CROSS RIVER UNIVERSITY OF TECHNOLOGY

FACULTY OF BASIC MEDICAL SCIENCES

OKUKU CAMPUS

AN ASSIGNMENT ON PROPOSED BUSINESS PLAN

WRITTEN BY:
Sunday C. Okoro
17/ANA/182
DEPARTMENT: HUMAN ANATOMY

SUBMITTED TO: DR FRANCIS ANUKA

ENTERPRENEUSHIP EDUCATION
COURSE LECTURER
Course code: ENT 3101

IN PARTIAL FULFILMENT FOR THE COURSE

REQUIREMENT IN THE AWARD OF BACHELOR OF
SCIENCE (B.Sc.) DEGREE IN HUMAN ANATOMY.

MARCH, 2020
 Table of Content
1 ……………… Business name
2 ……………… Business address
3 ……………… Business Moto
4 ……………… Brief overview
5 ……………… Executive Summary
6 ……………… SWOT Analysis
7 ……………… MARKET ANALYSIS
8 ........................ SALES AND
MARKETING STRATEGY
9 ……………… Publicity and Advertising
Strategy
10 …………….. Sustainability and
Expansion Strategy
BUSSINESS NAME: Sunnytex® Oil Tank Farm, Inc.

OWNED BY: Sunday C. Okoro

ADRESS:
NO 17 IKEJA EXPRESS WAY, ZONE 6, ABUJA,
NIGERIA.
CONTACT: 08115227022

BUSSINESS MOTTO: ENERGY FOR HUMAN

ADVANCEMENT.
Brief overview
An oil depot (sometimes called a tank farm, tank farm, installation or oil terminal)
is an industrial facility for the storage of oil and/or petrochemical products and
from which these products are usually transported to end users or further storage
facilities
Companies in the industry operate bulk crude oil, gasoline and other petroleum
products storage
facilities for the resale of these products to smaller petroleum distributors, gasoline
stations, petroleum refiners and other downstream markets. Sunnytex® Oil tank
Farm, Inc. will definitely serve to foster the developmental boom in oil tank farm
business.
The relative geographic spread of industry establishments is dependent on the
regional demand for and supply of crude oil and petroleum products. Areas of high
population and substantial economic activity demand more crude

Executive Summary
Sunnytex® Oil Tank Farm, Inc. is a registered oil and gas company that will be
involved in the operation of an oil tank farm. Our oil tank farm and administrative
building will be located in wuse zone 4 Abuja.
We have been able to acquire a facility that is big enough to fit into the kind of oil
tank farm that we intend launching and the facility is centrally located in a part of
the city with easy delivery network.
Sunnytex® Oil Tank Farm, Inc. will supply bulk crude oil, gasoline and other
petroleum products such as motor gasoline, distillate fuel oil, hydrocarbon gas
liquids, jet fuel, asphalt, road oil and crude oil from our storage facilities for the
resale of the products to smaller petroleum distributors,
Beyond the storage and supply of bulk crude oil, gasoline and petroleum products
in Nigeria,, our customer care is going to be second to none in the whole of wuse–
Abuja and our deliveries will be timely and reliable. We know that our customers
are the reason why we are in business which is why we will go the extra mile to get
them satisfied when they patronize us. Sunnytex® Oil Tank Farm, Inc. will ensure
that all our customers are given our first class treatment whenever they order crude
oil, gasoline and other petroleum products from us. We have a CRM software that
will enable us manage a one on one relationship with our customers no matter how
large they may grow to. Sunnytex® Oil Tank Farm, Inc. will at all times
demonstrate her commitment to sustainability, both individually and as a firm, by
actively participating in our communities and integrating sustainable business
practices wherever possible. We will ensure that we hold ourselves accountable to
the highest standards by meeting our client’s needs precisely and completely.
Sunnytex® Oil Tank Farm, Inc.

Our Products and Services.

