The Best 6 Business Plan Options for Nigerian Entrepreneurs

There are many business plan options Nigerian entrepreneurs seeking to start and/or expand their businesses should know about. These 6 business plan options have very specific benefits and implications which must not be overlooked and they also serve as options for which every entrepreneur should use in his/her funding application.

The best two options out of these 6 business plans are; the self-written business plan and the professionally written business plan. If you ask me I would suggest you write your business plan yourself if you have the time, the skills and the required knowledge to put ideas into a persuasive report. This is usually the best business plan option available - I will delve more into them to show why they are the best options when preparing business plans in my next article when I will be reviewing both of them.

The Best Business Plans for Entrepreneurs in Nigerian

Here goes the shortlist, kindly pay attention and remember them as they will go a long way in helping you achieve your funding goals;

Self-Written Business Plan

This is a business plan by you for you. The entrepreneur looking to approach a bank or raise funds from investors is the person writing the business plan himself/herself.

The good thing about the self-written business plan is that you are in full control over how it turns out, whether it turns out to be bankable (acceptable to both banks and investors) depends on if you have the right format, analytical skills and imagination to write it to achieve your aim eventually. Another good thing is it comes cheap at no cost to you apart from the time you put into writing it.

The negative side is you may have to sacrifice productive time doing the business plan yourself plus your inexperience in writing bankable business plans may count against you.

Professionally Written Business Plans

These are business plans written by experienced and skilled business oriented writers. They are professionally written because the writer is experienced and often times works with a network of other writers, researchers and officials of banks. 

One good thing about this option is that you can have bankable business plans written in record time which will save you a lot of research and analytical stress, plus offer you the convenience of doing more productive things with your time. Another good thing is they can write persuasively and present very organized, reliable and concise work that banks and investors are looking for.

The main disadvantage is that they are expensive - since they will have to forego other things to prepare your business plans. The other disadvantage is that you have limited control over how your business plan will turn out. 

Already written business Plan

This is a business plan which has already been written, all you do is purchase it then edit it to suit your requirements. There are many people who do this but I personally will not recommend or encourage you to buy an already written business plan for any reason.

First there is the issue of relevance and trends. For example, an already written business plan for sale prepared in 2010 for on the setup of a crèche is not useful in 2017 because a lot of things have changed with regard to the regulation, setup and management practice of crèche in Nigeria, therefore if you purchase it you will be wasting your money.

Secondly there is the issue of whether the business plan will be customized to your particular need. When you buy an already written business plan, the writer isn’t thinking about whether your intended business will be located in Akure, Abuja, Lagos or Jos. He will write a generic business plan which won’t also consider the company structure and capital requirements for your own business. 

The worst part is when the so called business plan writer claims you can submit that business plan to any bank, investor or financial institution.That has to be one of the worst jokes ever. The meaning of this is that you will end up paying for something that will be useless to you and will just be a waste of your time.

Software generated business Plan

This is a business plan generated by specially designed software and there are many companies that specialize in doing this. These business plans are very useful when you are under pressure to deliver a business plan in a short time. With a software generated business plan you can write one in less than 24 hours. All you have to you do is answer the questions the software asks, then it produces, arranges and structures every other thing for you.

But there are many problems with using this option. One of the problems is that software can’t reason like humans. While they may be programmed to ask you questions and you just fill in the blank to supply the finishing you still have to bother about things like how to access and analyze industry data that is something the software cannot do for you.

Online Sample Business Plan

There are business plans you can copy, download or study to prepare a standard one to submit to banks or investors. These business plans are similar to the already written business plan except that this time they are available for free. The main source of online business plan samples is bplans.com.

The first major advantage is that it will save you time when writing and researching your own business plan. The second advantage is you will have a standard format to work with. But there are problems too. The top problem is that it is usually outdated just like the ready-made business plans. Secondly, there is the danger of plagiarism if you aren’t original enough to write standard write-ups, there is a good chance you may leave somethings unchanged even when you paraphrase the business plan to make it look different. This is something which many banks and investors won’t find funny.

Business Innovation Canvass

This is an innovation which is often used for business plan competitions. Examples of business plan competitions that use this kind of business plan are YOUWIN and TEEP.

They are question based business plans which usually try to elicit short responses from applicants to get an overview of your business. These types of business plans are designed for micro and small sized businesses, not medium or large sized businesses. Mind you these are not detailed business plans and they are not suitable for submission to specialized banks and institutions.  

In my next article (should be ready on June 25th) I will be reviewing both the custom made business plan and the self-written business plan. My aim in that article will be to dig out specifics from both so that you will be better informed on the best two business plan options you can work with. 

Are you in search of a professionally written business plan prepared by an expert with proven track records? Give me a call: 0803 206 4106 or email me: paulonwueme@gmail.com to have one prepared for you.

Sample Business Plan on Gym or Fitness Center 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 7^th month
• Payback period (when you recoup your investment) should be by the 15^th 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

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

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Nigerian Exports| Best overseas Nigerian exports markets| Nigerian commodity buyers| Top importing countries for Nigerian Products| Made in Nigeria Exports| Nigerian Export commodities

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
• A 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