Saturday, September 19, 2020

Sample Business Plan: How to Setup a Cakes Shop in Nigeria

Cake shops can be highly profitable businesses in Nigeria when the operator has a huge competitive advantage and can minimize operating costs to the barest minimum. A few marketing and operational strategies can work a startup cakes shop to a highly lucrative position. Return on investment for an average cakes shop could vary from between 30% to over 100% while startup costs could be as little as 3 million naira.

This is a sample, miniature business plan for setup of cakes shop in Nigeria. A cakes shop is a kind of confectionery shop which stocks a variety of cakes and complementary pastries for various occasions that serves various target market in Nigeria. Kindly note that this is a summary and hence is a brief write-up highlighting key issues involved in setting up and running a cakes shop in Nigeria. In this write-up, I will be covering some issues such as the opportunities for cakes shop in Nigeria, the likely challenges and a brief approach to gaining patronage, startup costs as well as what a first year income and expenses statement could look like.

What is a Cakes Shop?

As the name implies, it is a shop where cakes can be ordered for (whether eat in or take away). The menu for typical cakes shop varies from light treats like cupcakes, cookies, brownies and waffles, to more exotic items like popsicles, smoothies, ice cream and party supplies. In addition to menu items, cake shops also offer customized cakes such as; wedding cakes, birthday cakes, anniversary cakes, souvenir cakes and similar cakes which can be baked and delivered to clients on demand. Each of these cakes also comes in different flavours.

What is the potential market size for cakes in Nigeria?

Cakes are in very high demand in Nigeria. There is a large number of people who order for cakes in Nigeria for various reasons. We have the sweet tooth - people who love to eat cakes regardless of occasion. There are also people who order cakes for different occasions such as; workers buying their boss a cake on his birthday, a wife that buys her husband a birthday cake, a boyfriend buying his girlfriend a cake, valentine’s cake, wedding cakes etc. The wedding cakes market is especially a large one in Nigeria. Think of a country where more than 24,000 weddings happen every week and wedding receptions must have a cake as an item to be served to guests. If the average wedding cake costs 20,000 naira we are looking at not less than 480 million naira every week from wedding cakes alone. Let us even talk about birthday cakes. How many birthdays do we host daily? Parents buy birthday cakes for their kids all the time, so too do spouses buy for their partners. If 4,000 Nigerian wives buy surprise birthday cakes everyday for their husbands at an average cost of 7,000 naira we are talking at least talking of at least 28 million naira per day or over 1.5 billion naira per year. That is just for wives buying for their husbands. What about friends hosting parties? I can go on and on, my point is a lot of people in Nigeria are willing to spend money on cakes (and good money at that).  

Business Opportunities for Cake Shops in Nigeria

There are many opportunities to sell cakes in Nigeria and it is not limited to locations as several major cities (Lagos, Abuja and Port Harcourt) have a large population of people who are in need of cakes for various reasons and occasions. People would order cakes and would offer them to other people or even eat them on their own. Here are some reasons and each of these cases run into hundreds of thousands of people who will spend hundreds of millions of naira collectively.


Birthday parties

Birthday parties

For children,


Lovers buy each other cakes, romantics of dates

Parents and Guardians

Millions of parents present cakes to their children


Hotels serve their guests as deserts before main course,


60th birthdays, 50th birthdays etc

Corporate gifts

Presented to guests at product launches, banks serving customers etc

Social Events

House warming, child naming ceremonies, reunions, community meetings, concerts, family outings

Corporate Events

Seminars, workshops, symposiums, conferences,

Other events

Community outreach, church meetings etc

Summary of potential opportunities for selling cakes in Nigeria

I can go on indefinitely but the point is a large number of people in Nigeria want cakes and are willing to pay good money to buy and offer those cakes to their family, friends, loved ones, colleagues and acquaintances.

Some Notable Challenges for a Cakes Shop Business in Nigeria

While cakes are very popular lifestyle products with huge market demand in Nigeria, I must sound a note of warning. The business is a tough one to do and here are some reasons. But keep in mind that it is possible to run a successful cakes shop even with many challenges.

