Here is the Sample Charcoal Retail Business Plan Template. In my earlier artile titled ‘Charcoal Retail Business a Panacea to Poverty in Nigeria
‘ I promised to write a sample business plan for charcoal retail business. That is because, the category of the traders in this class that I intend reaching may not be able to afford a formal business plan. This business plan template is the fulfiilment of my promise. I advise that readers should carefully follow the steps involved so that they can apply them to their small scale business.
I had prior to this written certain articles that could help you too in planing for your business.
Who Should Benefit from this article?
In fact, these articles are good enough to educate you on how you could put down some facts about your business processes in form of business plan.
This template even though is for very small scale businesses/traders, it could still help those of you in larger businesses. Therefore, charcoal production/ briquettes business plan, business plan for charcoal export, charcoal processing in Nigeria, and other line of this business aimed at making money from charcoal are fully covered.
Generation of Business plan variables @ Sample Charcoal Retail Business Plan Template:
For you to be able to do your business plan yourself you must be able to generate certain facts that will be applied in the narratives of the business plan.
First: What is the business plan for? Do you want to use it to borrow money from your relatives, community meetings, your church etc. Is it for your management purpose only?
Secondly: Ascertain your capital need. How much actually do you need for this business. This will lead you into certain calculations, such as Ascertaining your fixed asset need, Operating expenses/working capital need, and others.
If you have gotten all the above facts, let’s get on with the business plan proper.
Business Plan Content @ Sample Charcoal Retail Business Plan Template
This business plan content shall be summarised as:
- The Executive Summary (to be written lastly)
- Business Profile: Management Team, SWOT Analysis
- The Product
- The Market
- Marketing strategy
- Financial plan/Forecasts
- Financial Analysis
Sample Charcoal Retail Business Plan Template – 1.Executive Summary:
This business plan is for Kitchen Power Charcoal Enterprise. The purpose of this business plan is to raise N10,000.00 from my community meeting based in Kurudu Abuja.
The business plan shows the operation of the business for three years. The financial plans reveal that this capital will be able to generate about N1,080,000 turnover in the first year with a 30% growth in the second year giving rise to a turnover of about N1,404,000 in the second year. This give a net return of N125.000 in the first year.
2. The Business Profile:
Kitchen Power Charcoal Enterprise is owned by Mr Ibro Madu and his family. The business is to be located in Kurudu Market, Abuja.
The business is to be run by me with little assistance from my family. No extra labour is to be hired. When need arises casual labourers will be hired to assist at such one-off times.
In fact, our competitive advantage which is a big strength for this business is that there is only one person trading on the product in the Kurud market with little or no capital. It’s hoped that if I can get the capital required for this business I will be able to take over the leadership of this business in that market, enjoying not less than 60% of the market share.
The weakness I’m envisaging is the operation of the business by myself alone at most times. This business needs that somebody must be at the shop at all times.
Furthermore, the opportunities available to me is that I have discovered and have arranged with a big supplier from Nyanya Market, who will be supplying me directly two times a week. On the demand side is the opportunity of two existing bakeries and over 20 men and women road side vendors who are always demanding charcoal for their business. Again, is the nearby drinking bars and fish roasting restaurants and joints who need charcoal to do their businesses.
However, the threat of this market is that the government environmental office would always be disturbing because of its tendency to dirty the environment. This means that I will take extra measure and cost to ensure that the business environment is always kept clean.
As a matter of fact, Charcoal is a left-over or residue of a chemical reaction on animal and vegetable substances. It’s basically a scientific process of removing water from wood leaving a black substance and ash which is what we call charcoal.
Charcoal has two types. There is the hard one which does not catch fire easily and the light one which catches fast and burns out quickly too.
Charcoal is produced in many places in Nigeria. Places like Kaduna, Lokoja, Kabba, oyo and many other places.
There also distributors who buy in large quantities from these sources and from where I will be sourcing my wares.
Charcoal is not a seasonal product. It’s always available.
4. Sample Charcoal Retail Business Plan Template – The Market
There is market for charcoal always. Prominent among the users of charcoal are:
- Industrial settings like Bakeries,
- Food vendors
The demand from these users are enough to keep the market going.
5. Marketing Strategies:
The marketing strategies I would use include:
- Direct delivery to the users
- Regular Phone contacts
- Open display of the product
- And other relevant ideas as need be.
6. Financial Forecast Sample Charcoal Retail Business Plan Template:
With N8,000.00 as working capital, and a bag of charcoal sells for N1,300, I shall be able to buy 6 bags two times in a week. That means 12 bags in a week and 540 bags in a year, taking a business year to be only 45 weeks, giving allowances for non-business days of the year. This will cost N 702, 000.
In fact, a simple assumption of selling all the 540 bags in the year at the rate of N2,000.00 per bag, is used here. That will give a turnover of N1,080,000.
Operating Cost Estimates:
- Shop rent is N20,000 per year.
- My allowance is N180,000 ( N15,000 x 12 months) per year.
- Carriage and other expenses at each supply N500.00 to give N500 x 90 = N45,000 ( 6 bags are bought 2 times a week.
- Local government rates and other expenses average N 8,000 per year.
All these give a total of N253,000
Sample Charcoal Retail Business Plan Template – 7. Financial Analysis
The Projected Income Statement:
Less cost of sales:
Carriages 45,000 747,000
Gross Profit 333,000
Director’s allowance 180,000
Shop rent 20,000
Local government rates 8,000 208,000
Net Profit 125,000
Gross Profit margin 30.8%
Net Profit Margin 11.5%
The business shows a positive returns. But the net profit margin is very small. This is due to the N180,000 allowance to the proprietor annually.
My Opinion @ Sample Charcoal Retail Business Plan Template:
As can be seen in the analysis done so far, charcoal business could be a lucrative one. The N8,000 working capital on which we based our calculation could be very small for this business.
But then, if N8,000 can generate such an income that gives the family a regular monthly allowance of N15,000 and still leave a net profit of N125,000 in the end, what do you think will happen if more efforts is given to this business. That is why I insist that ‘Charcoal Retail Business is a Panacea to Poverty in Nigeria’
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Founder/Managing Partner of Complete Full Marks Consultants Ltd. An Economist turned Chattered Accountant and Tax Practitioner with over 37 years of industrial experience.