STERLING IMAGE

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BUSINESS PLAN
[A Service Enterprise]

98, OBA ADESIDA ROAD, 17, PRINCESS BADESERE LAYOUT SHAGARI VILLAGE, AKURE, ONDO STATE, NIGERIA E-MAIL: gogocat22002@yahoo.com PHONE: 0806208691; 08053415913 MARCH, 2011

EXECUTIVE SUMMARY
The Sterling Image concept encompass a unique-creative artistry, design to capture the exact specification of the finest and fastest growing businesses in the world; digital printing. The advent of digital printing remains a veritable means for new advancement in digitalizing images for all purposes. Since digital prints provides a dynamic service for enhancing of pictures digitally into unimaginable formats. This plan has since shown its comparative advantage by explaining its technical advancement and also reiterating the amazing features and benefits of commercial printing. This plan therefore, has endeavour to show in details several steps involved in getting started with digital printing as a commercial enterprise by harnessing several opportunities involved in doing this business. With a well stated profile, aligned with the strategic and organizational formation of this business, the plan also consider labour, cost and return through a well justified cash projection flows. The financial plan also considers credit on a forecasted market evaluation for the first year which further boosts the viability of the business. Several problems were also evaluated in terms of market-type, illiquidity, marketing mix and competing firms. At such, the plan evaluated this problems based on the 4Ps involved in the marketing mix {i. e. Product, Price, Place(distribution) and Promotion(advert)} and consider the solutions necessary in case of risk and uncertainty for proper insurance. Having considered the financial demand needed to float this business and examined the viability, in-terms of return to net worth; this plan has therefore succeeded in explaining the profitability of this business to every individual who reads it no matter his/her spark for business.

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TABLE OF CONTENTS
TITLE Executive Summary Table of contents Preamble The business Profile Location Business Organisation The Vision Mission Capitalization Economic benefit and Contribution The People Background and Education Credentials Staff Remuneration Pricing Power Financial Consideration Project cost and Finance plan Cash Flow Planning The statement of cash flow for 1st Year The statement of cash flow for 2nd Year The statement of cash flow for 3rd Year Internal Controls Financing The Statement of Income and Expenditure for the 1st Year The Statement of Income and Expenditure for the 2nd Year The Statement of Income and Expenditure for the 3rd Year The statement of Assets and Liabilities as At the End of The First Year The statement of Assets and Liabilities as At the End of The Second Year The statement of Assets and Liabilities as At the End of The Third Year Purchasing and Inventory Control Marketing Marketing Plan Targeted Market and Customers Advertising and Promotion Plans The Competition How We Plan to Take Advantage of Competitors Weak Points Growth Program Growth Trends in This Business Expansion Handling Major Problems Summary and Conclusion PAGE 2 3 4 5 6 6 6 6 6 7 7 7 8 9 10 10 11 11 12 12 13 13 13 14 14 15 15 16 16 17 17 17 17 17 17 18 18 18 19 19

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PREAMBLE
The advent of digital printing has brought technical advancements, more options and amazing features of commercial printing. It guarantees sharpness and clearness of coloured images as well as text. It provides exactly perfect clearness in your work. Some of the advantages which digital printing provides are:

a. b. c. d.

short cost effective print runs. extremely fast process and economical mode of printing with less wastage of materials offer huge combinations of colours. the durability of the colours when exposed to light is completely under the acceptable quality standards

e.

the digital colour printing makes the images, illustrations, photographs absolutely clear and full of life.

f.

digital printing offers complete scope of personalization and variation. Text, graphics and pictures can be added to tune the mailer/brochure to the different customer groups.

g.

Digital printing provides more scope to print on different materials and has got to the stage where it is no longer struggling to match traditional methods, but is offering much more in terms of quality and efficiency.

h.

digital print quality often far exceeds the quality of traditional printing methods, in details, colour matching and range, and also durability of the colours when exposed to light.