  • High cost of running a cake shop. Cakes shops typically serve a high end market and so they tend to be located in expensive parts of the city where rent is high.
  • Finding and Keeping competent and loyal workers. Employing highly skilled people with excellent cake baking skills doesn’t come cheap and what is more, most times they will likely leave you either to join a competitor or after a short time to setup their own cakes shop and end up coming after your own customers. Employing lowly skilled workers is another nightmare - they will eventually make mistakes that could cost you customers.
  • Stiff competition. This is an easy business to learn and start and that means there are a lot of people who will get into the business. The entry requirement is so low that in as little as 6 months, a person who went to catering school can have what it takes to open a cakes shop. More competition means lower profit margin and reduced sales.
  • Limited target market. While the market is sufficiently large, the competition is also fairly large but there is another take here. The people who can buy your product from you are relatively few in number compared to the total population. For every 1,000 Nigerians maybe less than 50 would be interested in buying cakes once in a while and that is because cakes are lifestyle products (not necessities). So during low periods, sales can be very discouraging.
  • High Customer Expectations. The customers want to be served the best possible cake available for the price they are willing to pay. So if one of your customers has a friend who offered her a delicious cake that your cake shop cannot match in terms of quality or taste, you will lose that potential customer to your competitor because naturally, everyone wants to buy the best product they can afford. So you must constantly measure up or lose important customers – not an easy thing to do.

There are still several challenges although I will not be talking further on this. Let us move on to the next item on this article which is the startup expenses summary.

Startup Expenses Summary for a Cake Shop Business in Nigeria



Shop Rent (shop size: 20 by 15m for 1 year)


Furniture (sitting tables and chairs, display shelves etc)


Entertainment devices, Electronics and gadgets


Working capital




6 months operating expenses


Marketing budget






The assumptions for this income and expenses statement are that

Sample First Year Income and Expenses Statement

Gross income


Cost of sales


Gross profit


Operational expenses


Operating income before tax




Profit after tax


Payback period

3 years



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Are you interested in writing a comprehensive business plan for a cakes shop business in Nigeria and need an experienced, professional business plan writer for it? Then give me a call: 0803 206 4106 or email me:

Saturday, August 29, 2020

Sample Business Plan on Tomato Farming in Nigeria

This is a miniature sample business plan that will briefly summarize the tomato farming business in Nigeria from some of the key elements of the business. In this article, ideas to be explored include; opportunities for tomato farming in Nigeria, Future trends, challenges, startup cost summary and potential income and profit/returns.

Market Overview of Tomatoes in Nigeria

Tomato farming is the third most lucrative crop farming business in Nigeria. The tomato crop itself is a very popular vegetable used in the preparation of tomato stew, vegetable soups, sauce, egg, salad and as garnishing for barbecue among others. The crop just like most other food crops in Nigeria enjoys huge demand from the local market.

The local market comprises both commercial entities and private individuals found in the main markets - big cities (kano, Kaduna, Abuja, Lagos, Benin, Port Harcourt, Onitsha to name a few) where stew is more commonly eaten with rice, spaghetti and yam. Besides stew, tomatoes can be processed into paste and sold to the general public as well. Nigeria has the largest market in Africa for tomato paste consumption (more than 3.5 million metric tons consumed as at 2018) and is easily one of the most profitable markets to resell tomato based products (profit margin could be as high as 30%).

The demand for tomatoes by far outstrips its supply by over 1,700,000 tons meaning that Nigeria still needs to import tomato pastes, purees, ketchup, dry tomato slices to name a few. This high demand is due mainly to three factors; rainy season, transportation challenges and high rate of spoilage. About 40% of harvested tomatoes goes bad before it reaches the market which contributes to its seasonal scarcity. The rainy season period often times sees a sharp drop in production of tomatoes (from April to October) when the price can go as high as 6 times what it will sell for during the dry season.

What are some of the Opportunities for Tomato Farming in Nigeria?

Tomato is in high demand year round as local supply is unable to meetup. That means farmers can be sure of selling their produce year round. There is also the synergy between small holder farmers, off-takers and tomato processing plants has created opportunities for farmers who can bypass middlemen involved in the marketing of tomatoes to the end users. Government interventions and policies local food self-sufficiency so far have supported tomato farming at all levels which can only mean the future for local farmers is bright as financing and inputs supply will likely receive massive government boost.

