Business Plan Proposal for Keur Massar Sewing Workshop

Contact person: Pierre Nekamdje

( Nabuur Local Representative )
CEFER,
B.P. 13257,
165 Rte des Niayes
Tel :(00221 ) 6886526.

1 Project Idea

Project Title: Ker Massar Sewing Workshop

Type of project: Manufacturing

Products: T-shirts and Senegalese attire

Technical skills will come from: professional tailors

The customers: Importers in the US, Europe

Needs to satisfy: The project will meet the needs of the American businessmen who want to import
African attire. How is the project / interprise going to commercialize its products: by exporting them out
to American and European businessmen as well as other organizations. Objectives:
1. To use the revenue generated by the project to finance tranining and education of street chilren in
the community of Keur Massar.

2. To creat employment in the community.

3. To improve the living condition of the street children in Keur Massar.

2. Marketing Plan
2.1 Market Study and Segmentation

Market Segment Identification of Needs andpreference Analysis of the

potential customers of the customers competitors
Growing need of African There are competitors
attire. already on the market
1. U. S. Markets. On the American and but their supplies could
European markets,our not meet the
customers prefer growing need and
European
To buy these things demand of these
2. businessmen
from African factories products on the
Which do not exploit International market.
Their workers,
particularly children.
2.2 Marketing Plan: Product

Product or range of products.

Characteristics 1. T -Shirt 2.Senegalese Wear
Quality Rich material Rich Material called Bassin rich
Colour Design Varried
Size Varried Varried
Package Well packed out in a nylon Well packed and put in a nylon
container container.

2.3 Marketing Plan:

Price(excluding VAT)

Product or range of products

1. T-shirts 2. Senegalese wear
Customers would like to pay
The current market prices charged by competitors:
The highest price 4 dollars 20 dollars
The lowest price 3 dollars 19, 6 dollars
Our proposed price 5 dollars 23 dollars
Our total cost price
Our definite price 6 dollars 25 dollars
Reasons for fixing our final price:
2.4 Marketing Plan: The Physical Place

Location:
The premices of the project will be: rented.
The project will be situated in a building in one of the quarters in the village of Keur Massar. The exact
address will be communicated later.

This place is chosen for the fact that the project will serve the Keur Massar Street children and the
community as a whole.

The advantage of the place is that it is nearer to the children and less costly as compared to the rents
charged at the other parts of the capital.The disavantage is that it is further from the port and the main
commmercial center of the capital.

The monthly charges of the building are 200 000fr. CFA ( 400 US dollars ). These costs include the
building`s rent and the maintenance cost of the building.

The distribution method:

The Workshop will sell directly to the wholesale companies.

This type of distribution is prefered for the following reason: so that we can have enough time for our
main work which is to see to the training and education of the street children.

Other monthly charges will amount to 100 000 fr. CFA ( 50 US dollars ) . These costs include:
electricity and water bills.
3. Sales Estimates

Month 1 2 3 4 5 6 7 8 9 10 11 12
Product No. 1. T-shirt
Quantity 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000
Unit Pr. 6 6 6 6 6 6 6 6 6 6 6 6
Value 24000. 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000
Product number 2. Senegalese attire.
Quantity 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
Unit Pr. 25 $ 25 $ 25 25 25 25 25 25 25 25 25 25
Value 25000. 25000. 25000. 25000 25000 25000 25000 25000 25000 25000 25000 25000
Total value of sales of all the products
Value 49000 49000 49000 49000 49000 49000 49000 49000 49000 49000 49000 4900
4. Production Plan

4. 1. Productions Estimates: Product 1.

PRODUCT 1: T-SHIRT
Mth 1 2 3 4 5 6 7 8 9 10 11 12 Total.
Production Planning(based on sales estimates)
Qty 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 48000
Purchase of raw materials(based on production estimates):
1.Type of materials =T-shirt Needed quantity per item = 1 Unit Pr =1/ 2 dollars.
Qty 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 48000
Value 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 96000
Other materials = Colors, etc.
Value 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 48000
Total value of the purchases
Total 12000 12000 12000 12000 12000 12000 12000 12000 12000 12000 12000 12000 144000

