TABLE OF CONTENTS

INTRODUCTION

DISTRIBUTION TECHNIQUES

REGULATORY REQUIREMENTS

FACTORS AFFECTING THE DEMAND FOR PACKAGING BAG

BREAKDOWN OF COST ITEMS

ESTIMATED COST FOR FIVE YEARS

BREAKDOWN OF REVENUE ITEM FOR THE FIRST FIVE YEARS

PRODUCTION ESTIMATES

DEMAND ESTIMATES

REVENUE ESTIMATES

CALCULATION OF SUBSEQUENT YEAR ESTIMATES

PREPARATION OF FINANCIAL STATEMENT.

TRIAL BALANCE.

MANUFACTURING, TRADING, PROFIT AND LOSS ACCOUNT

BALANCE SHEET.

PROJECT CASH FLOW

CONCLUSION AND RECOMMENDATION

INTRODUCTION

DISTRIBUTION TECHNIQUES

We shall purchase motor vehicle (Trucks) for the distribution of our products to various locations both within and outside Ifako town.

REGULATORY REQUIREMENTS

We shall comply with the regulatory requirements of NAFDAC, Standards organization of Nigeria (SON) and other regulatory agencies in the local government area. This will facilitate effective distribution of the product to give us competitive edge over our competitors.

FACTORS AFFECTING THE DEMAND FOR PACKAGING BAG

a.      Poor weather

The demand for packing bags is always at its lowest ebb during the raining season and the harmattan.

b.      Incessant power failure may affect the demand as cost of diesel consumption may be too high.

BREAKDOWN OF COST ITEMS IN TABLE 1.0

Fixed Costs:

1.      Land and building: A land will be acquired and the factory will be built. Both land and building are estimated at   N7,500,000

2.      Furniture and fittings: It includes office tables and fittings, air conditioners, tanks and taps. It is estimated at N 350,000

3.      Vehicles 2 bus/trucks:  will be bought at the total cost of    N1,500,000

4.      Generator plant: This will be bought at the cost of    N650,000

5.      Cutting machine: It has been estimated to cost 2,500,000 each hence 2 cutters shall be bought at N5,000,000

6.      Extruder machine : Extruder machine will be bought at the cost of N8,000,000

7.      Miscellaneous: This expenses includes the cost of installing the machine and compressors and other ancillary equipment needed to make the packing bags to be standard. Both cost have be estimated at  N150,000.

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