This brochure is designed to solicit for financial support needed by the Sterling Image excel in this chosen business venture.

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THE BUSINESS PROFILE

subsidiary of WALDEOS & ASSOCIATES, and CAC incorporated in 2009 with registration number BN 2118821. Sterling Image Company will rely on the proven skills and experience of arrays of experts to take advantage of the growing need for digital printing. Sterling Image Chief Executive Officer, OLALUSI Oluwaseyi Gabriel, who brings his wealth of experience in creative printing to the business, leads the company as it establishes itself as a high quality digital printing service provider in the Ondo state vicinity and beyond. Constantly evolving printing technologies and software offer small businesses an opportunity to work smarter. But the increased opportunity comes at the expense of increased complexity. Substantial market research establishes that digital printing is one of the countrys fastest growing service industries. Sterling Image is in a position to capture a significant portion of the local market for digital printing. Further, we are projected to return a profit in its very first year of operations, due in large part to the size of the market and the comparatively initial cost investment required to begin operations. First year revenue is projected to exceed Eight Hundred Thousand Naira (N800, 000). Sterling Image intends to provide a complete service for retouching and enhancing of pictures, Direct imaging, Photo digital printing including large format media, billboards, flyers, small brochures, business cards, creative design, photography, wall murals, fine art applications, stage drapes, CAD/GIS workgroups, creative publishing, web production, product launches, corporate event signage, tradeshow graphics, and transit services to teeming customers within Ondo state and beyond that have been almost universally accepted by small- to medium-size businesses and by many individuals. Sterling Image will differentiate itself from its competitors by bringing into market innovations such as retouching, enhancing of image photos, graphics, illustrations, web production and creative publishing using unique and superior software tools for quality service delivery to customers. Sterling Image has the potential to gain a reputation for offering quality services in creative and prints marketing that provide value for customers long after.

terling Image is a dynamic creative small and medium enterprise that is poised to capture substantial market share in one of the fastest growing service industries in the country and a

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Location
Sterling Image established its base of operations in Akure, Nigeria. The temporal office is located at 98, Oba Adesida road, Akure. The permanent office complex is to be located also at 30, Mogunbado Street, Ijomu junction, Akure where we will get prominent visibility and accessibility in Akure city. We anticipate our occupancy cost as a percentage of sales not to exceed 6%.

Business Organization
We plan to operate as a sole proprietorship. Because of the personal liability associated with this form of organization we realize that insurance coverage will be very important and we intend to be adequately insured and represented by an expert insurance agent. In the future, as our service business grows, it will continue to be insured.

The Vision
Through our work experience and former moonlight business, we possess unique skills to provide specialized creative design and printing. Also, we have had a long-term desire to be in business full time and to utilize this knowledge. Our arrays of experts have worked with many website/graphic designers, and printers. Utilizing the resources of these associates, we can demonstrate competency in all aspects of successful creative printing implementation. We are passionately committed to our new business and have the realism to make inevitable hard choices.

Our vision

To

become

reference

point

in

the

Creative

Design

and

Digital/Art/CAD/Photography/GIS printing business.

Mission

To effectively deliver quality services to our prospective customers and make the company a household name.

Capitalization

Presently, the total capital of the company is Eight Hundred and Thirty-Two Thousand Naira (N832, 000.00).

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National Economic Benefit and Contribution

a. Provision of employment opportunities for the people and with good prospect for further
employment of others as the capacity utilization is increased.

b. Yielding substantial revenue to Government at all level in form of Company Income Tax and
PAYE.

c. Contributing positively our quota to communities by improving the standard of living at the
growing rate of urbanization.

