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Wednesday, October 2, 2019

Sample Nigerian Business Plan for Online Tutoring Service

Online Tutoring service. Image Credit: www.enquirer.com 
The online tutoring service is an emerging business which will mature in a few years’ time as a very lucrative online business requiring minimal startup capital. It is something that will reduce unemployment and create a lot of income opportunities for many unemployed people who could become self employed and earn good income from.

What is Online Tutoring Service?
In lay man’s language, Online Tutoring is the provision of tutoring service over an online portal or which uses an online marketplace to connect tutors with students who need tutoring. The students register as members and pay money into the ewallet account on the web portal while the tutors are paid based on billable hourly rates for the number of hours worked. It is similar to a freelance market place but the difference is in the purpose of the portal. The Online tutoring service functions by providing online classes (tutorials) on various topics and is not necessarily limited to academic areas. It is becoming very popular among millennials and has become a more viable way of accessing tutoring service on the go. There are still challenges which frustrate the running of this business.

The Opportunity
  • Nigeria’s middle class is changing but also growing fast. A lot of lifestyle changes are noticeable with the middle class especially with the use of internet enabled devices in searching for products, services, information and other useful things they need. Businesses in turn are adjusting to these changes to readily serve the market. The effect of lowering cost of internet data and improvement in video streaming also gives room for provision of online classes in real time. There are other opportunities as well;
  • Over 40 million Nigerians residing in the 6 most cosmopolitan cities (Lagos, Port Harcourt, Abuja, Kaduna, Warri and Benin) are potential customers.
  • Rapid pace of academic programs in post primary education is a factor that drives demand
  • Over-reliance on examinations for assessing student aptitudes
  • Cosmopolitan nature of most Nigerian middle class workers
  • Ready pool of skilled tutors and professional teachers
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The Challenges of Running an Online Tutoring Service
  • Security Challenges – how do you vet the reliability and civility of tutors who will have access to homes and private lives of clients?
  • Excellent service delivery – how would you ensure that tutors remain professional and committed to delivering their best possible service? How should the service be delivered – online/real time or offline?
  • Payment – how would payment disputes and delay be handled by difficult and dishonest clients?
  • Dispute resolutions – in the event of disputes between clients and the company or clients and the tutors how would issues be amicably resolved without client disengaging company services?

Marketing Strategy
The strategy for finding, identifying and fulfilling client needs will be very difficult to achieve at least while the market trends are still emerging. A digital marketing strategy which will cover use of content marketing strategy and integrated with paid Search Engine based leads generation will work. The market is still evolving.


Financial Setup

Item
Cost
Office Space
600,000
Web Portal
200,000
Running Expenses (6 months)
600,000
Marketing Budget
300,000
Contingency
300,000
Other expenses
360,000
Total
2,360,000


Sample Financial Projection (1st year)
NB: Net earnings on total fees could be 40%. Teachers earn 60% commission per class and payment is made after work is completed. Based on assumption of 3,000 naira fee per class and average weekly rate of 2 classes per subject, 20 weeks per year and 2 subjects per client X 30 clients per annum
  • Total yearly revenue = 14,400,000
  • Total commission paid = 8,640,000
  • Total yearly running expenses = 1,800,000
  • Profit before tax = 3,960,000
  • Taxation = 1,188,000
  • Profit after tax = 2,772,000
  • Return on Investment = 117%

Looking to write a professional standard, bankable business plan? Give a me call: 0803 206 4106 or email me: paulonwueme@gmail.com to get started.

Thursday, September 26, 2019

List of 11 Sample Nigerian Business Plans


Business Plan Shortlist. Image Courtesy: shockwaveinnovations.com

Here is a shortlist of sample business plans written for the Nigerian market. They merely convey a preview of business plan samples I have prepared and written over the last three or so years. Some of them may offer you actionable insights without much details whereas others are skeletal presentations that can only be exploited upon proper

List of 11 Sample Nigerian Business Plans

This sample business plan asks only one question – how lucrative is the sharwarma stand business? The answer is – it is highly lucrative and the breakdown of this article explains why and how one can harness the power of this product to smile to the bank.

At least 360,000 people visited Nigeria in 2017 for business and most of them have a budget to cover their stay while here in Nigeria. Part of that budget would go into airport shuttle service and car hire which many hotels have taken advantage of. Once you arrive in Nigeria as a visitor and have booked a hotel to stay in, naturally you’d enquire about cab services within the city you’re visiting but not all hotels can provide this service and even those who can may charge much or may want to focus on providing core hotel services that they’ll rather outsource the service to more competent companies. 

