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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
Boarding Schools
Bulk purchases for students’ breakfast or dinner usually order for 30 to 200 or even more large loaves at a time
Buy between 5 to 60 loaves per day
Buy occasionally but depend on donations
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
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

Cost (N)
Factory Building (2 year rent on 3 bedroom bungalow)
Bakery Machinery
Delivery Van
Office and Shop Furniture (including storage racks)
Registration and Legal expenses
Branding and Printing
Marketing Expenses
Salaries (12 months)
Stock of Ingredients
ICT and Electronics (Office PCs, POS machines etc)
Electronic Gadgets (1 Fridge, 1 deep freezer, oven etc)
Other Admin Costs (12 months)
Other Expenses

1st Year Profit and Loss Statement

Gross sales
Cost of Sales
Operating expenses
Profit before Tax
Profit after Tax
Retained Earnings

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  

Wednesday, February 27, 2019

10 Real Home Based Businesses that Make Money in Nigeria

 When it comes to making money from home in Nigeria from my over 5 year experience I have come to realize that certain things work while others don’t. The things that work are usually learned the hard way or through mentorship and they vary from one home business to another. The real difference between home based businesses that make money in Nigeria and those that do not make money is in knowing what works (in terms of money management, marketing, home and business life balance and business operations). The breakdowns of these ideas will come in another article meanwhile I want to share a few home business opportunities that are lucrative if well managed and if the business owner uses home business management principles that work.
10 Lucrative Home Based Businesses in Nigeria
Here they come – keep in mind that there are no guarantees in running a home business. You may succeed or fail but your chances of success increase when you properly and professionally run your home business.

#1 Real Estate Agency
This business involves connecting real estate buyers with sellers or helping prospective tenants secure accommodation or rented apartments in suitable locations and within their budgets is a low cost high revenue business that can net the business owner with some good profits. You only need an internet enabled mobile phone to start.

#2 E-commerce: Web Store
This entails helping people to find useful, high quality, unique products to buy from your own web store. The web store can be a facebook page, an ecommerce website, or just a simple social media account with product listings. Prominent ecommerce websites such as; Konga and Jumia offer individuals the chance to sell products online from their ecommerce platforms even if such individuals work from home.

#3 Business Plan Writing
I have been writing business plans since 2013 and there have been months when I made more than 200,000 naira just from this service. The downside is you need to read a lot, do a lot of writing, research and always be connected online which may not really be a downside but the stress that comes with it could have consequences on your health but it is a good way to make money from home.

#4 Online Tutoring
This is a relatively new venture compared to others. The business involves teaching people different things such as; school subjects/topics (academic) or vocational skills such as; cooking, baking, interior decoration, financial planning or even life skills like public speaking, self-defense or poise among other skills. The business involves offering trainings and courses for sale to clients

#5 Academic Research
The fast paced world we live in coupled with falling standards of Education in Nigeria creates a market for students in higher institutions (the busy ones, the lazy ones and those struggling with understanding lectures). There are a few services that can be rendered here; regular assignments, school projects, seminars,

#6 Fashion Designer
Design clothes from home and sell online to a specific market or sew tailor made clothes to clients and charging them fees for sewing their clothes. The price ranges from 3,000 to over 10,000 naira fees per dress to 5,000 to over 20,000 naira profit per dress or cloth sewn.

#7 Freelance Writer
Writing ebooks, articles, essays, blog posts or business/technical reports can be very lucrative. I for one have made a lot of money selling reports online to people from diverse walks of life. The interesting thing is low entry requirement for this business and the profit is very huge

#8 Graphics Designer
Design logos, letter heads, web pages, product trademarks, outdoor signs and a host of others using very cost effective marketing approaches. This field is highly competitive but very profitable for those who can build a strong brand and engaging customer base.

#9 Computer Programmer
Designing mobile apps, enterprise solution software, web based applications or other software programs targeting specific markets can be very lucrative. The main challenge is that computer programming is highly competitive and newer advances in technology can render many software irrelevant or obsolete.

#10 Backyard Poultry
You can also start a backyard poultry in Nigeria at the back of your home or any available space in a residential location. Poultry farming for eggs is more lucrative than for meat.

Paul Onwueme is a professional business plan writer based in Abuja. You can reach him on: 0803 206 4106 or email:paulonwueme@gmail.com if you need a professionally written business plan

Tuesday, February 19, 2019

Setting up a Home Based Business in Nigeria: What to Expect

Starting a home based business in Nigeria is increasingly becoming acceptable among young school leavers and unemployed persons or even employed workers looking for additional sources of income because of the tough business environment. People have strong desires to earn legitimate incomes but lack the wherewithal to fully setup office or shop locations for their businesses. Even at that many are still willing to brace the challenge of setting up a business from home since that becomes the alternative when renting a shop or office space is not feasible. It can be very profitable to run a home based business in Nigeria but it usually comes at a price. If you are intent on setting up a business from home in Nigeria what should you expect in terms of the upsides and the downsides? Let’s examine this together.

Benefits of Running a Home Based Business in Nigeria
We can start by saying a home based business can create the best of two worlds for budding entrepreneurs in Nigeria and these are some of the reasons;

#1 Low Overhead Costs
The cost of running a business from home is much lower than renting an office or shop. That is quite obvious because absence of rent for office or shop means lower overhead and ultimately higher profits.

