MOSHOOD ABIOLA POLYTECHNIC

CENTER FOR ENTREPRENEURSHIP DEVELOPMENT (MAPCED)

P.M.B 2210, OJERE, ABEOKUTA, OGUN STATE

DEPARTMENT OF MASS COMMUNICATION

BUSINESS PRACTICAL PROJECT PROPOSAL
ON
PRODUCTION OF HAIR BONNET
BY
BOLD VENTURE (GROUP 185)
HND 1 FULL TIME

S/N NAMES MATRIC NO

1. LAWAL AKEEM ADETAYO 19/24/0742

2. MERCY TINUOLA AKELOBOH 19/24/0277

3. PRAISE KOMOLAFE 19/24/0003

4. ILAWOLE IMOLEAYO MARIA 19/24/0634

5. IGE BUKOLA FELICIA 19/24/0704

EED REPORT SUBMITTED TO:

THE CENTRE FOR ENTREPRENEURSHIP DEVELOPMENT

(MAPCED) IN PARTIAL FULFILMENT OF THE REQUIREMENT

FOR THE SUCCESSFUL COMPLETION OF A COURSE IN EED 326

NAME OF SUPERVISOR: ………………………………………………………………………….

PROJECT GRADE…………………………………………………………………………………….

DATE…………………………………………………………………………………………………..

MAPCED/COORD (TEC) COMMENT…………………………………………………………….

 TABLE OF CONTENTS
1.0 Executive Summary
1.1 Business Name and Formation
1.2 Entrepreneurial Motivation
1.3 Strategy and Competitive Advantage
1.4 Customer Segment
1.5 Channels of Market
1.6 Financial Plan (Cost Structure)
1.7 Revenue Streams
2.0 Business Description and vision
2.1 Vision
2.2 Mission
2.3 Goals and objectives
2.4 List of team members
3.0 Production Requirement and Procedure
3.1 Product Description
3.2 Product Requirement
3.3 Product Process and Procedure
3.4 Organisation Chart
4.0 Market and Marketing Strategies
4.1 Market and Marketing Strategies
4.2 Market Segmentation
4.3 Marketing Strategies
4.4 Channels of Distribution
5.0 Sales Forecast
5.1 Materials, Quantity, Cost and Total
5.2 Source of Capital
6.0 Financial Analysis
6.1 Preparation of trading profits and loss accounts
6.2 Members agreed on 30% / 70% ratio
6.4 Return of Capital
6.4 Share of Profit
7.0 Conclusion
1.0 EXECUTIVE SUMMARY

Bold Venture Group is an organization that is bent on manufacturing hair bonnet. The group
is seeking an equity investment of #19,800 to fund the launch and the first five operating
years of an integrated manufacturing company focusing on the production of a unique
product that meets the demand of the Nigerian market. The group consists of a formidable 5
member management team to execute a new, highly-profitable distribution model that
provides great market opportunities and profit maximization through entrepreneurship
developments.

The required funds and capital generated will be used to fund as-needed procurement of raw
materials from a top-notch company. The hair bonnet market provides a great investment
opportunity.

The mission of the business was to ensure that we offer our customers the best design at an
affordable price and to exceed customer’s expectation by providing quality products. The
vision of the business was to attain customer’s satisfaction by delivering nothing but the best,
by means of utilizing the highest quality of resources. The business goals and objectives are
to generate customer’s satisfaction, to maximize profit, to mention but a few.

The materials used in the course of the production includes dullface material, scissors, needle
and thread, nylon, machine oil, sewing machine etc. The production process includes cutting
of dullface materials into different sizes, and sewing as well as weaping of the cut materials
into different shapes such as triangle, square etc. Then it was finalized and packaged in the
fancy nylon.

The industry is a growing industry, still growing and is expected to continue in the next few
years. The hair bonnet market consists of group of competitors. Despite this competitiveness,
our business achieved 75% of the market share. We adopted different marketing skills to
create awareness of our product to the members of the public and different sales strategies
which include the consideration of the 4P’s (price, product, place and promotion).

The channel of distribution is from the manufacturer to the consumers. Partners operated on
the basis of the responsibility assigned to them. Member of the group were given different
tasks which was carried out effectively and efficiently.

The efforts of the group to improve business ideas and provides opportunities for diversified
market share and profitability. A careful study of the market and various sales opportunity
has been duly observed and the product have been found to be a means of establishing the
group presence in our emerging market.