4. 2. Production Estimate: Product 2

Product 2. Senegalese attire

Mth 1 2 3 4 5 6 7 8 9 10 11 12 Total
Production Planning (based on sales estimates )
Qty 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
Purchase of Raw materials (based on production estmates )
1. Type of material = rich material Needed qty per item = 6m Unit Pr. = 1,6$ / metre
Qty 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000
Value 9600 9600 9600 9600 9600 9600 6900 9600 9600 9600 9600 9600 115200
Other materials = supplies, threads, buttons,etc.
Value 100 100 100 100 100 100 100 100 100 100 100 100 1200
Total value of the purchase
9700 9700 9700 9700 9700 9700 9700 9700 9700 9700 9700 9700 116400
5. Need in Personnel and Costs

Post Qualification Gross salary Contrat duration

1.Project coordinator University degree 350 US dollars No contract
2.Accountant B.T.S 280 US dollars No contract
3.Secretaire 240 US dollars No contract
4.Tallors (10 ) CP,BFEM 2600 US dollars One year
5.workers ( 6 ) CP, BFEM 960 US dollars One year
6.Securityman (2 ) Ex-serviceman 240 US dollars One year
7.Messenger CP 120 US dollars One year
8. Cleaner Basic education 80 US dollars One year

Total Cost of Salaries ( per month ): 2 375 000 (4750 US dollars ).

6. Synthesis of Costs and Profit Plan

6,1 Miscellaneous costs

For all the products

Mth 1 2 3 4 5 6 7 8 9 10 11 12 Total
Miscellaneous costs of the workshop ( excluding production, salary and machine costs )
Rent 400 400 400 400 400 400 400 400 400 400 400 400
Bills 200 200 200 200 200 200 200 200 200 200 200 200
Phone 60 60 60 60 60 60 60 60 60 60 60 60
Internet 80 80 80 80 80 80 80 80 80 80 80 80
Equip 40 40 40 40 40 40 40 40 40 40 40 40
Photocop 80 80 80 80 80 80 80 80 80 80 80 80
Review 20 20 20 20 20 20 20 20 20 20 20 20
Transport 1400 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000
Insurance 100
Miscella 400 400 400 400 400 400 400 400 400 400 400 400
Total 15380 15280 15280 15280 15280 15280 15280 15280 15280 15280 15280 15280
6.2 Profit and Loss Account

For all the Products / Range of Products

Mth 1 2 3 4 5 6 7 8 9 10 11 12 Total
Total value of sales for al the products ( stage 3 ) and subsidiaries
T. V. 49000 49000 49000 49000 49000 49000 49000 49000 49000 49000 49000 49000 578000
Sub.
Total value of purchase of raw materials ( stage 4.1 and 4.2 )
TP.V. 21700 21700 21700 21700 21700 21700 21700 21700 21700 21700 21700 21700
In. Sk 0
Fin.Sk 0
Sub-T. 21700 21700 21700 21700 21700 21700 21700 21700 21700 21700 21700 21700
Bal. 27300 27300 27300 27300 27300 27300 27300 27300 27300 27300 27300 2300
All other costs
Salary 4750 4750 4750 4750 4750 4750 4750 4750 4750 4750 4750 4750
F. Ass
Misc. 15380 15380 15380 15380 15380 15380 15380 15380 15380 15380 15380 15380
F.char.
Sub.T. 20130 20130 20130 20130 20130 20130 20130 20130 20130 20130 20130 20130
Gros.P. 7170 7170 7170 7170 7170 7170 7170 7170 7170 7170 7170 7170

Abbreviations:
T.V = Total Value; Sub. = Subventions; TP.V = Total Purchase Value; Mth. = month; In. Sk. = Initial
Stock; Fin,Sk = Final stock;Sub-T = Sub-Total; Bal. = Balance; Misc = miscellaneous; F. Ass = fixed
assets; F.char. = Financial charges; Gros. P. = Gross profit.
.

7. The Needed Initial Capital

Investment on Assets Amount

1. Building ( renting ) 400 dollars
2. Sewing machines (10) 2000 dollars
3. Office furniture (2 ) 600 dollars
4. Chairs (12 ) + Tables ( 5 ) 400 dollars
5. Tools kit 200 dollars
Total 3600 dollars

Operational Costs Amount

1. Cost Price 21700 dollars
2. Salaries and wages 4750 dollars
3.Miscellaneous Expenses 15380 dollars
Total 41830 dollars

The Needed Initial Capital

Total Investment Costs Total Operational Costs
3600 $ US 41830 US $
45 430 $ US