How to set up a bar/beer parlour

This might not be a business for everyone because of some people’s religious beliefs but a bar/beer parlour isn’t a bad idea for anyone with medium scale capital intending on setting up a business. Truth is bars are usually suited for middle class or upper class folks and are hardly what you find in everyday typical Nigerian neighbourhoods. Let’s get to understand this business first before getting into the details of how to set up and run a profitable bar/beer parlour.

Bars

A bar is a place where drinks mostly alcoholic and sometimes non alcoholic drinks such as juices/fruit drinks, soft drinks and other non alcoholic beverages are served to paying customers. The alcoholic drinks could include; spirits, wines, gins, whisky and other top popular strong alcoholic brands such as Champagne, Hennesy and baileys. Beers can also be served at bars and occasionally light meals such as meat stakes can be served as well. In Nigeria, bars are usually found in middle class neighbourhoods and night clubs.

Beer Parlours

Beer parlours on the other hand can be found anywhere there are beer lovers. Because beer is relatively cheaper than strong alcoholic drinks beer parlours tend to be found in poorer neighbourhoods although they can be found even in high brow areas. Also note that beer parlours sometimes also double as food canteens and as a result also offer meals but heavier meals than the bars.

Market and Opportunity

There is a market for both kinds of business provided that they are targeted at the right market. For instance setting up a bar in an impoverished part of town will be a mistake because it fails to meet the right market but with a beer parlour the case isn’t really the same because there will be willing customers. What the customers really want is a nice place where they can get the drinks they want and in the right environment. Some people want convenience and quiet and so may prefer to hang out at bars that offer that kind of atmosphere where as others don’t care provided they can get whatever they want

Challenges

For a business of this kind the challenges could present themselves in the form of a loyal customer who may be a perennial debtor but these are not common and but occasionally trouble makers may find their way to your beer parlour, I mean people who want to eat and drink free food but don’t want to pay and stuff like that. You can guard against this by maintaining a no credit policy for your business and it should apply to almost all your customers with the exception of the credit worthy ones.

Startup Summary for bar

1. Furniture (bar section, tables and chairs): N200,000
2. Drinks: N250,000
3. Rent: N500,000
4. Food stuffs: N100,000
5. Others: N200,000
6. Total: N1,250,000

Startup summary for beer parlour

1. Furniture: N50,000
2. Drinks: N100,000
3. Rent: N100,000
4. Foodstuff: N50,000
5. Others: N50,000
6. Total: N350,000

Conclusion

With over a million naira you can set up a bar in a middleclass neighbourhood or in a night club, whereas for just a little less than N350,000 you can set up a beer parlour but this has to be carefully planned. This is a business that thrives on consistency so if you start out well you have to remain on top of your game of the customer will have a reason to patronize someone else.

How to setup a profitable barbing salon/Barber Shop

Barbing salons are everywhere you have men, meaning they are practically suited for every environment. But having another barbing salon and one that makes a lot of money are not the same thing. Barbing salons in the cities or rural areas in Nigeria are numerous but not necessarily indicative of the fact that the business is booming because many are merely doing it to scrape out a living. But for those intending on creating a sustainable business that will not only create wealth but employment as well then knowing how to set up a profitable business is the way to go.

Background

In many towns and cities especially the big cities like Lagos, Abuja, Benin and Port Harcourt people set up shop to do business, barbing hair for mostly the male folk. In Lagos for instance, there are probably more barbing salons than there are churches (you know how we Nigerians love church even more than the early Christians) which means the business is fairly easy to set up and remain in the business otherwise entry into the business should be hard and remaining profitable would also not be an issue. In campuses of Universities, polytechnics around densely populated areas and sometimes in high brow areas and commercial areas, barbing salons seem to thrive. Suitable locations therefore are; popular streets, densely populated areas with a lot of male folks and higher institutions of learning.

Opportunity

Considering that it may not cost more than a few thousands to set up a baring salon, the business offers many opportunities to make a lot of money. For instance, selling clippers, shaving powder, shaving stick, aftershave, barbing equipments and accessories as well as the normal barbing services means that this business isn’t limited in terms of how much money can be made. But more importantly is the opportunity to make a lot of money from being exceptionally professional and organized, word spreads fast and with barbing excellent referrals from customers can do a lot of good in terms of winning patronage and increasing sales.

