Looking for more information? Search this blog

Sunday, April 23, 2017

How to Start a Health focused Wellness and Fitness Center/Club in Nigeria

There is a growing interest among Nigerian middle class folks in living healthy. They realize the need to eat healthy diets, live in habitable surroundings and participate in exercise all in a bid to be healthy and live longer. While the average life expectancy of Nigeria is 48 years for men and 52 for women respectively among the middle class who make up over 23% - nearly 42 million strong - of the population these figures are much higher.

The middle class is more educated, earns more and are exposed to greater lifestyle opportunities than the low income earners hence why setting up a wellness and fitness club to cater to their need to live healthy is a workable idea once you can locate an ideal venue, have a good marketing plan in place and reliable health services to go with.

This business works well with a subscription model in which people sign up for the service and have access to various services provided they continue paying their subscription fees. Ideally it should be run from a recreational center in a well populated middle class neighbourhood but sometimes they are run from sport centers/stadium or even from local community centers. 

The other way to make money from this business is to sell packaged products and services. If you’re charging fees we are looking at the subscription model on the other hand you can sell weight loss programs, self-defense courses or products like exercise gear and sports  ware to name a few.

Opportunities for wellness and fitness club in Nigeria

  •  Diabetes and other expensive lifestyle diseases are responsible for increase in people registering for exercise and weight loss programs
  • Health benefits are well known to this target market
  • Rapidly changing middle class influenced by western lifestyles
  • The ideal target market locations; Lagos, Abuja and Port Harcourt have sizeable middle class populations
  • The few health focused centers are not properly managed and have poor marketing plans
What are the Challenges of running a wellness and fitness club in Nigeria?
  •  Despite the growing interest in health consciousness, the lifestyle is still relatively new but evolving this means the target market size is not sizeable but there are still good prospects
  •  Many people are reluctant to pay for wellness and fitness services since they believe it requires minimal supervision and there is plenty of do it yourself resources available on the internet
What is the potential target market size in Nigeria?
This assumption is limited to the three trendiest cities in Nigeria namely; Lagos, Abuja and Port Harcourt which have high middle class populations. Using the following assumptions we can arrive at target market size for this business as follows;

  • 6 persons per family
  • Top 3 cities with middle class populations; Lagos, Abuja and Port Harcourt
  • Proportionate population of middle class families per city: 750,000+ for Lagos, 133,000+ for Abuja and 440,000+
  •  Average disposable income per household 5% for leisure = N15,000
  • 15,000 X 1,324,000 = N19,860,000,000
Who are the potential customers for wellness and fitness clubs in Nigeria?
  • People looking for self-defense lessons – especially young (early twenties to late thirties) educated folks working corporate jobs.
  • Overweight people  
  •  Health conscious people – especially young middle class parents in their early thirties to late forties  
  • Diabetic and elderly people who can afford it know the importance of exercise and often require professional help with their exercise programs

What are the potential products and services?
  • Yoga Classes
  • Pilates Classes
  • Dance Classes
  • Weight loss programs
  • Stamina and Strength building (boxing, aerobics, weight lifting,
  • Self- defense classes (mixed martial arts, kick boxing and karate)
  • Martial Arts Classes (Aikido, Taekwando, Karate and Judo)
  • Range of health focused products such as; exercise gear, health supplements, energy drinks, sports wares,
Setup expenses and requirements a health focused gym/wellness center
Pre-setup requirements
  • Define your area of specialty (is it weight loss, self-defense or fitness training?)
  • Register the business
  •  Prepare an effective marketing plan
  • Secure a venue
Setup requirements
  • Rent: N600,000
  • Stationery, furniture, equipment, sportswear: N780,000
  • Other expenses: N120,000
  • Working Capital: N300,000
Post Setup
  •   Furnish, equip and decorate venue
  • Commence operations
  •  Start marketing your service
Financial Projections and Income Statement
Assuming you are providing weight loss training at monthly fee of N7,500 to an average of 60 clients per month
  • Annual income: 5,400,000
  • Direct costs: 1,260,000
  • Operating expenses: 1,980,000
  • Net Profit before tax: 2,160,000
  • Taxation: 720,000
  • Net Profit after tax: 1,440,000
  • Return on Investment = Net Profit after Tax/Total Investment X 100 = 80%
  •  Projected breakeven revenue = 3,240,000 and breakeven should be in the 7th month
  • Payback period (when you recoup your investment) should be by the 15th month
Are you looking to start a business in Nigeria or already running one and need a professionally written bankable business plan for it? Give me a call: 0803 206 4106 or email me: paulonwueme@gmail.com

