Sterling Image Business Plan by Olalusi Oluwaseyi Book 1

8/4/2019 Sterling Image Business Plan by Olalusi Oluwaseyi Book 1

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SSTTEERRLLIINNGGIIMMAAGGEE......tthhee vviissuuaallaammbbaassssaaddoorrooffiiddeeaass

BUSINESS PLAN[A Service Enterprise]

98, OBA ADESIDA ROAD,

17, PRINCESS BADESERE LAYOUT SHAGARI VILLAGE,

AKURE, ONDO STATE, NIGERIA

E-MAIL: [email protected]

PHONE: 0806208691; 08053415913

MARCH, 201 1


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...the visual ambassador of ideas2

EXECUTIVE SUMMARY

The Sterling Image concept encompass a unique-creative artistry, design to capture the exact

specification of the finest and fastest growing businesses in the world; digital printing. The

advent of digital printing remains a veritable means for new advancement in digitalizing

images for all purposes. Since digital prints provides a dynamic service for enhancing of

pictures digitally into unimaginable formats. This plan has since shown its comparative

advantage by explaining its technical advancement and also reiterating the amazing features

and benefits of commercial printing.

This plan therefore, has endeavour to show in details several steps involved in getting

started with digital printing as a commercial enterprise by harnessing several opportunities

involved in doing this business. With a well stated profile, aligned with the strategic and

organizational formation of this business, the plan also consider labour, cost and return

through a well justified cash projection flows. The financial plan also considers credit on a

forecasted market evaluation for the first year which further boosts the viability of the

business. Several problems were also evaluated in terms of market-type, illiquidity, marketing

mix and competing firms. At such, the plan evaluated this problems based on the 4Ps

involved in the marketing mix {i. e. Product, Price, Place(distribution) and Promotion(advert)}

and consider the solutions necessary in case of risk and uncertainty for proper insurance.

Having considered the financial demand needed to float this business and examined the

viability, in-terms of return to net worth; this plan has therefore succeeded in explaining the

profitability of this business to every individual who reads it no matter his/her spark for

business.


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TABLE OF CONTENTS

TITLE PAGE

Executive Summary 2

Table of contents 3

Preamble 4

The business Profile 5Location 6

Business Organisation 6

The Vision 6

Mission 6

Capitalization 6

Economic benefit and Contribution 7

The People 7

Background and Education Credentials 7

Staff Remuneration 8

Pricing Power 9

Financial Consideration 10

Project cost and Finance plan 10

Cash Flow Planning 11

The statement of cash flow for 1st

Year 11

The statement of cash flow for 2nd

Year 12

The statement of cash flow for 3rd

Year 12

Internal Controls 13

Financing 13

The Statement of Income and Expenditure for the 1st

Year 13

The Statement of Income and Expenditure for the 2nd

Year 14

The Statement of Income and Expenditure for the 3rd

Year 14

The statement of Assets and Liabilities as At the End of The First Year 15

The statement of Assets and Liabilities as At the End of The Second Year 15

The statement of Assets and Liabilities as At the End of The Third Year 16

Purchasing and Inventory Control 16

Marketing 17Marketing Plan 17

Targeted Market and Customers 17

Advertising and Promotion Plans 17

The Competition 17

How We Plan to Take Advantage of Competitors Weak Points 17

Growth Program 18

Growth Trends in This Business 18

Expansion 18

Handling Major Problems 19

Summary and Conclusion 19


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PPRREEAAMMBBLLEE

The advent of digital printing has brought technical advancements, more options and

amazing features of commercial printing. It guarantees sharpness and clearness of coloured

images as well as text. It provides exactly perfect clearness in your work. Some of the

advantages which digital printing provides are:

aa.. short cost effective print runs.

bb.. extremely fast process and economical mode of printing with less wastage of materials

cc.. offer huge combinations of colours.

dd.. the durability of the colours when exposed to light is completely under the acceptable

quality standards

ee.. the digital colour printing makes the images, illustrations, photographs absolutely clear

and full of life.

ff.. digital printing offers complete scope of personalization and variation. Text, graphics

and pictures can be added to tune the mailer/brochure to the different customer

groups.

gg.. Digital printing provides more scope to print on different materials and has got to the

stage where it is no longer struggling to match traditional methods, but is offering much

more in terms of quality and efficiency.

hh.. digital print quality often far exceeds the quality of traditional printing methods, in

details, colour matching and range, and also durability of the colours when exposed to

light.

