Sample Business Plan: Car Wash Service in Nigeria

Car Wash Services provide a specialized, convenient service to car owners who need presentable cars on the move. The market is large just as the competition is also very rugged, but this is a very low cost, low risk, high profit margin business which can be setup and run by almost anyone.

Market Opportunity

Picture this situation, you live and work in a busy city with many untarred and pothole riddled roads. Mobility would be very unpleasant with your car getting covered in dust (during the harmattan and dry season) or mud (during the raining season). This becomes worse if your car is constantly on the road for business and official functions. There is a “social stigma” and embarrassment that comes with having a dusty, dirty car with you. To make matters worse business and work commitments may not permit car owners to clean their cars on their own (wake up 4am, leave for work by 6am to return 9pm every weekday). Here is the breakdown;

33 million cars in Nigeria ply busy routes daily 1 in 12 car owners patronize car wash at least 3 times a week 2,750,000 cars washed at least 2 times a week = 5.5 million weekly washes Average price per car wash = 500 naira Potential Market Size = 13.2 billion naira Less than 10,000 car wash centers mostly informally operated Averagely  car wash centers can fetch between 6,000 naira to over 45,000 daily sales

Challenges Affecting Car Wash Service Business in Nigeria

The problems are numerous but there are 5 I want to talk about in this article. The first main challenge is regular water supply. This should not be a problem if you have a borehole but unless you own the building or the borehole you are either going to invest in digging one or simply buying it from water vendors. There is the problem of financial accountability, if you are not at the car wash point throughout you can’t really tell how much is made in your absence, your workers may pocket the money knowing you won’t find out. Third problem location, getting a strategic location that will boost sales is very difficult to achieve. There is also the problem of having permits, local government revenue task force are  constantly on the move and pressure car wash owners with levies – which is not a bad thing but can be excessive to the car wash operators. Car owners pose a problem themselves, they may leave some of their valuables in the car as it is being washed, when something is stolen from the car during the wash, how will the owner be appeased?

Financial Summary

You can generate at least 1.8 million per annum in sales from this business if you can wash 12 cars per day for at least 300 days in a year. Assuming your daily sales targets are met your first year financial projections should look like this;

Startup Cost Summary

• Rent: 240,000
• 3 Months Operating Expenses: 150,000
• Water Supply: 60,000
• Washing Tools and Equipment: 120,000
• Marketing and Branding: 30,000
• Other Tools: 60,000
• Total: 670,000

First Year Profit and Loss

• Total Sales:    1,800,000
• Cost of Sales: 180,000
• Operating Expenses: 720,000
• PBT: 900,000
• Taxation: 300,000
• PAT: 600,000
• Breakeven Month: 6^th
• Payback: 14^th month

 Conclusion

This is an easy business to start and run and can provide a steady flow of income, year on year but even when business isn’t booming your low overheads can ensure you remain in business while many others shut down. There are 4 success secrets in car wash service as well as other detailed market information which is available on request. If you need a business plan on setting up and running a viable car wash service, call me on: 0803 206 4106 or email me: paulonwueme@gmail.com for details

Sample Small Scale Poultry Business Plan in Nigeria

There are two types of poultry businesses in Nigeria namely; backyard poultry and commercial poultry. The backyard poultry is usually a small sized poultry business which most times is run from residences and have a capacity for less than 1,000 birds which are reared for either meat or eggs. Most operators of backyard poultry business in Nigeria run them as an extra source of income for the family hence it’s not surprising to see civil servants and housewives running this business.

The commercial poultry on the other hand is run from farm houses owned by business enterprises engaged in rearing chickens for meat or eggs. Unlike the backyard poultry, commercial poultries need huge capital outlay, technical expertise and complex marketing strategies. It’s not just enough to have birds for sale but getting those birds to the market on time is the real deal with commercial poultries. The faster the sales they make, the more profitable they can become.

Market Opportunities for poultry products in Nigeria

Nigerians consume about 1.2 million tons of poultry meat annually according to Poultry Association of Nigeria whereas all the poultry farms in Nigeria produce 300,000 tons per annum leaving the outstanding 900,000 tons to smuggling since officially there is a ban on importation of poultry products in Nigeria since 2004. 

Secondly, egg production poultry is more lucrative than meat production hence why Nigerian poultry farms generate 650,000 tons of eggs per annum. On average it costs N15 per day to feed an egg laying fowl but that fowl which will likely lay between 180 to 288 eggs per annum can fetch you between N4,500 to N7,200 per annum for each bird. 

The average daily cost of feeding a meat producing fowl is about N13 per day and they can be sold off within 22 weeks after being purchased as day old chicks for between N1,200 and N2,200 depending on their size and breed. The poultry business can also involve large scale hatchery i.e production of day old chicks in large quantities for resale to poultry farms. 

