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FEASIBILITY STUDIES ON BEADS-JEWELRY MAKING

Introduction
The planned bead making project is the result of strong industry and
needs assessment studies undertaken in south western zone of Nigeria, particularly Oyo by the promoters of this project. The studies reveal that the demand for bead making business is very high. This has made the bead making business to be rising at astronomical rate. This expanding demand trend is expected to be sustained into the future. The business name is Brabas Beads.

Executive Summary
Brabas Beads making is based in Nigeria. We have been able to secure a standard and well-positioned office facility in a central business district of Nigeria. We are set to take the bead making industry by storm with our very creative statement pieces. We plan to fit in according into this very competitive industry.

Brabas Beads making will offer all types of products that will represent
its brand well. This is one of the reasons why we will leave no stone unturned in
garnering world class bead making skills that will represent us well, as well as
we meet the teeming demand of our clients. Our business goal is to become one
of the leading beads making company in Nigeria and we will make sure that
every product we churn out meets the demands of all the authorities in charge.
Our workers are going to be selected from a pool of talented and highly
creative bead makers in and around Nigeria and also from any part of the world
as the business grows. We will make sure that we take all the members of our
workface through the required trainings that will position them to meet the
expectation of the company and to compete with leading bead making
companies in Nigeria. We have put to build a state of the art bead making
business. Our studio will be equipped and we will ensure that we follow the trends in the industry.

At Brabas, our client’s best interest will always come first, and everything
we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living and living in our world, for our partners, employees and for our clients. Brabas is founded by Adeola Braba Segun.

They have a combined experience inn beads making, wire and tiger tail works, amongst
many others.

Vision
My vision is to establish a world class bead making company whose services and brand will not only be accepted in Oyo state, but also in Nigeria at large.

Mission
My mission is to provide professional and highly creative concept and
other related products. I want to build a bead making company that can
favourably compete with other leading brands in the industry.

Business Ownership
The business is a sole proprietorship wholly and managed by Adeola Braba Segun.

Locational Factors
The bead making product is located at Bodija, Ibadan, Oyo in Nigeria.

Product And Services
Brabas Beads will provide the following products listed below:

· Designing of all types of beads.
· Retailing of products.
· Repairs of types of beads.
· Products sales of beading kits, tools and magazines.
· Training bead makers on how to become an expert.

Key Success Factors

The key success factors for Brabas Beads are as follows;

· It is established with the aim of maximizing profit in the female fashion
and beauty industry.
· Brabas Beads will carry out the most popular brands such as bead bangles, waist beads, neck beads, and necklaces.
· Selection of a good location for the outlet.
· Ability to produce / acquire unique designs.
· Establishing a reputation of reliability (in terms of honest and timely processing of orders) and quality.
· Networking to identify suppliers and service providers who are reliable and provide adequate quality.
· Quality of craftsmanship, managing turnover of craftsmen.
· Efficient management of stock to keep inventory cost at the minimum.
· Knowledge about the latest market trends.

Market Analysis

The trends in the bead making is that the target market keep expanding people
and organizations more than ever before are beginning to see need for them to
have an official website and also to engage the service of professionals who will
help bring the best in their products through branding or packaging their
products and services or in help them communicate their brand to a wide range
of clients.

Our Target Markets

Brabas Beads plan to focus on two unique groups of customers. One is the end consumer, the other is jewellery stores and galleries. The end consumer will be interacting with Adeola Braba Segun through our company’s website as well as through personal contact at exhibitions/shows.

The galleries (museum shops, jewellery stores) will also be met through the exhibitions and shows. We believe that at these events, a long term relationship will be entered into so that the shops will become a retail distribution channel for Brabas Beads.

Competitive Advantages

The three major competitive advantages are listed below:

· Consistent delivery of quality products.
· Excellent customer care services.
· Fair and best possible prices and discount offers.

Market Plan

There are no major bead making in Oyo area, hence there is complete absence of structured bead making that can really put up commendable competition. Therefore, if Brabas Beads making commences operations as planned, it will be a market leader in no distant time.

Promotion Strategy

· We at Brabas Beads plan to build a standard Web page.
· We plan to mount Brabas Beads billboards in all strategic points all around Ibadan city.
· We plan to create a social media profile for Brabas Beads and also keep it booming.
· We have made plans to offer different payment strategies for our clients at Brabas Beads.
· We hope to make use of our advertising strategies judiciously.
· We at Brabas Beads will make plans to ask and reward our existing customers for referrals.

Marketing Strategy

Our marketing strategy at Brabas Beads will be targeted at acquiring a wide range of galleries to carry and sell all our products. We plan to achieve these using two methods. The first is attendance and display at different shows. The shows are typically craft shows, art shows or art festivals.

Brabas Beads will also give trade discounts to drive the market faster. There are plans to distribute calendars and almanacs to our numerous customers.

Market Positioning

Brabas bead making will position itself as the prime-mover and market leader in bead making market in Ibadan and its Environs.

Organisation and Management

Brabas bead making is a sole proprietorship. It is wholly owned by Adeola Braba Segun. She is a trained bead maker and as such has enough basic
knowledge of financial management which is expected to utilize in running the
business.

Our Value and Norms

Brabas bead making plans to adopt the following norms and values:

· To offer the best for the benefits of her customer.
· To do our business within the federal, state and local government laws.
· To see our employees as our most valuable assets.
· To always be available to our customers.
· To uphold integrity always.