Sunnytex® Oil Tank Farm, Inc. will be involved in the storage and distribution of
bulk crude oil, gasoline and petroleum products. Our products and services include
the following:
 Sale of crude petroleum, oil
 Sale of liquid petroleum gas
 Sale of motor gasoline
 Sale of distillate fuel oil (lighter fuel oils and diesel engine fuel)
 Sale of jet fuel (naphtha-type and kerosene-type)
 Sale of residual fuel oil (gasoline and diesel oil, lubricants, paraffin, asphalt
and burning fuel) and kerosene
 Sale of naphtha
 Sale of petrochemical feedstock
 Sale of unfinished oils
 Sale of blending components


Our Vision Statement

Our vision is to become the leading brand in the oil tank farm line of business in
the whole of Nigeria

Our Mission
Our mission is to establish an oil tank farm business that will supply bulk crude oil,
gasoline and other petroleum products from our storage facilities to smaller
petroleum distributors, gasoline stations, petroleum refiners and other downstream
markets in wuse zone 4 and other cities in Nigeria at large.

Business Structure
Having it in mind to build a first class standard farm in Wuse – Abuja. We will
ensure that we put the right structures in place that will support the kind of growth
that we have in mind while setting up the business. Hiring the people with the right
mindset suited for the business, and promoting them subsequently as at when due.
The following positions that will be made available at sunntex® Oil Tank Farm,
Inc., to be occupied by competent hands;
 Chief Executive Officer (Owner)
 Human Resources and Admin Manager
 Oil Tank Farm Manager
 Merchandise Manager
 Sales and Marketing Manager
 Information Technologist
 Accountants / Cashiers
 Customer Services Executive
 Distribution Truck Drivers

SWOT Analysis
Sunntex® Oil Tank Farm, Inc. employed the services of an expert HR and
Business Analyst with bias in retailing and distribution to help us conduct a
thorough SWOT analysis and to help us create a business model that will help us
achieve our business goals and objectives. This is the summary of the SWOT
analysis that was conducted for sunntex® Oil Tank Farm, Inc.;
Strength
Our location, the business model we will be operating on, varieties of payment
options, wide range of products, highest safety measure in and around our facility
will definitely count as a strong strength for Sunntex® Oil Tank Farm, Inc.
Weakness
A major weakness that may count against us is the fact that we are a new oil tank
farm business and we don’t have the financial capacity to compete with leaders in
the industry especially as it relates to economy of scales.
Opportunities
The fact that we are going to be operating our oil tank farm business in wuse–
Abuja provides us with unlimited opportunities to distribute our products to a large
number of retailers. We have been able to conduct thorough feasibility studies and
market survey and we know what our potential clients will be looking for when
they patronize our products and services; we are well positioned to take on the
opportunities that will come our way

Threat:
Just like any other business, one of the major threats that we are likely going to
face is economic downturn. It is a fact that economic downturn affect
purchasing/spending power. Another threat that may likely confront us is the
arrival of a similar business in same location where ours is located.

MARKET ANALYSIS
Market Trends
The trend in the Gasoline and Petroleum Bulk Stations industry shows that
performance is intimately linked to the supply and demand of petroleum. Bulk
storage capacity for petroleum products has grown closer to full capacity and the
Gasoline and Petroleum Bulk Stations industry is expected to return to stronger
growth. External factors such as world price of crude oil and demand from
gasoline and petroleum wholesaling will impact industry performance. Lastly, it is
now a common phenomenon for oil tank farms to leverage on technology to
effectively predict consumer demand patterns and to strategically position their
business to meet their needs.

