase in population and increase in business transactions in Lagos state and the border towns in Ogun state there will always be a high patronage. Due to the fact that there is good earning power and large population in Lagos state there is guaranteed huge sales of T-shirts. Lagos state is the major commercial hub of Nigeria; therefore we are guaranteed patronage from large corporations, organizations, religious entities, social clubs, unions, associations, individuals and so on. For the fact that our services are unique and we deliver on time, then we are bound to rise fast in the market. There is market competition but there is room for us to create a niche for our T-shirts because we produce your preferred concept and deliver within hours of order. Lagos state has large shopping malls, where boutiques can place orders from us bearing their logo or crest on our T-shirts. And we create for these boutiques their exact concept. In Lagos state there are a lot of social activities and ceremonies that takes place every weekend. All these social activities and ceremonies are also huge source of patronage for T-shirts because most are organized in the groups and they order for T-shirts in large volumes. Market analysis indicates that large population of people in Lagos state patronizes T-shirts especially the youths. People like to look good, no matter their income bracket and financial capacity. So, there is always guarantee of good sales all year round especially weekends, festive and busy periods. It is a highly consistent market that is unavoidable. Our market reach is very large and with the growing population of people in Lagos state and increased engagements of people and commercial activities and online platforms, we are sure to have a consistent market. Major factors that affect the market are: FUEL Fuel is a major factor that affects the profitability of business in Nigeria. This cost of fuel includes diesel for generator even though we will also power some of our equipments with solar power and also cost of fuel for our dispatch bikes if we have to do a door step delivery. The availability of the fuel is also very important. The price of crude oil in the international market, inconsistencies in the governmental policies concerning the price of fuel and also sometimes the prevalent threat of strike in the petroleum industry makes the price of fuel to be unstable. These actions are major factors that affect fuel. The implication of these actions is that it will affect any business. So, our plan is to always have fuel reserves during challenges like this so that it will not have negative impact on our business. This fuel challenge is temporary one. ELECTRICITY AND POWER Power supply is a major key factor that affects the profitability of a lot of business. Power supply is also connected to availability of fuel and generation of power from government power supply agency called PHCN. The production line and offices will always operate with power. For businesses that are located in areas where PHCN power supply is poor, they have had to invest to meet their power needs. These companies have to look for alternative sources of power. This alternative power supply surely affects the bottom line and the running cost of the company. All companies occasionally shift some of these costs to their customers in the form of increase in the prices of services rendered, while they bear a fraction of it. Our plan is to install solar panels and equipments that will generate major part of the power needed in the production line and offices. Only few heavy duty machines will be powered by our diesel generator. Lagos state has a lot of sunshine for most part of the year, so we are guaranteed regular power supply from the Sun. ROADS AND ITS NETWORK While our location in Lagos state will be at Onipanu and it has a good road network, there is still a major challenge of bad roads when trying to deliver T-shirts to clients in some other parts Lagos state or border towns that have bad road networks.. The ease of transportation and the durability of a bike are highly connected to good roads. Bad roads affect the flow of traffic which sometimes poses a challenge to the dispatch bikes on their ease of movement and trying to deliver on time to our clients. Roads are not privately owned, they are owned by the government either the local, state or Federal Government. So the maintenance is carried out by the Government agencies and this is bound to affect the state of the roads. The only way to solve these issues of road networks is to ensure that the dispatch bikes leave the factory on time so as to meet up with the time of our clients. MULTIPLE TAXATION AND LEVIES Multiple taxation and levies occurs in businesses especially in Lagos state. We will have to pay taxes and levies to different government agencies from Federal to state to local government. Multiple taxation and levies from different government agencies and local government departments has some effects on