The estimated start-up capital is N19,800 and we anticipate a net profit of N54,000.
2.0 BUSINESS DESCRIPTION AND VISION

2.1 Mission
The mission of the group is to produce unique liquid soap that would be the leading product
manufacturer and distributors.
2.2 Vision
To be the leading agents and distributors of manufactured liquid soap within the first few
years of establishment.

2.3 Goals and Objectives

The objective of the group includes:
1. To produce a very high quality products and become a well known brand.
2. To be at the fore front of hair bonnet production in our society
3. To build and maintain a social business and personal relationship with our customers.
4. To generate a comfortable profit after our production and sales
5. To motivate the youth so as to be self employed and reduce the rate of unemployment
6. To continue the business after the completion of this entrepreneurial programme.

2.4 List of Team Members

S/N GROUP MEMBERS MATRIC NO

1. LAWAL AKEEM ADETAYO 19/24/0742

2. MERCY TINUOLA AKELOBOH 19/24/0277

3. PRAISE KOMOLAFE 19/24/0003

4. ILAWOLE IMOLEAYO MARIA 19/24/0634

5. IGE BUKOLA FELICIA 19/24/0704

3.0 PRODUCTION REQUIREMENT AND PROCEDURE

3.1 Product Description

The product to be manufactured by our group is hair bonnet. This product is durable and
attractive because it is different from the normal conventional product. Bold Hair Bonnet is a
vintage industry based majorly on the production of designed bonnet of different sizes and
shapes. Hair Bonnet is an existing market but we produced a quality and attractive hair
bonnet which was better than the ones produced by our competitors. The slow economy has
influenced the industry in many ways. Bold Hair Bonnet are generally sold in department,
stores, and in the neighborhood.

3.2 Product Requirements

ITEM QUANTITY AMOUNT N
DOLLFACE 25 YARDS 7,000
ELASTIC BAND 25 YARDS 3,700
TAPERULE 2 PIECES 1,000
THREAD 10 PIECES 500
NEEDLE 2 PACKET 1,000
PACKAGING NYLON 2 PACKS 1000
SEWING MACHINE (RENTED) 1 3,000
SCISSORS 2 PAIRS 2000
CHALK 5 PACKS 200
SAFETY PIN 1 PACK 200
OFFICE PIN 1 PACK 200
TOTAL 19,800

3.3 Production Process and Procedure

 Purchasing of the dollface material and elastic band

 Folding the material
 Marking to the desired size with chalk and cut
 Then it will be sew will sew machine
3.4 Organisation Chart
The organization chart of TOPMOST Group is drawn below:

Managing Director

Market Director Production Manager

Sales Manager Storekeeper

4.0 MARKET AND MARKETING STRATEGIES

4.1 Market and Marketing Strategies

The marketing and sales strategy to be adopted for this product is to approach both male and
female. It's been shown that the best method of advertising is through word-of-mouth. No
major newspaper ad campaign is planned. However, we shall run both daily and weekly
specials, personal selling techniques and leverage on referals. In addition, we shall have an
incentive program for referrals. Those customers who refer someone else to buy our product
will be rewarded, and the referee will receive an introductory gift. In addition, we will ensure
a clean environment, reliable sales agents, and friendly, prompt services.

4.2 Market Segmentation

This is an important factor in marketing and making our product available to the final
consumer. For the purpose of easy communication, we have agreed on using one-on-one
method i.e the producer to the final consumer. We aim to become the market leader and
producer of cake through marketing segmentation like curving discount, selling of our
products door to door. Segmentation will be used in analyzing the market in order to achieve
the business team goal effectively and in order to meet our customers at their convenient
time.
4.3 Target Market

We at BOLD Group work hard to make our products a desirable option for citizens and
owners of retail establishments in Nigeria and beyond. Our target market is widespread and
all-inclusive and this is basically because loads of people are beginning to switch to ready to
use products as a result of their busy and hectic lifestyles. Our target market includes
students, lecturers, retail outlets, event planners and all households.

4.4 Marketing Strategies

We will make use of 4Ps to develop good, acceptable and competitive offering for our target
market. Such of the mix were listed below:
i. Product: The product will be produce and package in a suitable way which will
serve as an attraction to the product and also of high quality.
ii. Price: Our price will be determined based on the customer choice and taste. We
will also adopt penetration pricing policy which will allow affordable purchase of
our product.
iii. Place: we will make my products to be available to our customer through different
retail outlets and shops located around Isabo, Panseke, Lafenwa, Kuto, Sapon, and
also MAPOLY campus.
iv. Promotion: We shall adopt cheapest promotional means to communicate with our
customers such as personal communication, door-to-door selling, sale canvassing,
etc.
4.5 Channels of Distribution
Our channel of distribution of service was through rendering personal services to our
customers both male and female and basically everyone in the society. Topmost Group used
the following mediums for distribution.