The Nylon sachet water or more commonly called Pure water Business is highly competitive with very little profit margin and high operating costs. The startup requirements are not tedious hence why there are so many operators but the payoff is huge for businesses that can either scale up or guarantee steady flow of their products through their supply chain. Demand is all year but operating costs is also high.

My research into the pharmacy store business shows that on average the middle class customer spends N18,000 per annum on medication and medical supplements and we are talking of about 44 million strong individuals (if we include the health and dietary needs of father, mother and children). This means that the market can generate at least N792 billion per annum just from the middle class alone. Incidentally there are fewer than 12,000 pharmacy retail stores in Nigeria which means there is a lot of room for new entrants to compete in this market.

Home and office space rental business is changing very fast because of affordable internet services and the changing lifestyles of working class residents in urban areas. People’s needs for affordable homes is now being served better with digital marketing which will position savvy real estate agencies with constant flow of leads and very qualified prospects to do business with.

The creche and daycare service business is one of the most prolific and most sought-after businesses among women. But there are many issues to know before setting up such as; start up requirements, legislation and policy requirements, registration and licensing requirements, market trends and current practices among others. Though not covered in this sample business plan, it is still summarized guide to follow.

The market for baby products in Nigeria is booming because in 2017 alone over 6 million babies were born nationwide. Granted most of them were in rural areas but the urban centers account for over 2.5 million of them. Nigerian women are very fertile giving birth at least 4 times in their lifetime which means there will always be a market for the products but their lifestyles and the economy is changing, so too is the marketing strategy to identify and satisfy their needs. How can businesses engaged in baby products benefit from these new opportunities?

The booming market for affordable and decent housing in Nigeria has been ignored for a very long time due to policy and prevailing economic realities. But there exist opportunities to engage the teeming market with decent and very affordable housing in strategic locations.

The market for furniture making and retailing is slightly analyzed in this article. The opportunities and must know for investors looking to key into this market are explored in detail. A mini financial projection also provided.

This business plan covers key market issues and opportunities affecting the downstream sector of the petroleum industry. A little advice on how to setup and a basic financial projection of sales, profit and loss and possible payback period.

A miniature business plan sample which captures some key market issues and opportunities in bakery setup in Nigeria and a very basic financial summary for you to peruse.

Other Useful Nigerian Business Plan Guides

Many times people looking for business plans especially here in Nigeria have a tendency to go online to download a sample business plan format to guide them in writing a business plan. Along the line they discover two problems namely; that those online business plans are written for businesses in other countries and do not have realistic or comparable factors which would make them viable in Nigeria. On the other hand finding the right business plan writer in Nigeria has its own risks as well

Why do I need a business plan? Where can I get a professionally written business plan? What Should I look out for in a professionally written business plan? These and more answered.

Want to write a professional standard business plan that is bankable? Give me a call or 0803 206 4106 email me: paulonwueme@gmail.com to get started

Wednesday, September 18, 2019

The Furniture Making and Showroom Business in Nigeria



Furniture Showroom in Lagos, Nigeria. Image Courtesy: 03techy.com

The Nigerian Furniture Making Business Overview 

Furniture serve many uses in Nigeria and are in high demand. Offices need furniture; desks, front desk table, conference room table, executive chairs, book shelves, office cabinets, library cupboards, visitors bench etc. Homes also need furniture; settees, single couches, single chairs, dinning table and chairs, TV stands among other products. The list goes on and so too does the demand and supply from furniture makers and showrooms but a few businesses have found creative ways of selling more and making a ton of profit.

Nigerians spent close to 110 billion naira in 2018 on furniture. This is the formal segment of the market as the informal segment is not captured (people who buy from road side furniture dealers). The rich especially visit exotic furniture showrooms and order for furniture worth millions of naira at a sitting and this is just a tip of the iceberg. There are offices, companies, government agencies that demand for furniture from time to time and they usually have big budgets for such acquisitions.

The Business of Furniture Making and Selling in Nigeria (Present Realities)

The first part of this business starts from designing, cutting, shaping, joining among other processes of furniture parts into desired type. This is from the informal making process where skilled artisans do the work manually. There is the automated process which involves highly technical and skilled personnel and use of very specialized machinery like some Chinese investors have done recently to tap into the ever-growing Nigerian market. The second part is the retailing of finished furniture which is less lucrative from the profit margin point of view but more cost effective than the former from the operational end.