What are some Challenges of Tomato Farming in Nigeria?

Tomato farming is faced with many challenges. For instance, the problem of storage which most farmers complain bitterly about since they typically lose nearly 40% of their harvests leading to loss of income. Secondly there is infrastructural challenges especially transportation infrastructure which contributes to the high cost of distribution and even spoilage of tomatoes. Farmers are also challenged by low yield per hectare. Nigerian tomato is one of the lowest quality tomatoes in the world and also one of the costliest to process. There also inadequate access to inputs, precious agro-chemicals and agronomic support among others.

What are the investments required for Tomato Farming in Nigeria?

Besides suitable farmland (loamy soil) measuring at least 2 hectares, a prospective tomato farmer will need adequate inputs such as tomato seedlings, irrigation system and fertilizer to name a few. Besides this, farming implements, storage facilities, labour expenses and working capital. An initial outlay for a 2 hectare tomato farm should cost at least 1,300,000 in total to setup.

First Year Projections

The average yearly yield of tomato in Nigeria per hectare is 7 tons. A ton of tomato goes for between 70,000 and 140,000 naira depending on location of the farmer and agreements with the off-taker. A 2 hectare farmland can yield a tomato farmer between 980,000 to 1,400,000 naira per season, minus running expenses profit after tax could be between 400,000 and 600,000 per season.

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Are you interested in writing a comprehensive business plan for a tomato farming or processing venture in Nigeria and need an experienced, professional business plan writer for it? Then give me a call: 0803 206 4106 or email me:

Monday, August 24, 2020

The Best Business Plan Writers in Abuja: How much do they charge?

If you are based in Abuja and you are looking for a competent business plan writer to hire, then you should be interested in knowing a few things beforehand? For instance, what will the service be like? How much will the business plan writer charge you for using his service? How can you even tell if a business plan writer is the right fit for your business?

I will give a few tips on how to approach and use the services of a professional business plan writer using my own experience and how I have responded to clients in the past. But first let us establish why it is necessary to hire a competent business plan writer and how to know if you are not dealing with a quack.

Why you should hire a competent Business Plan Writer

For a start a competent business plan writer will save you money and time when it comes to writing a very good business plan. A highly experienced business plan writer can prepare a very standard and bankable business plan for you within 1 week – without use of software. It takes a lot of experience, skill and imagination to present a business plan that will convince a bank or investor to give money out to a loan seeking business owner. Doing field research is expensive and time consuming, you don’t need to put yourself through all that, let the business plan writer stress himself out for your sake.

Another reason you should hire a competent business plan writer is to avoid falling victim to quacks and fraudsters. The professional business plan writer relies on referrals, relationships and networking to attract new clients and to grow their business. That means doing a good job and delivering it on time to the client is the hallmark of their service. The fraudsters and quacks on the other hand do not care about their reputation but only want to make quick money at your expense. They will leave you very angry and frustrated if you ever mistakenly use them. I have had clients in the past complain to me about being scammed by business plan writers peddling business plans online from their websites (they usually charge 10,000 naira and leave their account details for you to pay them). Do not patronize such people. They are quacks at best, but mostly scammers.  

How can you tell if you are on to the right business plan writer?

This is the most crucial aspect of hiring a professional business plan writer in my opinion because it will determine if all the subsequent steps are worth pursuing. If you are on to the wrong business plan writer obviously there is no need to proceed to the next steps. A competent business plan writer is readily identifiable by how experienced and knowledgeable he/she is about general business writing. When you speak with him/her, you can sense the experience by the quality of communication and use of business terms when attending to your enquiry. They usually sound professional, official and experienced and are more than happy to answer your relevant questions when you present them.

Second fact is that they are methodical about how they respond to your enquiry. They know how to steer your enquiry towards a more productive outcome even before engaging them for your business plan, you can already see the direction your enquiry will lead to as they offer conclusive explanations and details of their work style and terms to you. You can test them with probing questions and you will know if the person you are talking to is a pretender or a serious business plan writer. Most times the quacks and fraudsters will crack with probing questions about your business opportunity.