1. Door to door services: We reached people in the comfort of their homes, bringing
this product to them at a cheaper rate.
2. Social media: Our services were advertised online through WhatsApp, Facebook,
Instagram and Twitter.
5.0 SALES FORECAST

5.1 Sales and Revenue Cost

This is to know the price of the goods and revenue. Below is a table for the materials needed,
quantity and the amount needed for the production.

ITEM QUANTITY AMOUNT N

DOLLFACE 25 YARDS 7,000
ELASTIC BAND 25 YARDS 3,700
TAPERULE 2 PIECES 1,000
THREAD 10 PIECES 500
NEEDLE 2 PACKET 1,000
PACKAGING NYLON 2 PACKS 1000
SEWING MACHINE (RENTED) 1 3,000
SCISSORS 2 PAIRS 2000
CHALK 5 PACKS 200
SAFETY PIN 1 PACK 200
OFFICE PIN 1 PACK 200
TOTAL 19,800

5.2 Capital Source

Capital is the backbone to start any business. The capital requirement of any business
depends on the nature of the business in relation to the economic situation of the country i.e.
inflation of materials. The total capital needed for the marketing of first batch will be #19,800
therefore the capital is to be contributed by the members of the group and each member is to
contribute #3,960 each which will amount to #19,800 only.

SCHEDULE SHOWING THE AMOUNT OF CAPITAL CONTRIBUTED

S/N NAME MATRIC NO AMOUNT N

1. LAWAL AKEEM ADETAYO 19/24/0742 3,960

2. MERCY TINUOLA AKELOBOH 19/24/0277 3,960

3. PRAISE KOMOLAFE 19/24/0003 3,960

 4. ILAWOLE IMOLEAYO MARIA 219/24/0634 3,960

5. IGE BUKOLA FELICIA 19/24/0704 3,960

6.0 FINANCIAL ANALYSIS

6.1 Sales and Revenue Cost

This is to know the price of the goods and revenue. Below is a table for the materials needed,
quantity and the amount needed for the production.

PROPOSED SALES AND REVENUE FIGURE

Sales and Revenue figure

BATCH QTY UNIT TOTAL UNIT TOTAL PROFIT

COST COST SELLING SELIING
PRICE ₦ PRICE ₦ PRICE ₦ PRICE ₦

FIRST 22 900 19,800 1,400 30,800 1I,000

SECOND 34 900 30,600 1,400 47,600 17,000

THIRD 52 900 46,800 1,400 72,800 26,000

TOTAL 97,200 151,200 54,000

TOTAL PROFIT = TOTAL REVENUE – TOTAL COST

=₦151,200 - ₦97,200
= ₦54,000
6.1 Preparation of trading profits and loss accounts

PROFIT AND LOSS ACCOUNT

N N
GROSS PROFIT 54,000
Less: Expenses
Transportation 2,000
Miscellaneous 2,000 4,000
50,000
6.2 Members Agree on 30%/70% ratio

PROFIT SHARING RATIO

30% of actual profit for MAPCED

MAPCED percentage of the profit = 30% of N50,000 = #15,000

70% of actual profit to be used among members

Members share of the profit = 70% of #50,000 = #35,000

Each member will receive #35,000 / 5 = N7,000

6.3 Return of Capital

S/N NAME MATRIC NO AMOUNT

1. LAWAL AKEEM ADEBAYO 19/24/0742 3,960

2. MERCY TINUOLA AKELOBOH 19/24/0277 3,960

3. PRAISE KOMOLAFE 19/24/0003 3,960

4. ILAWOLE IMOLEAYO MARIA 19/24/0634 3,960

5. IGE BUKOLA FELICIA 19/24/0704 3,960

6.4 Share of Profit

SCHEDULE SHOWING THE DISTRIBUTION OF PROFIT

S/N NAME MATRIC NO AMOUNT

1. LAWAL AKEEM ADEBAYO 19/24/0742 7,000

2. MERCY TINUOLA AKELOBOH 19/24/0277 7,000

3. PRAISE KOMOLAFE 19/24/0003 7,000

4. ILAWOLE IMOLEAYO MARIA 19/24/0634 7,000

5. IGE BUKOLA FELICIA 19/24/0704 7,0000

7.0 CONCLUSION

Entrepreneurship development has contributed in the growth and development of the

economic and to their welfare of the society at large with such a production as this, we were
able to utilize our human power and entrepreneurial skill to become self-reliant.