Commercial Cold Room business plan

Commercial Cold Room business plan



Type of Business                    Cold Room

Location:                                  Abuja



Product /Services:                          ICE-Blocks, Fruits, Meat, Fish, Yoghurts,

ICE-Cream etc.

CUSTOMERS:                                 Market Women, Restaurants, Hotel

Operators, Food Vendors, General


Owner:                                           ABD ENTERPRISE

Phone No:                                    


EQUITY:                                         N2,595,000

LOAN:                                            N5,000,000


TOTAL:                                         N7,595,000





The economic justification that goes with the cold room which I intend to establish are enormous and there are explained through indicators below.

1.2.1 Profitability

The enterprise has a high return rate on investment, this is shown by a good profit margin which it has. Turnover in the first twelve months is forecast to be N11,240,000 as profit after tax and it provides opportunity for expansion. This is due to break even which is possible during the first two months.

1.2.2 Prospect for Future Growth

Another economic justification is it’s prospective for future growth. Due to its high return on investment the business will expand in twenty four months to other locations and make more profit.

1.2.3 Job Creation

Due to expansion of the enterprise, more jobs will, be created and personnel employed in permanent basis, who will manage other outpost in twenty four months period.

1.2.4 Management

The management of the business at its inception, shall be on sole managerial basis, where I will oversee the day to day operation till the business expands and able to get more personnel.


1.2.5 Viability

The business is very viable, since it involves setting up the storage cold room facility and getting items from customers to store with a fee charged depending on the volume of items to be stored. It will also involve the production of ice blocks which is an important commodity sought after by events managers to have on the spot cooling of their drinks, vegetables, fruits etc.


The business plan gives details on the economic justification of the business and its location and environment which I intend to established as a new entrant.

The marketing style the business will use includes; the market strategies, market size, market entry, barriers to market entry, marketing plan, sales assumptions pricing, competitors evaluation and customer relations are well detailed in the business plan to give the idea of how the business intends to operate.

Another important factor involved in bringing the business to fruition is the finance requirements. The proposals for the business enterprise, the outlay of the investment requirement with operating costing of each items and the funding. Profitability indices which defines the Return On Investment (ROl), percentage of net profit to turnover and the break even analysis proposed are also established. This also gives an idea of the profit forecast for the business, the equality stakes that acts as a pre-investment for the enterprise is well detailed, it explains what my investment is to bring this enterprise to fruition.

The SWOT analysis which defines the strength, weakness, opportunities and threats/risk factors the business will experience are also explained.

Detailed in the business plan is the brief technical description of the business, the feasibility analysis, the gestation period the business will take after accessing this funds to providing services and most importantly the capacity ABD COLD ROOM will have at its initial stage of operation.

For a successful business plan, employment generation either in its short term or long term basis is very important hence, ABD COLD ROOM will provide opportunity for operations managers who will be responsible in ensuring the smooth running of the enterprise and its operations as the business expands, this is forecast to be in twenty-four months period. Sales representatives will also be hired as well as accountants during this period. The estimated manpower at the initial stage and in twenty four months time are evaluated including the skill-sets requirement. The multiplier effects the business is going to create in twenty-four months times are also evaluated in details.


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About the author

Sandra Chinedu

Chinedu Sandra is an Entrepreneur within the I.C.T space and loves blogging. She is on the Honour list of GEM, a World Bank Project for start-ups in Africa.

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