Some Market Facts about the Nigerian Furniture Market
  • Major import markets for Furniture to Nigeria are; Italy, Turkey, China, USA and UK
  • The average Nigerian office will likely change furniture every 3 to 5 years and we are talking of hundreds of thousands of offices
  • Most Nigerian middle class make purchases for new furniture from time to time based on lifestyle needs and occasion
  • Imports of furniture to Nigeria is in the region of 30 billion naira alone not excluding local sales made from local factories
  • The market situation is highly volatile as new fashion and lifestyle trends can suddenly impact demand for certain furniture styles

Key questions to answer if you are looking to crush huge sales in furniture Business in Nigeria
  • When do people really demand for furniture?
  • How Much are they willing to spend?
  • What kinds of furniture are they looking to buy?
  • How can they find you instead of the competition?
  • How can you find willing buyers for furniture?

To get answers to these questions which are available on request send email to: paulonwueme@gmail.com

What to Consider when Setting up a Furniture Business in Nigeria

  • For investors willing to put in money automating the production process. This will not only lower the cost but enable you produce and sell more to the market. Automating the process also improves the efficiency and ensures quality finishing.
  • Quick sales is possible but the competition is not asleep. The best way to achieve quick sales is to invest aggressive marketing but specifically highly targeted marketing.
  • There are many ways to market your product; direct marketing, PPC, display adverts, excellent customer service to name a few. Prepare yourself for stiff competition no matter the marketing method you choose but some are far more effective than others.
  • A solid financial plan that will enable you manage cashflow, grow your business sustainably and create a solid base of reserves among other financial goals to consider.
  • The return on investment is impressive compared to most other manufacturing businesses. In some cases the ROI could be over 60% and payback period is between 2 and 3 years depending on the scale of operations and how quickly sales targets are met.

Want to setup a furniture production business and need a bankable business plan to achieve your goal or raising finance. Then send me an email to: paulonwueme@gmail.com or call: 0803 206 4106

Monday, September 16, 2019

Nigerian Business Plan for Online Home and Office Rental Service


Nigerian Online Real Estate Agency. Image Courtesy: fiber.com

The Nigerian Online Rental Business Plan Overview
The online rental business in Nigeria is gradually gaining momentum as a result of rapid changes – both social and economic – and with evolving ICT and lowering marketing costs, a large number of Nigerian urban city residents – moving upwardly due to improving incomes - want to be housed very decently in very cost effective and timely manner. The days when people sought housing opportunities through brick and mortar real estate agencies are fast eroding as more people are now seeking online methods of connecting with real estate agents while seeking rental properties. Details of these facts available on request.

The market is huge as more than 30 million Nigerians are active on social media and use mobile devices to connect with businesses. We are talking of billions of naira in potential revenues to these online office and apartment rental service providers.

Related Nigerian Sample Business Plans


The Business Opportunity (Demand for Nigerian Online Realtor Services)

  • 80 million Nigerians have access to mobile devices and many of them are satisfactorily tech savvy
  • Nigerians want to bypass unreliable real estate agents as much as possible and one good way to achieve this is with an online service that cuts out the clutter involved in connecting potential tenants with their housing needs
  • The population centers of Nigeria – urban towns and cities – suffer from adequate housing and efficient town planning. That makes a house search very difficult without insider knowledge within the industry
  • Time and cost savings. This service is very cost effective and convenient to all parties
  • There are still 10 more opportunities not outlined in this article (available on request)

The Target Market

The demographics are numerous and can be broken into small and fairly large segments based on the peculiarities and need of each. For instance, young women who are gainfully employed but still single tend to favour small apartments in more pristine neighhourhoods if they can afford it otherwise they would settle for other factors such as proximity to their workplaces, population spread and other key social dynamics (only available in the detailed version of this business plan). The major target market regions vary from: Lagos to Ibadan, Abuja, Port Harcourt, Kaduna and Kano but the demographics include; single women, bachelors, married couples, families, elderly, expatriates, high net worth individuals among others.   

Some Challenges and Threats faced in Online Real Estate

Quacks can also cash-in on the unanimity provided by some online marketing platforms. This could frustrate both potential clients and genuine real estate brokers/agents
Due diligence checks by the client will still boil down to face-to-face consultations and actual property inspection eventually which implies the process is not totally seamless
Security threats exist in all of this if cyber criminals can hack into realtor websites or access client information prior or during consultations
NB: More challenges not outlined because this is a mere sample business plan.