#2 Multiple Income Streams
There are opportunities to generate more than one source of income when you operate a home based business. For instance, if you engage in trading from home it doesn’t limit you from pursuing other money making ventures such as home day care, catering, event planning to name a few. The point is, you can do more than one thing readily from home

#3 Flexible Work Hours
You can work according to convenient work hours. If you so wish, you can make it 3 hours in the morning, 2 hours in the afternoon and 3 hours in the evening or just work from 8am till 4pm like most people with a regular job.

#4 Testing a new Business Idea
Sometimes it makes sense to start a home business when you are venturing into a new business but aren’t sure of your chances of success. The logic being that if you can succeed on a small scale, you should succeed on a larger scale. Setting up a home business increases your chances of succeeding in business because you have the opportunity to make small mistakes and learn from them before committing huge resources for a more structured business.

Challenges running a Home Based Business in Nigeria
There are many reasons why a home based business presents a serious challenge to entrepreneurs. Here are some reasons;

#1 Difficulty in building trust and credibility
If you run a professional service such as; legal advisory, audit, printing press, travel agency to name a few, there is a tendency for potential clients to disregard your competence and read meanings into working from home. It may be viewed as a sign of bankruptcy and limited financial capacity to meet client needs. Secondly some clients may feel such businesses are run by rookies and will naturally become ultra-cautious in patronizing them.

#2 Balancing Work and Personal Life
Another issue is how to balance your work life and your personal life. Because you live and work in the same place it becomes very difficult for you to balance your personal life with your work life. Working at home, doing chores, running errands, receiving visitors and meeting with clients can all clash within the time you allotted for work making it difficult for you to function well at work.

#3 Business efficiency Issues
Businesses are not easy to manage especially when they have no proper structure. This is especially true for a home based business and Nigerian business owners are especially very poor at managing their businesses.

#4 Professionalism Issues
How do you conduct yourself when carrying out your duties? If you don’t operate within professional standards when dealing with clients and providing your services you are going to have a hard time keeping old or gaining new clients and this is something many home based business owners in Nigeria face.

Conclusion on Setting up and Running a Home Business in Nigeria
It is very lucrative to run a home based business if you can achieve steady sales but the challenges that come with it make it very difficult to take off and grow successfully. It is a double edged sword but I will encourage anyone determined to succeed to start a home based business today, at the very least you will acquire valuable business knowledge which will enable you succeed in other future ventures.

Paul Onwueme is a professional business plan writer based in Abuja. You can reach him on: 0803 206 4106 or email: paulonwueme@gmail.com if you need a professionally written business plan

Sunday, February 3, 2019

Sample Business Plan on Ice Creamery in Nigeria

 Ice Creamery fall under hospitality specifically quick service restaurants in Nigeria and show mixed fortunes when it comes to sales. While during the dry season and festive occasions there is high demand leading to huge sales there however is also the problem of inadequate power supply which lead to high operating costs. 

Demand for Ice Creams in Nigeria
Think about parties, dates, social hangouts and increasing year on year demand in major cities in Nigeria especially Abuja which is Nigeria’s fastest growing city. The main factors which ensure the growth and sustainability of the business namely; a rising middleclass population, hot weather, growing western lifestyle and strong use of internet marketing are present in Nigeria.
·        Over 12,000 children’s parties are held weekly all over the country in major cities and ice creams are staple servings at many of these parties
·        Ice creams offer a nice dessert option to a sizeable middle class market
·        The high population of Nigerians who seek outdoor leisure on special occasions such as public holidays and corporate events also shores up the market size albeit occasionally
·        Supermarkets also provide a large market place to distribute preserved ice creams (sold in buckets or sachets)  
 Market Opportunities for Ice Cream in Nigeria
There are many uses of ice creams and they range of from ice cream, milk shake, frozen yoghurt, gelato, frozen custard to ice popsicles among others within the Nigerian market.  They are generally speaking evolving products within the Nigerian lifestyle products/services markets. They events and occasions that promote the large scale consumption of desserts and special treats usually served by confectionery stores within the parts of cities populated by higher income earning segment create the opportunity to sell ice creams to an upscale market.
The high income groups which incidentally have high populations of upper middle class millennials (people born after 1970 and earning over N200,000 monthly) are the main target market with other potential target market. The range in population of between 600,000 to 1,500,000 middleclass population of 20%

Challenges of Ice Cream Production and Sales in Nigeria
Ice cream production in Nigeria suffers from a large number of challenges but some of the key challenges affecting the success of the business are outlined below;
·        Low Shelf life
·        Poor power supply
·        High operating costs
·        Complex marketing strategy
·        High competition 

Sale Revenue
Direct Sales Costs
Gross Profit
Total Expenses
Profit before interest& Tax
Principal Repayment
Net Profit after Interest& Tax
Retained Earnings
Net Profit/sales (%)

Financial Summary
The assumptions used in this projection shows a potential average daily sale of N160,000 and based on a net profit to sales ratio of 24% in the first year should earn a profit after tax 8.2 million naira which over 21% return on investment in the first year. The payback period is 4th or 5th year based on yearly growth in sales and profit of over 20% respectively. Based on the following startup costs an investment of 38 million would be recouped completely at least by the 5th year.

Startup Costs  
S/N  Item
                               Cost (N)
Personal Computers
Office Furniture
Equipment and Machines
30 KVA generator set
Renovation and Decorations
Raw materials
Ice Cream Display Stands

½ year Salaries
Marketing Budget
2 years Operations Costs


Grand total

I am Paul Onwueme and I have been writing professional business plans since February 2014. If you are looking to write a professionally sound business plan on ice cream production and sale in Nigeria send me an email to: paulonwueme@gmail.com or call me: 0803 206 4106