Legal, Social and Regulatory Issues

Legal Issues

Brabas bead making plans to commence commercial operations as a sole
proprietorship. Such it is just enough to register the business name with the
appropriate department at the local government headquarters. No special
licences are required for the operation of a bead making; however every attempt
will be made to get all necessary permit and licenses.

Social Issues

The implementation of the project will bring about social and economic benefits
to the society in the following ways;

· It will create new jobs.
· It will bring about wealth creation and poverty reduction.

Regulatory Issues

Brabas bead making will comply all environmental regulations as well as all relevant industries safety regulatory requirements.

Swot Analysis

Brabas bead making employed the services of a core professional in the
area of business consulting and structuring to assist our organization in building
a well-structured beading making business that can favourably compete in the
highly competitive web design service industry in Nigeria and the world at
large. Part of what the team of business consultant did was to work with the
management of our organization in conducting a SWOT analysis for Brabas.
Here is a summary from the result of the SWOT analysis that was conducted on
behalf of Brabas.

Strengths

· Our Business location is an economic hub.
· We will have no local competition within a 30-minutes radius.
· We will establish a customer service tradition.
· Our vendors will have high reputation for high quality products and custom workmanship.
· We can produce smaller jobs that some competitors will not accept.

Weaknesses

· The industry may slow down financially with the economic downturn.
· Our prototype website may not have the ability and sophistication to compete with other competitor websites at its onset.
· Cash flow for publicity may be impaired
· Business hours may be limited for a retail establishment (Monday through Friday 9:00 a.m. to 6:00 p.m.)

Opportunities

· Brabas Beads Business area (Ibadan) is growing in population and median household income.
· We should be able to capitalize on our competitive edge if sales representatives can communicate effectively to local business owners.
· Brabas Beads sophisticated website will attract both local and out-of-area customers.

Threats

· Prolonged economic downturn that hinders the rebound of area businesses and limits discretionary income.
· Industry wide technological advances that could render existing store equipment as obsolete.
· A new competitor opening in the immediate area.

Estimated Budget

This project will be financed by my equity capital of ₦150,000.

Estimated price per unit = ₦3,000

Estimated variable cost = ₦2,500

Estimated cost of rent and needed equipment

S/N

ITEMS
COST (₦)

1

Rent

45,000

2

Neck

1,000

3

Needles

500

4

Beads

16,000

5

Pliers

500

6

Fishing Line

1,000

7

Hook

2,000

8

Director’s pay

20,000

9

Utility

20,000

10

Transportation

3,000

11

Publicity

10,000

12

Table

13,000

13

Chairs

9,000

14

Miscellaneous

9,000

Variable cost

Materials – ₦21,000

Utility – ₦20,000

Publicity – ₦10,000

Transportation – ₦3,000

Total – ₦54,000

Fixed Cost

Director’s pay – ₦20,000

Rent – ₦45,000

Table – ₦13,000

Chairs – ₦9,000

Total – ₦87,000

Break-even Analysis

This is a financial planning tool, which enables the entrepreneur to study the relationship between cost, volume and revenue of his business. It helps in defining the sales level in terms of revenue to be gained or units to be sold within a given financial period.

From this analysis, we shall look at the break-even point, that is, the point at which there is neither a profit nor a loss in the business. Every entrepreneur struggles to operate at a break-even point so as to avoid incurring losses.

It also helps the entrepreneur monitor such element as fixed cost, variable costs, sales level quantity which is necessary for the growth of the business.

Hence, Break-even formula is:

Fixed cost

Price – variable cost

Where,

Fixed = ₦87,000

Variable cost per unit = ₦2,500

Price per unit = ₦3,000

Therefore,

87,000

3,000 – 2,500

= 174 units

A sale of 174 units is required for this business Break-even.

Economic analysis

Below is the economic analysis of the intended business venture describing the expected cash flow of the business for three years and also revealing the expected business profitability.

Projected Cash flow for the first three years

 

Year 1

Year 2

Year 3

No. of Customers

200

250

310

Cost per unit (₦)

3,000

2,950

2,900

Annual income (₦)

600,000

737,500

899,000

Operating cost (₦)

150,000

200,000

200,000

Annual Expenses (₦)

150,000

180,000

120,000

Cash surplus or Deficits (₦)

300,000

357,500

579,000

Profit (₦)

300,000

357,500

579,000

Total Investment (₦)

The total investment will be the sum of Operating cost in Year 1 to 3.

Year1 = 150,000

Year 2 = 200,000

Year 3 = 200,000

Total = 550,000

Total Income (₦)

The total income will be the annual income from Year 1 to 3.

Year 1 = 600,000

Year 2 = 737,500

Year 3 = 899,000

Total = 2,236,500

Net Average Profit (₦)

This is the accumulative profit from year 1 to 3.

Year 1 = 300,000

Year 2 = 357,500

Year 3 = 579,000

Total = 1,236,500

Projected Profit or Loss for the Year (₦)

Revenue – 600,000

Cost of Production – 150,000

Total – 750,000

Expenses

Transportation – 3,000

Rent – 45,000

Miscellaneous – 9,000

Utilities – 20,000

Directors Pay – 20,000

Profit for the Year – 653,000

Recommendations and Conclusion

This project can be easily set up with an affordable amount, which makes it common for any business minded individual as afar as the skill is acquired. However, with the ease of access to loans through the government’s aid, most business minded individuals can go into this project.

This project offers good benefits to the promoters and the economy. Wealth will be
created even as jobs are also created. These are consistent with the federal and
states government policy on entrepreneurship, wealth and job creation.

The commercial viability of the project is very clear. The project has been
found to be commercially viable, having shown through projections, an
impressive sales, profits and cash flow positions.