This brochure is designed to solicit for financial support needed by the Sterling Image excel in

this chosen business venture.


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TTHHEE BBUUSSIINNEESSSS PPRROOFFIILLEE

terling Imageis a dynamic creative small and medium enterprise that is poised to capture

substantial market share in one of the fastest growing service industries in the country and a

subsidiary of WALDEOS & ASSOCIATES, and CAC incorporated in 2009 with registration numberBN 2118821. Sterling Image Company will rely on the proven skills and experience of arrays of

experts to take advantage of the growing need for digital printing. Sterling Image Chief Executive

Officer, OLALUSI Oluwaseyi Gabriel, who brings his wealth of experience in creative printing to

the business, leads the company as it establishes itself as a high quality digital printing service

provider in the Ondo state vicinity and beyond.

Constantly evolving printing technologies and software offer small businesses an opportunity to

work smarter. But the increased opportunity comes at the expense of increased complexity.

Substantial market research establishes that digital printing is one of the countrys fastest

growing service industries. Sterling Image is in a position to capture a significant portion of the

local market for digital printing. Further, we are projected to return a profit in its very first year of

operations, due in large part to the size of the market and the comparatively initial cost

investment required to begin operations. First year revenue is projected to exceed Eight Hundred

Thousand Naira (N

S

800, 000).

Sterling Image intends to provide a complete service for retouching and enhancing of pictures,

Direct imaging, Photo digital printing including large format media, billboards, flyers, small

brochures, business cards, creative design, photography, wall murals, fine art applications, stage

drapes, CAD/GIS workgroups, creative publishing, web production, product launches, corporate

event signage, tradeshow graphics, and transit services to teeming customers within Ondo state

and beyond that have been almost universally accepted by small- to medium-size businesses and

by many individuals.

Sterling Image will differentiate itself from its competitors by bringing into market innovations

such as retouching, enhancing of image photos, graphics, illustrations, web production and

creative publishing using unique and superior software tools for quality service delivery to

customers.

Sterling Image has the potential to gain a reputation for offering quality services in creative and

prints marketing that provide value for customers long after.


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LLooccaattiioonn

Sterling Image established its base of operations in Akure, Nigeria. The temporal office is

located at 98, Oba Adesida road, Akure. The permanent office complex is to be located also

at 30, Mogunbado Street, Ijomu junction, Akure where we will get prominent visibility and

accessibility in Akure city. We anticipate our occupancy cost as a percentage of sales not to

exceed 6%.

BBuussiinneessss OOrrggaanniizzaattiioonn

We plan to operate as a sole proprietorship. Because of the personal liability associated

with this form of organization we realize that insurance coverage will be very important and

we intend to be adequately insured and represented by an expert insurance agent. In the

future, as our service business grows, it will continue to be insured.

TThhee VViissiioonn

Through our work experience and former moonlight business, we possess unique skills to

provide specialized creative design and printing. Also, we have had a long-term desire to be

in business full time and to utilize this knowledge. Our arrays of experts have worked with

many website/graphic designers, and printers. Utilizing the resources of these associates,

we can demonstrate competency in all aspects of successful creative printing

implementation. We are passionately committed to our new business and have the realism

to make inevitable hard choices.

OOuurr vviissiioonn

To become a reference point in the Creative Design and

Digital/Art/CAD/Photography/GIS printing business.

MMiissssiioonn

To effectively deliver quality services to our prospective customers and make thecompany a household name.

CCaappiittaalliizzaattiioonn

Presently, the total capital of the company is Eight Hundred and Thirty-TwoThousand Naira (N

832, 000.00).


