by Umar Farouk Kabir | Nov 29, 2021 | Business & Finance
Regardless of the scale of your business, how well you manage your cashflow will decide whether it ultimately succeeds or fail. Cash flow could be regarded as the blood that flows within the veins of your business.
According to a study carried out by Jessie Hagen of US Bank, cashflow is the primary reason why a business fails due to financial reasons. In fact, he estimated that a whopping 82% of the time, businesses crumble due to poor cashflow management.
The importance of knowing how to manage cashflow can’t be overemphasized, but before that, you have to understand what cashflow is and why it’s so important.
What Is Cashflow?
Cashflow can be defined as the amount of money that comes in and out of your business in a specified period of time. Your cashflow can either be positive (in the green) or negative (in the red). We’ll drop the heavy grammar and explain it in simple terms.
You have a positive cashflow when there is more money coming into your business than you have leaving it i.e. the money being earned is greater than the money being spent. While you have a negative cashflow when your business spends more than it makes within a specified period. A negative cash flow indicates there is an imbalance in the revenue stream. Bear in mind that it doesn’t necessarily equate to loss.
What Is the Difference between Cashflow and Revenue?
Cashflow and revenue should in no way be confused with one another as there is a clear difference between the two. Revenue is the amount of money that a company or business earns from the sale of products and services, while cashflow is the net amount of cash that comes into and leaves a company or business. Where revenue measures the effectiveness of a company’s sales and marketing, cashflow indicates the liquidity of a company.
Now that we have established a firm understanding of cashflow, we will see the various ways in which you can manage your cashflow.
How to Calculate Cashflow
You cannot manage your cashflow effectively without knowing how to calculate it. There are two generally accepted methods of calculating cashflow statements. They are:
Direct Method
This is a cash-based operation; what that means is that this method for calculating cashflow involves subtracting from cash sales only those operating expenses that consumed cash. For this to be successful, you need to record every cash transaction, and then deduct cashflow from the inflow. That includes items such as cash receipts, interest received, and income tax payments
Indirect Method
In this method, a technique known as accrual accounting is employed. Accrual accounting represents the liabilities and non-cash-based assets recorded over a period of time. In short, accrual accounting is defined as the entry of transactions into accounting books as they occur even without receiving payment for those goods or services.
Small scale businesses prefer this method to record cash received and cash payments as they can record transactions whenever they happen without having to wait for when they receive the cash payment.
You will have to use income statements to eliminate transactions that do not reflect cash transfers.
Methods of Managing Cashflow
1. Bookkeeping
It is next to impossible to run a smooth business operation without having a firm grip on what bookkeeping is.
Bookkeeping is the process of keeping tabs on all of your business’s financial transactions i.e. what goes in and what goes out. It lets you see exactly where your business is spending money, where your income is coming from, and also tax deductions.
This is the single most important step in managing cashflow.
2. Cashflow Statement
Cashflow Statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents. Generating cashflow statements can easily be done when you have an accountant. If you don’t, you can use a software or spreadsheet to generate your cashflow Statement.
Go to QuickBooks for easy cashflow statement generation and forecast
3. Analyze Your Cashflow Statement
The next step in managing your cashflow is by analyzing the cashflow statement generated by your account, spreadsheet, or software. This analysis is important because it helps you understand how money moves through your business.
A good scenario is when your revenue streams are not as effective as they should be i.e. they aren’t producing as much money as projected. Cashflow analysis will help to highlight the problem. When a business is not producing money as much as it should and it maintains the amount of money it spends, eventually it’ll end up in the red zone, a negative cashflow.
4. Credit Management
Credit management is another good measure for managing cashflow problems. When you give out credit to your clients, your cash in-flow drops because you record the credit that you give out as accounts receivable rather than as cash payments. When you sell products on credit, you normally give your clients a certain window to pay for those products. But in the meantime, your cash flow drops because you paid for the inventory with cash that is yet to receive a payment from the client(s).
