How to write an effective business proposal in Nigeria

A business proposal is a profitable business offer/opportunity which has been identified and is presented by one person to another in order to make a sale, seek collaboration, funding or technical support to the person the proposal is targeting. 

It sounds very simple doesn’t it? Whereas the reality is that presenting a business proposal it’s not that simple. So many people write business proposals day in, day out but very few are ever successful and that is because they are unable to capture the key ingredients and the very essence of what a business proposal is and isn’t and how it should be presented etc

Take for instance I have identified a very quick way to sell shoes through an extensive market research and my findings reveal that I need a well optimized website to target a particular market let’s say male corporate executives in Lagos, then I can create the opportunity to sell shoes fast to this market because I understand how it works but I don’t have the shoes to sell, What do I do?

The solution is to find a reliable shoe retail shop, then approach the owner of that shop with the business opportunity of how he can quickly sell his shoes through my well optimized website. How this would benefit him and his business, the costs and the terms of how to make this business opportunity would have to be well captured in a business proposal I must present to him to encourage him to sign up.  

Why is a business proposal needed?

There are three broad reasons we need business proposals and they can be summarized into the following classification;

• To invite marketing/technical partners: here like in the example above we have a situation in which one person has one of the ingredients for success and the other has the missing ingredient, they both pull resources together to achieve their collective marketing/sales objectives
• To raise funding for the identified business opportunity: if your identified business opportunity requires a certain amount of money but you lack the finance to fund it naturally you’ll need to invite someone who has the money and offer either interest on the loan or profit sharing as the terms of the contract would specify
• To sell your product or service: this is especially common if you are rendering a service to a client and those clients belong to a particular niche

7 Steps to writing an effective business proposal

Then comes the hard part of writing a business proposal which is putting pen to paper, making sure that the business proposal turns out to be what you set out to make it which is the persuasive document. Here are my 7 step recommendations for anyone seeking to write an effective business proposal

Step #1 - Identify the needs of the intended target

You must know beforehand the peculiar needs of the person or Organisation you are targeting. Where you fail to know their needs it becomes very difficult to position the benefits of your offer which is the main thing that convinces people to accept your proposal.

Step #2 - Get the right proposal format

There are many proposal formats and it depends on whether you are targeting a government institution, a private sector company, a high net worth investor or perhaps a professional. There are several business proposal formats you can find online but a standard business plan format must also capture key aspects such as;

Section A. Executive Summary

Section B. The Background and Objectives of the Offer

Section C. Technical Requirements

Section D. Financial Summary

Section E. Terms and Conditions

Appendix

Step #3 - Write concisely but persuasively stating the benefits

The best way to get attention to your offer and motivate the intended target is to state the benefits of your offer with proof that you can deliver. Let the benefits sell your offer but kindly note that any claims made in your proposal must be credible and readily verifiable. Once you start writing out the details of the proposal you must ensure that you write concisely using very official language and only making assertions based on indisputable facts.

Step #4 - State the requirements of the proposal clearly

There should be clearly stated requirements in the proposal which would tell the other party what is required of them and under what conditions the proposal can take off and work. Usually it is better to state the things which must be in place before the opportunity can work and what you lack and/or already have on ground.

Step #5 - State the terms and/or conditions of the contract/business opportunity

There should be clearly stated terms and conditions of the offer. What will be the legal basis of honouring an agreement? This is the condition whereas how can that legal basis be explained so that it is well understood by all parties are the terms. State both of them in the business proposal.

Step #6 - State the cost implications

How much should each party bring to the table or how much should the client pay in order to use the service. Sometimes the cost of the service is a selling point and may appear at the beginning of the proposal in the introduction but at other times the price shouldn’t come until after all the benefits have been explained and the prospect has made a decision.

Step #7 - Draw out the proposal contract agreement

This aspect of a business proposal is optional. In some cases a business opportunity doesn’t require signing a legally binding document whereas on other occasions it may require signing one and where this is the case don’t forget to include a contract agreement especially if you are rendering a service or require a partnership with your proposal in order to avoid conflict and to also protect you against any legal issues that may come up after the prospects has agreed to the agreement. The contract must state the names of the parties, their roles in the agreement, what will go to each party and the terms of terminating the contract/agreement.

Are you looking to write an effective business proposal that will motivate action from your prospect and want a professional touch to it? Give me a call or email and your wish will be my command. 0803 206 4106 or email: paulonwueme@gmail.com

How to start a Paper Pencil Making Factory: SME Business Idea in Nigeria

Paper pencil production is a viable business venture which is capable of returning over 100% on your investment within 12 months and break even by 9th month with N147,000 daily sales.

