Pages

Thursday, September 26, 2019

List of 11 Sample Nigerian Business Plans


Business Plan Shortlist. Image Courtesy: shockwaveinnovations.com

Here is a shortlist of sample business plans written for the Nigerian market. They merely convey a preview of business plan samples I have prepared and written over the last three or so years. Some of them may offer you actionable insights without much details whereas others are skeletal presentations that can only be exploited upon proper

List of 11 Sample Nigerian Business Plans

This sample business plan asks only one question – how lucrative is the sharwarma stand business? The answer is – it is highly lucrative and the breakdown of this article explains why and how one can harness the power of this product to smile to the bank.

At least 360,000 people visited Nigeria in 2017 for business and most of them have a budget to cover their stay while here in Nigeria. Part of that budget would go into airport shuttle service and car hire which many hotels have taken advantage of. Once you arrive in Nigeria as a visitor and have booked a hotel to stay in, naturally you’d enquire about cab services within the city you’re visiting but not all hotels can provide this service and even those who can may charge much or may want to focus on providing core hotel services that they’ll rather outsource the service to more competent companies. 

The Nylon sachet water or more commonly called Pure water Business is highly competitive with very little profit margin and high operating costs. The startup requirements are not tedious hence why there are so many operators but the payoff is huge for businesses that can either scale up or guarantee steady flow of their products through their supply chain. Demand is all year but operating costs is also high.

My research into the pharmacy store business shows that on average the middle class customer spends N18,000 per annum on medication and medical supplements and we are talking of about 44 million strong individuals (if we include the health and dietary needs of father, mother and children). This means that the market can generate at least N792 billion per annum just from the middle class alone. Incidentally there are fewer than 12,000 pharmacy retail stores in Nigeria which means there is a lot of room for new entrants to compete in this market.

Home and office space rental business is changing very fast because of affordable internet services and the changing lifestyles of working class residents in urban areas. People’s needs for affordable homes is now being served better with digital marketing which will position savvy real estate agencies with constant flow of leads and very qualified prospects to do business with.

The creche and daycare service business is one of the most prolific and most sought-after businesses among women. But there are many issues to know before setting up such as; start up requirements, legislation and policy requirements, registration and licensing requirements, market trends and current practices among others. Though not covered in this sample business plan, it is still summarized guide to follow.

The market for baby products in Nigeria is booming because in 2017 alone over 6 million babies were born nationwide. Granted most of them were in rural areas but the urban centers account for over 2.5 million of them. Nigerian women are very fertile giving birth at least 4 times in their lifetime which means there will always be a market for the products but their lifestyles and the economy is changing, so too is the marketing strategy to identify and satisfy their needs. How can businesses engaged in baby products benefit from these new opportunities?

The booming market for affordable and decent housing in Nigeria has been ignored for a very long time due to policy and prevailing economic realities. But there exist opportunities to engage the teeming market with decent and very affordable housing in strategic locations.

The market for furniture making and retailing is slightly analyzed in this article. The opportunities and must know for investors looking to key into this market are explored in detail. A mini financial projection also provided.

This business plan covers key market issues and opportunities affecting the downstream sector of the petroleum industry. A little advice on how to setup and a basic financial projection of sales, profit and loss and possible payback period.

A miniature business plan sample which captures some key market issues and opportunities in bakery setup in Nigeria and a very basic financial summary for you to peruse.

Other Useful Nigerian Business Plan Guides

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. On the other hand finding the right business plan writer in Nigeria has its own risks as well

Why do I need a business plan? Where can I get a professionally written business plan? What Should I look out for in a professionally written business plan? These and more answered.

Want to write a professional standard business plan that is bankable? Give me a call or 0803 206 4106 email me: paulonwueme@gmail.com to get started

Wednesday, September 18, 2019

Sample Business Plan: Furniture Production in Nigeria



Furniture Showroom in Lagos, Nigeria. Image Courtesy: 03techy.com

The Nigerian Furniture Making Business Overview 

Furniture serve many uses in Nigeria and are in high demand. Offices need furniture; desks, front desk table, conference room table, executive chairs, book shelves, office cabinets, library cupboards, visitors bench etc. Homes also need furniture; settees, single couches, single chairs, dinning table and chairs, TV stands among other products. The list goes on and so too does the demand and supply from furniture makers and showrooms but a few businesses have found creative ways of selling more and making a ton of profit.

Nigerians spent close to 110 billion naira in 2018 on furniture. This is the formal segment of the market as the informal segment is not captured (people who buy from road side furniture dealers). The rich especially visit exotic furniture showrooms and order for furniture worth millions of naira at a sitting and this is just a tip of the iceberg. There are offices, companies, government agencies that demand for furniture from time to time and they usually have big budgets for such acquisitions.

The Business of Furniture Making and Selling in Nigeria (Present Realities)

The first part of this business starts from designing, cutting, shaping, joining among other processes of furniture parts into desired type. This is from the informal making process where skilled artisans do the work manually. There is the automated process which involves highly technical and skilled personnel and use of very specialized machinery like some Chinese investors have done recently to tap into the ever-growing Nigerian market. The second part is the retailing of finished furniture which is less lucrative from the profit margin point of view but more cost effective than the former from the operational end.



