In this sample business plan for the local production of high capacity security doors – doors that can withstand high impact forces such as; kicks, smashes, gunshots or even attempted break-ins – we would be looking at the feasibility of the business, the business opportunities, some of the notable challenges and startup requirements.
Introduction
Security doors are a must in our present time for people
living in urban centers in Nigeria. The main reason being that home invasions,
burglary and other security breaches are rampant and weak doors, even with
burglary reinforcement are often not sufficient to prevent thieves and
kidnappers from gaining access to people’s homes and offices.
In fact, a good look at home and offices reveal that most
security breaches is usually done through doors. It is more stressful and time
consuming for thieves and robbers to attempt forcible entry through windows or
ceilings. Thieves often break into churches to still musical instruments,
equipment and generating sets. Private homes have lost their electronics, home
gadgets, cash and other valuables. Security doors that are well made can stop
thieves and intruders from gaining entry into private residences.
As a result of this, many home owners - especially middle
class owners - who have been victims or know other people who have been victims
are in need of high capacity security doors. While some locally made metal
steel/metal doors are readily produced by artisans, these are often not very
secure as they cannot withstand very heavy force (most of the time).
Security
Doors in Nigeria at a glance
Most high quality security doors in Nigeria are foreign made.
The locally made ones though they serve their purpose are often not as good and
functional as the foreign made ones. A little more improvement and quality control
would make locally made doors very appealing to the middle class market.
- Israeli
Security doors – highly effective against forced entry, aesthetically
designed and often times bullet proof but very expensive.
- Turkish
made Security doors – more affordable than Israeli doors, also effective
but not as effective as Israeli made doors
- German
Steel doors – more affordable than both Israeli and Turkish doors but also
a good alternative
- Locally
made Security doors – usually strong enough to withstand smashes but not
as resilient as most foreign made doors.
Business Opportunities
for High Capacity Security Doors in Nigeria
There are a lot of houses being constructed daily in Nigeria.
In most cities as population increases so too does housing deficit become
apparent leading to construction new houses or renovation of existing buildings
to meet the housing needs of residents. Part of this often involves purchase
and installation of high capacity security doors especially Israeli and Turkish
doors. These doors are in very high demand for upscale residential apartments
and offices. From my estimate we are talking at least 40,000 units of these
doors with their prices starting from 110,000 naira we are talking of at least
4.4 billion naira per annum in sales (this is a conservative estimate).
Some factors that drive demand for high capacity doors
- High crime rate
- Rapid urbanization
- Housing deficits
- Growing middle class
Among several other factors not listed here.
Key target
markets; courts, hotels, government offices, schools, universities, private
residences, embassy buildings, factories, offices, shops, churches, airport
buildings among others
Challenges
of Security Doors Production in Nigeria
If you want to produce high capacity security doors in Nigeria
the following are some of the challenges you will likely face;
- Adequate Financing
- Quality Assurance
- Cheap Imitation
- High cost of production
- Raw materials and components sourcing
- Unstable Foreign exchange
- Technological challenges
- Inadequate skilled workers for production and
installation of doors
How much is
required to start a Security Door Factory in Nigeria?
The cost of setting up a security doors production Company in
Nigeria besides pre-setup admin expenses is at least 45 million naira. The breakdown
of this startup amount covers such costs as; purchase of machinery, door
accessories, components and raw materials, purchase of a power generating set,
delivery van and office equipment. The admin setup expenses come down to 15
million. A conservative startup amount therefore is 60 million
A Sample First
Year Sales Projection
This projection is based on an assumption that the business
will be open for 300 days in a year with daily sales of 5 doors at an assumed
average selling price of 60,000 naira per door
Gross Sales |
90,000,000 |
Gross Profit |
33,000,000 |
Operating Expenses |
15,600,000 |
Profit
before Tax |
17,400,000 |
Taxation |
5,120,000 |
Profit After
Tax |
11,280,000 |
Projected Return
on Investment |
18 to 29% |
Payback
Period |
3 to 6 years |
Comment |
Very lucrative
|
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Paul Onwueme
is a professional Business Plan writer since February 2014, has achieved
respectable results with his business plan writing service with several of his
clients securing funding and leaving positive feedback about his writing
service. You can connect with him via phone: 0803 206 4106 or email: paulonwueme@gmail.com
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