Entreprenuer

CHAPTER ONE
ENTREPRENEURSHIP
Introduction
Entreprenuership
Entrepreneurship is a person who makes money by starting or running businesses, especially when this involves taking financial risks (Oxford Advanced Learners Dictionary).

Entrepreneurship (is one of the most important “engines” that drives our country’s economy. Through entrepreneurship, new ideas are turned into business products, new ways are discovered to provide services to everybody and entire new industries are created. In recent years, the businesses of successful entrepreneurs have not only contributed to economic vitality but also have created most of the new jobs that employ the people of our nation.

Entrepreneurs: What do they do?
Entrepreneurs are problem solvers
Many people often feel confused about what an entrepreneur is and what this person does. To understand the entrepreneur who wants to “make a job” instead of “take a job” think first about the world “problem”. Everyone encounters problems everyday. They frustrate, confuse and annoy most people unless those people happen to be entrepreneurs. Unlike many people, entrepreneurs view problems as opportunities. When they encounter them, they start looking for solutions. Entrepreneurs are problem solvers”. If you see problems as opportunities to find solutions, then you may be an entrepreneur at heart.
Think of some goods or services people may want that they are not readily available such as:
1. A safe way to watch videos in the car on a long driving trip
2. A way to eat chocolate on a hot day without it melting and making a mess
3. A do it yourself cleaning kit for a home computer
4. An umbrella that does not bend or break in a strong wind

Look at the item number 1 above, nowadays companies have begun producing cars with video screens and VCRs built into the front – seat headrests so passengers in the backseat can watch videos. That sounds like an idea first developed by an entrepreneur.

There will always be new wants and desires in our advancing society, and resourceful ENTREPRENUERS will always be seeking solutions for them because that is what entrepreneurs do. An entrepreneur identifies the societal wants, desires or needs and make sure he/she provides them profitably.

An entrepreneur also identifies a group of people who want to buy a particular good or service and this means he/she has identified a potential market. Whenever there is a potential market for a good or service, there is an opportunity to start a business.

CHAPTER TWO
THE ROLE AND CONTRIBUTIONS OF ENTREPRENUERS
“Engine-ers” and “Generator” Job Generators
Entrepreneurship is an important “growth engine” for our economy, and businesses founded by entrepreneurs are a major source of employment in the world today. People respect entrepreneurs because they create jobs for others and gather around them teams who help make their vision a reality. Many businesses are small, employing one to twenty people. Some have grown into very large corporations employing tens of thousands of workers. Thus, entrepreneurs are responsible for creating significant numbers of jobs in this country as well as for providing goods and services that people want.

The Risk Taker
When entrepreneur begin a new venture, they risk losing their own money or money from investors. They risk losing the time and effort they have invested. They risk a loss of pride if their idea does not work. They risk losing their livelihood – their means of supporting themselves. If they have employees, their employees’ jobs are also at risk.

Fear of risk keeps many people from becoming entrepreneurs. They would rather take the safer route of being employed by someone else – even though few jobs are completely secure. Entrepreneurs readily take risks other people avoid. These are rarely foolish or reckless risks, rather, entrepreneurs carefully consider potential risks, then weigh them against potential benefits and determine if a risk is worth taking. Smart entrepreneurs also compare the potential benefits with other available opportunities. They make decisions based on the best information and expertise they can find. Entrepreneurs who decide to proceed with an opportunity enjoy the challenge of seeing if they can make it succeed. They drive on challenge – on making a difference for themselves and others. The willingness to make decisions and take actions that involve some risk is one of the key factors that distinguish entrepreneurs from non-entrepreneurs.

Cracy – or visionary
Sometimes entrepreneurs pursue something others think is crazy. It’s true that occasionally entrepreneurs try business ideas so strange that they can not succeed. It is also true, however, that entrepreneurs often end up being very successful by pursuing unusual opportunities that have been dismissed or overlooked by others. If and when they succeed, the same people who predicted failure will view them as visionary - pioneers who had great insight about the future.

People respect successful entrepreneurs, they respect the fact that entrepreneurs accept risks and that they produce goods and services others want and will buy. They respect the fact that entrepreneurs always are thinking about the possibilities of how things could be instead of being satisfied with the way things are.

Entrepreneurs deserve the respect they receive. They see opportunities rather than problems. They seek solutions; they take risks, investing their time, energy and financial resources to produce goods and service that better people’s lives. In the process, they create jobs for others, for all these reasons, they are important contributors for society.

KEY CHARACTERISTICS OF THE ENTERPRENUERSHIP
Certain characteristics are associated with entrepreneurial success. Here are several important ones:
Passion: Research has shown that one of the most important qualities associated with entrepreneurship is passion. When people feel committed to what they are doing and when they care deeply about it, they stand the best chance of being successful at it. The heart must become an ally of the mind.

Entrepreneurs do care more about what they are doing than how much money they might make. They earn an income, of course, or they cannot continue to be entrepreneurs; however, the amount they earn often is secondary to achieve their goals.

Self–Confidence: Self confidence is another key quality of a successful entrepreneur. Successful entrepreneurs believe not only that they are capable of success but also believe that they are worthy of success. Self-confidence has confidence, independence, individuality as well as opportunism as its trait.

Self-Reliant: An entrepreneurs are self-reliant. They do not wait for others to tell them what to do. They are self-starters and feel confident making decisions.

Risk taker: Entrepreneur has risk – taking ability and likes challenges. He/she understands that risk is a natural part of trying to achieve goals. His/her self confidence helps him/her accepts the challenges of the risks he or she takes.

Creative: Most entrepreneurs are creative. This does not mean they paint pictures or write poetry (though it can); rather, it means they find innovative ways to problem solving. They always look for new and better ways to do things – ways that have not occurred to others, believe in your ability to be creative.

Information seekers: Entrepreneurs are always willing to learn. They may already know a great deal, yet they recognize that no one knows everything, and that they can learn valuable information from others. Entrepreneurs who are not open to learning often compromise the degree of success they will be able to achieve.

Leadership: Entrepreneurs do get along with others. They are responsive to suggestions and criticisms.

ENTREPRENEURIAL SKILLS
You need basic entrepreneurial skills that will help you succeed. Entrepreneurs can acquire skills if they are willing to learn them. They can equally hire people to work for them who have the needed skills. Either way, the following skills are important if the entrepreneur’s business is to succeed.

Ability to Plan: This is one of the managerial abilities which are key skills for entrepreneurs. They must be able to develop plans to meet goals in a variety of areas, including finance, marketing, production, sales and personnel (hiring and maintaining productive and satisfied employees).

Communication skills: Entrepreneurs should be able to explain, discuss, sell and market their goods or services. It is important to be able to interact effectively with your business team. Additionally, entrepreneurs need to be able to express themselves, clearly both verbally and in writing. They should also have strong, reading comprehension skills to understand contracts and other forms of written business communication.

Marketing Skills: A business’s success or failure is very dependent on whether the business reaches the market (its potential customers) interests the market and results in those in the market deciding to buy. Many entrepreneurs who failed started with an innovative good or service that with proper marketing could have been very successful. Good marketing skills such as knowing the customers, knowing what the customers want, knowing where the customers buy, knowing when the customers buy and how the customers buy – that result in people wanting to buy your good or service – are critical for entrepreneurial success.

Interpersonal Skills: Entrepreneurs constantly interacts with people, including customers and clients, employees, financial lenders, investors, lawyers, and accountants to name a few. The ability to establish and maintain positive relationships is crucial to the success of the entrepreneurs’ business venture.

Basic Management Skills: The entrepreneur must be able to manage every component of a business. Even if entrepreneurs hire managers to attend to daily details, they must understand, if their business has the right resources and if those resources are being used effectively. They must ensure that all the positions in their business are occupied by effective people.

Team Building Skills: Because entrepreneurs usually assemble a team of skilled people who help them achieve business success, they must be able to effectively develop and manage the team.

Personal effectiveness: In order to handle the pressures of their busy lifestyles, entrepreneurs must have the ability to manage time well and to take care of personal business effectively. First impressions are so important, that entrepreneurs must pay attention to such things as personal appearance and telephone skills. For example, think of the difference in the impression made by someone who answers the phone by saying “yeah” versus saying “computer support services”, this is Adeiza. “How may I help you?” additionally, entrepreneurs benefit a great deal by being aware of their own strengths and weakness.

Leadership Skill: One of the most leadership skills an entrepreneur must have is the ability to develop a vision for the company and to inspire the company employees to pursue that vision as a team. The expression “people would rather be led than managed” applies especially well to an entrepreneurial ventures.

Few entrepreneurs possess every skill needed to ensure business success. For example, they often look to outside experts for help in areas such as strategic planning, accounting and finances, contracts and legal issues and specialized marketing. Therefore, entrepreneurs must have the ability to evaluate realistically their own skills and to know when to draw on the skills of others.

CHAPTER THREE
SETTING UP A BUSINESS
Most people who want to be entrepreneurs think that the best approach is to start their own new business and not to buy one that already exists. This approach gives the potential owner a great deal of satisfaction. It also means taking a relatively high risk compared to buying an established business.