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NNaattiioonnaall EEccoonnoommiicc BBeenneeffiitt aanndd CCoonnttrriibbuuttiioonn

aa.. Provision of employment opportunities for the people and with good prospect for further

employment of others as the capacity utilization is increased.

bb.. Yielding substantial revenue to Government at all level in form of Company Income Tax and

PAYE.

cc.. Contributing positively our quota to communities by improving the standard of living at the

growing rate of urbanization.

TTHHEE PPEEOOPPLLEE

The Principal Consultant and principal employee, Olalusi Oluwaseyi Gabriel, has extensive

experience as Creative Design/Service Integration and Deployment of the Realista Web

Technologies Ltd., In addition, he has developed a marketing strategy that is well suited to building

a large market share in the small to mid-size business market.

His work experience has been as follows:

[2009 2010] Realista Web Technologies Ltd, Akure.

Creative Design/Service Integration & Deployment

[2009 2010] NIIT Academy, Akure centre

Creative & Graphic Design Trainee

[2003 2009] Don Bosco Catholic Technical Institute, Akure, Ondo State

Building & Engineering / Graphic Design Instructor Impacting Building & Engineering/ Graphic design and Metalwork/fabrication

knowledge on the trainee using Auto-Cad

[1995 2000] Don Bosco Youth Centre, Akure, Ondo State

Screen Printing & Photography

His working experience with the companies mentioned above included responsibility for

website/graphics design and photography.

His specialized service and knowledge will be required in all aspects of implementing Sterling

Image for teeming small businesses. He has been moonlighting in this activity for 2 years and has

successfully executed contracts with 5 small businesses.

PPeerrssoonnaall BBaacckkggrroouunndd aanndd EEdduuccaattiioonn CCrreeddeennttiiaallss

[2009 Feb. 2010] NIIT Academy, Akure

Adobe Certified Expert in Graphic Design and Creative Publication

[2004 2010] Federal University of Technology, Akure PGD, Power & Machinery Engineering


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[2002 - 2003] National Youth Service Corps Certificate

[1999 - 2001] The Federal Polytechnic, Ado Ekiti.

HND, Power & machinery Engineering

His hobbies are: Coaching, Cooking, Researching, Listening to News, Playing chess, Basket-balling andWatching Soccer

The summary of background/education credentials and designation of people that will be assisting

Mr. Olalusi is stated below:

Name Designation Education Qualification

Seun Sogbein Photo/Graphic designer [2009 2010] NIIT Academy, Akure

ACE, Graphic Design and Creative

Publication

Alex Oyewole Photo/Graphic designer [2009 2010] NIIT Academy, Akure

ACE, Photoshop/ Graphic Design

SSttaaffff RReemmuunneerraattiioonn

Remunerations of staff provided in the report are projected based on the new national minimum

wage released by Federal Govt. In addition to minimum pay already provided for, fair parameters for

bonuses which will ensure that discipline and quality service delivery is established so as to serve as

investment for inducing and mobilizing the staff effectively.

The table below shows the basic salary for one year

PER MONTH PER ANNUM

N

Chief Executive Officer

N

17000 204000

Photo/Graphic designer 14000 168000

Photo/Graphic designer 14000 168000

Total 45000 540000


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PPRRIICCIINNGG PPOOWWEERR

Initially, our pricing power will be limited by what other consults charge for their service.

However, we expect our business to be built by favourable word-of-mouth and our services

to command a somewhat higher schedule of rates than average. We therefore expect that

our reputation will gain us a degree of pricing power. Another factor is that if our type of

services are rendered ineffectively, it can be very costly and of no value to a client. On the

other hand, if done well (by us) the services can be affordable and immensely valuable. By

gaining this reputation we expect to be well paid for our work.

Our ultimate goal is to build a line so unique and promote it so effectively that consumers

will be willing to pay a premium. Our long term objective is to build a market that is not

entirely based on price but on quality service delivery. Our unique features will include:

11.. Printing Price will be per square foot of image area. This price includes the initial

cost of processing and printing the file on simple media. (Note: Printing on

quality media will attract additional charges per square foot).

22.. Additional basic image manipulation such as image retouching, enhancing, etc.

will attract extra charges per square foot.