How Feasible is Paper Pencil Production in Nigeria?

Recycled Paper Pencil Production is viable in Nigeria because the six success factors have been found to make it viable all exist in Nigeria namely; a sizeable population of school age children, target market locations within the same city and that city has a large population of corporate organisations and urban city dwellers and four other success factors. See end of article for more details.

What is the Market size for Paper Pencils in Nigeria?

Most of the pencils used in Nigeria is consumed by school children mostly those in primary school, also teachers, students in higher institutions, carpenters and even in many offices. With a massive population of school children running nearly 40 million, there is so much money to be made from this business. In Nigeria, according to a federal government report monitored on Daily Trust Newspaper Nigeria spent N750 billion in 2009 on the importation of pencils which we are capable of starting and running on our own if we so desire. The actual market demand is hard to estimate but with over 40 million school children consuming over 2 billion pencils per year we can safely assume at least N30 billion market gross sales for primary school children alone.

Opportunities in Paper Pencil Production in Nigeria

There are only four companies involved in Paper pencil production in Nigeria as of March 2017 and they are located in Abuja, Enugu, Akure and Lagos respectively. None of them produces more than 20,000 units of pencils per day but Nigerians consume over 4.8 billion pencils per annum meaning these 4 companies combined which only produce 24 million pencils - less than 1% of the total market demand – have huge growth potentials. Secondly there are other opportunities along the product range such as production of eye pencils, coloured pencils which can replace crayons and very hard pencil types such as 9h or very dark pencils like 4B etc which we also import. Thirdly production cost for paper pencils is very low at just below 65% and minimal labour costs the profit margin is larger than average manufacturing

What are some of the threats and Challenges of Paper Pencil Production in Nigeria?

•  Power supply: production must not be interrupted so a minimum of 10 hour daily fueling costs for generator set must be in place this doesn’t come cheap
• Distribution expenses can be high but there are effective strategies that can help minimize these expenses so that the business can reach its target market inexpensively
•  Cheap, imported imitations from Asia especially China
• Foreign Exchange scarcity and value fluctuations: the main raw materials which are imported for now are not under serious threat from dollar scarcity and price fluctuation

Financial Projections for first year Paper Pencil Production Factory in Nigeria

The cost of paper pencils per unit based on production cost analysis is N 5.73 each and at factory price of N7 per unit first year profit of over N 5,635,000 naira can be realized if sales of N 44,100,000 is achieved within 12 months based on 21,000 pencils produced daily for 300 working days in a year.  The total startup costs is N5,305,000 implies payback period is in the 12^th month while breakeven should occur either in the 9^th or 10^th month.

Production Details per day

•  Total output per day at full capacity: 21,000 units
•  Total Number per set – 12
•  Total packaged sets – 1,750
•  Total sets per carton – 25
•  Total number of Cartons per day – 70
•  Factory Price per Carton – N 2,100
• Total sales per day – N 147,000

First Year Income statement

Assumption: 21,000 produced pencils per day and 300 full production days a year

• Total Sales – N 44,100,000
• Cost of Sales – N 28,649,600
• Gross Profit – N 15,450,400
• Estimated Annual Expenses – N 7,400,400
• Net Profit before Tax – N 8,050,000
•  Taxation – N 2,415,000
•  Net profit After Tax – N 5,635,000

Projected Returns on Investment

Net profit after tax/Total outlay X 100 = 5,635,000/5,305,000 X 100 = 106.2%

Start-up capital

The amount needed to set up a pencil making factory varies depending on your intended capacity. Here is a breakdown of the start-up capital;

·         Machinery – N 960,000

·         1 year Rent (a single room for a start is sufficient) – N 330,000

·         Generator set – N400,000

·         Delivery Van – N900,000

·         Raw Materials – N 200,000

·         Working Capital - N 300,000 (6 months)

·         Salaries – N 555,000 (3 months)

·         Contingency – N 300,000

·         Others – N 1,360,000

·         Total – N 5,305,000

Concluding Summary on Paper Pencil Production in Nigeria

A relatively simple and small manufacturing business to set up with very few and not so threatening challenges but the potential is quite huge.

You can order for the complete feasibility study report which contains an effective sales strategy, organizational setup and implementation plan, success factors for paper pencil production with complete production cost analysis, income statements and other financial projections by simply calling: 0803 206 4106 or email me: paulonwueme@gmail.com

10 Home Business Ideas for Nigerian Housewives

If you are a housewife or as the Americans would say, stay at home mum and are looking for an extra source of income or just want a business venture that will keep you busy or at the very least help you overcome boredom, then you may want to try out some of these ideas that other successful stay at home mums have done and are making some really cool amounts of money. Practically these and several more of these ideas exist so be on the lookout for others just in case your taste doesn’t rhyme with any of these.