THE PEOPLE
The Principal Consultant and principal employee, Olalusi Oluwaseyi Gabriel, has extensive experience as Creative Design/Service Integration and Deployment of the Realista Web Technologies Ltd., In addition, he has developed a marketing strategy that is well suited to building a large market share in the small to mid-size business market. His work experience has been as follows: [2009 2010] [2009 2010] [2003 2009] Realista Web Technologies Ltd, Akure.
Creative Design/Service Integration & Deployment

NIIT Academy, Akure centre Creative & Graphic Design Trainee Don Bosco Catholic Technical Institute, Akure, Ondo State
Building & Engineering / Graphic Design Instructor Impacting Building & Engineering/ Graphic design and Metalwork/fabrication knowledge on the trainee using Auto-Cad

[1995 2000]

Don Bosco Youth Centre, Akure, Ondo State

Screen Printing & Photography

His working experience with the companies mentioned above included responsibility for website/graphics design and photography. His specialized service and knowledge will be required in all aspects of implementing Sterling Image for teeming small businesses. He has been moonlighting in this activity for 2 years and has successfully executed contracts with 5 small businesses.

Personal Background and Education Credentials

[2009 Feb. 2010] NIIT Academy, Akure

Adobe Certified Expert in Graphic Design and Creative Publication

[2004 2010]

Federal University of Technology, Akure

PGD, Power & Machinery Engineering

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[2002 - 2003] [1999 - 2001]

National Youth Service Corps Certificate The Federal Polytechnic, Ado Ekiti.

HND, Power & machinery Engineering

His hobbies are: Coaching, Cooking, Researching, Listening to News, Playing chess, Basket-balling and Watching Soccer The summary of background/education credentials and designation of people that will be assisting Mr. Olalusi is stated below: Name Seun Sogbein Designation Photo/Graphic designer Education Qualification [2009 2010] NIIT Academy, Akure

ACE, Graphic Design and Creative Publication

Alex Oyewole

Photo/Graphic designer

[2009 2010]

NIIT Academy, Akure

ACE, Photoshop/ Graphic Design

Staff Remuneration
Remunerations of staff provided in the report are projected based on the new national minimum wage released by Federal Govt. In addition to minimum pay already provided for, fair parameters for bonuses which will ensure that discipline and quality service delivery is established so as to serve as investment for inducing and mobilizing the staff effectively.

The table below shows the basic salary for one year

PER MONTH N Chief Executive Officer Photo/Graphic designer Photo/Graphic designer Total 17000 14000 14000 45000

PER ANNUM N 204000 168000 168000 540000

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PRICING POWER
Initially, our pricing power will be limited by what other consults charge for their service. However, we expect our business to be built by favourable word-of-mouth and our services to command a somewhat higher schedule of rates than average. We therefore expect that our reputation will gain us a degree of pricing power. Another factor is that if our type of services are rendered ineffectively, it can be very costly and of no value to a client. On the other hand, if done well (by us) the services can be affordable and immensely valuable. By gaining this reputation we expect to be well paid for our work. Our ultimate goal is to build a line so unique and promote it so effectively that consumers will be willing to pay a premium. Our long term objective is to build a market that is not entirely based on price but on quality service delivery. Our unique features will include:

1.

Printing Price will be per square foot of image area. This price includes the initial cost of processing and printing the file on simple media. (Note: Printing on quality media will attract additional charges per square foot).

2. 3. 4. 5.

Additional basic image manipulation such as image retouching, enhancing, etc. will attract extra charges per square foot. Laminating Price will be per square foot. This price will include professional 2sided lamination that includes trimming. Printing price of flyers, banners, stickers, etc. will be based on its graphic design. Printing price for creative publishing will be determined by:
a. b.

Volume of the media Media quality

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FINANCIAL CONSIDERATION
Project Cost and Finance Plan
The capital cost of the business is estimated at about 5 Million Naira. These costs will be sourced through loans from financial institution. The projected cash flow is based on one year of operation as stated below: The cash flow projection is based upon the following main parameters and assumptions a. Loan b. Sales Proceeds The loan from a financial institution will be repaid based on the agreement reached with the financing institution.

Sales Proceeds
The estimated sales proceed from the market survey, is based on the production of 3 equipment hours daily on 31 Sq. Ft/hour and 125 Sq. Ft/day.

