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Friday, December 12, 2014

4 Good reasons you need a business plan if you intend starting a business in Nigeria

Why should anyone write or need a business plan? This is a question many Nigerian business owners ponder on whenever they’re faced with a A business plan is something many Nigerian business owners misunderstand as a document they need to show to investors and banks when trying to raise funds to either start or expand their businesses. But that isn’t all a business plan is about, there are many other uses a business plan can serve that is often overlooked.  Let’s take a real life example of how business plans can be useful. A business executive

Benefits of a Business Plan to Nigerian Entrepreneurs
Why then should you (Nigerian business owner) need a business plan? Here are 5 good reasons;

A blueprint for business success 
A business plan is a blueprint for succeeding in business. Take this as an example, a 23 year old cake maker Labake who had just finished her masters in the UK returned to Nigeria in 2012 to start her business but didn’t have the required capital. Being a self-starter she however started from home was having challenges finding new customers and expanding her business. She thereafter started writing her plan although she had challenges coming up with a marketing plan to guide her. Today makes more than N800,000 monthly selling cakes and her profit margin varies from 20% to 50% depending on the kind of cake. She’s successful largely because she follows a blueprint which her business plan dictates to her.   
Protection against potential failure in business
Another good thing about having a business plan is that it serves as some form of protection against failure in business. You know the saying failing to plan is planning to fail, well that also applies to business ownership and management. If your business plan details potential threats and challenges you may face before going into your proposed venture, you have already scored a key point against failure - although it’s not a guarantee that you’ll succeed - and how useful can that be if you have to borrow money to start up that business or invest your life’s savings?

Sell your idea to potential investors/Partners
You may also want to raise funds to start your business but may not be able to properly explain this to investors. Even if you can explain your idea how do you show them what’s in it for them? How will they know what they’ll make and how soon they’ll get back their investments if you don’t have a well written business plan with accurate figures?

Determine your Capital Outlay
Sometimes you may have an idea but not know exactly how much you need to put your idea into reality. A business plan can explain to you and any other person who may have an interest in your business just how much you need to set up the business from the equipment costs, office set up, number of staff to be employed, rent, working capital and legal/registration requirements among others. If you can’t determine how much you need to set up your business you certainly won’t find it easy as you guess just how much may be sufficient.

Want to write a professional business plan you can show to investors and get results? Give me a call to walk you through the process? 0803 206 4106