1.      Crafts business

There are so many artistic venture that can be classified as crafts; making teddy bears, sweaters, chess pieces, fine pottery, paintings, baby dolls and other handmade stuff including toys. The list of these items can go on forever what I actually mean to say is it is endless. As long as there are things you can make with your hands that other people will appreciate and you have enough time on hand to make them, then you are good to go.

2.      Online Classes

Women these days are finding extra sources of incomes in carrying out online classes for people who want to learn about so many different things including foreign languages such as; French, Spanish and even English. Another thing people are willing to pay to learn how to do is playing a particular musical instrument such as the guitar or the piano. Some people want to learn chess and other strategy games and the list goes on. A housewife can embark upon whatever online teaching classes she so desires. The only requirements are to be connected to the internet and to have either a website or blog from which to run it.

3.      Freelance writing

There is another opportunity in freelance writing. Websites like www.guru.com and www.elance.com have opportunities for commercial and creative writers to work as contractors and get paid fees on a contractual basis by registered clients. There is no limit to how much you can make from it as there are credible cases of people making over a hundred thousand dollars a year from freelance writing services. By the way most freelance writing websites are free to join and you can start almost immediately after joining them to bid for contracts.

4.      Affiliate marketing

This kind of marketing which is very popular on the internet can be done in two ways. One way is to run a theme based website such as www.carbuyingtips.com when in you can promote products and services that relate to your website’s theme. Some people make a full time profession this way and it has proven to be a highly successful business model. The other way of running affiliate marketing is to use a free articles directory or revenue sharing website such as www.hubpages.com or www.squiddo.com . These two websites along with several others allow users to register for free and start publishing articles for the web. There are two ways you can make money with article websites and they are; by signing up with Google’s advertising program called adsense or using another affiliate marketing network such as Amazon’s Associate Program. The only difference between the two is that while adsense earnings come by way of clicks, Amazon’s comes from sales. To learn more about affiliate marketing read my article about make money writing online or follow this link.

5.      Flower nursery

Some people love to keep flowers, while some others love to buy and share them. If you love flowers, you can start a flower garden and sell your exotic and rare flowers to flower lovers. Even within your neigbourhood there should be flower lovers or you could supply a local store or shop with your flowers.

6.      Day care center

Even from the comfort of your home you can start a day care center. Women who are too busy at work to take their toddlers with them can come and drop them with you while they go to work. But this business needs trust. Not so many women will be willing to drop their child with just anybody so be aware of this. Love for kids is another requirement for success in this business. If you are trust worthy and trusted and you love kids how about starting a day care center?

7.      Dance classes

Being a stay at home mum should not stop you from being an excellent dancer or teacher. If you know how to dance and are willing to teach people some of your dance skills, you can start a weekend dance class or possibly a daily dance class depending on your environment and who your potential customers are.

8.      Review Website

Another excellent idea is with a review website, where all you do is review products and services. The wonderful thing about review websites is that they have a tendency to convert higher meaning that you can make more money from affiliate marketing and from adsense than other normal websites. Review websites are cheap to start and easy to maintain. There is no end to product that can be reviewed, from designer shoes, to handbags, to laptops even cars can be reviewed.

9.      Blogging

Blogging seems to be in vogue. Many people prefer to own blogs to websites because of the interactive nature of blogs and their tendency to have a large following. Also blogs can be started free of charge and can actually provide some reasonable income on the long run. Good websites 

10.  Contractor services

Is there any business skill you possess as a housewife or single mother? For instance are you an excellent typist? Are you good with book keeping, marketing and communication? How about customer service, there are online virtual companies that hire office assistants and virtual staff to do their typing, book keeping, customer service/phone answering services and even their marketing for them. You can sign up for free with them and start a part time or full time business if you so wish.

These are just some of the ideas I know you may come across others on your own but starting from any of these isn’t a bad idea.

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Lucrative Business Ideas in Nigeria: Buying and Selling Cars in Lagos

The business of selling cars in Lagos Nigeria is a highly lucrative one with so many potential customers out there. There are more than 1 million cars in Lagos Nigeria and majority of them ply ever busy routes all over the metropolis with many of them needing replacement.