Our Target Market

The Gasoline & Petroleum Bulk Stations industry has a wide range of customers; a
good number of customers make use of one or all or the following crude oil,
gasoline and other petroleum products. In view of that, we have positioned our oil
tank farm company to service businesses in wuse – Abuja and every other location
we will cover in Abuja and Nigeria at Large even beyond.
Having duly conducted our market research and we have ideas of what our target
market would be expecting from us. We are in business to supply crude oil,
gasoline and other petroleum products such as motor gasoline, distillate fuel oil,
hydrocarbon gas liquids, jet fuel, asphalt and road oil and crude oil to the following
businesses;
 Smaller petroleum distributors
 Gasoline stations
 Petroleum refiners and other downstream markets
 The aviation industry
 Transport companies
 Manufacturing companies that make use of gas powered turbines and other
petroleum products

Competitive Advantage
With the knowledge we have about stiff competition in the industry, we are
prepared to compete favorably with other leading oil tank farms in wuse – Abuja.
One thing is certain; we will ensure that we have crude oil, gasoline and other
petroleum products available in our oil tank farm at all times. One of our business
goals is to make Sunnytex® Oil Tank Farm, Inc. a one stop oil tank farm company.
Our ability to pass on cost increases, guaranteed supply of key inputs and the
capacity to fully comply with government regulations, excellent customer service
culture, timely and reliable delivery services, online presence, and various payment
options serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be
among the best within our category in the industry meaning that they will be more
than willing to build the business with us and help deliver our set goals and achieve
all our aims and objectives. We will also give good working conditions and
commissions to freelance sales agents that we will recruit from time to time.
SALES AND MARKETING STRATEGY
Sources of Income
Sunntex® Oil Tank Farm, Inc. will generate income by offering the following
services and products within the scope of the Gasoline & Petroleum Bulk Stations
industry in Nigeria. Income will be generated for the business by;
 Sale of crude petroleum, oil Sale of liquid petroleum gas
 Sale of motor gasoline
 Sale of distillate fuel oil (lighter fuel oils and diesel engine fuel)
 Sale of jet fuel (naphtha-type and kerosene-type)
 Sale of residual fuel oil (gasoline and diesel oil, lubricants, paraffin, asphalt
and burning fuel)
 and kerosene
 Sale of naphtha
 Sale of petrochemical feedstock
 Sale of unfinished oils
 Sale of blending components

Sales Forecast
Below are the sales projections for Sunntex® Oil Tank Farm, Inc., it is based on
the location of our business, and other factors as it relates to oil tank farm startups
in Nigeria.
First Fiscal Year: $740,000
Fiscal Year: $1 million
Third Fiscal Year: $2 million
Marketing Strategy and Sales Strategy
 Introduce our business by sending introductory letters alongside our
brochure to smaller.
 petroleum distributors, gasoline stations, petroleum refiners and other
downstream markets and key stake holders in Wuse – Abuja
 Ensure that we have crude oil, gasoline and other petroleum products such as
motor gasoline, distillate fuel oil, hydrocarbon gas liquids, jet fuel, asphalt
and road oil and crude oil in our oil tank farm at all times.
 Make use of attractive hand bills to create awareness business
 Position our signage / flexi banners at strategic places around Wuse – Abuja

Publicity and Advertising Strategy
Here are the platforms we intend leveraging on to promote and advertise
Sunnytex® Oil Tank Farm, Inc.;
 Place adverts on community based newspapers, radio and TV stations.
 Encourage the use of word of mouth publicity from our loyal customers.
 Leverage on the internet and social media platforms like; YouTube,
Facebook, Twitter, LinkedIn, Google+ and other platforms to promote our
business.
 Ensure that our we position our banners and billboards in strategic positions
all around Wuse – Abuja
 Advertise our oil tank farm business in our official website and employ
strategies that will help us pull traffic to the site.
 Brand all our official cars

Pricing Strategy
We will work towards ensuring that all our crude oil, gasoline and other petroleum
products are distributed at highly competitive prices compared to what is
obtainable in Nigeria.
also have plans in place to discount our products once in a while and also to
reward our loyal customers from time to time.
 Payment Options
The payment policy adopted by Sunnytex® Oil Tank Farm, Inc. is all inclusive
because we are quite aware that different customers prefer different payment
options as it suits them but at the same time, we will ensure that we abide by the
financial rules and regulation of Nigeria.
Here are the payment options that Sunntex® Oil Tank Farm, Inc. will make
available to her clients;
 Payment via bank transfer.
 Payment via credit cards.
 Payment via online bank transfer.
 Payment via check.
 Payment via bank draft.
In view of the above, we have chosen banking platforms that will enable our client
make payment for products purchase without any stress on their part.