33.. Laminating Price will be per square foot. This price will include professional 2-

sided lamination that includes trimming.

44.. Printing price of flyers, banners, stickers, etc. will be based on its graphic design.

55.. Printing price for creative publishing will be determined by:

a. Volume of the media

b. Media quality


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FFIINNAANNCCIIAALL CCOONNSSIIDDEERRAATTIIOONN

PPrroojjeecctt CCoosstt aanndd FFiinnaannccee PPllaann

The capital cost of the business is estimated at about 5 Million Naira. These costs will be

sourced through loans from financial institution.

The projected cash flow is based on one year of operation as stated below:

The cash flow projection is based upon the following main parameters and assumptions

a. Loan

b. Sales Proceeds

The loan from a financial institution will be repaid based on the agreement reached with

the financing institution.

SSaalleess PPrroocceeeeddss

The estimated sales proceed from the market survey, is based on the production of 3

equipment hours daily on 31 Sq. Ft/hour and 125 Sq. Ft/day.

AAnnaallyyssiiss ooff CCoossttss

We intend to bill our services at a cost of N

200 per square foot of printing items. Our terms

of payment for service will be on the spot. Extras will be approved in writing before

commencing work.


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CCAASSHH FFLLOOWW PPLLAANNNNIINNGG

Attached is an exhibit of our one-year cash flow analysis including estimated sales, all costs

and capital investments for three (3) years. We have included a cheque of all expense items

for input into our cash flow projection.

STERLING IMAGE LIMITED

THE STATEMENT OF CASH FLOW FOR THE 1ST

YEAR

Qty N

Receipts/Inflow

N

Capital (Loan) 5000000Sales (N150000 per Week) for One Year (52 Weeks) 7800000

12800000

PAYMENT/OUTFLOW

Equipment

HP large-format printer (60 inch) 1 2140000

HP large-format printerDesign Jet 5500 (60 inch) 1 1670000

HP large-format printer Design Jet 130 (48 inch) 1 195000

Colour laser printer 1 195000

Scanner (HP Scanjet G2710) 1 40000

Desktop computer 5 500000

Office furniture 200000

Power system 400000

Salaries 540000

power & lighting 480000

Stationeries, Media & Materials 720000

Advertisements 210000

Rent 450000

Interest on Capital {18%} 900000

Miscellaneous 360000 (9000000)

EXCESS OF RECEIPT OVER PAYMENT 3800000


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THE STATEMENT OF CASH FLOW FOR THE 2ND

YEAR

Qty N

Receipts

N

Balance b/f 3800000

Sales (N150000 per Week) for Second Year (52 Weeks) 7800000

11600000

PAYMENT/OUTFLOW


Salaries 540000



Rent 450000

Interest on Capital {18%} 900000Repairs & Servicing 100000

Payment of Loan (25%) 1250000




THE STATEMENT OF CASH FLOW FOR THE 3RD

YEAR

Qty N

Receipts

N

Balance b/f 6590000

Sales (N150000 per Week) for Third Year (52 Weeks) 7800000

14390000

PAYMENT/OUTFLOW


Salaries 540000



Rent 450000

Interest on Capital {18%} 900000

Repairs & Servicing 150000

Payment of Loan (25%) 1250000




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IInntteerrnnaall CCoonnttrroollss

Our accountant is experienced in this type of service business and will set up systems to

handle all related matters. The CEO will be the only person authorized to sign cheques,

purchase orders, and make capital acquisitions based on the recommendation of our

accountant after proper appraisal.