Sunday, April 16, 2017

Top 8 Countries and Regions to Export Nigerian Cash Crops, Commodities and other Products

In this article I’m going to be sharing details of how much Nigeria generates from exporting non-oil commodities and products to the top 8 countries and regional global markets and why if you are intending on exporting from Nigeria these countries should be of interest to you. You’ll need to know how much each of these countries spend and what commodities they order from Nigeria.

Nigerian non-oil Exports and income from top 8 Exports markets
Nigeria has a huge exports market of over $2.4 billion from sale of non-crude oil commodities such as cash crops (ginger, hibiscus, cassava pellets, cocoa, rubber, maize, cashew and fish) and Animal produce such as hides. Nigeria also exports shoes, handbags, fast moving consumer goods and other invisible services such as; Nollywood, music, fashion to name a few.  These 8 countries account for over 50%

Most of our exportable produce are cheap to procure locally from farmers but could sell for high amounts in dollars being that the naira is relatively weak likewise we export processed products such as detergents, toothpaste, electric bulbs etc to West and Central African countries. The return on investment for exporting from Nigeria is higher than most businesses which focus locally on the domestic market and with the possibility of making quicker sales due to less competition – depending on what you are exporting anyway.

Top 20 Non-Oil Commodities, Products and Cash Crops Exported from Nigeria

In no particular order – due to volatile global market demands and prices - these are the top 20 commodities exported from Nigeria besides petroleum and the countries with largest demands for them;
  • Cashew nuts (South Africa, Europe, China, USA)
  • Charcoal (China)
  • Gum Arabic (China, India, USA)
  • Sesame seed (China, India, USA)
  • Bitter Kola (China)
  • Ginger (China, India)
  •  Dried fish (UK, South Africa)  
  • Leather sandals/shoes (West and Central Africa, South Africa)
  • Leather bags (Central Africa)
  • Hibiscus flower (USA, Germany)
  •  Rice (Diaspora especially in UK, China, South Africa)
  • Cassava flour (India)
  •  Cassava pellets (China, Holland, USA)
  •  Timber (China, Europe, USA)
  • Hides (South Africa)
  •  Poundo Yam (USA, UK, South Africa)
  •  Rubber (Spain, Holland)
  • Fast Moving Consumer goods (West and Central Africa)
  • Nollywood (UK, US, West Africa, East Africa and Central Africa)
Which Countries top the list of Exports Markets for Nigeria?

The top 8 countries based on sales value for Nigerian exportable items are;

India and Bangladesh (imports over $300 million from Nigeria)
These are the top two markets for Nigerian exports of ginger as it is used for preparation of herbal teas and is popularly used in making condiments. India is Nigeria’s largest exports market and it alone demand for over 630 tons of ginger per annum whereas Bangladesh imports less than 100 tons of ginger from Nigeria but both countries can easily mop up our local ginger supplies. In addition India imports Cashew nuts and rubber from Nigeria.

China (imports between $250 to $300 million dollars annually)
China imports a lot of raw materials from Nigeria such as; charcoal, timber, cocoa, ginger, bitter kola, cassava pellets, kolanut, cashew, groundnuts and Palm fruits to name a few which runs into over $250 million dollars per annum and their local factories are ever expanding demanding for more raw materials which could make China Nigeria’s largest exports market for non-oil commodities by 2020.