the running cost of the company either directly and indirectly. INDUSTRY AND BUSINESS MODEL The T-shirts making business is a part of the Textile industry. Because we will also be branding the T-shirts for certain organizations, we are also in the printing and branding industry. T-shirts are of different types, designs, shapes, textures, sizes and categories which are patronized by everyone. In terms of quality of clients, we have them in different classes, categories and earning capacity. The industry is also regulated so as to avoid damages, fraud and loss of valuable things of both producers and clients. This protects the interest of all parties involved. The model of this business is that the company must ensure that there is continual customer satisfaction. Our staffs are always working effectively and efficiently to meet the peculiar demands of our customers. All the staffs working in the production line will be working on shifts and there will be staff quarters beside the factory so that production staffs will reside there and always be available for their shift. This eliminates the excuses of getting late to work or distractions that emanates from them staying in places far away from the factory. Training of staffs will be frequent, so that they can be adequately proficient on their jobs and so that they can always upgrade on their skills. This training is to ensure that their professional skill is continually sharpened and that helps us remain highly competitive in the market. The administrative staffs are also trained to be well mannered because they are the first image of the company that the clients come in contact with physically most times. This is highly necessary, also strong branding; marketing and distribution network is needed to gain a good market share. Having good dispatch bikes and proper maintenance culture with an efficient system in place will make sure that our delivery section of the business is doing well and efficient. MARKET COMPETITION Big companies that make branded T-shirts are not common in Lagos state and environs because many of these services are rendered to clients in the major markets in the State. However we still have companies that are making names for their brands in Lagos state and environs; this includes companies like: Eon brand, Global T-shirts, T-shirt factory, Niyonda CZ Clothing company, PrintsNG, Mayorgee printing company, Yangah, Merok, BLJ Media, Shirtcafe T-shirt factory, Omd clothing company, Badru production and so on. Some of these competitors have few years of experience and a widely existing distribution network. Some have vehicles in their fleets, to deliver large products within and outside Lagos. However, the largest competitor for making of branded T-shirts are still in the general markets like Shomolu, Mushin, Eko Idumota and few others. These markets have several small scale T-shirt markets that cumulatively meet demands of several clients in a day. The business of operation of making T-shirts is in different parts: production of the textile material, production of the unbranded T-shirt, printing on or branding the T-shirt and delivery of branded finished product (if needed). In most general markets, the small scale companies do the printing on/branding of the T-shirts. And outside the markets, most T-shirt making companies only offer 50% of the business operation model. With the exception of the production of the textile material our company is providing services as regards to every other part of the T-shirt business operating model. Only very few companies do that. We are then also offering production of our clients T-shirts within 48 hours which makes us one stop shop T-shirt company; this makes our market competitors far more fewer. So we have a market niche with very few competitors. OPERATIONS AND REGULATIONS OPERATIONS AND REGULATIONS Every industry has their operations and regulatory bodies that oversee different aspect of the sector or regulate the activities of the sector. Below are lists of organizations, agencies or government departments that regulate operations of manufacturing, textile, printing and branding companies. Corporate Affairs Commission (CAC): They issue certificate to a registered company in Nigeria and monitor returns of the company. Manufacturers association of Nigeria (MAN): This is a private sector agency that regulates all manufacturing companies in Nigeria. Consumer Protection Council (CPC): This is a Federal Government agency that ensures our products and services meets the peculiar needs of our clients based on what they demanded. Standard Organization of Nigeria: This is a Federal Government agency that also ensures that we abide by the standard operating procedure of a company and that we don’t also produce substandard products. Nigerian Textile Manufacturers Association (NTMA) and Nigerian Textile, Garment and Tailoring Employers Association (NTGTEA): They are the private sector body that regulates all textile companies in Nigeria. Lagos