Analysis of Costs
We intend to bill our services at a cost of N200 per square foot of printing items. Our terms of payment for service will be on the spot. Extras will be approved in writing before commencing work.

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CASH FLOW PLANNING

Attached is an exhibit of our one-year cash flow analysis including estimated sales, all costs and capital investments for three (3) years. We have included a cheque of all expense items for input into our cash flow projection.

STERLING IMAGE LIMITED THE STATEMENT OF CASH FLOW FOR THE 1ST YEAR Qty N Receipts/Inflow Capital (Loan) Sales (N150000 per Week) for One Year (52 Weeks) PAYMENT/OUTFLOW Equipment HP large-format printer (60 inch) HP large-format printer Design Jet 5500 (60 inch) HP large-format printer Design Jet 130 (48 inch) Colour laser printer Scanner (HP Scanjet G2710) Desktop computer Office furniture Power system Salaries power & lighting Stationeries, Media & Materials Advertisements Rent Interest on Capital {18%} Miscellaneous EXCESS OF RECEIPT OVER PAYMENT

N 5000000 7800000 12800000

1 1 1 1 1 5

2140000 1670000 195000 195000 40000 500000 200000 400000 540000 480000 720000 210000 450000 900000 360000

(9000000) 3800000

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STERLING IMAGE LIMITED THE STATEMENT OF CASH FLOW FOR THE 2ND YEAR Qty N Receipts Balance b/f Sales (N150000 per Week) for Second Year (52 Weeks) PAYMENT/OUTFLOW power & lighting Salaries Stationeries, Media & Materials Advertisements Rent Interest on Capital {18%} Repairs & Servicing Payment of Loan (25%) Miscellaneous EXCESS OF RECEIPT OVER PAYMENT

N 3800000 7800000 11600000

480000 540000 720000 210000 450000 900000 100000 1250000 360000

(5010000) 6590000

STERLING IMAGE LIMITED THE STATEMENT OF CASH FLOW FOR THE 3RD YEAR Qty N Receipts Balance b/f Sales (N150000 per Week) for Third Year (52 Weeks) PAYMENT/OUTFLOW power & lighting Salaries Stationeries, Media & Materials Advertisements Rent Interest on Capital {18%} Repairs & Servicing Payment of Loan (25%) Miscellaneous EXCESS OF RECEIPT OVER PAYMENT

N 6590000 7800000 14390000

480000 540000 720000 210000 450000 900000 150000 1250000 360000

(5060000) 9330000

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Internal Controls
Our accountant is experienced in this type of service business and will set up systems to handle all related matters. The CEO will be the only person authorized to sign cheques, purchase orders, and make capital acquisitions based on the recommendation of our accountant after proper appraisal.

FINANCING
STERLING IMAGE LIMITED THE STATEMENT OF INCOME AND EXPENDITURE AS AT THE END OF 1ST YEAR N Sales (N150000 per Week) for One Year (52 Weeks) Less stationeries and materials GROSS PROFIT EXPENSES Salaries Miscellaneous power & lighting Interest on Capital {18% of 5000000} Advertisements Rent Provision for doubtful debt {5% of sales} Depreciations: All fixed assets except office furniture {25%} Depreciations on office furniture {20%} NET PROFIT (LOSS) N 7800000 720000 7080000

540000 360000 480000 900000 210000 450000 390000 1285000 40000

(4655000) 2425000

RETURN CAPITAL EMPLOYED

2425000 100 X = 49% 1 5000000

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STERLING IMAGE LIMITED THE STATEMENT OF INCOME AND EXPENDITURE FOR THE 2ND YEAR N Sales (N150000 per Week) for One Year (52 Weeks) Less stationeries and materials GROSS PROFIT EXPENSES Salaries Miscellaneous power & lighting Interest on Capital {18% of 5000000} Advertisements Rent Repairs & Servicing Provision for doubtful debt {5% of sales} Depreciations: All fixed assets except office furniture {25%} Depreciations on office furniture & fittings {20%} NET PROFIT (LOSS) RETURN CAPITAL EMPLOYED