United States (imports between $180 and $220 million per annum)
The USA is the largest importer of hibiscus flower in the world which Nigeria grows in abundance. In addition bitter kola, cashew nuts and cocoa are in huge demand from manufacturing companies in USA who order for hundreds of tons of these products running into over $105 million per annum - from ginger alone the US imports over $120 million annually but mostly from China. Nigeria also exports movies and entertainment, fashion (clothing, bags etc) and Arts to the US mostly to Nigerians living there.

United Kingdom (imports over $150 million worth of items)
Nigerians living in the UK love to buy some local delicacies, fashion accessories and made in Nigeria products mainly because of nostalgic feelings. There are Nigerian shops in the UK which sell mostly made in Nigeria goods serving an estimated 1.5 million Nigerians living and working in the UK.

Netherland (over $60 million)
This is the second largest exports market for Nigeria in Europe after the United Kingdom. The country imports mostly Cashew nuts, ginger and processed rubber from Nigeria but there is room for other commodities such as; hibiscus, cassava pellets and palm oil.

South Africa (over $60 million)
Is Nigeria’s leading trading partner in Africa accounting for over 85% of trade surplus between both countries - mostly due to its heavy reliance on Nigeria for petroleum - while we import paper, car parts and some industrial machines from South Africa, the remaining imports are mostly cashew nuts, cocoa, groundnuts, fashion, entertainment and lifestyle products from Nigeria. They of course have a large Nigerian population of over 800,000 who live and work there.

West African Countries (over $40 million worth of exports per annum)
Togo and Benin republic depend heavily on Nigeria for fast moving consumer goods such as toiletries, processed fruit drinks, others such as Liberia, Sierra Leone, Ghana and Ivory coast import body creams, pharmaceutical products, toiletries, processed rubber, Nollywood and other entertainment services

Central Africa (below $30 million)
Countries like Congo DR, Central Africa republic, Chad and Cameroun are ready markets for supply of made in Nigeria shoes, bags and electric bulbs. This is because of their low purchasing power per capital income, high costs of import logistics from Asia and the fact that Nigerian made products are cheaper and can compete in quality with many second hand products from Asia. Made in Aba shoes over 92% of them are packaged for exports rather than sold locally.

Are you looking to go into exports and need a convincing business plan to show investors or to a bank? Give me a call: 0803 206 4106 or email me: paulonwueme@gmail.com

Article Keywords:
Exports from Nigeria| Top global Nigerian exports market| Markets for 
Nigerian Exports| Best overseas Nigerian exports markets| Nigerian commodity buyers| Top importing countries for Nigerian Products| Made in Nigeria Exports| Nigerian Export commodities

Sunday, April 9, 2017

Business Plan Software, Sample Business Plan or Professional Business Plan Writer?

 If you need a business plan to present to investors to raise capital or loans to fund your business which of these three options should you go for? 

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. The other problem is that a sample business plan may still have to be edited or discarded off entirely when it doesn’t seem to make sense at least in the Nigerian context and/or suit the particular business opportunity you have in mind. On the other hand, one may be tempted to buy business plan software which would provide one with fill in the blank options or one that is already written as part of a collection of business plans for sale.
Really the choice of which option you should go for would depend on your situation and what is at stake for you when preparing the business plan and I’ll explain this shortly.

Buying a do it yourself business plan software

You can actually order for a ready-made business plan online at various places but I’ll recommend live plan to anyone looking for a business plan software from a reputable business plan writing company. There are many other places to order for a ready-made business plan but I won’t be mentioning them in this post.

Advantages of buying a ready-made business plan

  • It’s cheaper than hiring a professional business plan writer as it usually comes at a fraction of the professional’s fee sometimes as low as $10
  • It is faster because you can have it prepared in less than 48 hours which is almost impossible if you contact a professional business plan writer to prepare one for you.
  • You are directly involved in its preparation because you’ll do the editing, presentation etc yourself