An entrepreneur who wants to start and own a new business must consider the below sources of business ideas:
1. Identification of societal needs
2. A gap in the market that you can fill
3. A business related to the work you do
4. Turning an interest or hobby into a business
5. A poor delivery of services or products
6. An overpriced product or services
7. A monopoly
8. A failure of a product or service
9. An invention of a product or service
10. An advancement in technology


KEY QUESTIONS YOU NEED TO ASK YOURSELF
1. Has this idea been tried before? If not, why not? If your idea has been tried, was it successful? Do you think you can improve on your idea?
2. Will your idea allow you to compete successfully? Why would people buy your product instead of your competitor’s products?
3. Are you ready to be self-employed?
4. Do you have the starting power to be self – employed?
5. Are you prepared to compete and stand out in the market?
6. What information helped you to come up with your idea? How confident are you in the accuracy and reliability of that information?
7. Do you think you have a good chance of finding enough money to start a business based on the idea?
8. Do you have enough personal time to create and run a business based on the idea? If not, can you find enough help?

Other questions are based on what, where, why, who, how and when questions

What
 What type of product or service you are to start?
 Have you sold, made, or offered these products or services in the past
 How are you different? How will you differentiate your services or products?
 Is it different, unique, or better than the competitors?
 How do you fulfill customers’ orders or requests?
 What are your distribution channels?

Where
 Where will you rent or lease an office, store or warehouse or plant?
 Can you start with a home office?
 What office and computer equipment do you need?
 Will you need a separate phone line? A post office box?
 Where will you get start-up funding?
 Can you get fund from banks, credit union, family or friends?

Why
Why should you choose a sole proprietorship, partnership, Limited Liability Company?
Why should you go into business in the first place?

Who
 Who are my potential customers?
 Are your customers’ general bases or specific in nature?
 What are their weaknesses?
 Is the market over saturated?
 Who are your competitors
 How can you ensure that your customers are stayed attracted?

How
 How will you compete with the price, quality, service, location?
 How will you promote your business and/or product/services?
 What choice of media should you use for advertising?
 How can networking at small business organizations and the chamber of commerce help you?

When
 When should you start the business?
 When will you find time for families and friends?

FINANCING YOUR BUSINESS
Sources of capital/finance
1. Partners
2. Families and friends
3. Bank loans
4. Sell some of your assets
5. Government agencies
6. Grants/incentives
7. Ventures capitalists
8. Part-time or seasonal job
9. Barter
10. Hire – purchase
11. Equipment leasing
12. Use another business assets
13. Business networking or brand name sharing

How to get a loan from bank
(General requirements for a bank loan)
a) A clear statement of the amount of the loan required
b) A clear statement of the purpose of the loan
c) The period or term of the loan
d) Your feasibility report
e) Your management background and competence
f) Your repayment arrangement
g) Any securities you want to pledge
h) You must not be an insane person
i) You must have attained the age of 18 and above
j) You must not be a criminal minded person

CHAPTER FOUR
MARKETING YOUR GOOD OR SERVICE
One of the greatest needs of the owners of small businesses is to understand and develop marketing programmes for their products and services. Modern marketing programmes are built around the “marketing concept” and performance, which directs the owners to focus their efforts on identifying, satisfying and following up the customer’s needs, all at a profit. Marketing is based on the fact that:
(a) All business policies and activities should be aimed at satisfying customer needs, and
(b) Profitable sales volume is a better company goal than maximum sales volume
When applying the marketing concept, a small business should:
(i) Determine the needs of their customers (market research)
(ii) Analyze their competitive advantages (marketing strategy)
(iii) Select specific markets to serve (target market)
(iv) Determine how to satisfy those needs (marketing mix)

When you come up with an idea for a good or service, based on an opportunity that you have identified, you will have to consider the nature of the market to which your business will be truing to sell. In some cases, an entrepreneur might try to develop a new market for a brand new good or service. In many cases, there are existing markets with opportunities for entrepreneurs to enter because there is not enough of a particular good or service produced or there is need for an improved, a less expensive or a more convenient or accessible version of an existing good/services. Given how much business markets vary, a key challenge for a new entrepreneur is to select the best market for them to enter and to avoid markets with many roadblocks to their businesses.

Marketing Appeals
Once you have identified the target market for your good or service, remember the major goal is to encourage your customers to believe that they really have to have your good or service. The successful application of the following types of appeals will help you both get a customer and hopefully keep the customer.
1. Fun/Excitement: “Gives you hours of fun/you will have great times/ whole family can do it together”
2. Status: “Everyone has one/important people are using it or buying it/you will perform better”
3. Attractiveness: “makes you look nice/feel better/ look younger”
4. Price/High or low: Two for the price of one/ you deserve the expensive item”
5. Quality: Best product on the market/ 5 year warranty
Marketing tools
With marketing tools, entrepreneurs attempt to differentiate their product or service from others and to interest as many customers as possible in what is for sale. Some marketing tools include
(1) Sign and posters
(2) Flyers and brochures
(3) Business cards
(4) Promotional events (e.g free samples, coupons, gifts)
(5) Telephone sales
(6) Networking (e.g contacting family, friends and business acquaintances)
(7) World –of-mouth e.g one customer tells other about good or service
(8) Mass media ( e.g newspaper ads, radio, and television spots)
(9) Internet (e.g advertising on a website)

Some key points to remember when planning your marketing tools are:
1. Keep your message to your customer simple and direct.
2. Feature benefits to the customer of your good or services.
3. Think of ways to be creative and “hook” the potential customer into reading or listening to the message.
4. Consider the cost of planning and producing a particular marketing tool is the cost worth the benefit to your businesses.
Always remember that marketing is extremely important. You will want to make sure that you have a clear message you can deliver to the market to inform people about your business.

CHAPTER FIVE
FINANCIAL CONSIDERATION
Financial considerations are very important to a business. Money will be needed to start a business. There are different kinds of costs that a business will face, and there are the profits that the business will hopefully earn. The business will always need to have enough cash in hand to pay its bills and other financial obligations.

You – the entrepreneur – as well as your partners, lenders and investors, will want to have financial information about your business that will be helpful in understanding the costs of starting the business and its prospects for profitable operation. The following describes some of the more basic financial information that a new business typically provides in its business plan and (where appropriate) maintains on an ongoing basis as the business moves into operation.

Start-up costs
These are the total amount of money you will need to get your business up and running. As an entrepreneur, you will certainly want to estimate your start-up costs to help assess whether it makes financial sense even to start your business. The good news is when you add up these costs, you only have to think about that first start-up period of your business. These costs may include starting expenses for items such as work-space costs, fees, licenses, telephone usage, utilities, transportation, equipment, book-keeping supplies, advertising and marketing, opening a bank account, supplies and labour for the first units you will be producing and insurance. That estimate will also be important to help predict how much money, if any, will be needed from others to start the business.

Many entrepreneurs try to keep start-up costs as low as they can. This practice is sometimes referred to as “bootstrapping” a business. (One reason the word “bootstrap” is used here is that people think getting a full business is going with very small start – up costs similar to pulling on large boots using very small loops – their bootstraps).

Financial forecast
An entrepreneur who has established a good record keeping system adapted to the size of his/her business will always know how the business has performed in the past up to the present date. However, an entrepreneur needs to make sure that he will be able to pay all obligations that will come up in the future, e.g salaries, materials, interests, repayments of credits from suppliers or loans from a bank, e.t.c. figures from record keeping will be a good help in making this forecast, particularly when the business has seasonal variations.

Moreso, a proven instrument for a financial forecast is the cash flow plan. As its name implies, this plan is based on the cash that flows into the business and the cash that flows out of the business. For the purpose of a cash flow plan, money that is paid into the bank accounts of the business is also considered as cash.

Cash flow forecast
If a business is potentially successful, it can encounter major difficulties or even fail if it runs out of money to pay its bills and salaries on time. A good cash flow forecast helps to avoid this common but very serious business problem. A cash flow forecast estimates the cash that will be coming into the business and the cash that will be flowing out of the business during the same period. (it is called a forecast because it makes predictions about the cash flow for a business; think of it as you would a weather forecast, which also makes predictions about aspects of the whether such as rainfall and temperature.

One of the main purposes of a cash flow forecast is to check if the cash coming into the business over a number of consecutive time periods will be enough to cover the cash the business will need to pay out during the same periods. For example, a cash flow forecast for a business might show that sales will bring in a lot of cash in the month of December but during the months of September and October, the business expects to experience cash shortages. Knowing this, the entrepreneur can prepare for the predicted cash problems, for example by arranging for temporary financing (a loan for a short period of time) to help the business through the shortages, the business could then pay off the short-term loan with the strong cash flow expected in December.

For larger entrepreneurial ventures, potential lenders and inventors (and the entrepreneur!) usually want to see month by-month cash flow forecasts which cover at least the first year of operation. Week-by-week cash flow forecasts can be more practical for smaller entrepreneurial ventures. You should try to include in the plan for your business a basic cash flow forecast covering at least the first 8 to 12 weeks of operation. For any cash shortages your forecast may predict you will want to indicate your plans for covering the shortages.

Profit and Loss Statement
A profit and loss statement or account helps an entrepreneur to determine whether a business is operating at a profit or a loss for a given time period of one month to one year. The more frequently you calculate your profits and losses, the sooner you will know the financial position of the business.

This type of statement or account is made up of revenue generate from the business and expenses incurred on the business.

Revenue
As an entrepreneur, you will really like the word “revenue” business people use it to refer to the money that comes into their business. Revenue (or sales revenue) is the total naira (N) or dollar ($) amount a business receives from the sales of its goods or services over a particular time period, such as a week, month or year.