FFIINNAANNCCIINNGG


THE STATEMENT OF INCOME AND EXPENDITURE AS AT THE END OF 1ST

YEAR

N

Sales (N150000 per Week) for One Year (52 Weeks)

N

7800000

Less stationeries and materials 720000

GROSS PROFIT 7080000

EXPENSES

Salaries 540000

Miscellaneous 360000


Interest on Capital {18% of 5000000} 900000


Rent 450000

Provision for doubtful debt {5% of sales} 390000

Depreciations: All fixed assets except office furniture {25%} 1285000

Depreciations on office furniture {20%} 40000 (4655000)

NET PROFIT (LOSS) 2425000

RETURN CAPITAL EMPLOYED5000000

2425000 X

1

100= 49%


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THE STATEMENT OF INCOME AND EXPENDITURE FOR THE 2ND

YEAR

N


N

7800000



EXPENSES

Salaries 540000



Interest on Capital {18% of 5000000} 900000


Rent 450000




Depreciations on office furniture & fittings {20%} 40000 (4755000)



2325000 X

1

100= 47%


THE STATEMENT OF INCOME AND EXPENDITURE FOR THE 3RD

YEAR

N


N

7800000



EXPENSES

Salaries 540000



Interest on Capital {18% of 5000000} 900000Advertisements 210000

Rent 450000




Depreciations on office furniture & fittings {20%} 40000 (4805000)



2275000 X

1

100= 46%


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The Statement Of Assets And Liabilities As At The End Of The 1st

Year

N

Fixed Assets

N

Equipment 5140000

Less Depreciation 1285000 3855000

Office Furniture 200000


4015000

Current Assets

Cash 3800000 3800000

Currents Liabilities -- --

7815000

Financed by:Capital (Loan) 5000000

Net profit 2425000

Provision for doubtful debt 390000

7815000


The Statement Of Assets And Liabilities As At The End Of The 2nd

YearN

Fixed Assets

N

3855000




2690000

Current Assets

Cash659000

06590000

Currents Liabilities -- --9280000

Financed by:

Capital (Loan) 5000000

Less repayment 1250000 3750000

Net Profit (1st

and 2nd

Year) 4750000

Provision for doubtful debt (1st

and 2nd

Year) 780000

9280000


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The Statement Of Assets And Liabilities As At The End Of The 3rd

Year

N

Fixed Assets

N

2570000




1365000

Current Assets

Cash 9330000 9330000

Currents Liabilities -- --

10695000

Financed by:

Capital (Loan) 3750000

Less repayment 1250000 2500000

Net Profit (1st

, 2nd

& 3rd

Year) 7025000

Provision for doubtful debt (1st

and 2nd

& 3rd

Year) 1170000

10695000

PPuurrcchhaassiinngg aanndd IInnvveennttoorryy CCoonnttrrooll

In this service business, we will consult the manufacturer of the equipment to be used.

Equipment will normally be shipped direct from them to our office. We will however be

writing the specifications on equipment purchases and the following purchasing policies will

be maintained.

Purchase Orders will include:

a. Price and terms

b. Always in writing

c. Complete specifications

d. Appropriate contingencies will be included in purchase orders.


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MMAARRKKEETTIINNGG

MMaarrkkeettiinngg PPllaann

We plan to develop a list of leads from the customers made as a moonlight service provider.

Our adverts kit will include letters of recommendations from these former customers and

descriptive information about the services received. We plan to create a PowerPointpresentation, which will incorporate printed jobs and designed graphics we have created for

prior customers.

In addition to these referral prospects and local newspaper advertising, we plan to conduct a

highly target mailing campaign with telephone follow-through with local businesses that are

prime targets of digital printing.

TTaarrggeetteedd MMaarrkkeett aanndd CCuussttoommeerrss

Our customers will include small businesses that can enhance their present sales by using

quality of digital printers for job delivery. Our customers will also include coporate organization

such as telecommunications, breweries, religious organizations, educational institutions, event

planners, display materials for presentations, posters, drapes, signs, banners,photo

enlargement, artworks, CAD/GIS users, daily photographers etc

AAddvveerrttiissiinngg aanndd PPrroommoottiioonn PPllaannss

Our advertising budget will be about 3% 0f annual sales for local print media, advertising agency

(local and small) to create and place our advertising and to create our logo, stationery, and basic

brochure. Also, the estimated cost includes creation and initial print run of brochure and

business banners. We also plan to join local Chamber of Commerce and Cooperative societies as

a means of networking with local business leaders.

TThhee CCoommppeettiittiioonn

Our principal competitors are Deografik ltd., Alfa 2 Digital Printer, and Flamingos

communication ltd.