Disadvantages of buying and using a ready-made business plan

  • The format may not be suitable for your intended/targeted lender or investor. The bank or investor who looks at your business plan may have specific things he’s interested in e.g working capital turnover or payback plan which your ready-made business plan may not have answers to
  • The scope of the business plan may be limited and may not reflect the current situation of your business, the market analysis may need to change because market trends are not constant but change with time. It’s like buying a Nokia 3310 and still expecting it to function like iphone 6. The sample business plan can be likened to the Nokia phone in terms of being outdated or not complete for present day mobile phone usage.
Download and Edit a free sample business plan or business Plan format/template

There are many sample business plan formats available for download online. Some of these business plans have formats that are not suitable for use in certain countries because they are designed to fit into the overall economic situations of their respective countries. For instance a business plan sample on supermarket business from bplans.com will specify locations in the US, target markets specifically showing how potential customers shop (which is a lifestyle issue) and costing in US dollar whereas someone living in say Nigeria in search of a business plan sample sees this business plan, downloads it and edits it removing anything suggesting US without considering the difficulty in adapting realistic assumptions that fits the Nigerian business climate into the downloaded business plan. In other words you have picked up a Toyota vehicle, removed its engine and replaced it with that of a Volkswagen and expect the car to function optimally without any awkward hitches.

Advantages of downloading a business plan sample
  • It saves you time because you don’t have to do hard time consuming research
  • You have a standard template to work with which would improve your business plan presentation
  • It is inexpensive compared to either hiring a business plan writer or buying a ready-made business plan because you get it absolutely free of charge
Disadvantages of downloading a business plan sample 
  • Since business plans are not a one size fits all document it follows that a downloaded and edited business plan sample will not provide ample details on the particular business opportunity you’re presenting the business plan for
  • They are not sufficiently suitable for your business venture and the opportunity it stands for
Hire a Business Plan Expert to write you a New Business Plan from Scratch

This is the least preferred option by most people because it entails entrusting your business idea to another person who you are not sure won’t go into the business you are about venturing into or possibly sell your idea to another person - although there are ways to overcome this when you come in contact with the right business plan writer. Secondly you have to pay a hefty fee and the chances of you getting exactly what you want can only be guaranteed by the professional’s proven competence which will either be based on a referral or by the claims made by the business plan writer. Thirdly this option is suitable for people who don’t have time to write the business plan themselves, can’t write it even if they had enough time and/or prefer to have a professional write the business plan especially if you are going to present it to a distinguished panel of investors or a bank with very strict standards.

Advantages of hiring a business plan writer

  • The business plan will be customized to your own particular business needs as the business plan writer will seek your input either by oral or written interview and your responses will guide his/her write up
  • The business plan will be more professionally written than downloading and editing a sample and is more likely also to be better than a ready-made business plan purchased online
  • professionally written business plan usually has greater impact than a copy and paste business plan sample simply because the uniqueness, viability and the growth potentials of the business opportunity will speak out through the business plan
  • A professionally written business plan is usually more realistic than other options because business plan writers work with realistic assumptions and calculations when forecasting and projecting financial details
  • It is less Stressful to you because all you do is pay for a service and make needed input by way of feedback you don’t write anything or have to stress yourself doing research and calculations.
Disadvantages of hiring a business plan writer

  • It will cost you more money because you have to spend higher than the other two options but then it often proves to be worthwhile – when you hire the right business plan writer.
  • The business plan takes longer time to complete: because the business plan writer has to research the business opportunity and do detailed write-ups, rewriting the draft, making the business plan presentations and several other tasks which takes longer time from between 5 to 14 days to complete
  • You are only indirectly involved in terms of only making inputs whereas the actual writing and business plan development is not in your hands until after you receive the final draft

Final Thoughts on which business plan option you should opt for

The ball is in the court of the prospective business plan seeker your choice of which option to go for should be based on what you want to achieve with the business and how important that achievement would be to you – if you are highly motivated you are not likely to gamble with your options. Another thing to consider is your budget for the business plan, the higher the cost compared to your budget the more likely you are to pursue less expensive options. However you should be guided by whether you want to succeed or not and which option will best ensure that you succeed.

You can reach an experienced, professional business plan writer in Nigeria either by email: paulonwueme@gmail.com or call: 08032064106