Expenses
There are two main categories of ongoing expenses that a typical business must face after it starts-up; product costs and operating expenses. Product costs (sometimes called cost of goods sold) usually refer to the cost of the actual materials and labour used to produce the goods that are sold to customer; products costs vary directly with the quality (amount) of good that is produced. For example, if you were producing wool sweaters, the amount of money you would have to spend on the wool and labour to make the sweaters would be your product costs, your total product costs for a particular time period, say one month, would vary, depending on whether you produced 20 sweaters or 1000 sweaters that month.

The additional costs that are required to cover the basic operation of the rest of the business are called operating expenses. (you may hear some people refer to these types of expenses as “overhead” in casual conversation). Salaries, advertising, rent, utilities and office supplies are typical operating expenses categories, and these expenses do not vary directly with the quality of the good produced. For example, if you were to rent a small shop where you would be making the wool sweaters we just discussed, you would have to pay the same amount of money for rent every month regardless of whether you produced 20 sweaters or 1000 sweaters in any particular month. (that is why business people sometimes refer to operating expenses as fixed costs and product costs as viable costs. Warning: if you ever take a class in economics, you will find that economists do not use the terms “fixed costs” and “variable costs” in quite the same way as do business people, the differences can cause confusion. Even for someone who is experienced in both areas).

Profit
If, over a period of time such as a year, the total revenue earned by a business is greater than the total expenses (product costs plus operating expenses) paid out by the business, the difference (revenue minus expenses) is called profit. Profit is the net income (before taxes) that a business earns after covering all expenses. Profits can be reinvested in the business to help it grow, distributed to the people who share ownership in the business (the entrepreneur, other equity investors or divided up between reinvestment and distribution).

Loss
On the other hand, if the total revenue earned by a business is less than the total expenses (product costs plus operating expenses) paid out by the business, then the difference (expenses minus revenue) is called a loss. The business have to have enough money available to cover the loss if it wanted to stay in business, Profit = revenue – expenses.

The balance sheet statement
The balance sheet is a financial statement which indicates what you own and what you owe on any given day in the life of a business. The financial figures on the balance sheet change from day to day because money is always coming in and going out of the business.

The formular used to prepare a balance sheet is:
Assets = liabilities + net worth (capital)
Assets: These include everything a business owns, such as cash, equipment, buildings, inventory, vehicle, furniture and fitting, land e.t.c

Current Assets: include cash and anything that can be converted into cash within twelve months. Current assets include cash, bank accounts, accounts receivable (what people owe you), and inventory.

Fixed assets: These are things that cannot be changed into cash easily 9within twelve months). They are items that the business acquired for long-term use. Fixed assets include land, building, machinery, equipment and vehicles.

Liabilities: these include anything that the business owes. Liabilities might include loans, credit notes, taxes and mortgages.

Current liabilities: A current liability is anything you owe that has to be paid by using a current asset. Current liabilities are usually items to be paid within twelve months, including taxes, loans and bills due to creditors.

Long-term liabilities: it is any debt cannot be paid within twelve months, such as mortgage, debenture, bond e.t.c.

Capital (net-worth): This is what is actually owned by the business after subtracting liabilities. It represents the initial investment of the owners and retained earning earnings.


Break Even Point
To understand your business’s chances for success, it is very helpful to estimate the point at which the business “breaks-even”, that is, the point at which it will first be able to cover its own expenses and begin making a profit.

The break-even point is often defined as the minimum number of units that need to be sold over a given period (perhaps a week or a month for that period. After the break-even point has been reached, all the sales naira-dollars received contribute to the business’s profits for that period (after subtracting expenses, of course). If sales do not reach the break –even point, the business will show a lose for that period.

For example, John T-shirts with product costs (materials and labour) of N100 per T –shirt, operating expenses of N500 per week, and a planned selling price of N200 per T-shirt.

To calculate his break-even point, John would start by subtracting the per-unit product cost from the unit price, or N200 – N100 = N100. (This difference, which is the net amount available from each sale of a T-shirt to apply to operating expenses, is sometimes called the “gross margins”). Then, John would take his operating expenses, N500 and divide them by N100, the “gross” amount that he nets on each sale of a T-shirt. The result of this calculation is N500 ÷ N100 = 5 t-shirts, his break-even point.

The following summarizes John’s calculation of his break-even point: assumptions about John’s T-shirt product; price = N200 per t-shirt.
Products costs (materials and labour) N100 per t-shirt operating expenses = N500 per week.

Calculation of his break-even point:
Gross margin (or profit) = price – product costs = N200 – N100
Break – even point = operating expenses divided by
Gross margin = N500 ÷ N100 = 5 t-shirt sold per week.

What does this calculation tell John (and others interested in his business)? It tells him that – with his current product cost and operating – expenses assumptions and at a price of N200 per t-shirt – he has to sell 5 t-shirts per week just to “break-even’ and cover his expenses. If he can sell more than 5 t – shirts per week, he will begin to earn profit. If he sells fewer than 5 t – shirt per week, he will not cover his expenses with sales and will show a loss for the week. You can see from this example why it is a good idea to try to keep your operating expenses (and products costs) as low as possible. At any particular selling price, the higher your operating expenses (and products costs), the more you have to sell in order to make enough money just to pay your bills.

You may want to include some form of break-even analysis in your business plan as you move toward starting up a business. It will help in establishing goals such as sales targets. It will also help all interested parties to understand when (and if) your business has a chance of showing a profit.


CHAPTER SIX
BUSINESS PLAN
Having an idea for a business and starting up a business are two different experiences. Once you have what you believe is a good idea, the next step will be to explore the idea, the next step will be to explore the feasibility of the idea as an actual business venture – to convince not only you that your idea will work but also to convince others. For example, if you will require money from other people to start your business, they will want to see evidence that the business has a good likelihood of succeeding. In most cases, what they will want to see is a business plan.

A business plan is a document which spells out the goals and objectives of a business and clearly outlines how and when they will be achieved. A business plan organizes your business idea on paper. It helps other people and you to understand the resources and steps needed to create your business and its chances for being successful once it is started.

Why a business plan useful
• The plan will be useful for gaining funding from most financial sources, even family and friends
• The plan will help you to think through all of the various aspects of the business and will help you develop confidence that your idea is a good one
• The plan will serve as a guide once the business is up and operating
• The plan will assist you focused on your goals and strategies
• The plan helps you compare how the actual business performance differs from the forecasted performance

Developing the business plan, if done correctly, should actually be a fun and enjoyable task. It is, after all, the plan for how you will accomplish something that you think is important and beneficial to others, as well as yourself.

That is not to say that a business plan is easy to develop. It usually requires a great deal of research, thinking and writing. You will probably end up talking with many people and going to many places (such as libraries, government sources and professional associations, for example).

There is no single magic formula for a business plan. Businesses are very different from one another, as are entrepreneurs. As a result, plans will vary. However, the following describes some of the key information that you should try to include in your business plan. The following are some of the key points that you should cover in your basic business plan.

A cover page for the plan: indicates the business name, address and contact numbers – including phone, fax and e-mail, if you have all three – and your name.

A table of contents: Do list the sections of your plan with the page numbers for each sections.
An executive summary: presents in summarized form all the key information about the business so that the reader can get a first, quick overview without necessarily having to read through the details of the entire plan.

The executive summary includes an explanation of the type of ownership structure that will be used for this business. These types of ownership structure could be:
(a) Sole proprietorship
(b) Partnership
(c) Private limited company
(d) Public limited liability company
(e) Public corporation e.t.c
An entrepreneur is expected to pick one of the type of ownership structure in his/her executive summary.

A description of the business: Describe the business concept, the good or service to be sold, the competitive advantages of the business, its operating location and its hours of operation.

A description of business personnel: Those who will be running, and involved in business): describes all of the different functions and tasks that will need to be accomplished to run the business, who is going to perform each of those tasks and functions and the previous experience and skills of those people.

A description of the market: presents the results of your market research, identifies the target market for what your business will produce and describes the other business. That will be competing for customers in the same target market.

A description of the marketing plan: highlights the most important benefits of the good or service that the business will produce (and which will be the focus for the marketing plan); identifies the types of promotional appeals and tools e.g advertising) that will be used, and indicates how the promotions will make customers aware of the good or service, help customers understand how the good or service differs from that of your competitors and convince customers to buy your good or services.
Basic financial information for the business:
This includes predicted expenses for starting the business; pricing and break – even analysis; a c ash flow forecast; forecast revenues, expenses and profit, and forecast assets and liabilities.

Additional supporting information: This includes documents or illustrations you think will help the readers understand and have more confidence in the information and forecasts of your plan and in your business’s chances for success. Provide what you think is needed in this section, for example, product endorsement letters, convincing products costs and market research data and examples of promotional tools. Do not provide too much information or information that is not really important. You do not want your plan to be too long or people might not read it.