state Inland Revenue service (LIRS): They are involved in collecting the taxes of operating companies in Lagos state. Lagos state Advertising Agency (LASAA): Since our dispatch bike will be branded, it will be registered with LASAA at any local Government office. Insurance: It is advisable to do comprehensive insurance for the company in case of any disaster or fire outbreak. Some of these permits and licenses are permanent and few are renewable in a year period. MARKETING AND SALES STRATEGY For the marketing of the company, an effective marketing system has to be exercised. Promotions of our services will be done through print media, online media and referrals. An effective and unique branding has to be done on our building and we erect bill boards or banners in strategic places to make us noticeable in the market. Our company is relatively new in the market; therefore a high level of awareness has to be created about our services to the public. We will create a reward system for our clients when they refer someone. When you refer someone, you receive reward points. When the reward points gets to a certain amount then you are entitled for a free delivery within Lagos state or free services of a certain affordable amount. That will encourage our clients to refer more people to our company services. In marketing and sales, price is also a key. The prices of our services must have competitive edge compared to other companies at least at the initial stage. Effective and efficient delivery system is highly required to create a wide network and customer base. We must meet the demand of our clients within stipulated deadlines of few hours. The use of digital marketing and modern technology and cannot be overemphasized when it comes to marketing. It is highly needed to compete efficiently in the highly competitive market. Marketing entails the system required to get your services to the customer and income is generated. Sales involve the direct contact with the individual client that makes the client exchange money for the service rendered. Great concept/idea delivery with exceptional packaging and fantastic customer service by our company will always give the company continuous patronage. A very effective marketing system entails – promotion, awareness, top notch T-shirt production, competitive prices, effective delivery system, and the use of modern technology. A letter of introduction will also be sent to boutiques and organizations that get involved with a large quantities and frequent supply of T-shirt making and deliveries. MANAGEMENT AND PRODUCTION TEAM Management and production staff team will comprise of the General Manager, few admin staffs, production staffs, delivery staffs and security. All our staffs will be a total of 25 member team at the initial stage. At this stage the General Manager will handle the supervisory role over all the departments. The few Admin staffs will comprise of customer care, company secretary and accounts. The production line will comprise of the graphic designers, Tailors, people handling each machine and store keeping. The delivery section will have the dispatch bike riders. Then we will have security too. The General Manager is vastly experienced in the operations of the company both in Admin management and T-shirt production. He will be assisted in the Admin section by the company secretary to oversee that department and he will be assisted by someone chosen as the production supervisor in the production line who also will be handling a production machine. The dispatch riders will also have someone among them that is their head that will always report directly to the General Manager of the company. Other responsibilities like general maintenance and engineering, digital marketing and online presence will be outsourced. Kindly note that the staffing needs are very flexible and the organization will adapt and make changes when required particularly in the medium and short term. All company staffs will be employed based on merit, experience and unique skill acquired over a period of time. Commitment to the vision and mission of the company and they must be loyal to the company. Each job designation will have the best person occupying the position. All staffs except the General Manager will be on probation period of 3 months when they are employed before they are confirmed to be full staff of the company. NOTE: Regular training for the staffs would be on going. This is to ensure that we continue to remain relevant in the industry. CRITICAL RISK FACTORS AND ENVIRONMENTAL ISSUES Key Project Risks and Mitigants Product and Service Acceptance: Being a service coming from a new company, our services will be faced with the problem of market acceptance. Anything new will still have to break into the market, even though we have an edge. Strong interactive marketing campaign will be required to create awareness of our company’s unique selling points. Also, promos will be conducted and it will assist in gaining