HHooww WWee PPllaann ttoo TTaakkee AAddvvaannttaaggee ooff CCoommppeettiittoorrss WWeeaakk PPooiinnttss

The only functioning of our established competitor at 90% capacity is Flamingos due to efficient

management. Our unique advantage is the superiority, efficacy and innovation of our deploying

software in handling and processing images and timeliness of services rendered. So our focused

experience and successful services will be the key to building a niche and reputation. We intend

to maintain an ongoing study of our competitors. Their successes and failures will help us form

guidelines on what to do and not to do. We intend to evaluate the success of each service

rendered and follow up to make changes to improve the effectiveness of printing quality.


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GGRROOWWTTHH PPRROOGGRRAAMM

GGrroowwtthh TTrreennddss iinn tthhiiss BBuussiinneessss

The market for our services is growing at an unprecedented rate. Digital is being hailed as a

revolution for small business print marketing compared to litho; digital is quick, often

cheaper and can deliver messages personalised to customers interests.

Though, Litho still has a role to play in printing mass produced materials. But for fast, cost

effective and personalised one-to-one print marketing, digital is more advantageous. The

quality of digital printing provides a better edge than the traditional printing methods and

offers much more in terms of quality and efficiency.

Though, statistical data are hard to come by, observed trends however suggest that thedigital printing business is still far from being saturated especially in our immediate vicinity.

EExxppaannssiioonn

Once our business has been established we plan to implement the following growth

strategy. We anticipate it will take approximately 36months to gain sufficient experience

and level of profits before any expansion plans are implemented.

Our growth strategy will be guided by the following:

a. To provides super quality printing directly onto a wide variety of Rigid and Flexible

Substrates. It will not be printing only on Paper or Film but also Glass, Rigid Boards,

Wood, Sheet Metal and variety of other specialty materials such as Window Blinds

and Furniture Panels

b. Also on fabric and Textile Media from casino gaming

.

table tops to elegant banners

to corporate flags to pillow to coverlet to 100% cotton t-shirts

We will not set an inflexible timetable for expansion but will be waiting until a sound basis

of experience, earnings and cash flow is achieved.

. As well as fashion,

home furnishings, and related industries.


19/19

HHaannddlliinngg MMaajjoorr PPrroobblleemmss

Our policy in handling problems will be to identify and acknowledge problems promptly and

honestly. We plan to put the following policies into effect promptly if and when the following

adverse scenarios emerge during our growth program:

The risk of running out of cash: we plan to maintain very frequent cash flowprojections. Forecasts for income, expenses and unanticipated contingencies will be

stated conservatively. Any periods of cash deficits will be remedied promptly by cutting

costs to maintain a positive cash flow and profitability.

A drop in sales or insufficient sales:

a. We will be prepared to take prompt remedial steps by cutting costs.

b. We will improve every aspect of our service value, performance and image

c.

We will seek out new ways to expand patronage sales by introducing incentives

for consistent customers.

d. We plan to stick with this specialized business that we know best.

Dishonesty, theft, shrinkage: we intend to implement the same policies that have beenproven by Flamingo company one of our biggest competitors.

Business recessions:

a. We are prepared to promptly cut costs to maintain liquidity. We will also be on

the lookout for good business opportunities during periods of adversity.

SSUUMMMMAARRYY AANNDD CCOONNCCLLUUSSIIOONN

The fact that the business has minimal risk and considering the fact that our equipment will be

purchased directly from the manufacturer for the business is a plus. Also, we will enjoy one

year guarantee from the manufacturer on the equipment which is an added advantage.

Having examined the technical and commercial viability of the business and the assessment of

the financial viability as could be seen from the cash flow projection, the project has great

earnings potential.

We, therefore, state categorically that we are convinced that the Sterling Image is desirable of

the fund injection which will have a positive effect cradling a high profit yielding with

minimum associated risk project.

Prepared By

MMRROOLLAALLUUSSII,,OO..GG..Principal Consultant

Documents

Sterling Image Business Plan by Olalusi Oluwaseyi Book 1