CHAPTER SEVEN
LIST OF SMALL AND MEDIUM SCALE BUSINESSES
(a) Beverages
1. Fruit juice
2. Soya milk
3. Ice cream
4. Yoghurt
5. Tea shop
6. Chocolate drink
7. Custard powder
8. Wine making
9. Zobo drink
10. Ginger drink
11. Purified water business
12. Brewery malt from sorghum
13. Fruit jam
14. Banana jam
15. Banana malt

(b) Agric Technology and Development
16. Cat fish hatching and fry production
17. Snail farming/breeding
18. Poultry farming and management
19. Rabbit farming
20. Sheep farming and management
21. Bee keeping
22. Edible mushroom and management
23. Piggery farming and management
24. Livestock production and packaging
25. Goat farming
26. Grass cutter farming
27. Bone crushing, bone meal
28. Cotton seed oil
29. Glue from tannery waste
30. Leather tanning
31. Handbags making
32. Leather footwear
(c) Cosmetology
33. Powered soap (detergents)
34. Laundry/bar soap making
35. Shaving powder making
36. Toothpaste
37. Body cream/lotion
(d) Catering (fast food)
38. Beef filled sausages (Gala)
39. Doughnut/egg ball
40. Margarine production
41. Restaurant business
42. Bread production
43. Condiments and spices
44. Food delivery services
45. Indoor and outdoor cooking services
(e) Body products
46. Body lotion
47. Medicated soap
48. Hair cream
49. Setting lotion
50. Body jelly
51. Shampoo
52. Aloe vera gel

(f) Export industries
53. Processed plantation
54. Snail exportation
55. Palm kernel oil exportation
56. Production and exportation of Arabic gum
57. Cashew production
58. Herbs farming and export
59. Ornamental fish export
60. Dehydrated and powered vegetable for export
(g) Herbal technology
61. Herbal tea production for hypertension
62. Growing vegetable
63. Herbal farming
64. Fruit shop

(h) Information Technology
65. Cyber café
66. A business centre with telephone service

(i) Other products
67. Making nylons/plastics
68. Polythene shopping bags production
69. Batik, tie and dye
70. Making lacquer, wood polish and wood glue
71. Flexible foam production
72. Millinery (ladies hats production)
73. Balloon decoration
74. Disinfectant
75. Safety matchers’ production
76. Air fresher
77. Electrical contractor/electrician
78. Photo frame production
79. Gift basket making
80. Wooden black board
81. Metal work production
82. Waste recycling
83. Chalk making
84. Lithographic printing
85. Production of rubber spare parts
86. Special computer training service
87. Book publishing and binding
88. Shoe factory
89. Selling of readymade cloths
90. Dressing mirror and glass wave
91. Sales of plumbing materials
92. Saw milling
93. Raffia cane furniture
94. Briquette of saw dust, for fuel
95. Mechanized fishing boats
96. Ball pens production

(j) Service based business
97. Daycare centre for children
98. Laundry services
99. Health fitness centre
100. Security agency
101. Non-governmental organization (NGO)
102. Consultancy services
103. Traveling agencies and tour service
104. Courier service
105. Films rental service (Video/CD)
106. Beauty saloon for women
107. Barbing saloon for men and children
108. Tutorial/coaching
109. used/consigned cloth
110. Event management promotion, birthday e.t.c
111. Recruit agency
112. Cab services
113. Sports shop
114. Bridal shop
115. Vehicle service centre
116. Language translation
117. Block molding industry
118. Cloths weaving/design
119. Radio cab agency
120. Hotel/lodging bureau
121. Childbirth instructor
122. Comedy writer
123. Mobile books/magazines distributor
124. Store teller
125. Motivational speaker
126. Motor vehicle transportation
127. Actor/Actress
128. Auto maintenance
129. Old people’s home
130. Carpet rug/upholstery cleaner
131. Direct marketing/sales
132. Recreational activities consultant
133. Interior designer
134. Freelance writer/editor/illustrator
135. Translation services
136. Window washing services
137. Web designer
138. Cleaning/forwarding agency
139. Pet breeder
140. Business plan writer/package
141. Photo lab
142. Executive search film
143. Art gallery
144. Public pay phone service
145. Banquet facilities
146. Landscape designer
147. Stockbroker
148. Sign writer
149. Professional model
150. Environmental cleaning service
151. Insurance broker
152. Automotive parts shop
153. Party rentals
154. Professional consultancy service
155. Screen printing on T-shirt e.t.c
156. Software development and service
157. Video production
158. Sandwich delivery service
159. Contract resource person
160. Cartoonist
161. Study abroad consultant
162. Make-up artist
163. Fitness trainer
164. Real estate agent
165. Air brush artist
166. Advertising/sales representatives
167. Cooking class instructor
168. Desktop publisher
169. Political campaign management
170. Car driving instructor
171. Computer consultant
172. Orphanage home
173. Digital colour separation
174. Recording studio
175. Printing service
176. Musician
177. Sport consultant
178. Footballer
179. General contractor
180. Auditing specialist

Some Famous U.S and African Entrepreneurs
Entrepreneurs Entrepreneurial Business Venture
Alh. Aliko Dangote Cement, salt, rice e.t.c
Atidola Agip oil
Alh. Aminu Dantata Dantata & Sawoe Construction Company
Wally Amos Famous Amos Chocolate Chip Cookie Corporation
(Bakery products – goods)
Mary Kay Ash Mary Kay Corporation (cosmetics – goods)
Henry W. Bloch H & R Block (Tax preparation – service)
Emilio Estetan Crescent Moon Recordings (Music Producer –
goods)
Sandra Gooch Mrs. Gooch’s (Natural health foods – goods)
Henry Ford Ford Motor Company (Automobiles-goods)
Bill Gates Microsoft Corporation (Computer Software-goods)
Berry Gordy Motown Records (Music Producer –goods)
Lean Gorman L.L. Bean (Clothing – goods)
Steven Jobs Apple Corporation and Next Corporation
(Computers – goods)
Ewing M. Kauffman Marion Laboratories (Pharmaceuticals – goods)
Ray A. Kroc McDonald’s Corporation (Fast food- goods)
J. Willard Marriot Marriot Corporations (hotels – services)
Dave Thomas Wendy’s (Fast Food – goods)
Gary Yang Yahoo! Incorporated) Search Engines for internet
– goods)
Henry Yuen Gemstar International Group Ltd (Consumer
Electronics – goods)


CHAPTER EIGHT
POULTRY FARMING AND MANAGEMENT
Setting Up a Poultry Farm
Poultry farming business is highly profitable if it is properly run under acceptable methods and conditions that are favourable to the birds. All livestock of which poultry is one, have different ways of producing profitably, and when such norms are ignored by the management of the farm, it will result into serious losses.

Picture of Poultry
To make a success in poultry farming, a lot of work is involve. According to an expert “Prof. Abdulsalam A.”, it is a serious business that demands your resources, energy and time. As a beginner or small starter, it is better and advisable to start with day old chicks then with old chicks and later with old layers. You can begin with 500 day – old chicks if you are interested in the production of eggs and selling off the layers when they are old. A farmer can acquire 500 day-old chicks with N100, 000 prepare the housing and feed the birds till they start generating income to the owner.

Snail Breeding and Management
The snails species we have in West Africa to be specific are Achantina Fulica, Achantina and Achantina Marginate known as GALS (Giant African Land Snails) weighing between 120 – 250gms, which grows occasionally up to 312mm (1ft) in length. The shell constitutes most of their weights and can be found in areas like Benin, Epe in Lagos, Calabar in Cross River, Ore e.t.c in Nigeria. They can also be found in Ghana.

As far as agriculture is concerned, snailery which is the raising of snails and the preparation of its products in varying degrees for man’s use of consumption and their disposal to general consumers is an “exigency” especially due to the high cost of general source of animal protein such as fish, beef, chicken e.t.c.

The demand for snail products is tremendously high that snail rearing or heliculture especially in Europe has become a very lucrative business. Snails may look and act sluggishly or very slow but their efficacy, profitability, economical benefits, marketability and lucrativeness e.t.c are very fast and capable of offering you good return.

Snailery has a lot of economic importance due to the quality and efficacy of its product. Its shell are used in making buttons, earnings, drinking cups, jewelries for wall and lawn decoration, for making combs, flower, pots, spoon, plastics e.t.c. The snail shell are also grinded and used as snail feed for proper growth and development of the snail because it contains calcium.

Heliculture is a treasure that will add pleasure and picture to the future of your business activity and that is why we are encouraging senior secondary students, corp members, unemployed youth and individuals, most especially farmers of the 21st century to go deeply into snail rearing and this could lead to a viable investment with high return. A beginner can start with a minimum capital of N20, 000 to N50, 000.

Beads making and management
With a capital or investment outlay of N5,000, a modest cottage industry on beads making can be started. It does not require an elaborate business plan and machines before you can start it. It is an employment generating scheme. Beaded caps can be sold for as much as N3, 000. A custom made neck-laces, bangles and hair-clips and belts can be sold as much as N4,000 with an initial investment of just only N1, 000 and can be done in a couple of days, especially during one’s idle period. This business can be combined with regular jobs without much ado. This is, therefore a challenge to any unemployed graduate or secondary school leaver. This type of business can be set-up anywhere in the country, even from the comfort of your bedroom. Undergraduates can use this as an holiday job to generate revenue for themselves which may go along way to help them their studies.

Hat making and management
The Nigerian millinery industry has grown in leaps and bounds over the past six years. Today we have a large numbers of milliners who produce world class hats. We can actually say boldly that Nigeria milliners has “arrived”. Hat lovers in Nigeria now prefer Nigeria made hats instead of the imported ones. It id remarkable to note that Nigerian made hats are now being exported to the European and American markets. Hat making is a lucrative business, the starting cost is small and very easy to manage. You can start hat making with N50, 000. It has a large market and all you need to do is to be creative and there will be no limit to your success.

