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

Business Plan Competitions in Nigeria: Are they always worth the stress?

Many Nigerian entrepreneurs and business owners looking to raise either startup capital additional capital to fund their growth may have had cause to participate at a business plan competition in the past. Are business plan competitions really worth the trouble of submitting and participating fully in? We shall find out at the end of this article whether or not they are worth the stress.

What are Business Plan Competitions?

Let us begin first by asking what are business plan competitions? They are competitions designed usually by governments, international development agencies or consortium of investors to identify, mentor, and fund small and medium scale businesses which are viable and have great potentials for growth, employment creation and wealth creation. Usually they are part of a larger project by governments and major international organisations to achieve sustainable development goals or enable various countries achieve major economic and developmental aims. Therefore a business plan competition is both an economic and social development project.

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Why Should Business Plan Competitions Matter to Entrepreneurs

There are a few reasons why you should participate in Business Plan Competitions. The main reason is that you could attract funding for your business if you win at the competition - that is not including the prize money by the way. Some business plan competitions like the Abuja Business Plan Competition offers prize money for the best 10 entries in addition to access for funding from high net worth individuals who may be interested in investing in SMEs with huge growth potentials.

Another benefit is the chance to network and meet potential business partners and customers. Like a trade fair which is principally a networking and marketing event, you could say a business plan competition also offers entrepreneurs new business opportunities that they may not have heard of but for the business plan competition.

Entrepreneurs can also be mentored through trainings, courses, conferences, case studies, lectures, affiliations with established business schools and institutions to mention a few entrepreneurs can actually be empowered with new skills, knowledge, information and strategies that could take their businesses to the next level.

Why Business Plan Competitions may be a waste of time

The other end of the divide presents the failure of the human factor in most noble projects. On one hand, business plan competitions are designed for entrepreneurs but they may not function that way. The organisers usually have interests and goals to achieve which may not correspond with the expectations and interests of the applicants at the competitions. Some entrepreneurs understand their businesses thoroughly but the competition organisers may hire ‘experts’ to review their applications and many of these so called ‘experts’ are questionably qualified to assess the viability and potentials or otherwise of emerging new businesses.

Most startup businesses which attracted huge funding for their businesses never applied to a business plan competition, because there are other alternatives which show greater promise. So someone like Mark Zukerburg who didn’t get the funding he required for facebook from a business plan competition may be right to ask “why bother then?”

Stiff competition and limited funding also reduce the chances of serious entrepreneurs with bankable business plans and viable businesses as well who may have to struggle to convince a panel of judges that they and not others should be considered.

There is also the issue of the integrity and competence of the competitions’ managers. YOUWIN for instance has faced allegations of favoritism, nepotism, lack of due diligence and lack of due process in the award of grants. Many grant winners have folded up their businesses due to inexperience, poor management, an unviable business model or other risks that were not factored in when these businesses were being assessed for viability and suitability for grant.

Business Plan Competitions in Nigeria: past, present and the Future

There will always be business plan competitions available to Nigeians whether they are perennial – once every 3 years – like the Abuja Business Plan Competition or annual like the YOUWIN, African Young Entrepreneurs Empowerment Nigeria, Tony Elumelu Entrepreneurship Programme or one off like the Pat Utomi @ 60 Business Plan competition, they have come to stay albeit for an uncertain period. Some other global and regional international business plan competitions hold in various parts of the world and Nigerian entrepreneurs can seize advantage to be part of it.

My Take on Business Plan Competitions

If you are new, young, inexperienced but have a business you believe so much in, then go ahead and participate in a business plan competition. This is because even if you don’t get funded, there are other benefits you can gain from them. If on the other hand you have lots of experience, you have an existing SME with strong growth and profit potentials and you have made concrete progress in growing your business with the little resources you have, then look for alternative sources as they are usually more promising, that is not to say business plan competitions are only for novices, but serious investors with interests in SME ventures are often nowhere near business plan competitions and they are not likely to fund startups run by inexperienced entrepreneurs.

Are you looking to submit a bankable business plan to an investor, bank or business plan competition and need very sound and reliable write up? Give me a call: 0803 206 4106 or email me: paulonwueme@gmail.com

Winning Business Plans for Nigerians

The thought of having a winning business plan written for your intended Business here in Nigeria may remain elusive if you aren't chanced to hire a reputable Nigerian Business Plan writer. 

Winning Nigerian Business Plans and Testimonials

I'm honoured to share these testimonials with you on some of my completed business plans and the feedback from satisfied clients. Hopefully you'd have something to add in future to this list as I solicit your feedback from your completed jobs.
  