N 7800000 720000 7080000

540000 360000 480000 900000 210000 450000 100000 390000 1285000 40000

(4755000) 2325000

2325000 100 X = 47% 1 5000000

STERLING IMAGE LIMITED THE STATEMENT OF INCOME AND EXPENDITURE FOR THE 3RD YEAR N Sales (N150000 per Week) for One Year (52 Weeks) Less stationeries and materials GROSS PROFIT EXPENSES Salaries Miscellaneous power & lighting Interest on Capital {18% of 5000000} Advertisements Rent Repairs & Servicing Provision for doubtful debt {5% of sales} Depreciations: All fixed assets except office furniture {25%} Depreciations on office furniture & fittings {20%} NET PROFIT (LOSS) RETURN CAPITAL EMPLOYED 540000 360000 480000 900000 210000 450000 150000 390000 1285000 40000

N 7800000 720000 7080000

(4805000) 2275000

2275000 100 X = 46% 1 5000000

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STERLING IMAGE LIMITED The Statement Of Assets And Liabilities As At The End Of The 1st Year N Fixed Assets Equipment Less Depreciation Office Furniture Less Depreciation Current Assets Cash Currents Liabilities 5140000 1285000 200000 40000

3855000 160000 4015000 3800000 -7815000

3800000 --

Financed by: Capital (Loan) Net profit Provision for doubtful debt

5000000 2425000 390000 7815000

STERLING IMAGE LIMITED The Statement Of Assets And Liabilities As At The End Of The 2nd Year N Fixed Assets 3855000 Less Depreciation 1285000 Office Furniture 160000 Less Depreciation 40000 Current Assets Cash Currents Liabilities 659000 0 --

N 2570000 120000 2690000 6590000 -9280000

Financed by: Capital (Loan) Less repayment Net Profit (1st and 2nd Year) Provision for doubtful debt (1st and 2nd Year)

5000000 1250000

3750000 4750000 780000 9280000

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STERLING IMAGE LIMITED The Statement Of Assets And Liabilities As At The End Of The 3rd Year N Fixed Assets Less Depreciation Office Furniture Less Depreciation Current Assets Cash Currents Liabilities 9330000 -9330000 -10695000 Financed by: Capital (Loan) Less repayment Net Profit (1st, 2nd & 3rd Year) Provision for doubtful debt (1 and 2 & 3 Year)
st nd rd

N 1285000

2570000 1285000 120000 40000 80000 1365000

3750000 1250000 2500000 7025000 1170000 10695000

Purchasing and Inventory Control

In this service business, we will consult the manufacturer of the equipment to be used. Equipment will normally be shipped direct from them to our office. We will however be writing the specifications on equipment purchases and the following purchasing policies will be maintained. Purchase Orders will include:
a. b. c. d.

Price and terms Always in writing Complete specifications Appropriate contingencies will be included in purchase orders.

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MARKETING
Marketing Plan
We plan to develop a list of leads from the customers made as a moonlight service provider. Our adverts kit will include letters of recommendations from these former customers and descriptive information about the services received. We plan to create a PowerPoint presentation, which will incorporate printed jobs and designed graphics we have created for prior customers. In addition to these referral prospects and local newspaper advertising, we plan to conduct a highly target mailing campaign with telephone follow-through with local businesses that are prime targets of digital printing.

Targeted Market and Customers

Our customers will include small businesses that can enhance their present sales by using quality of digital printers for job delivery. Our customers will also include coporate organization such as telecommunications, breweries, religious organizations, educational institutions, event planners, display materials for presentations, posters, drapes, signs, banners,photo enlargement, artworks, CAD/GIS users, daily photographers etc

Advertising and Promotion Plans

Our advertising budget will be about 3% 0f annual sales for local print media, advertising agency (local and small) to create and place our advertising and to create our logo, stationery, and basic brochure. Also, the estimated cost includes creation and initial print run of brochure and business banners. We also plan to join local Chamber of Commerce and Cooperative societies as a means of networking with local business leaders.