Startup Requirements (in Naira)
Direct response mini-Website:
Online Marketing Budget:
Internet enabled device:
Business Cards:
3 months operating costs:
Office Space: (optional as office space is required for this business to take off)
Total

50,000
150,000
120,000
12,000
60,000
300,000

662,000


Sample Financial Summary (1st year only)

First year Profit and Loss Summary (in Naira)
Gross Income:
Operating Costs:
Profit before tax:
Taxation:
Profit after tax:
3,600,000
690,000
2,910,000
970,000
1,940,000

Conclusion

From the startup costs and above financial summary statement, it is clear that this business is highly profitable. The entry requirement is minimal both from the cost and technical angles but the payoff is huge with an effective marketing strategy and management process in place.

Want to start a new business, expand or approach a bank for a loan and need a bankable business plan? Send me an email to: paulonwueme@gmail.com or call: 0803 206 4106 to get started.

Monday, May 13, 2019

Sample Business Plan: Investment in Low Cost Mass Housing Real Estate

There is a huge market opportunity in providing qualitative but affordable low cost mass housing services in Nigerian cities. The market size and overall income pool supports this just as infrastructural challenges may prevent investors from quickly recouping their investments within the shortest possible time. However certain cities such as; Abuja, Port Harcourt and Lagos present huge profit making opportunities for very savvy investors considering also that real estate investments tend to be the most lucrative and one of the safest long term investments.

The yearly trend since the 1970s has seen a rapidly expanding urban population (2 to 5% depending on which city you are looking at) plus the fact that economic opportunities which drive the mass rural-urban migration will continue for many years so long as no viable economic options exist in villages and hinterland, the cities will continue to experience high population growth rate and pressure on existing housing. 


This rapidly growing population of urban city dwellers in most of Nigeria’s cities creates many problems one of which is housing deficit.


In Nigeria’s top cities – Abuja, Port Harcourt and Lagos to name a few, decent, qualitative and affordable houses are very difficult to come by. Most houses that meet international standards are either for the rich or the upper middle class leaving the low income earners and lower middle class to struggle to own existing low quality homes. The problem of decent low cost housing is so monumental that even the Nigerian government now has to rely on foreign investors to proffer a solution. 

Other Sample Nigerian Business Plans


Nigerian Housing Problems in a Nutshell

·         17 million houses are required to adequately address the national housing shortage
·         The cost of building these houses comes at a huge amount that government is unable to achieve without private sector involvement
·         Private sector involvement is limited by inadequate infrastructure to support mass housing schemes
·         The sheer size of the housing shortage implies a huge boom in real estate business due to high demand for rental properties and low cost housing
·         Less than 15% of all urban city dwellers can afford standard housing – with sewage disposal, running water, quality home fittings, drainage system, electricity and other habitable amenities.
·         As a result most city dwellers live in slums and distant towns far from the city center or their main working areas.
·         Most city dwellers spend between 30 and 60% of their annual incomes on house rent
·         Nigeria’s middle class population is one of the world’s fastest growing expected to be the third largest among emerging global markets by 2030 behind China and India
·         Quality low cost housing units for rent or sale will be in high demand especially from the middle class



Market Opportunities for low Cost Housing in Nigeria

Since the population of low income earners in Nigeria exceeds 75% in most cities and the potential income pool is over 9.2 trillion naira per annum just from the low to middle income class (people earning between 25,000 naira to over 150,000 naira per month) that implies that people with huge capital outlay targeting these low to middle income earners can potentially make huge incomes just from targeting this market. There are many housing options that can serve this market but one that best fits into affordable decent housing is self-contained apartments or what some people call studio apartments – a single room with kitchen, toilet and bathroom apartment. This is the most affordable apartment and can reasonably be patronized by low income earners depending on location of the property and quality of the building material. The market pool is so large that vacant apartments in densely populated areas of cities will be taken up within a few days or weeks in the worst case.


Key Areas of Investments and Startup Requirements

Besides the low to middle income market, there are opportunities that can target other segments which also desire low cost housing. There are short term visitors to cities, young married couples, small sized families and specific communities. Also worth noting is the housing needs for each segment. Family sized apartments will not conform with single and recently employed folks just as specific communities e.g retirees, middle income families, civil servants or even members of a church or certain societies may want to reside in closely knit communities and hence will also have different needs. The startup requirements besides capital outlay could also include office setup, recruitments and other essentials.