The Market

Take for instance transporters. Lagos Nigeria has a very large population with an incredible amount of transportation requirements by residents and commuters alike. This means that cars will always be in demand so long as people need to move about either for business or leisure. Plus on average most Lagos car owners tend to dispose of their cars every 3 or so years buying newer and more economical vehicles as replacement. That means car volume sales will always be up.

Then there are corporate clients as well such as banks, hotels, insurance companies, airlines and government agencies that constantly need to replace their existing fleet of vehicles and young upwardly mobile professionals who are keen to be associated with glamour, all these points to an ever increasing demand for cars.

Even private individuals and small scale businesses are not left out. Many of them would also want to have 

cars for various reasons. As far as car ownership is concerned, a large market exists to be served with cars.

Popular brands

There is no limit to the number of car brands that can be seen on Lagos Nigeria roads but the most popular brands include; Toyota which is the number one selling brand, Honda, Nissan, Volkswagen and Mercedes. Others such as Ford, Renault, Mitsubishi, Mazda, Kia and Peugeot are also available for sale.

Sales projections and profit

How much you make in this business depends on how well you market your cars and handle the competition.  There is practically no end to the sales potential provided you can meet customer needs as and at when due. Obviously there is more sales to be made in second hand cars than in brand new cars since more than 90% of car owners do not have the financial muscle to buy brand new ones. So focusing on the second hand cars is often times a good idea. With an average sales margin of say 20% and price range of N400 000 to N1000 000 gross profit per car sold should be in the region of say N80,000 to over N200 000 depending on your negotiation skills since the market is an open one (for second hand cars) prices can be negotiated.

Finding buyers

Some car dealers find buyers online by using classified adverts from online based listings such as www.nairalist.com which has an auto section. The sister website www.nairaland.com is also another option. Relatively new in online listings are www.dealfish.com.ng and www.dealdey.com which offer car dealers the opportunity to showcase their cars for sale to a large audience. There are many Nigerians who go online these days in search of car deals. In this regard it is wise to have a website to showcase your business to search engines and find people looking for the best car deals online.

Also classified adverts in newspapers and magazines is another way to find buyers just as it is with using church bulletins, posters and outdoor signs.

Sometimes cleverly displaying signs in public places and other strategic locations such as bus stops and busy streets can also add to increasing your business visibility. But the most effective way used by most car dealers so far is to be strategically located along busy roads all over the metropolis. Take a look at the car show rooms in Lagos Nigeria, you will always find them on busy roads and street where they are easily visible.

Finding the cars to buy

If you are going to be doing the business as a second hand car dealer, then importation is a must because they are the most cost effective way to go about it. Some car dealers go straight to Cotonou or Lome for their cars while others import directly from Europe. It all depends on your contacts and the range of vehicles you want to deal in.

Start Up Costs

There is no higher limit to how much you can use for starting but there is a minimum. Let’s say you are highly experienced in finding good cars to sell, with your expertise you can actually start with nothing. All you really need is good contacts and information and of course a great deal of determination. You could be a simple middleman for a start canvassing for buyers for established car dealers. As you successfully convince people to buy from them, you earn a commission and that can serve as a starting point to buying your own cars to sell later in future. So many Nigerians have smiled to the bank this way. But if you have the capital, I guess N400 000 is a good amount to use as startup capital.

Conclusion

To do this business well, you must know your onions. Do your research, choose your area of specialty and remain focused, above all be as professional in this trade as possible. Also look out for trouble makers (dupes, car thieves and touts).

100 Small Business Ideas for Nigerians

I present to you my small compilation of small business ideas which are partly Home business opportunities one can start with little money or no money here in Lagos Nigeria or in Nigeria as a whole.

It is not guaranteed that you will become rich doing any of these businesses just because I said profitable but for the enterprising folks that pick any of them and chooses to be diligent and resourceful, I believe the sky will be the limit for that person whether or not the business is small scale or on a part time basis. By the way there are many more ideas one could come up with so good luck with your search.

I have compiled this list for those who are looking for a means of livelihood or better yet are working but are looking for an alternative source of income. All the best as you pursue your small business.