Rabbit farming and management
Rabbit is a good foreign exchange earner. The meat and other related products are gaining popularity within and outside Nigeria. The white meat which is a source of animal protein is of low cholesterol quality that is much needed by people suffering from HYPERTENSION and HIGH BLOOD PRESSURE, because of the relief they obtain by eating the meat as confirmed by dieticians. The meat is in high demand among big men and women who know the worth. This type of meat is highly demanded and eaten all over the world, for the meat is a delicacy.

Rabbits are highly prolific with a high feed conversion efficiency that make them of very high economic importance. The animal is simple to manage, does not eat much food can depend on tender grasses, herbs, shrubs and edible vegetables, because it is a herbivorous animal. The cost of feeding the animals is relatively cheap since they can be fed on grasses alone.

Products from plantain and banana
1. Chips or crisps
Ingredients
(a) Unripe plantain or banana as required
(b) Vegetable oil deep fry
(c) Salt to taste

Method
• Peel plantain or banana
• Immerse in a bowl containing water
• Heat vegetable oil or palm oil in a frying an or electric fryer to about 1700c
• Rub salt on peeled fruits
• Slice salted fruits directly into the hot oil and fry with constant stirring until crispy, golden yellow
• Remove chips into plastic sieve and allow the oil to drain
• Spread chips on polyethylene bag or any clean material and allow to cool
• Package with an impulse (electric) sealer or candle flame with the aid of hacksaw or kitchen knife

2. Fritters
Ingredients
(a) Mashed banana 4 tablespoonful
(b) Wheat flour 3 tablespoonful
(c) Corn starch 1 tablespoonful
(d) Powdered sugar 1 cup
(e) Milk ½ cup
(f) Juice of 1 lemon
(g) 1 beaten egg to taste
(h) Salt
(i) Mix all dry ingredients, except sugar, with mashed banana
(j) Add the lime juice, milk and egg
(k) Fry tablespoonfuls in very hot oil
(l) Sprinkle with the sugar before serving


3. Chom-chom
Ingredients
(a) Plantain or banana paste 3 cups
(b) Wheat flour 3 cups
(c) Vegetable oil Deep fry
(d) Egg 2
(e) Seasoning (pepper, onion, curry, crayfish, salt to taste)

Method
• Method wheat flour into the paste
• Beat the egg and add to the mix
• Add the seasoning and mix further
• Add water to form a fairly thick and consistent paste
• Roll paste into balls and fry in hot until brown

4. Moin-moin
Ingredients
(a) Blended plantain pulp 1 cup
(b) Corn flour 2 cups
(c) Cray fish, pepper, onion, palm oil salt to taste
(d) Egg 2 (cooked, peeled)
Method
• Mix blended pulp into corn flour
• Add crayfish, pepper, palm oil and salt
• Cut to disperse the egg and to obtain uniform mixture
• Pour the mixture into greased cans to about 2/3 full
• Cover the cans with a lid or aluminum foil and place on sticks in a cooking pot
• Stem steadily on fire until cooked
• Remove from fire and serve with custard or pap

Note: The paste can also be cooked in the oven (do not cover the can in this case). I part each of corn flour with plantain paste and cowpea (beans) may also be used. Ingredients and procedures remain the same. The mixture can also be wrapped in plantain or other leaves in place of cans.
5. Flour
(a) Obtain a bunch of unripe plantain or banana
(b) Wash with water to remove dirt and spray residues.
(c) Peel and keep pulps in a bowl containing water to avoid turning
black.
(d) Slice into two halves and over-dried at 600c for 18 – 24hours.
(e) Slices can also be sun-dried for 2 – 3 days (slice thinly to enhance dehydration).
(f) Mill dried pulp, sieving may not be necessary depending on sieve used.
(g) Slices can also be blended and sieve to obtain flour with fine particle sizes.

6. Amala
(a) Mix plantain or banana flour with boiling water
(b) Continue stirring while adding the flour
(c) Let stay on fire for a short while with continue stirring
(d) Allow the paste to thicken
(e) Serve hot with ewedu or other vegetable soup and meat or fish
7. Cake (100%)
Ingredients
(a) Plantain flour 600g 6 cups
(b) Granulated sugar 300g 3 cups
(c) Margarine 180g 2 to 3 heaped tablespoonful
(d) Egg 12
(e) Baking powder 12g 2 level tablespoon
(f) Powered milk 12 2 level tablespoon
(g) Mixed fruit (optional) 180g or as required
(h) Food colour (optional) 2 – 3 drops
(i) Brandy flavor (optional) 1 – 2 drops
(j) Water 230ml 11/2 cups

Method/Procedure
• Mix the flour with baking powder and add milk 5 – 10 minutes later
• Cream margarine and sugar unto smooth
• Add egg to the resultant scream and mix before the addition of dry ingredients
• Mix further with the addition of water to obtain a dropping paste
• Add mixed fruits and few drops of food colour and flavor
• Pour the batter into greased baking pans 2/3 full
• Bake for about 30 – 45 minutes at 1500 – 2000c
8. Meat pie (25%)
Ingredients
(a) Plantain flour 1 cup
(b) Wheat flour 1 cup
(c) Baking powder 1 tablespoon level
(d) Irish potato 2 to 3 medium size
(e) Carrot 2 to 3 medium size
(f) Minced meat or corn leaf 1 cup
(g) Salt, Onions, Nutmeg, magi to taste
(h) Cubes and curry to taste
(i) Butter and vegetable oil 1 tablespoonful

Method
• Peel potatoes and carrot and cut into small pieces and boil with corn-leaf, salt, onion, magi, cubes, curry and boil for about 20 minutes
• Mix the flours with baking powder and set aside for 5 – 10 minutes
• Then add water and vegetable oil or butter and mix thoroughly
• Leave to rise for 15 – 20minutes
• Roll the dough on a floured board and cut into small bits
• Scoop small quantity of the already cooked ingredients and fold into the dough
• Seal and dress the end of fold with a fork
• Perforate the top of the dough with fork
• Brush with beaten egg and bake at 2000c for 30 – 45minutes



9. Biscuit (50%)
Ingredients
(a) Plantain or banana flour 100g
(b) Wheat flour 100g
(c) Sugar 100g
(d) Grated coconut 100g
(e) Egg 2
(f) Baking powder 10g
(g) Water enough to make a stiff – dough

Method
• Sift and mix the two flours thoroughly in a dry mixing bowl
• Cream sugar and margarine until light and fluffy
• Add the flour mixture, baking powder and coconut
• Mix to obtain a fairly stiff – dough
• Roll out on a floured board
• Cut into desired shapes and arrange on baking trays
• Prick (perforate) with a fork
• Brush with beaten egg and bake at 1750c until evenly brown on both sides
10. Chin-chin (50%)
Ingredients
(a) Plantain or banana flour 2 cups
(b) Wheat flour 2 cups
(c) Margarine 2 tablespoonful
(d) Egg 3 medium
(e) Mix 2 tablespoonful
(f) Granulated sugar ½ cup
(g) Baking powder 1 teaspoon level
(h) Curry 1 teaspoon level
(i) Vegetable oil deep fry
(j) Water

Method
• Mix plantain or banana flour into wheat flour
• Add baking powder, mix and set aside
• Cream the mix to soften the pastry
• Beat egg with granulated sugar, milk and curry
• Fold in the flour and add water to bind
• Knead into fairly stiff and smooth dough
• Turn the dough onto a floured board and roll out thinly
• Cut into desired shapes
• Fry the strips in small batches until golden brown on both sides
• Drain and cool before packaging into polyethylene bag
11. Banana figs
(a) Peel ripe banana fruits and slice longitudinally into 2 halves
(b) Slices may be dipped in 1.25% sodium metabisulphite to improve the colour of the product
(c) Dry the slices in the oven for 18 – 72 hours at 600c

12. Malt
Non – alcoholic plantain or banana drink) obtain figs from either plantain or banana as describe above. For the production of “malt” use fairly ripe fruit to achieve stiff product, which is amenable to milling. When the figs are obtained mill into powder and keep until required. For malt production reconstitute about 5.5g (2 heaped tablespoon) of fig powder in 0.3 litres of water filter and mix. Set aside for 5 – 10minutes to enable the component of the powder to each into the water. Filter through muslin clothes, bottle and allow to sediment. Decant or filter again and vanilla flavor, granulated or icing sugar to sweeten the “malt” finally bottle and refrigerate.

13. Banana jam
Jam is prepared by boiling equal quantity of fruit or mixture of fruits with sugar, together with water and lemon juice or lime juice, until the setting point is reached. Lime or lemon juice could be used to replace citric acid, which acts as acidity regulator in commercial jams.
The use of pectin as a gelling agent can be excluded in plantain banana jam, since pectin is present in Musa fruit. During boiling, a proportion of the sucrose is acid hydrolyzed to invert sugar, and a gel is produced on cooling. Scorbic acid is used in jam preservation, which could extend the shelf life for 3 years. No colouring material is required in plantain or banana jam, as desired colour developed on its own according during processing.

