Popcorn Business Plan
Popcorn became popular in Nigeria from the 70s when the Cinema became a social culture. However, the local way of popping was quite popular. The popcorn was always carried about by the seller on the head with groundnuts, served in papers or nylons.
Later popcorn was done in open large pans on fire with basic groundnut oil, sugar, corn and salt, and then packaged in nylons with or without labels to be distributed for sales in parks, schools, traffic and events.
Today, in Nigeria, popcorn businesses employ both the foreign popcorn machines and the locally made ones for easier popping in Nigeria. Packaging has become smarter and most popcorn venture with a clear out plan has a success story. Nigeria has been enjoying the popularity in this venture as many small scale popcorn snacks ventures boast of making an average of N500,000 net profit in a month.
Popcorn has become what people of all ages eat, and it has begun to move from just ordinary popcorn to a newer trend seen only in Kaduna and Abuja- the popcorn gourmet, Popcorn in a variety of flavours like caramel, chocolate, cheese, fruits and so on. Having been to events with my mum’s popcorn machine and experienced great sales with my unique flavours, I intend to start with the tested and well-loved and tried flavours (chocolate, caramel, spiced yellow mix) and further make more customer approved entries.
My experience and research in this venture proofs that a popcorn business both pre-packaged to sell in quick shops, or fresh ones to sell in high traffic streets, events, festivals have always yielded great sales which makes a gross sales of over 30billion naira annually in Nigeria.
Over 80% of popcorn eaten in Nigeria are in, parks, high traffic roads, cinemas, camps, tertiary institutions, festivals, theatres, events and not up to 20% make popcorn at home.
Popcorn has become an all-time snack. It is a very economical grain and a very economical way to add fibre to your diet.
In the Global popcorn scene, things have taken a new shape as popcorn factories have swayed into the gourmet or rather flavoured side of popcorn. For example, CNBC news interviewed a popcorn shop in the USA that does over a hundred different type of popcorn. On average, two tablespoons of unpopped kernels produce a two and a half cup of popcorn which costs for about a N100.
On camps, campuses, streets, events and festivals currently popcorn is an attraction. In my trial testing in events, it is impossible to pop more than is sold.
Table of content
Executive Summary 4
Products and services
Market Analysis 13
Sales and Marketing Plan
Management plan 20
Financial Plan and Projections 21
The name of our business is PATILAD Popcorn. We are a sole proprietorship located in Lekki, Lagos, though started bootstrapping about a year ago on and now will be operating officially as a legally operating Startup in Lagos.
We are into production and packaging and distribution of flavoured popcorn of different varieties of flavoured Popcorn or Gourmet popcorn, presently offering chocolate, caramel, cheese and spiced flavoured popcorn.
We also render services in Events, Cinemas, Parties, supply for snacks shops and High traffic streets. This business plan, however, addresses production and packaging arm.
Our target market is people of all age and sex who are middle class and high-end earners of the society who patronizes retail outlets, shopping malls, supermarkets, cinemas, events and also commute through high traffic sites
PATILADPopcorn will be established as a limited liability company owned by Temidayo Awofeso and Aliu Aminu. The company will be managed and overseen by Temidayo Awofeso, a first-class caterer of over twenty years whose expertise has been procured by top-notch companies like Hilton hotel, KFC, Silverbird Cinemabut has now decided to work for alone.
The company intends to hire two full-time machine operators and three part-time baristas to handle customer service and day to day operations.
Products and Services
PATILAD Popcorn will be involved in the production, packaging and distribution of caramel corn, chocolate corn and rainbow colour sugar popcorn. We also sell popcorn accessories including packaging, machine utensils, etc. We also provide training to new would-be popcorn producers. Our plan is to build our brand to become a household name all across Nigeria. We want our popcorn business to be found in supermarkets and stores all across Nigeria.
We are aware that there are several large and small scale popcorn production businessesscattered all around, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We will excel in taste and general service rendering. We’ve delivery service options for our customers, and our outlet is well secured with the various payment options. We have secured deals with traffic hawkers all around busy traffic sites in Lagos.
PATILADPopcorn wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure the stability of the business. In addition, customer traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.
In the true sense of the word, so many other competitors are in the same local government, a couple of other popcorn brands also exist in the neighbouring states. Despite the similar business in the area, PATILAD Popcorn will contain a few beneficial strengths to make it more desirable than its competitors. The central location of our PATILAD Popcorn will be an additional value aspect of the company.
To rise above competitors, PATILAD Popcorn will offer numerous options to satisfy the common health and diet need of consumers. Our competitive edge is also in our unique flavours and recipes. We will invent new flavours and recipes regularly to keep our product offering fun and interesting and to motivate our customers to return to our shop.
PATIKAD Popcorn seeks N3.5 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital. Funding for the launch of the business will be provided primarily by equity from the partners and investors.
Our market survey and research shows that PATILAD Popcorn holds the promise of reaching positive cash flow in its 12th month of operation. The advantage of this is the provision it makes for accelerated repayment of its loan obligations, as well as for dividends to be paid to the owners.