Some Market Facts about the Nigerian Furniture Market
  • Major import markets for Furniture to Nigeria are; Italy, Turkey, China, USA and UK
  • The average Nigerian office will likely change furniture every 3 to 5 years and we are talking of hundreds of thousands of offices
  • Most Nigerian middle class make purchases for new furniture from time to time based on lifestyle needs and occasion
  • Imports of furniture to Nigeria is in the region of 30 billion naira alone not excluding local sales made from local factories
  • The market situation is highly volatile as new fashion and lifestyle trends can suddenly impact demand for certain furniture styles

Key questions to answer if you are looking to crush huge sales in furniture Business in Nigeria
  • When do people really demand for furniture?
  • How Much are they willing to spend?
  • What kinds of furniture are they looking to buy?
  • How can they find you instead of the competition?
  • How can you find willing buyers for furniture?

To get answers to these questions which are available on request send email to: paulonwueme@gmail.com

What to Consider when Setting up a Furniture Business in Nigeria

  • For investors willing to put in money automating the production process. This will not only lower the cost but enable you produce and sell more to the market. Automating the process also improves the efficiency and ensures quality finishing.
  • Quick sales is possible but the competition is not asleep. The best way to achieve quick sales is to invest aggressive marketing but specifically highly targeted marketing.
  • There are many ways to market your product; direct marketing, PPC, display adverts, excellent customer service to name a few. Prepare yourself for stiff competition no matter the marketing method you choose but some are far more effective than others.
  • A solid financial plan that will enable you manage cashflow, grow your business sustainably and create a solid base of reserves among other financial goals to consider.
  • The return on investment is impressive compared to most other manufacturing businesses. In some cases the ROI could be over 60% and payback period is between 2 and 3 years depending on the scale of operations and how quickly sales targets are met.

Want to setup a furniture production business and need a bankable business plan to achieve your goal or raising finance. Then send me an email to: paulonwueme@gmail.com or call: 0803 206 4106

Monday, September 16, 2019

Sample Business Plan: Home and Office Rental Service in Nigeria


Nigerian Online Real Estate Agency. Image Courtesy: fiber.com

The Nigerian Online Rental Business Plan Overview
The online rental business in Nigeria is gradually gaining momentum as a result of rapid changes – both social and economic – and with evolving ICT and lowering marketing costs, a large number of Nigerian urban city residents – moving upwardly due to improving incomes - want to be housed very decently in very cost effective and timely manner. The days when people sought housing opportunities through brick and mortar real estate agencies are fast eroding as more people are now seeking online methods of connecting with real estate agents while seeking rental properties. Details of these facts available on request.

The market is huge as more than 30 million Nigerians are active on social media and use mobile devices to connect with businesses. We are talking of billions of naira in potential revenues to these online office and apartment rental service providers.

Related Nigerian Sample Business Plans


The Business Opportunity (Demand for Nigerian Online Realtor Services)

  • 80 million Nigerians have access to mobile devices and many of them are satisfactorily tech savvy
  • Nigerians want to bypass unreliable real estate agents as much as possible and one good way to achieve this is with an online service that cuts out the clutter involved in connecting potential tenants with their housing needs
  • The population centers of Nigeria – urban towns and cities – suffer from adequate housing and efficient town planning. That makes a house search very difficult without insider knowledge within the industry
  • Time and cost savings. This service is very cost effective and convenient to all parties
  • There are still 10 more opportunities not outlined in this article (available on request)

The Target Market

The demographics are numerous and can be broken into small and fairly large segments based on the peculiarities and need of each. For instance, young women who are gainfully employed but still single tend to favour small apartments in more pristine neighhourhoods if they can afford it otherwise they would settle for other factors such as proximity to their workplaces, population spread and other key social dynamics (only available in the detailed version of this business plan). The major target market regions vary from: Lagos to Ibadan, Abuja, Port Harcourt, Kaduna and Kano but the demographics include; single women, bachelors, married couples, families, elderly, expatriates, high net worth individuals among others.   

Some Challenges and Threats faced in Online Real Estate

Quacks can also cash-in on the unanimity provided by some online marketing platforms. This could frustrate both potential clients and genuine real estate brokers/agents
Due diligence checks by the client will still boil down to face-to-face consultations and actual property inspection eventually which implies the process is not totally seamless
Security threats exist in all of this if cyber criminals can hack into realtor websites or access client information prior or during consultations
NB: More challenges not outlined because this is a mere sample business plan.

Startup Requirements (in Naira)
Direct response mini-Website:
Online Marketing Budget:
Internet enabled device:
Business Cards:
3 months operating costs:
Office Space: (optional as office space is required for this business to take off)
Total

50,000
150,000
120,000
12,000
60,000
300,000

662,000


Sample Financial Summary (1st year only)

First year Profit and Loss Summary (in Naira)
Gross Income:
Operating Costs:
Profit before tax:
Taxation:
Profit after tax:
3,600,000
690,000
2,910,000
970,000
1,940,000

Conclusion

From the startup costs and above financial summary statement, it is clear that this business is highly profitable. The entry requirement is minimal both from the cost and technical angles but the payoff is huge with an effective marketing strategy and management process in place.

Want to start a new business, expand or approach a bank for a loan and need a bankable business plan? Send me an email to: paulonwueme@gmail.com or call: 0803 206 4106 to get started.