Method A
(a) Ripe pulp 200g 2 – 3 small banana
(b) Granulated sugar 200g 1 cup
(c) Water 200ml 11/2 to 2 cups
(d) Lime juice 30-35ml 4 or 5 lime fruit
(e) Sorbic acid 100mg/kg (preservative)

Method B
(a) Ripe banana 670g 6-7 small banana
(b) Sugar 300g 2 cups
(c) Mango juice 82ml 4 to 5 big mango
(d) Orange juice 244ml 6 to 8 sweet orange
(e) Lime or lemon juice or citric acid (optional)
(f) Pectin (optional)

14. Juice
Procedure
(a) Obtain some ripe banana or plantain fruits
(b) Peel and blend the pulp
(c) Soak slurry in hot water for 10 – 15minutes for optimum juice extraction
(d) Pulp and water should be in the ratio 1:3
(e) Filter through white muslin (akamu) cloth
(f) Pasteurize the juice by boiling and simmer for 3 minutes (optional)
(g) Cool and fill into sterilized bottles
(h) Colouring may be added prior to bottling

15. Ice Cream
Ingredients
(a) Ripe banana
(b) Egg
(c) Granulated or icing sugar
(d) Water
(e) Vanilla powder or liquid vanilla flavor essence (a pinch/few drops)
(f) Pint cream – a pinch (sparingly)
(g) Milk (5 heaped tablespoon for powdered or preferably 1 tin of evaporated
Method
(a) Peel and blend the pulp
(b) Soak slurry in hot water for 10 – 15 minutes for optimum juice extraction
(c) Pulp and water should be in the ratio 1:3
(d) Filter through white muslin (akamu) cloth
(e) Add all ingredients to the extracted juice and mix thoroughly
(f) Pour into cream cups or seal in polyethylene bag
(g) Place in a freeze until required

16. Detergent Production
Processes of production
1. Get water (natural water) - 2 bottle
2. Add caustic soda (1/2 kg) – it can be soaked for 24hours before production
3. Add palm (pk), cannel oil while stirring
4. Add soda ash 911/2 kg)
5. Add industrial salt (1 rod)
6. Add stain removal
7. Add foaming agent
8. Add any colour of your choice
9. Add perfume
10. Add solpholic acid
11. Add hydrogen peroxide
12. Spread it to dry and later package

17. Black Soap
1. Get a waste plantain
2. Get a palm oil
3. Born them together at a high temperature till it dry

18. Soy milk
Healthy soy milk can be made easily at home. This book you will know how to make your own soy milk for a fraction of the cost when compared to shop bought soy milk. There is automatic or industrial soy machine or soy milk maker which you can use to produce in large quantity

Procedure/steps
1. Soak the soya beans over night in a large bowl of water (they swell up to 3 or 4 times their dry size). The amount of soaked beans to use is about one cup per litre of milk required. Once you have made soy milk a few times you can try varying the proportions of beans and water to make either thicker milk or thinner milk, depending on your taste.
2. Crush the soaked beans: Put a cup of beans in your food blender and add 3 – 5 cups of water. Blend for a minute until all the beans are broken down
3. Strain the ground beans liquid: strain the resulting liquid through a cheesed cloth into large pan. Wrap the cheesecloth around the remaining bean pulp (known as Okara) and squeeze the cloth so as much of the liquid is extracted as possible. Once you have extracted as much of the liquid as possible unwrap the cheesecloth and remove the okara. Now remove any foam off the top of the milk liquid in the pan using a sieve or ladle. This straining stage affects the smoothness of the milk by influencing the amount of fibre in the milk. If you remove the hulls of the soya beans before you grind them in the blender you will make smoother milk. You can if you wish to repeat the straining stage to remove further okara from the liquid.
4. Boil the soy milk: place the pan on the oven hob and heat until the milk starts to boil. Be careful and make sure to use a pan much deeper than the amount of milk you have as when the milk starts to boil it will quickly foam up and over sides of the pan if you are careful. Boil for about 5 minutes then remove the milk from the heat and allow to cool.
5. Flavouring: Plain soy milk can have a slightly bitter beany taste and as such many people like to flavor their milk and if you buy soy milk from a shop in a carton then it will often be flavoured. Vanilla and chocolate are popular shop bought soy milk flavor. The Chinese often use savpury flavourings to flavor their milk and use soy milk to make almost soups by adding soy sauce, spring onions, pickled vegetables e.t.c. vanilla and sugar is a common flavouring and these should be added when the milk starts to boil.
6. Using your soy milk: You now have your home made soy milk that is free from artificial preservatives, flavourings and additives. Once cool the soy milk is ready to drink and can be kept in the refrigerator for three days. The above process can be followed when using industrial machine to produce for sale in large quantity.

19. NAFDAC Specifications for fruit juice production
The following machineries are basic requirements for setting up juice processing plants:
(i) Fruit washing machines
(ii) Fruit expeller
(iii) Extractors
(iv) Filtration unit
(v) Blending machines
(vi) Pasteurizer
(vii) Conveyor belt
(viii) Stainless top working tables
(ix) Storting plastic capping
(x) Canning machine
(xi) Bottle corking machine
(xii) Tetra- packaging machines

Factory Layout
1. Although some of these machines can be purchased locally, others have to be imported from South Africa, Europe, America and Asia countries e.t.c
2. All these equipment should be installed according to standard specifications on space allowance and safety precautions. A space of about 400 square metres is adequate for a plant than can produce 1 million litres of juice per year.
3. NAFDAC requires that a minimum of 3 meters space be provided between the lavatory (toilets) and the processing section. The toilet should be separated from the processing section
4. The plant should be well ventilated, especially in case of processing operations that could result in effluent.
5. In case of table water, juice, syrups, and other liquid products, tiles should be used in the entire processing room(s)
6. The material of construction should meet the specified standards

Suggested sources of machinery
Automatic bottling plants for juice, table water, yoghurt and soft drinks in PET bottles are available at Kangra Industries Limited at 5A, Vori Close, Off ACME Road, Ogba Industrial Estate, Ikeja, Lagos State, Nigeria E-mail:sales@kangrasnacks.com. These are NAFDAC approved facilities for industrial production.

Raw Materials
1. These include carefully selected ripe fruit of the highest quality in terms of colour and freedom from diseases or flecks
2. Water obtained from a clean source, industrially certified as free from germs is required
3. Sweeteners such as sodium cyclamates (in some instances), sugar
4. Preservatives like sodium benzoate, sodium nitrite, nitrates, sulphur dioxide, carbon dioxide, copper carbonate and benzoic acid may be needed.

Production Process
Fruit juice production process follows these steps:
(a) Washing
(b) Peeling
(c) Pulpering
(d) Pressing/extracting (in case of banana hut water or enzymatic extraction is required)
(e) Filtration (centrifugation is also ideal in case of banana)
(f) Blending
(g) Reforming
(h) Pasteurization
(i) Evaporising
(j) Bottling/canning/tetra or spectra packaging

1. Essentially, the water used to wash the fruits should be chlorinated at 7 – 10mg per litre. The washed fruit have their epicarps peeled off by peeling machines. The peeled fruits, which is made up mainly of the juicy part is again washed with water before cutting into pieces, shredding, crushing to squeeze out the juice.
2. The juice is filtered or sieve to remove some floating fibres before undergoing pasteurization; the fruit juice is subjected to heat treatment at the temperature less than 1000c and at 1 atmosphere pressure. Juices of oranges, mango and pineapple could be pasteurized at 600c for 30minutes. The importance of pasteurization is to destroy the vegetative cells of the spoilage bacteria, moulds, and yeasts. The advantage is the ridding off, of disease causing micro- organisms, while still retaining the colour, natural flavor, and the nutritive values.
3. It should however, be noted that the fruit juices of oranges, pineapples, tomatoes and banana are regarded as acid food with pH of between 3.7 and 4.5. This acidity naturally inhibits the growth of some spoilage microbes.

Additives
The additives used in fruit juices include sweeteners, minerals, and preservatives to extend the shelf life. However, there are many fruit juice products without additives.

Packaging
Fruit juices may be packed in different types of materials such as protective paper packages, bottles, spectra packages, and plastics. All these packaging materials are effective in keeping dust, micro- organisms and contaminated air away from the fruit juices. Canning of juice involves the use of agitate, spiral or helical retorts. Filling is done at high speed with a weighed amount done mechanically or using automatic filling machines. The cans are exposed to steam or hot water to create space at the top. Filled and exhausted cans are sealed automatically. Hermetic sealing ensures that no air enters.

Profit Margin
A fruit juice plant with a capacity of 1, 000 litres per day could be established with the sum of about N4 million. This could provide a gross profit of N3-8million in the first two years of operation. This suggests that the investor could, with proper management, recoup his capital in a period of 21/2years. The return on investment could be as high as 62%, such a plant can gainfully employ 16 to 20staff.


Conclusion
The advantages of fruit juice production are numerous
1. Fruit juice production has been identified as viable business venture economically and technology
2. The major raw materials such as fresh fruit and water are locally available
3. The project could reduce youth unemployment, which stands at over 23 million (2010)
4. It would also help to reduce rural-urban drift
5. It would reduce huge cost harvest losses accrued by farmers.

NB: I suggest you make a trip to NAFDAC branch office in your respective state or their headquarters for more details and necessary clarifications. Registration with Corporate Affairs Commission is prerequisite to NAFDAC registration.


