BUSSINESS PLAN FOR RUNNING A CATERPILLAR 320BL EXCAVATOR HIRE PURCHASE SERVICE. CATERPILLAR EXCAVATOR (320BL) The Nigerian geographical region is currently going through a period of development and expansion due to the increase in population and this has necessitated previously abandoned hinterlands and rural areas to be cleared for human and industrial habitation. This fact is evident in the rapid development been seen in areas such as Lagos-Ibadan express road, Lagos-Badagry expressway, Lekki and Lagos free trade zone and Dangote refinery etc. In order to clear the fields for building constructions,digging/loading/excavation and road maps etc. The usefulness of some vital equipment such as the Bulldozer (CAT D6H) cannot be over emphasized. THE CATERPILLAR EXCAVATOR 320BL EQUIPMENT Excavators are heavy construction equipment consisting of a boom, dipper (or stick), bucket and cab on a rotating platform known as the "house". The house sits atop an undercarriage with tracks or wheels. They are a natural progression from the steam shovels and often mistakenly called power shovels. All movement and functions of a hydraulic excavator are accomplished through the use of hydraulic fluid, with hydraulic cylinders and hydraulic motors.Due to the linear actuation of hydraulic cylinders, their mode of operation is fundamentally different from cable-operated excavators which use winches and steel ropes to accomplish the movements COST AND MAINTENANCE. It is quite expensive purchasing a brand new Excavator as its price ranges between #50m-80m including import duties and other tariffs. Used once are made available for sale by major manufacturers such as CAT, VOLVO etc. We are recommending from our experience that we purchase the fairly used(Belgium) Excavator due to its durability, reliability and affordability. The cost of purchasing and importing this equipment from CAT through the services of an accredited agent in Germany into the country arrives at an estimated amount of #24million total landing cost. Due to the durability of this equipment, the cost of its operations doesnt go beyond its fueling and maintenance which is quite reasonable. Also due to its year of manufacture, its parts are readily available in the Nigerian market and our technical expertise also knows how to manage it during period of breakdown and maintenance requirement. ITS BUSINESS PROSPECTS. From the above mentioned description of this equipment it can be seen that its functions and usefulness are immeasurable. It has a ready and steady market amongst construction companies, property managers, individuals and lots more. This equipment has been proven to make an average of N90, 000(Ninety Thousand Naira) a day as cost of hiring which doesnt include cost of fueling and other expenses. Also from current experience in the Lekki free trade zone, there is high demand for its services. This claim can be verified in the on-going construction projects that are taken place in the zone. OUR PROPOSAL We at GABOLS SOLUTIONS , a duly registered company under the corporate affairs commission hereby propose to go into partnership with an investor with the following terms. 1) That the investor provides a capital of N24million for the purchase and clearing of the said equipment for operations purpose. 2) That the cost of marintenance and other required repairs as the need arises will be bon by GOBOLS SOLUTION. 3) That the said equipment would be purchased and duly registered under the name of the investor. 4) That a payment plan for the remittance of the invested funds including an agreed percentage interest on capital be reached within a stipulated time frame. (We at GABOLS SOLUTIONS are proposing a 24months payment plan which includes an agreed interest on capital). 5) That the remits would be made every month and within the stipulated time frame (Although this can be worked around). 6) That failure to abide with the stated and other agreed plan would lead to the termination of contract. SECURITY ON INVESTMENT. The current market value of the fairly used CATERPILLAR EXCAVATOR 320BL ranges between N15million to N20million in the open market, this claim can also be verified at the appropriate markets. This fact guarantees that the capital invested by the investor is secured as he/she possess the equipment until the agreed remittance is made within the stipulated time frame and can terminate, re-sell the equipment due to contractual disagreement. The proposed business plan is an avenue in the Nigerian economy which has not be fully discovered and exploited thereby making room for large profits by investor and participants in this sector of the economy. The odds and chances of failure are minimal and there is an assurance of reasonable returns on investment.