Executive Summary of Block Industry Business Plan in Nigeria
PATILAD BLOCKS is a business involved in the manufacturing of concrete, bricks, and blocks for masonry, builders’ associations, housing consultants, development agencies, construction workers, etc.
We make blocks of uniform quality and sell them at a price high enough to cover costs and make a reasonable profit.
Cement concrete blocks are modern construction materials and as such are used in all construction viz: residential, commercial, and industrial building construction.
Executive-Summary-Block-Industry-Business-Plan-in-Nigeria.
The business is owned by Dayo Adetiloye with over 15 years of experience in Block making and construction works industry.
The project setup cost is N5 million using imported machines.
The project is very profitable. With aggressive marketing strategies, good management, and the payback period would be less than 2 years. The return on investment is very encouraging at 25 percent of profit.
We forecasted a 40% market share in our immediate location with plans to extend our operations to other locations subsequently. The business will generate a very high gross margin and a modest net margin of about 10% in the first year and a 25 -30% margin after year three.
Problem Statement:
The construction industry plays a pivotal role in infrastructure development, catering to various sectors such as residential, commercial, and industrial buildings. However, despite its significance, the industry faces several challenges, particularly concerning the availability of quality construction materials. One pressing issue is the inconsistency in the quality of concrete blocks supplied by manufacturers. This inconsistency not only hampers the structural integrity of buildings but also leads to inefficiencies and increased costs for builders, developers, and construction workers.
Traditional methods of block manufacturing often result in variations in size, shape, and strength, which can compromise the stability and durability of structures. Moreover, the lack of standardized practices and quality control measures further exacerbates this problem. Builders, associations, housing consultants, and development agencies are frequently confronted with the dilemma of sourcing reliable construction materials that meet stringent quality standards.
Additionally, the fluctuating prices of raw materials, especially cement, pose a significant challenge for manufacturers like Patilad Blocks. These price fluctuations not only impact production costs but also make it difficult to maintain competitive pricing without compromising on quality.
Solution Statement:
In response to the aforementioned challenges, Patilad Blocks proposes a comprehensive solution aimed at revolutionizing the concrete block manufacturing industry. Our solution encompasses several key components designed to address the issues of quality inconsistency, lack of standardization, and cost volatility:
- Advanced Manufacturing Techniques: We will invest in state-of-the-art machinery and technology to streamline the block manufacturing process. By adopting automated systems and precise molding techniques, we ensure uniformity in size, shape, and strength across all our concrete blocks. This commitment to consistency will enhance the structural integrity of buildings and instill confidence in our customers regarding the reliability of our products.
- Stringent Quality Control Measures: Quality assurance will be at the forefront of our operations. We will implement rigorous quality control protocols at every stage of production, from raw material procurement to the final product. This includes regular testing of concrete mixtures, strict adherence to industry standards, and thorough inspection of finished blocks to eliminate defects. By prioritizing quality, we aim to surpass customer expectations and establish ourselves as a trusted supplier in the construction market.
- Standardization and Certification: We will work towards obtaining relevant certifications and adhering to national and international standards for concrete block manufacturing. This commitment to standardization not only ensures compliance with regulatory requirements but also enhances the credibility of our products in the eyes of customers and stakeholders.
- Strategic Sourcing and Pricing: To mitigate the impact of raw material price fluctuations, we will establish strategic partnerships with reliable suppliers and negotiate favorable pricing agreements. Furthermore, we will explore alternative materials and eco-friendly practices to reduce production costs without compromising on quality. By implementing efficient cost management strategies, we aim to offer competitive prices while maintaining profitability.
- Customer Education and Engagement: We recognize the importance of customer satisfaction and transparency in building long-term relationships. Therefore, we will actively engage with builders, associations, consultants, and agencies to understand their specific requirements and provide customized solutions. Additionally, we will offer educational resources and training programs to empower customers with knowledge about the benefits of using high-quality concrete blocks in construction projects.
Our Vision
To be among the top 3 Block Making companies in Nigeria by 2025
Our Objective
- Constant growth in sales in 12 months.
- To generate customer satisfaction so that at least 60% of our customer base is repeat business.
- To provide quality product at reasonable prices with exemplary services.
Read Also: executive-summary-of-beverage-company-business-plan-in-Nigeria
Our Goal
– To be a one-stop-shop for building materials in Nigeria
– To run the business as a profitable enterprise.
Our Mission
To exceed the customers’ expectations in every sense by sustainably providing quality produce.
Executive-Summary-Block-Industry-Business-Plan-in-Nigeria.
Market Need
- My product (concrete Blocks) is highly needed in the building and construction sector to tackle the problem of building collapse cases in my society by producing concrete blocks that are qualitative, durable, and strong when compared to the ones being produced by my competitors.
Product/Services
Manufacturing building concrete, bricks, and blocks for masonry, builders associations, housing consultants, development agencies, construction workers, etc.
We produce
- 9” Block
- 6” Block-
- Cement- Interlocking-
.
Executive-Summary-Block-Industry-Business-Plan-in-Nigeria.
Management Team
- The enterprise will be managed by the owner/manager Mr Dayo Adetiloye who has over 15 years’ experience in block making business. He started from childhood following my father to farm. From this he has learnt some success secrets of a successful farming business.
- He has a bachelor of Technology (Civil Engineering) from Obafemi Awolowo University Ile-Ife) with a focus on Soil Science.
- He is the CEO of the company overseeing the day-to-day activities of the business.
- Rotimi Allo (MBA): He has over 15 years of experience in the industry. He has a master’s of business administration with a specialization in soil science. He has a master’s in business administration and he is a project management professional. He is our business development strategist and a strategic partner.
- Femi Akinyemi – He has over 10 years of experience in the civil engineering business. He is in charge of our production unit.
Kemi Ayanwale – She is a civil engineer with proficiency in production and packaging. She is in charge of our packaging unit with over 7 years’ experience.
- The business benefits from Large-scale production, Training opportunities
- We manage the business to generate cash flow for profitability and expansion.
- Our experience in the industry brings competence and credibility
- My staff and I will bring operational skills, processing skills, packaging skills, and marketing skills and customer service to the business.
Executive-Summary-Block-Industry-Business-Plan-in-Nigeria.
Financial Plan and Projections
Total Investment Project cost 5million.
The promoter’s business plan requires an amount of 5million made up of equity capital from private investors. The money will be invested in capital equipment and operational cost.
The analysis is in the cashflow and the income statement.
will reach about N12,589,640 in the 1st year of operation.
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