Sample Business Plan: Production of High Capacity Security Doors in Nigeria

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