CHAPTER NINE
PLANTAIN AND BANANA PROCESSING FOR SMALL AND MEDIUM SCALE ENTERPRISE (SME)
20. Plantain or Banana Flour and Figs (Minimum Capital Requirements N100, 000)
1. Raw materials (unripe, green plantain or banana)
2. An oven of between N10, 000 to N30, 000 can be constructed and powered with cooking stove N10, 000 for the cost of two to three stoves, depending on the sizes of the oven) or firewood can be used as well.
3. Milling machine (hammer mill) N20, 000 – N50, 000
4. Electric (Impulse) sealer N4,500 – N12, 000
5. Other kitchen utensils (buckets, bowls, knives, sieves, frying spoons and hand gloves)
6. Packaging materials (plastic films such as low density polythene, polypropylene or cellulose)
7. Working benches
8. Processing unit
9. Staff cost
10. Maintenance cost

The oven could be used for the drying of peels and other components required for soap making. Other materials include kitchen utensils, heating devices, and palm oil and packaging materials.

21. Plantain Chips (Minimum capital requirement for small scale N20, 000)
1. Raw materials (unripe plantain or banana) and cooking oil
2. Electric fryer N12, 000 to N15, 000
3. Electric (impulse) sealer N4, 000 – N12, 000 depending on size
4. A set of plantain slicer N500 (6 pieces N3000)
5. Other kitchen utensils (buckets, bowls, knives, sieves, frying spoons and hand gloves)
6. Seasoner (Salt or sugar, e.t.c)
7. Packaging materials (plastic films such as low density polythene, polypropylene or cellulose)
8. Working benches
9. Processing unit
10. Maintenance cost
11. Staff cost

(a) Alternatively frying could be accomplished with the aid of frying pans or earthen pot and locally fabricated cooking stove
(b) The price of a gas cooker with 4 or 6 burners and hot plate ranges between N50, 000 –60, 000.
(c) Standing gas fryer with one or two frying compartments cost between N500, 000 to N600, 000 in the supermarket in Port-Harcourt, Lagos in case of medium or large scale production

22. Juice Production
(Minimum capital requirements for small scale N50, 000)
1. Raw materials include ripe banana or plantain, lime or lemon, sweetener (e.g sugar or high fructose or glucose syrup, colouring and flavor)
2. Giant, locally fabricated cooking stove sold for about N5, 000 to N8, 000
3. Kitchen utensils (metal bowls, muslin, sieve, funnel, knives,, stirrer)
4. Preservative
5. Bottles and corks can be manufactured by glass companies based on specifications
6. Working benches
7. Processing unit
8. Maintenance cost
9. Staff cost

Industrial centrifuge and corking machine and other facilities as stated in NAFDAC specification would be required for large-scale production.

23. Malt Production
(Minimum capital requirements for small scale N35, 000)
1. Raw materials include ripe banana or plantain, lime or lemon, sweetener (e.g sugar or high fructose or glucose syrup, colouring and flavor)
2. Moisture extraction oven (locally manufactured oven is about N10, 000 or more, depending on size)
3. Working tables
4. Kitchen utensils (metal bowls, muslin sieve or cheesecloth, funnel, knives, stirrer) N10, 000
5. Bottles and corks can be manufactured by Glass Company based on specifications.
6. Industrial centrifuge and corking machine, and other facilities as stated in NAFDAC specification would be required for large-scale production
7. Processing unit
8. Maintenance cost
9. Staff cost

24. Banana Jam
(Minimum capital requirements N10, 000)
1. Raw materials include ripe banana or plantain, granulated sugar, lime juice, water and preservative (sorbic acid)
2. Giant, locally fabricated cooking stove sold for about N5, 000. Other cooking utensils include aluminum pots, buckets, bowls, knives and stirrer.
3. Processing unit
4. Maintenance cost
5. Staff cost

25. Bakery Products (Bread, Cakes and Pies)
(Minimum capital requirements N50, 000)
The major component is the baking oven (locally made oven may cost about N10, 000 to N20, 000.

Baking may also be achieved with the aid of cooking stove. Facilities will also include mixer (N10, 000 or more, depending on type), baking pans and other utensils (N10, 000).

Fries
Chin-chin, chom-chom, moin-moin, akara, fritters, buns, puff-puff, e.t.c (Minimum capital requirements N25, 000)
Electric fryer is the major components (N12, 000). For chin-chin e.t.c electric (impulse) sealer N5, 000 to N12, 000 will be needed for packaging. Cooking utensils may gulp about N5, 000.

(a) Alternatively frying could be accomplished with the aid of frying pans or earthen pot and locally fabricated cooking stove
(b) The price of a gas cooker with 4 or 6 burners and hot plate ranges between N50, 000 – N60, 000
(c) Standing gas fryer with one or two frying compartments cost between N500, 000 to N600, 000 in the supermarket in Lagos or Port –Harcourt. This is fro medium or large – scale production.

CHAPTER TEN
DYEING AND MANAGEMENT
Dyeing is a process where dyes are used in staining a favric to produce a definite design. There are many styles of dyeing though it varies from tribe to tribe, country to country e.t.c. for instance Oshogbo method of dyeing varies from Abeokuta and they are also different from that of Sierra Leone and Gambia. These designs are commonly known in Nigeria as Adire or Kampala.

Dyeing, process of colouring textile fibres and other materials so that the colouring matter becomes an integral part of the material rather than a surface coating. Dyeing consists of immersing the textile or yarn in a solution of a dye stuff and agitates it continuously for a period of time to enable sufficient dye stuff to pass from the solution into the fibres. The textile material and the dye solution selected must have an affinity, if a consistent colour is to be produced. The material must therefore be move continually, as the even wetting of the material by the dye liquid is crucially important.

Printing is a process allied to dyeing in which a fixed pattern is applied to one side of the fabrics by means of a dyestuff carrier paste. The main classes of dye are: basic dye, acid wool dye, direct cotton dyes, sulphur dyes, vat dyes, reactive dyes, disperse dyes and indigo dyes. But we are going to discuss vat dyes and reactive dye (dylon dyes)
Application of Dyes
Dyeing can be carried out at any one of several points:
1. In cross – dyeing fabrics of two or more fibres can be dyed so that each fibre accepts a different colour, through the use of appropriate dyestuffs for each fibre
2. Before the fabric is finished, it can be dyed in lengths (piece) dyeing. This process allows manufacturers the opportunity to produce fabric in their natural coloyrs, and then dye them to order.
3. The fibres can be dyed before they are spun. Fibre dyeing provides a deep penetration of the dye into the fibre, giving even colour and excellent colour fastness.
4. The fabric can be union-dyes that is, two types of fibres are dyed to a single colour. Certain dyestuffs have affinity to particular fibres, so a fabric containing two or more types of fibres can be dyed to a consistent colour. Dyes that can be applied simultaneously are used. It is possible to use the dyes independently of each other within the dyeing process
5. The yarn can be dyed after spinning but before the product is woven or otherwise fabricated. This is called package dyeing. Yarn dyeing can be applied to skein-wound threads or to threads wound lightly on a cage like tube and put into pressure vat for application of the dyestuff.
6. The yarn can be space – dyed. This is a method of applying dyes to predetermined parts of a thread. Multiple dyes can be used to produce a thread with different colours along its length, resulting in a pattern in the fabric. It is essential for the correct identification of the fibre or other fabric to be made before dyeing commences. Some textiles have to be prepared for dyeing by the removal of finishes.

Chemicals for VAT Dyes
Sodium Hydroxide (NAoH) also known as caustic soda or lye. It is a strong metallic base, a highly corrosive substance and can cause severe burns to the skin and damage to the eyes on contact. The dust is harmful if inhaled. It is widely used in industries.

Caustic soda is a white odourless, crystalline solid. It is stored in an air tight plastic container as it absorbs moisture and carbon dioxide from the air, though it could be used at any state, you run the risk of using the wrong measurement. If it turns liquid as a result of exposure to air or congeals, however, it could used at any state. If it is in excess, it weakens the fabric and if it is not enough it will not activate the dye very well. It is soluble in water, (the reaction is highly exothermic) and in alcohol. Caustic soda is available commercially in the form of pallets or sticks and also in solutions

Caustic soda is a strong base. It reacts with acids such as hydrochloric acid to form a salt and water in a neutralization reaction. It is used in many manufacturing processes specially in making detergents, soaps, paper and textiles like rayon.

Caustic soda is relatively cheap and easy to produce. Industrially it is chiefly produced as a byproduct in the process of making chlorine by the electrolysis of a solution of sodium chloride. It enables VAT dye to penetrate into a fabric. Store in a cool dry place but not inside a metal container otherwise it will corrode.

Sodium-hydrosulphite (Hydros) Na2S2O2: This is a whitish crystalline salt used in photographic fixing, bleaching, and fixing of colours to fabrics. It is powdered in texture and it contributes a lot to the success or failure of any dyed work. It is a colour booster and helps retain colours on fabrics.

Hydros has an odour like a rotten egg and if the odour is not very strong as at the time of use, it procedures a poor result after dyeing. Most problems in colour of dyed works come from the state of hydros. That is why it must be stored in an air tight container so that the power will not escape to the detriment of the designer.