Challenges

The problem of electricity supply and having fuel for generating sets to power the barbing salon is the obvious challenge. In most parts of Nigeria, electricity supply is usually less than 10 hours a day making cost of doing business to be unnecessarily high. When the business becomes more stable and profitable one would expect the business to expand, unfortunately capital to fund growth is not readily available but with micro finance banks this is gradually changing for the better.

Business Strategy
The key thing is to stay focused on what works and what doesn’t. Imagine a situation where the strategy should be to do something useful that no other person is doing at least in your own locality that will at least offer the intending investor an edge over the competition. For instance, if other barbing salons don’t offer the customer much in terms of quality service, more fashionable environment and professional looking staff or workers.

Startup summary

2 Rotating Chairs (although ordinary chairs may do for a start): N10,000
1 Long waiting chair: N10,000
Tables: N6,000
Mirrors: N12,000
3 original Clippers: N9,000
4 Cover Clothes: N2,000
Barbing ‘Cosmetics’ (Spirit, powder, aftershave etc): N3,000
Generator: N20,000
Sterilizer: N15,000
Others: N30,000
Total: N117,000

How to start and run a profitable Website design Business in Nigeria

A web design business is a very viable business in this era where many people and businesses are going digital and there seems to be no future for people left behind by the internet and digital revolution. Today, the world is a smaller place because of the ease with which people can connect, share and relate with each other over a wide area in a very short period of time due to the impact of internet technology. People use the world wide web especially websites and blogs to establish their presence online. Some people including celebrities even use social media or microblogging websites such as twitter, facebook, linkedln and myspace to interact with friends, customers and associates.

1. The Opportunity

There is a booming market for website design, domain registration and web hosting services in Nigeria. Take a good look around you what corporate businesses and organizations would function effectively without an online presence? Very few indeed can cope in the 21st century without a website. First it is a public relations tool which means it can promote the business corporate identity. Secondly it can serve as a medium of interaction with customers. But the fact that many businesses in Nigeria are not very much involved with e-business is all the more reason why we should view this opportunity with enthusiasm. Potential customers in the web design business include; churches, government agencies, NGOs, Schools and professional associations. All these organizations need websites to help publicize news and information about their activities and events. It’s also a way to post announcements or to even make sales.

2. Management Summary

Typically a website design business can be started from home with very little capital. Only web design skills and knowledge of how to register domains, secure hosting plans and upload files and data is sufficient. From the comfort of one’s home this idea can be vigorously pursued doing both online marketing and offline marketing, approaching the target audience and soliciting patronage from them.

3. Market strategy

The market strategy is simple but not dogmatic. Everyone involved in the business has his/her own way of approaching the opportunity especially when viewed against the backdrop

• Write promotional articles about the benefits of website designs
• Direct marketing approaching potential customers
• Classified adverts in newspapers, magazines, bulletins or outdoor signs

4. Startup information

a) A simple PC preferably a laptop computer but a desktop may also be fine – Little or nothing
b) A website design package such as Microsoft frontpage, dreamweaver or other similar package
c) Web design skills
d) Fliers to promote the design business – N 3,000

Conclusion

Although the market is saturated, the business is highly lucrative judging by the low overhead costs and increasing potential to generate income and patronage.

Boutique Business Ideas in Nigeria: Start up and marketing

-->

Many people know that there are clothes and there are clothes to buy and wear. What I mean by that is there are designer clothes and there are cheap imitations everywhere you go in Lagos. When you hear of Oshodi, Yaba, Katangua, Iyana Iba, Aswani, Jankara and what have you what first comes to your mind is second hand clothes. But that is not all there is to know, other ideas that should come to your mind should include money, self employment and business.

Many people have set up small businesses with very little and have made a lot of money selling clothes from even their own homes. Some have taken the business to their schools, while some sell in offices even to their church members. The point I am making is that selling clothes in Lagos Nigeria is a lucrative business. There is no limit to this business because there are so many people in this city and therefore a long list of waiting customers, you just have to find a way to get to the market of cloth loving folks.