Always check the professional experience of the business plan writer as well. A beginner or rookie business plan writer is definitely not a fit for your business needs but a business plan writer who has experience working within the industry and has successfully helped some of his clients raise funding to start or expand their businesses is a great fit for your business planning needs.

What are some of the Business Plan Terms to expect?

The terms of what to expect depends on the business plan writer you are dealing with. You can only know about their terms after making initial contact with them. In my case for instance, you will either place a phone call to me or email me to get an initial response for which I will eventually steer you towards my terms based on how productive our conversation has been. You can find out more about my terms after making contact with me.  

How much should you pay an Abuja based professional Business Plan Writer?

That is not a straight forward question because the answer is that it depends. But a realistic fee to look forward to is 25,000 naira which is usually the lowest amount a professional business plan writer will charge (beware of the 10,000 naira business plan writers here, you will always regret using their service). The fee doesn’t necessarily prove the competence of the writer but for a person who makes a living writing business plans you wouldn’t expect him to charge you peanuts. But you shouldn’t pay more than 70,000 naira for a business plan except where there is a lot of field work and technical research involved.

My last word to anyone looking for a business plan writer to hire in Abuja, check out the level of experience and proven expertise of the writer first before moving on to their terms of service and finally check out their fees and if all these sits well with you, then you have found yourself a good business plan writer to work with.

Paul Onwueme is a professional Business Plan writer since February 2014, has achieved respectable results with his business plan writing service with several of his clients securing funding and leaving positive feedback about his writing service. You can connect with him via phone: 0803 206 4106 or email:

Thursday, August 20, 2020

How Profitable is Fish Farming Business in Nigeria?

There a lot of talk in the last few years about fish farming as a very lucrative business venture to start an run in Nigeria and a lot of business owners and investors have been contemplating whether to venture into it or not.

I have had the priviledge of researching this opportunity and have reached a conclusion about the business. It can be very lucrative and worth your while if the scale at which you operate it is the right one and the location is strategic. Anyone who ventures into fish farming but misses out on these will discover the hard way that it is no joke to start a delicate business like fish farming if you cannot operate profitably after committing millions of naira to a project that should have made you smile to the bank.

So while I will provide all the information about this opportunity (it is only available on request) I will do my best to explain what makes fish farming business in Nigeria profitable as briefly as possible. To answer this question I will be taking out time to answer some background questions leading to a conclusive answer for this post’s main question. Here is the list of background questions I will be taking on;

  •        What is fish farming business?
  •         What makes it a profitable business?
  •          What is the level of demand for fish in Nigeria?
  •          What are the challenges of Fish Farming in Nigeria?
  •          What is the level of Investment needed to operate profitably?
  •         Startup cost and payback period
  •          Who should invest in Fish Farming?

What is Fish Farming Business?

Fish farming is the rearing and production of different species and varieties of fish for human consumption. It often times involves use of artificial but sophisticated fish holding facilities such as ponds for rearing fish from different stages of their lifecycle until they are mature enough for sale to the market. The various varieties of fish that is reared include; catfish, tilapia, salmon and a few other varieties, although when most people talk about fish farming in Nigeria they typically refer to Catfish farming.

What is the level of demand for fish in Nigeria?

Fish is in very high demand in Nigeria. There is almost no part of Nigeria where people do not eat fish regularly as part of their diet. Although fish is more expensive than meat in terms of cost per kg and most Nigerians are price sensitive when it comes to food selection fish is eaten across the various social classes. At parties, child naming ceremonies, wedding receptions and even social hangouts people eat fish as part of stew (fish stew, fish pepper soup, barbecue) or any other light meal you can enjoy from time to time. We are talking about at least 3 million people who eat fish at least once a day in a country of over 200 million people. There is always a waiting market for fish in Nigeria. The demand for fish in Nigeria is so high that even though our local fishermen harvest millions of tons yearly, we imported 125 billion naira worth of fish in 2018 alone. That speaks volumes of the market in Nigeria.

What can make Fish Farming Profitable in Nigeria?