1. Proposal writing

2. Real Estate Agency

3. Information Marketing

4. Blogging

5. Web publishing

6. Selling Fruits

7. Baking confectioneries

8. Selling honey

9. Home tutoring

10. Freelance marketing

11. Freelance writing

12. E-books publishing

13. Affiliate marketing

14. Crafts business

15. Bead making

16. Weight loss classes

17. Exercise Instructor

18. Party Planner

19. Business plan writer

20. Business broker

21. Aerobics Classes

22. Carpet Cleaning

23. Corporate Cleaning Services

24. Computer instructor

25. Dance Instructor

26. Graphic Designer

27. Web designer

28. Computer programmer

29. Computer Repairs

30. Mobile Phone Repairs

31. Charging of car and phone batteries

32. Time management consultant

33. Cooking service

34. Cosmetic sales

35. Dating Service

36. Directory Publisher

37. Editor

38. Email marketing

39. Employment Agency

40. Event Management

41. Event Planner

42. Errand Service

43. Export Agent

44. Ezine Publishing

45. Facialist

46. Hair Stylist

47. Beautician

48. Make-up Artistry

49. Freelance photographer

50. Ghost writer

51. Greeting cards designer

52. Food Delivery service

53. Home made story books

54. You tube Videos

55. Information broker

56. Infopreneur

57. Internet marketing

58. Internet service provider

59. Internet recruiting

60. Interpreter/translator

61. Foreign Language Teacher

62. Mailing list service

63. Market research

64. Monogramming

65. Music lessons

66. Nanny Service

67. Online internet training

68. Painting

69. Payroll service

70. Martial arts instructor

71. Pet training

72. Selling Pet products

73. Proof reader

74. Public Relations Agency

75. Public/Motivational Speaker

76. Reporter

77. CV/Resume Writing service

78. Self Improvement Seminars

79. Self Publishing

80. Song writer

81. Teaching

82. Technical Writer

83. Telephone Answering service

84. Tour Guide

85. Travel Agency

86. Scholarship and Overseas Study consultant

87. Typing service

88. Mobile supermarket

89. Writing press releases

90. SMS marketing

91. Excursion Service

92. Holiday Camp

93. Video game Center

94. Viewing Center

95. Day care center

96. Car wash service

97. Selling chilled Zobo Drinks

98. Youghurt

99. Home Business Center

100. School Dropping and picking service

Want to start a business in Nigeria and need a professionally written business plan? Call me: 0803 206 4106 for details on how to have one written for you.

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5 Innovative Business Ideas for Nigerian Investors

There are so many business ideas that Nigerian Entrepreneurs can embark on but this small list is my contribution and I hope it will be useful to venture seeking entrepreneurs. Some small business ideas for Nigerian include;

1. Leasing

The business of leasing involves two parties. The lessee and the lessor with the former being the person who acquires an asset from its owner (the lessor) for an agreed period of time over which payment in made installmentally. There are many assets that can be leased from small items such as Electronics and Electircal Gadgets including; laptops, mobile phones, fridges and furniture to more expensive and larger items like motorcycles, tricycles, cars and even cranes. The advantage of leasing to small scale investors and entrepreneurs is that it provides a cheap means of acquiring assets without affecting cashflow and working capital. It is a cheap source of financing capital assets and also provides reasonable profit to the lessors who also have the option or repossessing assets in case of default in payments by the lessee.

2. Job search Services

Job search in Nigeria is increasingly taking on a commercial form. There is absolutely no known number of players in this field as practically so many people render various job search services such as CV writing, Job interview consulting, talent search, general recruitment, mobile vacancy notification (whether by sms, e-mail or web portal) and so on. A lot of companies these days prefer to outsource the entire recruitment process and this along with the enormously large Nigerian job market creates uncountable opportunities for enterprising individuals to set up businesses that can cater to the needs of companies to hire the best but most affordable hands and in turn ensure that suitably qualified job seekers are gainfully employed.

3. Hostels for University Undergraduates

It is a known fact that many of our Universities, even Polytechnics and Colleges of Education lack adequate housing facilities for their students. Many students have to go out into nearby towns and villages to rent apartments which are often expensive and not condusive for many of them. Constructing a block of Hostels for students in these so called nearby villages and towns will not only save students money but will also provide a more descent accommodation for them and to the investor/entrepreneur, good profit.

4. Travel and Tour Agency

These days Nigerians from all walks of life from all over the world are traveling to many destinations in and around Nigeria especially Lagos and Abuja. A travel agency that can offer travelers value for money, save them time and heart aches and provide them with lots of yummy deals will be a most lucrative venture. Guess what, a travel agency requires little capital outlay but proper certification and accreditation with IATA and other regulatory agencies is very compulsory.

5. Franchise Supermarkets

Franchise supermarkets and mega stores like Shoprite, the Game and Walmart are also business ideas that are worth pursuing. The Nigerian society is a consumer based one with practically almost every major consumable either being imported or being produced locally under license of the trademark owner. Nokia, Etel and Slot know about these concept and although they are not franchises or have franchise arrangements in place are however making the most of situation begging for investors.