Business Proposal for the manufacturing Phone chargers and of light electronics devices and LED lamps

1              Executive Summary

Electronics devices, like mobile phone is driving the activities of modern man. In 2015 alone, over 25m smart phones were sold in Nigeria 70% of that, averaging around $100 per phone and the rest way above $150 unit. However everything is manufactured outside Nigeria including the accessories. That means over $3B left the country on capital flight, just on phones alone.

The global market charger alone is projected to reach $16B by 2020 and such a huge opportunity is begging to be tapped. (Source electronics Ca. publication)

It therefore presents an opportunity which we can leverage on by starting very small in manufacturing the phone chargers here, and other accessories, with opportunity of technology skill acquisition.

Renewable energy, is revolutionizing the way we use and transport energy systems today, redefining our needs and the relationship with our environment. In the forefront of this change is solar energy and LED based lamps. Traditional energy solutions depend on the use of fossil fuel. It is not only harmful to the environment but also expensive and cannot be easily distributed everywhere, thereby denying our local and rural communities the much needed access to energy resources.  Recent advances in the field of solar cells, battery technology and LED lightening systems has made it both easily available and cost effective to deploy efficient and cheap solar cell technologies into our rural home, schools,  and hospitals effectively.

Nigeria is still mainly rural; and with just about 4,000MW of electricity been produced for over 160million people, there is a yearning gap to be filled in providing much needed power supply to our people and the most closest  cheap solution to this is solar power and solar lightening.

We can take advantage of this opportunity to become highly distinguished and recognized leader in the solar energy industry.

2              Keys to Success

1. Providing excellent customer friendly products
2. Grow and maintain a referral network of customers
3. Focus expertise in solar energy solutions, solar lamps, LED technologies , and battery advancements
4. Respond rapidly to customer problems with product or service plan

3       Mission

To offer its customers the highest quality mobile phone chargers, solar energy products and services. Its owners focus on personalized service to customers by offering convenient and rapid service. To become a clear leader in the manufacturing of small home electronics devices across West Africa

4.0    Objectives

The company plans to focus on the following target markets that will provide us with the greatest market penetration: the student users, the general household users, and the rural users. We intend to offer products and service packages that are priced appropriately for each segment and will offer the services that best suit each segment's needs.

Our company will concentrate on the production of phone chargers, solar lamps, solar power solutions, targeting needs and designing solutions to address those needs. We shall focus on sales, services and support.

4.1          Business Objectives

• Company growth
• Become established as the leading manufacturers of phone chargers in West Africa and Solar products and services.

4.2          Financial Objectives

• Create and increase revenue

4.3          Marketing Objectives

• Increase marketing efforts through distribution channels
• Expand marketing reach
• Brand recognition
• Increase telemarketing efforts

5       Products

·         Phone Chargers: High quality USB phone chargers

• Solar power solutions: Inverters, solar panels, controllers and associated installation accessories.
• LED lamps: This lamp is a solution for University students and secondary school students; it will also be available for households. Another hybrid will be solar security lamps and emergency lamps for hospitals and households as well. The LED lamps as adapted for students shall be competitively priced as to beat the prices of imported products. Using today prices, they shall range from N200 to N1000 depending on whether they are battery powered or solar and rechargeable.

6.    Production COST

Phone chargers

COMPONENTS  COST OF PHONE CHARGER PER UNIT(high quality)
S/N	Compnent		QTY		Unit Cost(Naira)	Cost	Proposed selling
1	pcb		1		10	10
2	transformer		1		20	20
3	regulator		1		27	27
4	Resistor		2		2	4
5	Bridge rectifier		1		27	27
6	capacitors		2		5	10
7	others/labour		1			6
8	Led		2
9	Casing		1		8	8
10	USB cable		1		30	30
11	power cord		1
	Total					142	250

Daily minimum production capacity for this product is 1,500 units. Annual production without further expansion will be 450,000 units.

Solar Products

(Not included in this presentation)

LED Lamps

	Component Prices for LED lamps (Non rechargeable)
S/n	Compnets	Unit price	Qty	Cost	Proposed selling
1	1W white LED	17	3	51
2	contacts springs	10	lot	10
3	Plastic casing/labour			35
	Total			96	200

Daily minimum capacity for this product is 2000 units. (For the rechargeable units just add another cost of 650 and it can be sold for 1000 Naira per unit) If this target is sustained, annual production will be 600,000 units if there is no expansion.