Startup Expenditure (Budget)

These are the key areas where we will spend our startup capital;
 The total fee for registering the business in Nigeria – $750.
 Legal expenses for obtaining licenses and permits as well as the accounting
services (software, P.O.S machines and other software) – $3,300.
 promotion expenses for the grand opening of Sunnytex® Oil Tank Farm,
Inc.
 in the amount of $3,500 and as well as flyers printing (2,000 flyers at $0.04
per copy) for the total amount of $3,580.
 The cost for hiring business consultant – $2,500.
 The cost for insurance (general liability, workers’ compensation and
property casualty)coverage at a total premium – $2,400.
 The cost for payment of rent for 12 months at $1.76 per square feet oil tank
farm facility in the total amount of $150,600.
 The total cost for oil tank farm facility remodeling (construction of oil tanks)
– $20,000.
 Other start-up expenses including stationery ($500) and phone and utility
deposits ($2,500).
  Operational cost for the first 3 months (salaries of employees, payments of
bills et al) –$150,000.
 The cost for start-up inventory (stocking with crude oil, gasoline and other
petroleum products) – $200,000.
 The cost for store equipment (cash register, security, ventilation, signage) –
$13,750.
 The cost of purchase and installation of CCTVs – $5,000 .
 The cost for the purchase of furniture and gadgets (Computers, Printers,
Telephone, TVs, Sound System, tables and chairs et al) – $4,000. The cost
for the purchase of distribution vans/trucks – $75,000
 The cost of launching a website – $600
 Miscellaneous – $10,000
We would need an estimate of $2.5 million to successfully set up our oil tank farm
business in Wuse – Abuja.
Generating Startup Capital for Sunntex® Oil Tank Farm, Inc.
 Generate part of the startup capital from personal savings
 Source for soft loans from family members and friends
 Apply for loan from the bank
N.B: We have been able to generate about $500,000 (Personal savings $450,000
and soft loan from family members $50,000) and we are at the Final stages of
obtaining a loan facility of $2 million from our bank. All the papers and document
have been signed and submitted, the loan has been approved and any moment from
now our account will be credited with the amount.

Sustainability and Expansion Strategy

One of our major goals of starting Sunnytex® Oil Tank Farm, Inc. is to build a
business that will survive of its own cash flow without the need for injecting
financial from external sources once the business is officially running. We know
that one of the ways of gaining approval and winning customers over is to
supply/distribute our crude oil, gasoline and other petroleum products a little bit
cheaper than what is obtainable in the market.

Check List/Milestone
 Business Name Availability Check: Completed
 Business Registration: Completed
 Opening of Corporate Bank Accounts: Completed
 Securing Point of Sales (POS) Machines: Completed
 Opening Mobile Money Accounts: Completed
 Opening Online Payment Platforms: Completed
 Application and Obtaining Tax Payer’s ID: In Progress
 Application for business license and permit: Completed
 Purchase of Insurance for the Business: Completed
 Leasing of oil tank farm facility and construction of oil tanks: In Progress
 Conducting Feasibility Studies: Completed
 Generating capital from family members: Completed
 Applications for Loan from the bank: In Progress
 Writing of Business Plan: Completed
 Drafting of Employee’s Handbook: Completed
 Drafting of Contract Documents and other relevant Legal Documents: In
Progress
 Design of The Company’s Logo: Completed
 Printing of Promotional Materials: In Progress