For a more detailed and bankable Low cost housing real estate business plan in Nigeria you can contact me on: 0803 206 4106 or email me: Paulonwueme@gmail.com

Wednesday, May 1, 2019

Sample Business Plan on Bakery Setup in Nigeria

This is a sample business plan of running a bakery in Nigeria. While not detailed, it is a summary of the potentials and startup requirements for running a bakery business in Nigeria. The bakery business has many products which are in high demand; bread, biscuits, cakes, pasteries and other confectioneries although despite this very high demand, there are many challenges which will frustrate the profitability of a bakery business but there is a middle ground. If you can bring innovation into your business, you will make a lot of money despite the challenges.


Local Demand and Market for Bakery Products in Nigeria

As far as bakery setup is concerned there is more than enough demand for bakery products. Take for instance the average Nigerian household spending from total income is 56% meaning out of every 1,000 naira earned by most Nigerian families in cities, 560 will be spent on food. That is according to a study from a reputable US based development Agency in 2017. Out of all consumed Nigerian staples bread remains one of the top 5 at least since 1960. This by implication means for a very long time Nigerians will continue to consume bread even as the population continues to grow. Besides bread, bakeries also produce biscuits, cakes and other confectioneries which are also in fairly high demand. To put in simply; there is a market for bakery products in Nigerian cities where more than 90% of all bakery products are produced and sold. But where there is money, you will find a rush. The competition in this business is very stiff and the profit margin has had to drop as a result making it less profitable for most operators but the real issue remains will there ever be a unique touch to your bakery product that will create a special demand? You can still make a lot of money from bakery business by innovating your brand and products in a very competitive market. 


Opportunities for Bakery Operators in Nigeria

Supplying bulk buyers with bread, cakes, rolls and other confectioneries is an opportunity some bakery operators are taking advantage of. Locating your bakery in close proximity to these bulk buyers can boost your sales significantly and also lower your marketing expenses. For this reason one should establish his bakery closer to his or her target market. Another factor to consider is income spread of target market. There is changing demand for bakery products based on lifestyle and needs and people with higher incomes tend to higher tastes and expectations. 


Below a list of potential bulk buyers of Bakery products

Niche Market
Description
Boarding Schools
Bulk purchases for students’ breakfast or dinner usually order for 30 to 200 or even more large loaves at a time
Supermarkets
Buy between 5 to 60 loaves per day
Orphanages
Buy occasionally but depend on donations
Churches
Host events a lot and would typically serve snacks and other light confectioneries
Corporate Organisations
For corporate launches, workshops, seminars, events etc they could order sausages, cakes, biscuits etc
Eateries
Stock almost every confectionery
Grocery Shops
Corner shops, road side sellers, kiosks etc
Neighbourhood Retail Marts
Shops stocking consumables especially edibles
Open Air Markets
Popular busy markets with many petty traders

These are some of the opportunities that new entrants into this market can explore along with many others still existing side by side emerging market trends, marketing innovations and changing consumer tastes and demand (more on this at the end of this article).

Startup Requirements for Standard Bakery Business in Nigeria

Item
Cost (N)
Factory Building (2 year rent on 3 bedroom bungalow)
3,240,000
Bakery Machinery
3,600,000
Delivery Van
2,800,000
Office and Shop Furniture (including storage racks)
800,000
Registration and Legal expenses
480,000
Branding and Printing
300,000
Marketing Expenses
300,000
Salaries (12 months)
6,000,000
Stock of Ingredients
450,000
ICT and Electronics (Office PCs, POS machines etc)
318,000
Electronic Gadgets (1 Fridge, 1 deep freezer, oven etc)
450,000
Other Admin Costs (12 months)
3,600,000
Other Expenses
900,000
Total
23,338,000

1st Year Profit and Loss Statement

Gross sales
Cost of Sales
Operating expenses
Profit before Tax
Taxation
Profit after Tax
Dividends
Retained Earnings
69,120,000
48,840,000
11,720,000
8,560,000
2,568,000
5,992,000
3,000,000
2,992,000

For a more detailed and bankable bakery business plan in Nigeria you can contact me on: 0803 206 4106 or email me: Paulonwueme@gmail.com  

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