The Competition
Our principal competitors are Deografik ltd., Alfa 2 Digital Printer, and Flamingos communication ltd.

How We Plan to Take Advantage of Competitors Weak Points

The only functioning of our established competitor at 90% capacity is Flamingos due to efficient management. Our unique advantage is the superiority, efficacy and innovation of our deploying software in handling and processing images and timeliness of services rendered. So our focused experience and successful services will be the key to building a niche and reputation. We intend to maintain an ongoing study of our competitors. Their successes and failures will help us form guidelines on what to do and not to do. We intend to evaluate the success of each service rendered and follow up to make changes to improve the effectiveness of printing quality.

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GROWTH PROGRAM
Growth Trends in this Business
The market for our services is growing at an unprecedented rate. Digital is being hailed as a revolution for small business print marketing compared to litho; digital is quick, often cheaper and can deliver messages personalised to customers interests. Though, Litho still has a role to play in printing mass produced materials. But for fast, cost effective and personalised one-to-one print marketing, digital is more advantageous. The quality of digital printing provides a better edge than the traditional printing methods and offers much more in terms of quality and efficiency. Though, statistical data are hard to come by, observed trends however suggest that the digital printing business is still far from being saturated especially in our immediate vicinity.

Expansion
Once our business has been established we plan to implement the following growth strategy. We anticipate it will take approximately 36months to gain sufficient experience and level of profits before any expansion plans are implemented. Our growth strategy will be guided by the following:

a.

To provides super quality printing directly onto a wide variety of Rigid and Flexible Substrates. It will not be printing only on Paper or Film but also Glass, Rigid Boards, Wood, Sheet Metal and variety of other specialty materials such as Window Blinds and Furniture Panels.

b.

Also on fabric and Textile Media from casino gaming table tops to elegant banners to corporate flags to pillow to coverlet to 100% cotton t-shirts. As well as fashion, home furnishings, and related industries.

We will not set an inflexible timetable for expansion but will be waiting until a sound basis of experience, earnings and cash flow is achieved.

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Handling Major Problems

Our policy in handling problems will be to identify and acknowledge problems promptly and honestly. We plan to put the following policies into effect promptly if and when the following adverse scenarios emerge during our growth program:

The risk of running out of cash: we plan to maintain very frequent cash flow projections. Forecasts for income, expenses and unanticipated contingencies will be stated conservatively. Any periods of cash deficits will be remedied promptly by cutting costs to maintain a positive cash flow and profitability. A drop in sales or insufficient sales:
a. c.

We will be prepared to take prompt remedial steps by cutting costs. We will seek out new ways to expand patronage sales by introducing incentives for consistent customers.

b. We will improve every aspect of our service value, performance and image

d. We plan to stick with this specialized business that we know best.

Dishonesty, theft, shrinkage: we intend to implement the same policies that have been proven by Flamingo company one of our biggest competitors. Business recessions:
a.

We are prepared to promptly cut costs to maintain liquidity. We will also be on the lookout for good business opportunities during periods of adversity.

SUMMARY AND CONCLUSION

The fact that the business has minimal risk and considering the fact that our equipment will be purchased directly from the manufacturer for the business is a plus. Also, we will enjoy one year guarantee from the manufacturer on the equipment which is an added advantage. Having examined the technical and commercial viability of the business and the assessment of the financial viability as could be seen from the cash flow projection, the project has great earnings potential. We, therefore, state categorically that we are convinced that the Sterling Image is desirable of the fund injection which will have a positive effect cradling a high profit yielding with minimum associated risk project.

Prepared By
Principal Consultant

MR OLALUSI, O. G.

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