Selling Second Hand Clothes

The journey to money making in this business if you have little capital is to start is with second hand clothes. Don’t laugh at what I just said because it’s true. Except if you have plenty of money to invest in the business, most likely you will start with second hand clothes and where as this may seem insulting but the economy makes it so. Where are the suppliers of second hand clothes? Places like Aswani market which opens on Tuesdays every week or Oshodi Market or Katangua market have answers. On the other hand if you are enterprising, then travelling all the way to Cotonou is a good way to source cheap ‘Okrika’ or OK as some folks like to call them. As for where to display them, anywhere people will easily notice them.

Selling Grade ‘A’ clothes

Some people may glorify second clothes by calling them grade A. As long as you are not the first person wearing it then grade A OK which looks new is still Okrika. Most grade A clothes are sold to the young especially people of school age (university and polytechnic students) but sometimes they may be sold to young men and women working in corporate organizations.

Designer clothes for sale in Lagos

These clothes are sold to fashion conscious people who have money to throw around. Designer clothes are usually sold in boutiques. Some places in Lagos noted for designer cloth selling are Adeniran Ogunsanya Street in Surulere, Allen Avenue and Opebi Road, Awolowo way in Ikeja

How to start selling clothes in Lagos Nigeria

Depending on your goal as an entrepreneur or small business owner, if selling clothes is what you wish to do then you have a number of options open to you. First you may want to sell fairly used clothes in small display trays or on tables as some folks mostly in the poorer parts of Lagos do in front of their homes (please this is not for the proud). This depends anyway on the kind of neighbourhood you are based in (I don’t expect this to work in highbrow areas) and if your Landlord wouldn’t mind you doing so.  Also if your street is a very busy one with many people passing by and taking notice of it. Of course these clothes should be better than relatively of more quality than what obtains elsewhere and should be relatively less expensive to attract many customers.

Selling Second Clothes in Small Shops

Another way to go about this is by selling in stalls or small shops. Some other people sell clothes in small shops along very busy roads. Some popular places where this happens in Lagos Nigeria include; Oyingbo, Along Ojuelegba-Lawanson-itire road in Surulere, Awolowo Way in Ikeja etc.

Selling Clothes in Boutiques

Boutiques are by far the most lucrative ways to make money in Nigeria from selling clothes. Nigerian youths in our major cities like to imitate their western counterparts. They love to wear what’s in vogue and don’t like to be left behind. This means selling trendy clothes and fashion accessories is the way to go if you intend to set up a boutique for this market. But there are other markets also such as the corporate market, women folk and even sports lovers e.g Selling Barcelona, Chelsea, Arsenal or Man United branded T-Shirts and scarves.

Mobile Clothes Dealer

Some other people take their clothes selling to another level. I remember during my service year one particular clothes dealer who used to sell clothes with his motorcycle. He would move from one village to another on his bike usually targeting public gatherings, markets and schools, of course he was making cool money as well. Even in school, some business savvy girls sell girly clothes to their fellow female students in the hostel and hook up with them elsewhere sometimes even going to meet women in their shops or at the offices.

In a nutshell, selling clothes must be based on who those clothes appeal to and why and approaching them in the best way.

Related Articles

How to start a dry cleaning business

How to set up a cybercafe

How to find profitable business ideas

How to write an effective business proposal in Nigeria

A business proposal is a profitable business offer/opportunity which has been identified and is presented by one person to another in order to make a sale, seek collaboration, funding or technical support to the person the proposal is targeting. 

It sounds very simple doesn’t it? Whereas the reality is that presenting a business proposal it’s not that simple. So many people write business proposals day in, day out but very few are ever successful and that is because they are unable to capture the key ingredients and the very essence of what a business proposal is and isn’t and how it should be presented etc

Take for instance I have identified a very quick way to sell shoes through an extensive market research and my findings reveal that I need a well optimized website to target a particular market let’s say male corporate executives in Lagos, then I can create the opportunity to sell shoes fast to this market because I understand how it works but I don’t have the shoes to sell, What do I do?