There are 8 success factors I know of that can make an investment into fish farming a profitable venture in Nigeria. I will only talk about 2 of them in this article and briefly talk about them. The first key factor is the strategic location of a fish farm. Being in a place that isn’t logistically impossible to serve your target market is prime importance. Location as a factor can also refer to prevailing climate and water source. Semi-arid and desert areas are not suitable for fish farming. The second factor is scale. You don’t want to operate a fish farming business at a scale that will not make you sustainable because the operating costs and risks involved in this business would require a reasonable scale to shield your business against occasional losses.

What are the challenges of Fish Farming in Nigeria?

The fish farming business is a very risky one to do. Thieves can easily raid a fish farm and harvest large number of them. Some vandals have been known to poison fish in their ponds. Sometimes the young fish just die mysteriously or get eaten up by bigger fish. The cost of fish feed is very high then add stiff competition and low profit margin, fish farming business is not for people with low patience and not willing to take big risks.

Start Up Cost and Payback Period for Fish Farming Business in Nigeria

If you want to run fish farming business profitably in Nigeria, do not expect that a little investment of less than 1 million will work for you. Reasonable amount of investment should start from 5 million and that is on small scale. Even at that your return on investment may not be very encouraging. If you are serious about running it profitably and can raise the required amount, you should be looking at 12 million naira and above. Breakdown of the return on investment, startup costs and payback details send me an email to:


Is fish farming business very profitable business to do in Nigeria? The answer is yes if you can operate it at a meaningful scale and manage it efficiently. There are risks involved in this business, manage those risks well and you should smile to the bank because there is an existing market and it keeps growing.

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Paul Onwueme is a professional Business Plan writer since February 2014, has achieved respectable results with his business plan writing service with several of his clients securing funding and leaving positive feedback about his writing service. You can connect with him via phone: 0803 206 4106 or email:

Monday, August 17, 2020

Sample Business Plan for Private Secondary School in Nigeria

This sample, miniature business plan summary article briefly x-rays the setup and running of a private secondary school in Nigeria. In this article we would be exploring the opportunities and some notable challenges facing operators of private secondary schools in Nigeria as well as startup expenses and first year sales projection.

Secondary schools like many other types of schools are very profitable businesses to run in Nigeria. An investment of over 266 million naira into this business can yield 6 times more in profit within 7 to 10 years. The first 5 years are usually rough for a new school but once it has gained acceptance, it would become a highly profitable business recouping the total investment many times over. The business is a cash cow that means it is capable of growing on its own once there is adequate enrollment to support the business.


Secondary schools form the bridge between primary education and tertiary education. In Nigeria just like in many other countries, government run secondary schools are becoming increasingly overburdened with huge public demand and overworked but underpaid teachers. What’s more many secondary schools have decaying and poor quality and inadequate facilities and equipment (broken doors, leaking roofs, no windows, empty laboratories, no books in library etc). Situation is so bad that going to a public secondary school is no different from not going to one at all at least for more than 90% of public school graduates. There is little evidence of them ever receiving an education.

There is also very little motivation for teachers to show up at school or to do their jobs, the management is often corrupt and incompetent and there is a lot of abuse of resources and priviledges common with civil servants that you would find in such schools. The list of problems associated with public secondary schools is so bad that private secondary schools become the solution to these problems. The so called public model secondary schools are grossly inadequate and no better than most well run private secondary schools.

Demand for Secondary School Education in Nigeria

Every Nigerian parent knows the importance of Education especially secondary education in Nigeria. At the very least finishing secondary education is a good start to most careers because it offers one opportunity for semi-skilled employment – clerical roles, corporate guards, drivers, front desk officers, personal assistants, sales girls etc. People who earn these job roles whether in the civil service or private employment can slowly move up the corporate ladder as they garner work experience and further their education overtime. But it doesn’t end there. Every parent would want their children to become doctors, business executives, lawyers or university graduate because of increased career prospects. A secondary school leaving certificate is one of the requirements for proceeding for further education at the tertiary level. That means it is almost compulsory for parents to enroll their kids and wards.