When hydros is congealed and not smelling like rotten egg it is not recommended for use unless you must activate it with a stronger one. Because of its door, gas mask should be worn when mixing it to dye, though the BASF (Germany) products of hydro sulfite usually do not smell, and it has advantage over the Asian products.

Dyeing process with VAT Dye
Plain Colour: In dyeing plain colours, you firstly consider the quality of the fabric to be dyed, whether it can absorb the type of dye you are using, it is advisable to check the label of the cloth to know the manufacturers information whether it is 100% cotton or not. Again you consider the background colour, it is always safer to dye a deeper shade of the original colour because if you dye a yellow fabric in blue dye, you will achieve a greenish colour. Purple dye on yellow background will give you brownish shade, and so on. Unless the original colour was dyed with reactive dye while you are dyeing with VAT dye that contains sulfite and caustic soda. Then it will bleach off the background colour and impose itself on the fabric.

The more colour of dye stuff you add, the richer the colour on the fabric will be, but if you need light colours like grey, lilac, light green, sky – blue e.t.c use quarter of the below measurement of dye but the same amounts of chemicals is required. However, the measurements are not constant but could vary depending on the weight of the fabric, the quantity and the desired shade.

Step 1
Destarching: This involves removal of starch from the fabric which it received from the weaving factory. Washing the fabric in cold or hot water but without soap allow all the foreign body that may prevent the dye from penetrating the fabric to wash off.


Mixing of the chemicals: Approximate amount to be used

Material/yardage Hydrosulphite (B.A.S.F Germany) Caustic soda Hydrosulphite China Product Caustic soda
1 yard 1 tablespoon ½ tablespoon 2 tablespoons 1 tablespoon
2 yards 2 tablespoons 1 tablespoon 4 tablespoons 2 tablespoons
3 yards 3 tablespoons 1½ tablespoon 6 tablespoons 3 tablespoons
4 yards 4 tablespoons 2 tablespoons 8 tablespoons 4 tablespoons
5 yards 5 tablespoons 3 tablespoons 10 tablespoons 5 tablespoons

1. Therefore the new Germany B.A.S.F hydrosulphite is far more concentrated and economical than the Old China hydrosulphite
2. It brings out the real shades of the dyes used
3. It is odourless and less hazardous to health

Dylon Dyes: (Reactive dye)
Dylon dyes were founded in London in 1946, the dylon name was derived from dyes of London. Dylon dyes are exported worldwide today and it comes in different colours and purposes. The multipurpose dye was the first dylon product in the market. It comes in different packs and direction for use is always attached to every pack.

Dylon hand dye
1. It gives semi permanent colour to cotton, linen and viscose
2. Lighter shades are obtained on wool, silk and polyester/cotton mixes
3. It is ideal for dyeing smaller items like T-shirts. One pack will dye yp to 250g of dry weight fabric.
4. Add 250g of salt, increase the quantity of water and salt in proportion of the number of the packs used.

How to use Dylon hand dye
1. Wash fabric thoroughly with only water and leave damp
2. Dissolve the dye in 1 litre of warm water wearing handgloves
3. Put more hot water in another container enough to let the fabric swim very well in the dye bath. Add 250g of salt stir very well and add the dye solution
4. Open the wet fabric and submerge for 1 hour. Agitate continually for 15 minutes then occasionally for the remaining 45 minutes
5. Rinse in cold water until the colour runs clear, and then wash in hot water with normal detergent. For wool and silk, wash in lukewarm water.

Cold water Dylon
1. Use by hand, ideal for craft work
2. Used with dylon cold dye fix, gives semi permanent colour to cotton, linen and viscose, with lighter shades on wool silk and polyester/cotton mixes
3. Ideal for craft project such as tie-dye and batik and for small items e.g T-shirts
4. Can also be used to dye unfinished wood
5. One tin will dye up to 250g/80z of dry weight fabric. For black only one tin will dye up to 125g/40z of dry weight fabric.
6. Add 125/40z of salt and 1 sachet of cold dye fix. Increase the quantity of water and salt in proportion to the number of packs used
7. For wool only use vinegar instead of fix and salt.

How to use cold water dye on fabric
1. Wash fabric thoroughly and leave damp
2. Fill a bowl with enough cold water to cover item.
3. Wearing rubber glovers, dissolve dye in 500ml/1pint of hottest tap water and add to bowl
4. Dissolve 125g/40z of salt

Dylon machine dye (for front – loading washing machines)
1. It gives semi permanent colour to cotton and viscose
2. Lighter shades are obtained on polyester/cotton mixed
3. One pack will dye up to 500grams of dry weight fabric
4. Always add 500g of salt not minding the number of packs used

Approximate amount to be used
Item packs
Jean 1
Shirt/2 1
Trousers 1
Dress 1
If the weight of the fabric is more than 250g use more packs.

How to dye black jean with stone black dye
Step 1: The jean must be free from oil, it is advisable to wash with soap before dyeing

Step 2: mixing of chemicals
Use 4 table spoonfuls of sulfuric 200 (stone black dye)
4 tablespoonfuls of soda ash
4 tablespoonfuls of flakes chemicals
5 table spoonfuls of domestic salt
Or
4 tablespoonfuls of sulfuric 200 (stone black dye)
6 tablespoonfuls of sulfite
3 tablespoonful of soda
Dissolve with hot water and add more cold water before immersing the jean in the solution wearing head gloves. While the water is boiling on the fire, pour the chemicals and dye after one another, anyone can come first.

Step 3: Stir very well and dip the jean in the boiling chemicals and keep turning with stick. Allow to cook for about 30 minutes.

In case you do not have facilities for cooking then add all the chemicals and dye as in step 2 in plastic container, add boiling water to the chemicals enough to allow the jean swim very well in the dyeing bath. Stir very well; the jean to be dyed should be dry before dipping into the dye solution. Keep turning until the water gets cold.

Step 4: Take it out from the dye bath wearing hand gloves, hand on wire. Allow it to oxidize for 10 minutes and wash out the excesses with hot water. Rinse until no more colour is bleeding. Spread under a shade until the jean is dried.

Dyeing jean using sulfite and soda
1. Dissolve 6 table spoon of sulfite in 11/2 litres of hot water
2. Add 3 tablespoons of caustic soda and mix it
3. Add 4 spoons of stone black dye and dissolve it very well. The colour of the mixture will turn to urine colour, but if it is still showing black after the mixture, add more sulfite until you achieve the urine colour
4. Add enough cold water to allow it swim in the dye bath. Dip the jean in the solution and agitate continuously for 15 – 20minutes. Bring it out and wash until the water is clear. This method saves water and the dyed jean last longer.
Care of Jeans
1. While washing a dirty jeans, soak for 3 to 5 minutes in ordinary water
2. Wash off with bar or toilet soap and dry
3. Don’t squeeze the jean much
4. Do not use hard brush to wash
5. Don’t soak overnight
6. Do not use washing machine
7. Apply light starch after wash
8. If you observe all these, your jean will last longer

REFERENCES/ RESOURCES;
1. ENRY BENC. - Dyes print in textile, revised edition.
2. AGUNDA DYEING CENTRE - Lagos state
3. AFRICAN Fabric - By Ronke Luke – boons
4. KFO NIG ENI - Kampala & Dye stuff 30 sologun street, Aguda S/here, Lagos

GLOSSARY OF KEY TERMS
• BREAK-EVEN POINT: The minimum sales revenue or total units sold needed for a business to be able to cover its own expenses and begin to make a profit.

• BUSINESS PLAN: A planning document for a new entrepreneurial venture that helps other people and the entrepreneur understand the business idea, the market opportunity, and the resources and steps needed to create the business and operate it successfully.

• CASH FLOW FORECAST: Process of estimating the cash that will be coming into a business and the cash that will be flowing out of the business during the same period of time.

• ENTREPRENEUR: One who identifies a market opportunity others have overlooked and who acts on those opportunities to create new goods, services, and the business ventures based on them.

• EXPENSES (TOTAL): Product costs plus operating expenses.

• FLYERS: Short, inexpensive printed paper materials that are used for mass advertising of a good and/or service
• GOOD: Something sold to customers that are physical (tangible). A good can be “touched”
• INTEREST: Price being paid to the lender for using his or her money.

• LOSS: Total expenses minus total revenue expended over a period of time, when total revenue is less than the total expenses.

• MARKET APPEALS: Approaches used to convince customers that they really need a good or service, such as attractiveness (e.g makes one look prettier/healthier), quality (e.g best product on the market), status (e.g first in your group to own one) e.t.c

• OPERATING EXPENSES: Costs that are required to cover the basic, ongoing operation of the business such as rent, advertising and utilities. For production of goods, operating expenses do not include product costs.

• PRODUCT COSTS: Usually refers to the cost of the actual materials and labour used to produce the goods that are sold to customers, also called cost of goods sold.

• PROFIT: Total revenue minus total expenses over a period of time, when total revenue is greater than total expenses. This is the net-income a business has earned over that period of time, after covering all expenses (except taxes)

• REVENUE: Total Naira/Dollar amount a business receives from the sale of its goods/services over a particular period of time.

• SERVICE: Something sold to customers that is not physical (tangible) and cannot really be “touched”

• START-UP COSTS: Total amount of money needed to get a business up and running.

• TARGET MARKET: A smaller portion of the overall main customer group for a particular business or industry. This smaller group is made is made up of potential customers who are believed to be most likely to purchase the good or service offered by the entrepreneur.