Here are the testimonials I’d love to share with you from some of my satisfied clients in their own words upon completing their jobs. For privacy reasons I would only give their first names with other initials only;

“I love the fact that you put in such detailed and conscientious efforts in making your business plan the ideal working document that it turned out to be, I don’t regret using your services at all”. 
Dr Dele A (Dental practitioner based in Lagos)

“I thought giving you the job was a big risk but it turned out to be worth it. I got a second opinion from a manager who has been in the field for nearly 10 years and he confirmed to me that your figures were realistic”. Mrs Juliana K (For completing a job on office cleaning)

“I showed my husband the business plan you wrote and he told me it was a well written and bankable document. He had no worries showing it to our financiers”. Mrs Ofure O (She was able to raise N5 million to set up a fruit farm in Jos)

“I was delighted to hear the good news that at last I can set up my own specialized souvenir and gifts store after the investors agreed to commit funds to buy a stake in my company.” Miss Patience, M. E (for helping her, turn her business idea into a winning business plan, she lives in Uyo).

“I needed a business plan within 2 weeks but asked if you could do it in 5 days and you said yes. This is an excellent job and I will keep you informed on my progress with my application” Miss Tina O (Applied to raise N32 million from investors for a trading company specializing in fabrics imports and exports, she lives in Abuja). 

“I don’t have much to say but thank you for doing a decent job”. Ayodeji A. (After running a successful property development company in Lagos for 8 years was looking to exploit business opportunities in the Manchester, UK hospitality industry and got his application for UK entrepreneur’s Visa approved).

“You charge a fair amount and the quality of your job is impressive, I’ll definitely use your services in future and if I know anyone who needs your services I’ll tell them about you”. Charles O. C (I wrote a proposal he sent to an NGO in Abuja and his idea was accepted).

I was able to get these testimonials because I follow up on my clients on every job and ask about their progress. Their responses form the testimonials you see in this post.

Looking to work with me? Give me a call: 0803 206 4106 and I’ll walk you through the process.  

Smoothies and Fruit Juice Shop Business Plan for Nigeria

Smoothies are highly nutritious drinks which are quite in high demand from health conscious people who want great refreshment – drinks that don’t just taste nice but also but are health friendly as well. Imagine that you are a health freak and don’t want to taste one of these carbonated drinks you fear may have adverse effects on your health what do you do? My guess is if you can afford it you’ll stroll into a smoothie shop and order yourself a fruity drink.

Opportunities

There are unlimited opportunities in my opinion to market this business to a middle class and well educated population. You just have to consider a suitable location such as a stand at an upscale shopping center, business district or residential area with a large population of people who might require your services. If you situate your business in a place with 10,000 people who fit your customer profile what you need to work on is mainly awareness to this people and the rest will follow.

Product Pricing

Smoothies are quite expensive when compared to processed drinks but still affordable to your target market. Price starts from N250 per 16 oz cup to even N1000 depending on location. Your products may include; chapman, various smoothie fruit flavors, juices and even local drinks like Zobo.

Start-up Funding

Business Registration

Smoothie Maker – N15,000

Furniture – N200,000

Rent – N150,000

Utensils (cups, plates, cutlery etc) – N10,000

Fridge – N60,000

Others – N250,000

Total – N685,000

Financial Projections

At a little over 60% margin on sales your profit could be quite high but that largely depends on sales volume and overhead cost. An investment of N1,000,000 should breakeven within 6 months if you can achieve your sales target in time.

Want to have yourself a Bankable Nigerian Business Plans: written for you? Don't fail to contact  me for  details 

How to get well written Business Plans in Nigeria

One of the major causes of failure in business is the lack of a viable business plan. In fact it has been said that many business fail not because the business ideas weren’t good but actually the implementation of those ideas.

Another reason businesses fail is because of inadequate financing. If you want to raise additional finance for expansion you’ll need a business plan because banks and investors won’t just listen to mere words but actionable, well documented plans that will move your company/business to the envisaged position.

What is business Plan?

A business plan is a document that provides useful information about stated business goals such as projected earnings, profit, market size and administrative plans needed to make such goals attainable.

You could see it as a road map to direct you to a certain destination – your desired business position within your industry and within the market. It’s a document that says what your business goals are, how you intend to achieve those goals and what your business internal structure will or already looks like.

Why do you need a business Plan?

Why should anyone even want to consider writing a business plan in the first place? This question is answered here;

To raise funds from investors to start a business

There are many business ideas that may never see the light of day not because they’re not viable but simply because there’s no capital to invest in it. But even if the idea makes sense and happen to know people willing to invest in your idea, most investors would still ask for a business plan. Their reason for wanting it is to get insights into what your business goals are, what steps you’ll put in place to achieve them and how profitable is the opportunity.

To expand an existing business

A business plan can also help you find ways to expand your existing business. You might discover along the line a new product or service or an underserved market segment that needs exploitation, how do you go about it? That’s another reason you need a business plan.

To Capture a Market or Market Segment

Sometimes the competition is just too weak but the demand for a product is high. A unique selling point is often the difference between a market leader and a struggling competitor. A business plan can help you arrive at a unique offering that’s head and shoulders above what the competition has to offer.

To provide a blue print for business success

How about running your business internally so you can turn out great results in how you utilize your business resources? A business plan is like a road map which directs you on how to run your business showing what you intend to do in order to achieve your business goals and more.

If you need a well written business plan but don’t have the time or expertise you can contact a specialist business plan writer to do a detailed analysis of a business opportunity or market survey. Simply call: 0803 206 4106