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Raw Gold and Scrap Jewelry Processing Business Plan

Introduction

Gold is a chemical element with symbol Au {from Latin: aurum} and atomic number 79 and it’s the most valuable resource in Nigeria apart from oil and gas. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow colour and lustre traditionally considered attractive, which it maintains without oxidizing in air or water.

 

There are proven reserves of both alluvial and primary deposits of gold with proven reserves in the schist belt covering the western half of Nigeria. The most important occurrences are found in the Maru, Anka, Malele, Tsohon Birnin GwariKwaga, Gurmana, Bin Yauri, OkolomDogondaji and Iperindo areas, all associated with the schist belts of northwest and southwest Nigeria. There are also a number of smaller occurrences beyond these major areas.

 

Gold is not the most valuable metal, but it is extremely valuable and probably the most sought after of all the valuable metals found on earth. At today’s market exchange value, that same cubic foot of pure gold would be worth in the neighbourhood of 10 million dollars. A cubic inch of pure gold would be worth about 7 thousand dollars. So gold is valuable, very valuable indeed; and it does not take very much of it to accumulate a considerable amount of wealth.

 

There is one other distinctive quality of gold worthy of mention. In its natural form, gold is a very rich and beautiful substance to look at. In fact, this is so true that there is a saying among experienced miners and those individuals who handle a great deal of the yellow metal, that it is not a good idea to look at any substantial amount of raw gold for very long at any given period of time. This is because it has a tendency to bring on a condition referred to as “gold fever’’.

 

There are several factors that have emerged over the years as stuff influencing the trade. The major factors influencing the demand for jewellery are personal income and the global prices of major commodities such as gold and silver. Other factors driving the growth of the industry are growing number of employed women and economic growth since 2009. The very facts have starkly made the jewellery industry unprotected to the flows of economic and financial conditions predominant all over the world.

 

This is exactly in key retailing markets and sourcing destinations.

 

Bearing in mind that there are numerous elements utilized in the jewelry market, gold has always conquered the industry because of its rich physical and chemical properties like lustre and ease of fabrication. Therefore, because of the fact that it is being traded on the commodity exchanges, gold price movements are also reproduced in the gold jewellery consumption. This isn’t the case with only yellow gold; other metals engaged in the jewellery manufacturing industry include platinum, silver, titanium, palladium and tungsten carbide, and a whole lot more.

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Table of content

Page

Executive Summary3
Introduction5
Business Description 6
Products and Services11
Market Analysis12
Competitor Analysis16
Sales and Marketing Plan17
Management and Structure18
Financial Plan and Projections19

Executive Summary

Overview

Patilad Wonder is a manufacturer of unique jewellery from raw gold into many different designs in the form of earrings, pins and pendants. We specialize in the processing of raw gold into jewellery and other related products. We are set to take the jewellery making industry by storm with our very creative statement pieces. We plan to fit in accordingly into this very competitive industry.

The Company

Patilad Wonders’ 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 jeweller of over twenty years whose expertise has been procured by top-notch companies like Steve Artificer but has now decided to work for himself.

The company intends to hire two full-time staffs and three part-time staffs to handle customer service and day to day operations.

Products and Services

PATILAD WONDER was established with the aim of maximizing profit in the female fashion and beauty industry. We want to compete favourably with the foremost jewellery making companies in Nigeria which is why we have put in place a competent quality assurance team that will ensure that any product and service rendered meet and even surpass our customers’ expectations.

We will work hard to ensure that Patilad Wonders’ products are not just accepted nationally in Nigeria, but also in other parts of the world. Our products and services are designing and manufacturing of all types of jewellery, training jewellers on how to become an expert, retailing of jewellery and other related products and repairs of types of jewellery.

The Market

The jewellery industry is highly fragmented with thousands and thousands of artisans competing for distribution contracts and fame. Some work and distribute locally, others have national distribution systems set up. Some artists will design products for larger companies to manufacture; others will design and make the pieces themselves. Our competitors are those that create designs that are then manufactured on a large scale and distributed nationally and those companies that have created the designs and make all the pieces themselves, and then do the wholesaling and retailing themselves.

PATILAD WONDERS will be focusing on two distinct groups of customers. One is the end consumer; the other is galleries, to be used as a distribution channel after manufacturing the jewellery from raw gold.

Competitive Edge

Our competitive edge is based on creative, unusual designs. While this strategy can be replicated, it is not easy. Creative, unusual designs require a skill. While not everyone has the artistic skill, we are certainly not the only one graced with this skill. Regardless, our founder is very skilled in what he does, and every piece that he manufactures incorporates an element of creative, unusual, eye-catching design that stands out from most jewellery.

We are quite aware that to be highly competitive in the jewellery making and retailing industry means that you are not only expected to be able to deliver consistent quality products, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.

Financial Considerations

Patilad Wonders’ Jewelry seeks N5 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 show that Patilad Wonders’ Jewelry 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. 

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