Executive Summary

I am setting up our sachet drinking water business in Nkoranza, Ghana, to supply safe and affordable drinking water to retailers, households, food vendors, institutions and event organisers. The initial setup and marketing have been done. The purchases left to be done are the filtration, Koyo filling and sealing machine. This funding will help purchase equipment and help with first-stage operational requirements. The business enjoys its location owing to access to a huge potential customer base. Our game plan, taking advantage of this edge as well as the advertising that is already being done, is going to be to get repeat sales by consistently offer quality, competitive pricing and reliable supply. Production for commercial use will start after installation and commissioning of equipment and obtaining of the relevant approvals. I invite a financing partner to invest $15,000.00 to launch and grow the business. Investment terms, project plans, reporting arrangements, and return on investment will be agreed on through a partnership agreement. The business seeks $15,000.00 from an investor to complete equipment acquisition and support commercial launch. The investment will be used to purchase Filtration machine and Koyo filling and sealing machine and also used as operating capital. The owner and manager of the business oversee planning, financing, buying, selling, marketing of goods, customer relations, and day-to-day activities. The operational team will consist of five employees. - Three women packers will check sachets for leakage, pack them in bags, check quantities and organize finished goods for stock and dispatching them. - Two men who have to operate the machines and load: These persons will operate the filtration and Koyo machine, monitor production, conduct routine checks on the equipment and load packaged water. The manager shall coordinate with the unit team, provide training, implement the hygiene/safety procedures and monitor the production quality and efficiency. The financial model assumes 26 operating days in a month, an average selling price of GHS 7.50 per bag of 30 sachets, a variable cost of GHS 4.00 per bag and fixed operating costs of GHS 20,000.00 a month. We will review these assumptions against actual supplier costs, staffing costs, distribution arrangements, and local selling prices. If we manage to sell 300 bags daily, which we think we can do, we will make a GHS 58,500.00 in a month. Our total cost of operation will be GHS 51,200.00; thus, our operating surplus is GHS 7,300.00. Producing 400 bags daily generates a monthly revenue of GHS 78,000.00 and an operational surplus of GHS 16,400.00. If the company is able to sell GHS 500 bags of the product daily, the revenue is going to be GHS 97,500.00 monthly. Furthermore, GHS 72,000.00 is going to be spent on operating costs. Thus, GHS 25,500.00 is likely to be the operating surplus. The estimated 220 bags per day of business operation cash break-even point. Due to the location of the business, the number of potential customers is substantial, and the advertising already undertaken provides a starting point for sales. The management will concentrate on converting customer interest into repeat orders, getting the payment on time, controlling the use of packaging, and ensuring delivery costs are under budget. The working capital will go into costs for packaging, wages, utilities, treatment consumables and distribution. As we move forward with operations, sales collections will replenish these funds. Management will keep financial records and supply investors regularly with information about revenue, expenditure, cash flow and operating results. Operating surpluses are projected to be positive and are before deducting depreciation, financing costs, and tax, so they are not guarantees of investor returns. Distributions of profits will depend on the results, the cash requirements and the terms of investment agreement. The sachet water business is situated in Dromankese, in the Nkoranza area, with access to many surrounding communities. This site gives the business the opportunity to serve customers in Dromankese and slowly roll out distribution to neighbouring communities. The target market includes households, retail shops, kiosks, food vendors, schools, workplaces, event organisers, etc. Customers who buy water for personal use and retailers who buy in bulk for reselling will be supplied by the business. Community events like funerals, weddings and such are also a chance to bulk order. The primary locational benefit is the possibility of creating a network of customers across 16 communities. The company organises deliveries in accordance with customer demand and convenient travel distance to enable customer access to its products while keeping transport costs under control. The advertising that’s been done already will help to create awareness among customers and will provide a platform to achieve trial purchases and repeat orders. Our business will compete on consistent quality, low cost, dependability, and responsiveness. Sales will begin in Dromankese and the local surrounding communities. Future expansion will depend on actual orders, quality of payments, and delivery costs. The locality gives access to a substantial potential market, but the business has yet to establish a measured market share. The management will assess the opportunity based on the retailer enquiry, competitor price, customer order, and repeat sales. The approach will help to turn location advantage into sustainable customers.