The solution is to find a reliable shoe retail shop, then approach the owner of that shop with the business opportunity of how he can quickly sell his shoes through my well optimized website. How this would benefit him and his business, the costs and the terms of how to make this business opportunity would have to be well captured in a business proposal I must present to him to encourage him to sign up.  

Why is a business proposal needed?

There are three broad reasons we need business proposals and they can be summarized into the following classification;

• To invite marketing/technical partners: here like in the example above we have a situation in which one person has one of the ingredients for success and the other has the missing ingredient, they both pull resources together to achieve their collective marketing/sales objectives
• To raise funding for the identified business opportunity: if your identified business opportunity requires a certain amount of money but you lack the finance to fund it naturally you’ll need to invite someone who has the money and offer either interest on the loan or profit sharing as the terms of the contract would specify
• To sell your product or service: this is especially common if you are rendering a service to a client and those clients belong to a particular niche

7 Steps to writing an effective business proposal

Then comes the hard part of writing a business proposal which is putting pen to paper, making sure that the business proposal turns out to be what you set out to make it which is the persuasive document. Here are my 7 step recommendations for anyone seeking to write an effective business proposal

Step #1 - Identify the needs of the intended target

You must know beforehand the peculiar needs of the person or Organisation you are targeting. Where you fail to know their needs it becomes very difficult to position the benefits of your offer which is the main thing that convinces people to accept your proposal.

Step #2 - Get the right proposal format

There are many proposal formats and it depends on whether you are targeting a government institution, a private sector company, a high net worth investor or perhaps a professional. There are several business proposal formats you can find online but a standard business plan format must also capture key aspects such as;

Section A. Executive Summary

Section B. The Background and Objectives of the Offer

Section C. Technical Requirements

Section D. Financial Summary

Section E. Terms and Conditions

Appendix

Step #3 - Write concisely but persuasively stating the benefits

The best way to get attention to your offer and motivate the intended target is to state the benefits of your offer with proof that you can deliver. Let the benefits sell your offer but kindly note that any claims made in your proposal must be credible and readily verifiable. Once you start writing out the details of the proposal you must ensure that you write concisely using very official language and only making assertions based on indisputable facts.

Step #4 - State the requirements of the proposal clearly

There should be clearly stated requirements in the proposal which would tell the other party what is required of them and under what conditions the proposal can take off and work. Usually it is better to state the things which must be in place before the opportunity can work and what you lack and/or already have on ground.

Step #5 - State the terms and/or conditions of the contract/business opportunity

There should be clearly stated terms and conditions of the offer. What will be the legal basis of honouring an agreement? This is the condition whereas how can that legal basis be explained so that it is well understood by all parties are the terms. State both of them in the business proposal.

Step #6 - State the cost implications

How much should each party bring to the table or how much should the client pay in order to use the service. Sometimes the cost of the service is a selling point and may appear at the beginning of the proposal in the introduction but at other times the price shouldn’t come until after all the benefits have been explained and the prospect has made a decision.

Step #7 - Draw out the proposal contract agreement

This aspect of a business proposal is optional. In some cases a business opportunity doesn’t require signing a legally binding document whereas on other occasions it may require signing one and where this is the case don’t forget to include a contract agreement especially if you are rendering a service or require a partnership with your proposal in order to avoid conflict and to also protect you against any legal issues that may come up after the prospects has agreed to the agreement. The contract must state the names of the parties, their roles in the agreement, what will go to each party and the terms of terminating the contract/agreement.

Are you looking to write an effective business proposal that will motivate action from your prospect and want a professional touch to it? Give me a call or email and your wish will be my command. 0803 206 4106 or email: paulonwueme@gmail.com

How to start a Paper Pencil Making Factory: SME Business Idea in Nigeria

Paper pencil production is a viable business venture which is capable of returning over 100% on your investment within 12 months and break even by 9th month with N147,000 daily sales.

How Feasible is Paper Pencil Production in Nigeria?

Recycled Paper Pencil Production is viable in Nigeria because the six success factors have been found to make it viable all exist in Nigeria namely; a sizeable population of school age children, target market locations within the same city and that city has a large population of corporate organisations and urban city dwellers and four other success factors. See end of article for more details.

What is the Market size for Paper Pencils in Nigeria?