Poultry Industry Challenges in Nigeria

There are many challenges poultry businesses face in Nigeria regardless

• Inadequate finance to fund expansion for small poultries due to risky and unusual nature of poultry business which commercial and micro finance banks are not eager to lend to. 
• Disease epidemics are a recurring theme in this business with bird flu resurfacing in February 2016. This has led to loss of birds by unfortunate poultry farms although government sometimes pays compensation 
• Bird feeds are very expensive 
• Transportation and logistics are major operating challenges for poultry farms in getting their products to their target market 
• Presence of many middlemen and competition leads to low profit margins for poultry farmers 
• Smuggling and illegal importation of poultry meat mostly from Brazil which is much cheaper than locally produced poultry products leads to reduced demand from local consumers 

Financial Projections on Poultry Farming Business

• Total sales for egg laying poultry of 1,000 birds is N8,640,000 and N6,000,000
• On average annual net profit per egg-layer is between N1,200 and N2,400 per annum multiplied by total number of birds = N1,200,000 to N2,400,000 for 1,000 birds
• On average net profit per broiler is between N100 and N400 per quarter multiplied by total number of birds = N1,000,000 to N1,600,000 for 4,000 birds reared per annum
• Return on investment is between 10 to 40% per annum, that means if you invest N1 million into this business you should expect between N100,000 to N400,000 depending on the location of your poultry and proximity to your customers and other operating costs

How Much does it cost to start a poultry business in Nigeria?

The assumption for this startup cost is based on setting up in a residential part of a town or even a village. The second assumption is that the profits will be ploughed back into the business to fund expansion

• Second hand Poultry bird Cages – N96,000
• Poultry House/shed – 250,000
• Animal Feeds – N120,000
• 100 Birds – N120,000
• Rent on 1 acre of Land – N50,000
• Contingency – N150,000
• Total – N786,000

Paul Onwueme is a professional business plan writer since February 2014 and has achieved respectable results with his business plan writing service with some of his clients attracting funding to their business or securing bank loans. He can be reached on: 0803 206 4106  or email me: paulonwueme@gmail.com

Sample Business Plan on Car Repair and Service Center in Nigeria

The Auto repair and vehicle service center in Nigeria is largely dominated (at least over 90%) by informal and small sized providers. These are mainly poorly trained car technicians with very little formal education who repair, maintain and service cars belonging to usually better educated people. This often creates many unpleasant situations for the clients who may misunderstand the technicians and vice versa or less than satisfactory service rendered.

If you ever had the displeasure of working with a road side mechanic who is poorly educated, doesn’t know his/her job well enough, lies to you about prices of car parts you need to replace and still behaves badly while working for you, it won’t be a surprise if someone insists that car service centers are a must for Nigerian car owners.

A professionally run Auto repair and Vehicle service center would have certified and well trained mechanics and technicians, adequate equipment for technicians to work with, more current with professional service standards, can accurately tell you want is wrong with your car and won’t waste your time and money because of trial and error work which many road side mechanics are used to doing.

The market for this revolves mostly around corporate bodies with fleet of vehicles, that includes; government agencies, transport companies, manufacturers, schools, banks, telecoms companies, embassies, security agencies (police, civil defense, DSS etc), hospitals etc

 

Auto Service Centers service a gap which roadside mechanics have created Their services tend to cost more because of higher overhead costs but offer greater value for money to end users in comparison to roadside mechanics They serve the formal sector better because of the professionalism, measurable performance and value they have to offer  Road Mechanics are usually unorganized and unreliable.

Opportunities for Auto Service Center in Nigeria

• Nigeria has a huge number of second hand vehicles which are in need of corrective maintenance meaning the market pool is large
• Nigeria has one of the highest incidents of road crashes
• Most Nigerian roads outside of the major cities are not ‘motorable’ which is one of the major causes of frequent breakdown and damage of cars and car parts
• Nigerians attach a lot of importance to second hand car spare parts which only offer temporary reprieve for car owners trying to service their vehicles
• At least 55% of vehicles on Nigerian roads are for commercial use which contributes to their increased mileage, need for servicing and tendency to breakdown
• The business operates within a range of commercial ventures meaning multiple revenue streams
• The unprofessional and dishonest attitudes of most mechanics often times means those who can afford it would rather patronize the auto service centers
• The Nigerian middleclass is sizeable and despite the economic challenges is still growing annually
• The second hand market value of cars continues to drop (in dollar terms) and there are indications that this would continue for years to come as newer car models keep hitting the market yearly
• Large number of organisations operate fleets of cars in Nigeria and they have managerial requirements which most road side mechanics cannot meet but well run auto service centers can
• Car ownership numbers in Nigeria keeps going up, combined with rapid urbanization means potential annual sales growth
• Most of Nigeria’s transportation needs (at least 98%) is by road with interstate transport services conveying at least 19 million people daily

Challenges Auto Service Centers may Face in Nigeria include;

• Professionalism and Competency issues with Auto service technicians is more common than rare
• Many Nigerians still believe they pay too much for car maintenance which means acceptance towards Auto service centers would be rather slow
• They are often plagued by high operating costs and low profit margins
• Securing crucial contracts from large corporate clients can be very difficult