Business and Investment Opportunities for Secondary Schools in Nigeria  

But private secondary schools can be expensive for most Nigerian parents. In some cases school fees can go as high as 6 million naira per annum pers child for elite private schools or on average between 600,000 naira to 3 million naira per annum for most standard private schools and it doesn’t cover other expenses such as; boarding fees, extracurricular activities, excursion fees among other levies. The owners of these schools are smiling to the bank because the profit margin on secondary schools is very high - provided there are enough enrollments to sustain the operating costs. Picture a secondary school charging 1.5 million naira per year with 400 enrollments that is 600 million naira per annum with approximately 150 staff, the school should be fetching the owner at least 180 million profit per annum as expenses would like not exceed 30 million naira per month times 12 months in  year.

·         Low standard of public secondary education, makes the demand for quality private secondary schools imperative

·         Growing acceptance of many private secondary schools as partners or agents for overseas based university admissions

·         Increasing population of middle class families

·         Rising middle class family population

·         High number of educated middle aged parents

·         Rising Urbanization

·         The role of quality secondary education in securing overseas University admissions

·         Corporate employment by most educated Urban city

Some Challenges of Running Private Secondary Schools in Nigeria

·         High cost of infrastructure

·         High cost of Educational materials, learning aids, tools and equipment

·         Low morale among teaching staff

·         Examination malpractice

·         Overrating paper qualification to vocational training

·         Unsound academic curriculum

·         Huge overhead costs

·         Setting realistic school fees

These among other notable challenges make it difficult for investors to make headway in raising adequate revenue and profits from running standard private secondary schools in Nigeria.

What kind of Secondary School are you looking to setup?

This is a straight forward question. If you are intending on setting up a secondary school in Nigeria first question naturally would be is it day or boarding? Both day and boarding schools have their advantages which you must carefully examine to determine which you would opt for. The second question is will it be co-educational or simply all boys/girls? Again each system has it unique challenges and benefits. Also are you going to run a wholly Nigerian based curriculum or a mixture of Nigerian and foreign curriculum? There are other factors that go into deciding which secondary school type is suitable for you. Location, scale, background of promoters, ideology of the promoters, target market, identified market need etc.

How much does it cost to setup a standard secondary school in Nigeria?

A standard private secondary school in Nigeria must meet the requirements of 21st century learning environment, curriculum and management system. That means they must be up to date, well equipped and properly managed in line with 21st century system. Failure to meet up will only force your school to be like majority of low standard secondary schools in Nigeria. An international standard secondary school can create insane amount of income for the owners. In this example we are assuming that this standard secondary school will be

A Sample Startup Expenses Summary



Main school building (30 classrooms, 4 labs, ICT and Music room and 6 offices)


Lab Setup equipment and tools (biology, physics, chemistry and woodwork)


ICT equipment and tools (ICT lab infrastructure, PCs for admin, marketing and research etc)


Music Room Setup (with music instruments, books and tools)


Classroom Furniture


Classroom Learning Aids


Electrical gadgets and Electronics (


2 School Buses


Decorations and designs


Office Furniture


Canteen utensils, tools and equipment




Store Setup


Sick bay


Reception area setup


Security post


Multi-purpose sports center (tennis court, football field)


Hostel Facility


Car park


Assembly Hall


Admin block with staff room


Home Economics Lab


Staffing requirements (1 year payroll etc)


2 years’ running expenses


Other expenses








First Year Projection

This projection assumes that the private school will achieve 120 enrollments within the first 12 months and would charge 1.2 million naira per annum. The proposed location is Abuja and the school would grow rapidly from 3rd or 4th year so that initial low ROI would be overcome by the 5th year in the worst case.


1st year Sample Financial Projection for a private Secondary School



Gross Revenue

NGN 144,000,000

Cost of sales

NGN 12,000,000

Operating expenses

NGN 66,000,000

Profit Before Tax

NGN 36,000,000

Profit After Tax

NGN 25,200,000

Retained Profit

NGN 25,200,000

Breakeven month

10th month


6th or 7th year




Are you interested in setting up a private secondary school in Nigeria and need a bankable business plan written for you? Give me a call: 0803 206 4106 or email me on: to have one prepared for you.


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