Most of the pencils used in Nigeria is consumed by school children mostly those in primary school, also teachers, students in higher institutions, carpenters and even in many offices. With a massive population of school children running nearly 40 million, there is so much money to be made from this business. In Nigeria, according to a federal government report monitored on Daily Trust Newspaper Nigeria spent N750 billion in 2009 on the importation of pencils which we are capable of starting and running on our own if we so desire. The actual market demand is hard to estimate but with over 40 million school children consuming over 2 billion pencils per year we can safely assume at least N30 billion market gross sales for primary school children alone.

Opportunities in Paper Pencil Production in Nigeria

There are only four companies involved in Paper pencil production in Nigeria as of March 2017 and they are located in Abuja, Enugu, Akure and Lagos respectively. None of them produces more than 20,000 units of pencils per day but Nigerians consume over 4.8 billion pencils per annum meaning these 4 companies combined which only produce 24 million pencils - less than 1% of the total market demand – have huge growth potentials. Secondly there are other opportunities along the product range such as production of eye pencils, coloured pencils which can replace crayons and very hard pencil types such as 9h or very dark pencils like 4B etc which we also import. Thirdly production cost for paper pencils is very low at just below 65% and minimal labour costs the profit margin is larger than average manufacturing

What are some of the threats and Challenges of Paper Pencil Production in Nigeria?

•  Power supply: production must not be interrupted so a minimum of 10 hour daily fueling costs for generator set must be in place this doesn’t come cheap
• Distribution expenses can be high but there are effective strategies that can help minimize these expenses so that the business can reach its target market inexpensively
•  Cheap, imported imitations from Asia especially China
• Foreign Exchange scarcity and value fluctuations: the main raw materials which are imported for now are not under serious threat from dollar scarcity and price fluctuation

Financial Projections for first year Paper Pencil Production Factory in Nigeria

The cost of paper pencils per unit based on production cost analysis is N 5.73 each and at factory price of N7 per unit first year profit of over N 5,635,000 naira can be realized if sales of N 44,100,000 is achieved within 12 months based on 21,000 pencils produced daily for 300 working days in a year.  The total startup costs is N5,305,000 implies payback period is in the 12^th month while breakeven should occur either in the 9^th or 10^th month.

Production Details per day

•  Total output per day at full capacity: 21,000 units
•  Total Number per set – 12
•  Total packaged sets – 1,750
•  Total sets per carton – 25
•  Total number of Cartons per day – 70
•  Factory Price per Carton – N 2,100
• Total sales per day – N 147,000

First Year Income statement

Assumption: 21,000 produced pencils per day and 300 full production days a year

• Total Sales – N 44,100,000
• Cost of Sales – N 28,649,600
• Gross Profit – N 15,450,400
• Estimated Annual Expenses – N 7,400,400
• Net Profit before Tax – N 8,050,000
•  Taxation – N 2,415,000
•  Net profit After Tax – N 5,635,000

Projected Returns on Investment

Net profit after tax/Total outlay X 100 = 5,635,000/5,305,000 X 100 = 106.2%

Start-up capital

The amount needed to set up a pencil making factory varies depending on your intended capacity. Here is a breakdown of the start-up capital;

·         Machinery – N 960,000

·         1 year Rent (a single room for a start is sufficient) – N 330,000

·         Generator set – N400,000

·         Delivery Van – N900,000

·         Raw Materials – N 200,000

·         Working Capital - N 300,000 (6 months)

·         Salaries – N 555,000 (3 months)

·         Contingency – N 300,000

·         Others – N 1,360,000

·         Total – N 5,305,000

Concluding Summary on Paper Pencil Production in Nigeria

A relatively simple and small manufacturing business to set up with very few and not so threatening challenges but the potential is quite huge.

You can order for the complete feasibility study report which contains an effective sales strategy, organizational setup and implementation plan, success factors for paper pencil production with complete production cost analysis, income statements and other financial projections by simply calling: 0803 206 4106 or email me: paulonwueme@gmail.com

10 Home Business Ideas for Nigerian Housewives

If you are a housewife or as the Americans would say, stay at home mum and are looking for an extra source of income or just want a business venture that will keep you busy or at the very least help you overcome boredom, then you may want to try out some of these ideas that other successful stay at home mums have done and are making some really cool amounts of money. Practically these and several more of these ideas exist so be on the lookout for others just in case your taste doesn’t rhyme with any of these.