7.0    Market Analysis Summary

The potential market for chargers, LED lamps and solar products is an interesting one. With epileptic power supply and the need for power today, these solar products are a solution the market is yearning for. In the event of stable power supply, these products will still be in high demands as they will be alternative products towards reducing energy cost.

Currently for example, Nigeria admits not less than 400,000 students in the university yearly. More than 70% of these populations are admitted into states and federal universities with poor power supply. A solar lamp for instance that sells below =N=1,500.00 per unit with a life span of at least 2 years will be a must have for these students.

Our rural communities are also poorly lit. Such a lamp for a house of 3 bedrooms, each room with a lamp will be a good investment against the use of the kerosene lamps, with its hazards and attendant cost. The value such lamps bring to an average home when compared to a kerosene lamp at 200 naira a litter of kerosene is best seen from a simple calculation;

 If 1 liter of kero is used up per night, the total cost for the use of a kero lamp will come to =N=73,000 for the 3 bedroom per annum. This kind of value proposition will constitute our sales point in pushing through our solar lamps for instance. The use of these solar lamps therefore constitutes a lot of savings for both the students and average rural homes.

For our Non rechargeable LED lamps, the average cost to the end user will be =N=250 with a battery life of 1 week at an average battery cost of 75 Naira for a good battery life. It then translates to =N= 4,150 per lamp usage in 1 year. If we compare with the above calculation on Kero lamp, there is already a savings of over =N=60,000 per annum.

These savings can be used in other areas to enhance livelihoods.

7.1          Market Segmentation

• Students
• Households
• Hospitals
•   etc.

7.2          Target Market Segment Strategy

The strategy will be based on channel distribution sales, using already existing channels.

In addition will be aggressive use of the social media and the online malls to push our products into the market.

At the rural areas, we will use the radio as a means of advertisement as well as using the traditional institutions for enlightenment on the effective benefits of the solar or LED lamps.

7.4          Marketing Strategy

Short-term marketing strategies include:

• Purchasing Advertising
• Bulletin Boards
• Search Engines
• Social media

Long-term marketing strategies are those that will bring steady stream of targeted sales over time. These strategies will continue to produce results even years down the road. Long-term marketing strategies include:

• Aggressive advertisement using examples of the cost savings to push the value advantage
• Freebies: offering bonuses and free items like phone chargers for purchases made
• Training a large pull of freelance technicians to install and fix our products. These will be most beneficial to the solar products requiring some form of technical knowledge to install.

8       Start-up Funding

Start Up Funding Requirements

Startup Funding requirements
S/No	Description	Value(Naira	Notes
1	Machinery	11,100,000.00	Actually $37,000.00,This will include pcb making equipment, a small plastic mold equipment, 3 soldering stations
2	Rents	800,000.00
3	Furniture	450,000.00
4	Initial 3 Months’ salary for staff	2,000,000.00	10 technicians @20K per month; 5 packaging staff@ 15k per month,  2 cleaners @ 15K per month, 1 security guard @ 15k per month, 3 marketing staff @ 30k per month, 1 GM@ 200K per month, 1 Finance staff @ 150k and 1 technical manager@ 180k per month; a customer interface officer.
5	1 small delivery Van, 1 staff car	6,000,000.00
6	12 KVA Generating set	1,200,000.00
7	Component initial stock for 3 months and plastic materials	3,000,000	Raw materials revolving fund
8	Working cash	1,200,000
9	the production of packages	650,000.00
10	Marketing	1,500,000
	TOTAL	27,900,000.00	Production expansion will require the injection of over 150m Naira additional funds to meet market demands.

9        Forecast for one year at the initial production Capacity

First Year Forecast sales  for two products only
S/N	Description	QTY	Unit cost of production	Production cost(=N=)	Value sold(=N=)
1	Phone chargers	450,000	142	63,900,000.00	112,500,000.00
2	LED lamps	600,000	96	57,600,000.00	120,000,000.00
	TOTAL			121,500,000.00	232,500,000.00

 If in any case you are interested in the details of this business, kindly get in touch with me.