My Youwin Entry

8/13/2019 My Youwin Entry

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Im starting a business primarily because of my passion for creating wealth through

innovation, value creation and service delivery that solves real business problems and

simultaneously adds value to employees, the society and all other stakeholders. I seeopportunities in Nigeria every day despite the perceived harsh economic environment and

Im certain the most effective strategy for leveraging and maximizing these opportunities

is by starting a business.

I took particular interest in the Nigerian Energy, anufacturing and !onstruction

Industries and focused my research on their outsourced services. In the process, I foundout a wide range of services and I eventually decided to invest in provision of logistics

services.

I plan to start up in the Niger "elta #$ivers %tate& and %outh 'est Nigeria.

y understanding of the business, management skills, previous experience and thorough

knowledge of the local business and operating environment give me a high probability of

success.

y business involves providing targeted clients with logistics and transportation services

that are based on mutually agreed (ease #and in some cases, )ire*+urchase& contracts.

(ease !ontracts guarantee income over agreed periods. I will be responsible formaintenance and staff remuneration. I will manage the entire value*chain of processes

associated with providing these services to my clients. s the business grows, I will

expand into heavy e-uipment leasing. he larger the business gets, the more funding i

can access, and the more profitable the business becomes under sound management.

I will employ both traditional service contracts #for big clients that do large volumes& and

innovative lease contracts #that lock*in modest and consistent cash flow over agreed

periods but dramatically drive down risk& for small to medium clients. I intend topurchase freight vehicles, trucks and operational vehicles that will provide transportation

services to clients over agreed contractual periods. his would enable my clients to focus

on their core businesses while en/oying high -uality outsourced services.

y clients span the 0pstream, !onstruction and anufacturing industries. he new local

content act and the +etroleum Industry 1ill of the 2ederal 3overnment will also result insignificant increase in demand for support services in these industries.

y !ompetitive dvantage is primarily in my thorough and tested understanding of

service delivery. I will deploy technology and world class business processes, employ

and train competent and well mannered staff 4 drivers and also implement performance


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based compensation. I will institute a vehicle maintenance regime that will comply with

superior maintenance -uality standards.

here are players already in this industry and it wouldn5t be an easy ride. )owever, I

must mention that this market is no where near saturation point. I intend to grow bothorganically and through ac-uisitions. I will build a solid reputation through superior

service provision and superior employee working conditions and compensation.

y clients would make payments as documented in the contract for each leased vehicle.

he cash flow from periodical payments would be used to compensate staff, pay

associated bills and carry out maintenance on all vehicles. he surplus funds would beaggregated over a period and plowed back into the business for expansion and more

ac-uisitions.

I can break even in about two years if the business doesn5t expand. )owever, profitswould be plowed back into the business till it becomes an industry leader.

I need to do the following6

7. $egister the company and appoint company directors

8. Identify and rent office space

9. Negotiate and agree lease contracts with the first set of clients

:. c-uire 8 New oyota )ilux rucks #8;;< odel& and two != trucks>. Employ an office secretary and three drivers

y -ualification and experience6

7. 1achelors degree with honors8. I have skills in business analysis, performance management, financial and cash*

flow analysis, negotiation and technology implementation

9. I have previously worked with leading consulting and manufacturing companies

in Nigeria:. I initially ran a private logistics services arrangement that broke even

>. I currently have a private lease arrangement of wo != rucks that delivers a

monthly cash flow of ?;;,;;; naira. !apital outlay was about @ million naira.

Identified risks are as follows6

7. heft of vehicles A #itigation6 !omprehensive insurance and installation of real

time tracking devices&


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8. %ignificant damages and vehicle mismanagement * #itigation6 %trict

maintenance regime, comprehensive insurance, well trained and competent drivers&

9. )igh staff turnover #itigation6 %taff and drivers would be compensated andgiven incentives and bonuses that put them ahead of their peers in the industry&

:. +ayment default by clients * #itigation6 1usiness would be done with reputable

clients. erms of contracts would be clearly spelt out and signed off by all stakeholders&>. (ack of clientele #itigation6 here is a current huge demand in the industry

especially for competent logistics services providers. Nigeria is an emerging economy

and the economic growth numbers clearly indicate that there would be continuedeconomic expansion in all industries&

8 oyota )ilux rucks and !omprehensive Insurance A @,:>;,;;; naira8 ack rucks A 77,;;;,;;; naira

!omprehensive Insurance for != trucks B >>;,;;; naira

%alaries for > employees #9 months& B ;;,;;; p.a.

otal B 88,D:;,;;;

Name of 1usiness B E (ogistics

Documents

My Youwin Entry