1.      Crafts business

There are so many artistic venture that can be classified as crafts; making teddy bears, sweaters, chess pieces, fine pottery, paintings, baby dolls and other handmade stuff including toys. The list of these items can go on forever what I actually mean to say is it is endless. As long as there are things you can make with your hands that other people will appreciate and you have enough time on hand to make them, then you are good to go.

2.      Online Classes

Women these days are finding extra sources of incomes in carrying out online classes for people who want to learn about so many different things including foreign languages such as; French, Spanish and even English. Another thing people are willing to pay to learn how to do is playing a particular musical instrument such as the guitar or the piano. Some people want to learn chess and other strategy games and the list goes on. A housewife can embark upon whatever online teaching classes she so desires. The only requirements are to be connected to the internet and to have either a website or blog from which to run it.

3.      Freelance writing

There is another opportunity in freelance writing. Websites like www.guru.com and www.elance.com have opportunities for commercial and creative writers to work as contractors and get paid fees on a contractual basis by registered clients. There is no limit to how much you can make from it as there are credible cases of people making over a hundred thousand dollars a year from freelance writing services. By the way most freelance writing websites are free to join and you can start almost immediately after joining them to bid for contracts.

4.      Affiliate marketing

This kind of marketing which is very popular on the internet can be done in two ways. One way is to run a theme based website such as www.carbuyingtips.com when in you can promote products and services that relate to your website’s theme. Some people make a full time profession this way and it has proven to be a highly successful business model. The other way of running affiliate marketing is to use a free articles directory or revenue sharing website such as www.hubpages.com or www.squiddo.com . These two websites along with several others allow users to register for free and start publishing articles for the web. There are two ways you can make money with article websites and they are; by signing up with Google’s advertising program called adsense or using another affiliate marketing network such as Amazon’s Associate Program. The only difference between the two is that while adsense earnings come by way of clicks, Amazon’s comes from sales. To learn more about affiliate marketing read my article about make money writing online or follow this link.

5.      Flower nursery

Some people love to keep flowers, while some others love to buy and share them. If you love flowers, you can start a flower garden and sell your exotic and rare flowers to flower lovers. Even within your neigbourhood there should be flower lovers or you could supply a local store or shop with your flowers.

6.      Day care center

Even from the comfort of your home you can start a day care center. Women who are too busy at work to take their toddlers with them can come and drop them with you while they go to work. But this business needs trust. Not so many women will be willing to drop their child with just anybody so be aware of this. Love for kids is another requirement for success in this business. If you are trust worthy and trusted and you love kids how about starting a day care center?

7.      Dance classes

Being a stay at home mum should not stop you from being an excellent dancer or teacher. If you know how to dance and are willing to teach people some of your dance skills, you can start a weekend dance class or possibly a daily dance class depending on your environment and who your potential customers are.

8.      Review Website

Another excellent idea is with a review website, where all you do is review products and services. The wonderful thing about review websites is that they have a tendency to convert higher meaning that you can make more money from affiliate marketing and from adsense than other normal websites. Review websites are cheap to start and easy to maintain. There is no end to product that can be reviewed, from designer shoes, to handbags, to laptops even cars can be reviewed.

9.      Blogging

Blogging seems to be in vogue. Many people prefer to own blogs to websites because of the interactive nature of blogs and their tendency to have a large following. Also blogs can be started free of charge and can actually provide some reasonable income on the long run. Good websites 

10.  Contractor services

Is there any business skill you possess as a housewife or single mother? For instance are you an excellent typist? Are you good with book keeping, marketing and communication? How about customer service, there are online virtual companies that hire office assistants and virtual staff to do their typing, book keeping, customer service/phone answering services and even their marketing for them. You can sign up for free with them and start a part time or full time business if you so wish.

These are just some of the ideas I know you may come across others on your own but starting from any of these isn’t a bad idea.

Other Related Articles

Home Business Ideas for Computer professionals

Low Capital Home Based Business Ideas