Startup Costs for a Car Service Center in Nigeria

• Rent – 960,000
• Auto Service Tools and Equipment – 1,240,000
• Adverts, printing and stationery – 60,000
• Furniture – 340,000
• Salaries (6 months) – 1,800,000
• Operating Costs (6 months) 1,800,000
• Other costs – 3,259,680
• Total costs – 9,360,000

Financial Projections for first year

• Gross Sales – 19,800,000
• Cost of Sales – 3,960,000
• Operating Costs – 7,200,000
• Profit before tax – 8,640,000
• Taxation – 2,592,000
• Profit after tax – 6,048,000
• Breakeven – less than 10 months
• Payback period – Second Year

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: paulonwueme@gmail.com 

Sample Business Plan for Real Estate Property Development Ventures in Nigeria

Real estate property development in Nigeria has been around for decades and continues to attract huge foreign investments. It is one of the safest and most profitable investments available to serious investors looking for long term or medium term returns and there are additional incentives available such as; capital gains from real estate acquisitions and direct profits coming from sale and rent of real estate properties.  

Nigeria has a vast market for real estate property development – both Commercial and residential real estate opportunities exist in major towns and cities in Nigeria where the large urban population is in urgent need of qualitative housing. The quality of housing in Nigeria in relation to the amount its costs is exhurbitant because in comparison to developed countries Nigerians pay more per unit square meter for high quality housing than their counterparts in more developed countries. In comparison to most African countries Nigeria still pays more for even low quality accommodation which goes to show that real estate value in Nigeria is high owing to her huge population and fast rate of urbanization.

Related Sample Business Plans

• Event Center Business Plan
• Bed and Breakfast Hotel
• Daycare School

Let’s take a cue from a Place like Banana Island which is the exclusive preserve of the rich in Nigeria for instance would not even compare with many middle class estates in South Africa yet people pay as much as $150,000 per annum for so called luxury flats. Lekki district in Lagos Nigeria also attracts one of Africa’s highest rent costs for the middle class going at about 30,000 naira per square meter per annum which for a 3 bedroom flat would amount to roughly 2.4 million naira. The poor areas like Ajegunle were a “face-me, I face-you” single room apartment with shared toilet and kitchen starts from 30,000 naira per year show clearly that real estate investments  

Nigerians from all works of life desire decent and affordable accommodation regardless of their income group but affordable housing remains out of their reach.       Most Nigerians in the urban centers live in slums and other inhabitable surroundings for which they pay relatively more for than in other 3rd world countries

Opportunities for Investors in Nigeria’s Real Estate Market

There are many opportunities for investors to take advantage of in Nigeria’s vast real estate market. These cut across economic class, occupation, age, marital status and educational levels. For instance, recent university graduates in search of accommodation would typically settle for small flats (self-contained) whereas married couples with children may opt for 2 or 3 bedroom flats.

 

Nigeria has a huge urban population of workers employed in the formal which creates the right environment for property development Government is unable to adequately meet the housing needs of Nigerians but has made strong commitments in the past towards this   Property values in Nigeria historically go up by over 200% every 10 years   Nigerians residing in towns and cities pay more for housing than most other Africans   Huge population explosion has always been associated with Nigeria’s urban centers   Investors are constantly pursuing new opportunities for investments which puts pressure on government to develop infrastructure Over the last 10 years, there has been increased funding towards infrastructural development in many towns and cities which has seen real estate values doubling, tripling and quadrupling depending on the area

Types of Investment Opportunities in Nigeria’s Real Estate Market

If you are an investor looking to exploit the Nigerian real estate market here are some areas you should be looking into;

Residential Real Estate

This investment area should look towards providing housing access to the mass population but unfortunately this can only be for those who can afford it.

• Blocks of residential Flats
• Mini residential Estates
• Luxury Apartment buildings
• Single housing units (Duplex and bungalow whether detached or standalone)
• High rise luxury buildings
• Middle income serviced apartments
• Sites and Services

Commercial Real Estate

• Sky scrappers
• Office buildings
• Car parks
• Event Centers
• Luxury Serviced Apartments
• Theme Parks
• Resorts and Hotels

Some Challenges of Real Estate Development in Nigeria

• Presence and activities of touts and land speculators
• Difficulty in accessing long term financing for home ownership
• High cost of building materials
• Activities of quack building professionals
• Real estate management is almost an all comers affair with fraudsters parading themselves as genuine agents
• Infrastructural decay and poor social amenities common in many towns and cities
• Discrepancies and uncertainty about responsible authorizing agencies for land allocations in some states in Nigeria
• Land use Act which presents hurdles for various kinds of real estate development

Startup Summary for a small scale Property Development Project in Nigeria

This startup summary is merely an estimate and for this particular example is assumed to be targeting low income residential apartment building in a major urban town or city.

• Investment Outlay – 50,000,000
• Office Furniture – 150,000
• Adverts and Printing – 150,000
• 2 years Salaries – 14,400,000
• Office decorations and renovations – 300,000
• 2 years rent – 1,200,000
• Other expenses – 1,200,000
• Total – 67,400,000

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: paulonwueme@gmail.com