market acceptance. Low and Dwindling Consumer Purchasing Power: In a highly inflationary environment, there is the tendency for the purchasing power of customers to be eroded resulting in transacting their preferences for cheaper substitutes. Consequently, customers may be tempted to shift to of cheaper services. To edge against this shift in customer preference, pricing and quality products could be used as a key competitive tool to gain market share. Company meeting up with emergency demands: This business like most businesses is volume driven while availability of services to meet emergency demands has also been identified as a key point. There is a risk of our services being overwhelmed by pressure from customers to meet their emergency demands. We will always approach all emergency demands on a case by case basis. If we have to outsource some part of our production process to meet up, we will consider that option without compromising our top notch quality service and product. Trouble Spots during delivery: There are some areas that are trouble spots in Lagos state, that requires high vigilance when doing delivery to those areas. It is not advisable to do delivery to those places especially when it is getting to evening from 6pm. We will also let our clients know beforehand, if their delivery point is a trouble spot so that we can agree on delivery time. Government Policies: We are in a country where government policies can be adjusted anytime. We would ensure we always engage the policy makers in the Nigerian Government and the stakeholders in the industry so that we will never be at the negative end of any Government change in policy that might affect our business dealings. Environmental Issues and natural disasters: Lagos state sometimes experiences flood in major areas of the state. Heavy down pour which can result into flood can affect the flow of traffic and ease of business. However, our business location is at Onipanu and it is very safe from flooding and in the case of unavoidable natural disasters, we will be well insured by an Insurance company. Risks of our delivery bike been stolen: There is the risk of the delivery bike been stolen by the rider or an outsider. To mitigate this risk, we install tracker into the bike and the rider also produces a verifiable and dependable guarantor before employment. FINANCIAL ANALYSIS AND PROJECTIONS CAPITAL EXPENDITURE S/N EXPENDITURE COST (N) 1 Borderless Machine 2,600,- Industrial Presser 300,- Industrial Sewing Machine 1,240,000.00 4 Industrial Button hole Machine 310,000.00 5 Industrial weaving Machine 310,- Electric Cutting Machine 200,- KVA Generator 5,000,000.00 8 Solar Panel and Inverter 2,000,- years Lease of office Production building 5,000,- Screen Printing Machine 3,000,- years lease for staff quarters 2,000,- laptops 1,000,- Company phones 360,- A3 Colour printing machine 1,400,- Motor bikes 1,200,-Helmets 39,- POS Machine 63,- CCTV Cameras and Television 300,- Furnishing of offices and staff quarters 2,700,- Miscellaneous 400,000.00 TOTAL 29,422,000.00 RECURRENT EXPENDITURE FOR 6 MONTHS S/N EXPENDITURE AMOUNT (N) 1 T-shirt Materials for storage for production (Stock) 5,000,000. 00 2 Fuel for deliver bikes and Generator 1,410,000.00 2 Registration with relevant Government and Private sector agencies and bodies 350,000.00 3 General Maintenance and servicing 420,- Staffs salary 11,760,000.00 5 Calls and data 120,000.00 7 Insurance dues 200,000.00 8 Miscellaneous 200,000.00 9 Marketing Campaign 1,000,000.00 TOTAL 20,460,000.00 TOTAL CAPITAL AND RECURRENT EXPENDITURE (6MONTHS) = N49,882,000.00 INCOME TARGET: PROJECTED INCOME FLOW FOR THE FIRST SIX MONTHS MONTH TOTAL INCOME PER MONTH(N) 1 2,000,-,400,-,120,-,056,-,461,-,800,080.00 TOTAL 27,637,760.00 Note: The cash flow table of 12 months is attached to the business plan. CONCLUSION Research indicates the project of one-stop shop for making branded T-shirts is very lucrative. It has the ability to make consistent and profitable returns when well managed by a business savvy manager and professionals and with patience. It is recommended that the General manager and staffs continually expose themselves to training from seminars, workshops and knowledge both on physical and virtual platforms so as to remain relevant in the industry. Marketing efforts in the first few months must very aggressive. Using all the available means from fliers to online posts to social media awareness to WhatsApp marketing and so on. This will ensure that the great awareness is created from the first month of commencement. It is well noted that T-shirt business is indispensible in the society. The market competition though above average leaves room for more entrants. With increasing population and more social engagements and activities, it is certain that the market has room for exploitation. The T-shirt business will always have heavy patronage in Lagos state, then the neighbouring Ogun state and we subsequently spread to other parts of the country.