5. Reduce Spending Where Necessary
When you overspend because of unnecessary expenses, it affects your positive cashflow in the sense that it reduces it. So cutting down on spending cash unnecessarily increases cash flow.
6. Shorten Accounts Receivable Window
Account receivable or AR is any amount of money owed by customers for purchases made on credit. ARs are always marked as current assets on the balance sheets.
When you, as a business owner or company, sell products on credit, depending on how long payment is due, it could affect cashflow. When the window is too wide, it will affect your cashflow negatively.
Shortening the accounts receivable window ensures you always have more cash flow as credits are paid quicker.
7. Provide Discounts on Products
One might raise an eyebrow at this, but really, it is a good way of ensuring quicker payments on products.
For instance, if your payment terms allow a 30-day window for payment after the receipt of an invoice, with at least a 2% discount if paid within the first 14 days, this will encourage quick credit settlements.
Bear in mind that you can offer more, less, or no discount for payment, depending upon your needs and your customers’ payment habits.
Conclusion
There’s a saying that “revenue is vanity, profit is sanity, cash is reality”. It is no overstatement that cashflow is indeed the lifeblood of any business. Managing cashflow is all about ascertaining when you’re going to have cash in hand, how to get more of it in your hands faster, and how to spend it wisely so as not to create cashflow problems.
Knowing how to manage your cashflow is a fundamental skill for effectively managing your business finances. Once you’re able to do this properly, the thing for you will be to grow your business to realize even greater profits.
You could also read on: Why 90% of Startups Fail and What to Do About It
by Umar Farouk Kabir | Nov 15, 2021 | Business & Finance
For any business to succeed, regardless of its scale, it needs publicity. Publicity is the most effective tool in bringing your business to the awareness of the public. The more people are aware of your products, the higher your chances of selling the said products. No matter the type of business you’re in, there is always an angle in publicity that you can capitalize on.
Do you want to know what’s better than publicity? Free Publicity! In this article, you will learn about the best ways to get free publicity for your business.
9 Best Ways to Get Free Publicity for Your Business
1. Have Good and Efficient Services
They say that the best free publicity you can get for your business is your customers’ referrals. When you sell top-quality products or provide top-notch services, your customers are sure to spread the word. Be it through social media or privately, one thing you can count on is that your business will develop some clout in no time. Put in the work and let your products do the talking for you.
Social media these days is so much more than a Hotspot for gossip. It is a compelling tool for those that know how to utilize it. You have to be creative enough to post your products and services on social media channels. Nearly everyone is on one social media and sure enough, a word about your business will spread.
Take Facebook for example. Facebook has roughly about 2.9 billion active users. All you need to do is create a page about your business and keep posting. If Facebook isn’t your thing, you have Twitter, Instagram, Snapchat, and Whatsapp Business at your disposal.
You can learn how to market your business online.
One of the quickest ways to get the attention of the masses is to offer free products. For you to gather enough clout, you’ll need to use your social media. Make posts about giveaways. Before long, people will start talking, and of course, that’s what you want.
For instance, go on Twitter and organize a little fun competition with your product as the prize for whoever wins.
It’s Twitter, done correctly, it’ll blow up overnight.
4. Create a Website for Your Products and/or Services
Another way of getting free publicity for your business is by having a website dedicated to it. By doing so, you have successfully brought your business online.
Next is to use your social media channels to share links to your website so people all around can see what you have to offer. The more people visit your website, the higher the chances of getting customers interested in your products and services.
Another thing you have to be aware of is SEO. SEO is short for Search Engine Optimization. If you utilize this properly, you’ll generate a good amount of traffic. The higher the traffic, the higher the number of audiences.
5. Publish Customer Reviews on Your Website
They say there’s no such thing as bad publicity. Well, posting good reviews on your website is certainly good publicity.
Publishing customer reviews will help you get free publicity as potential customers read these reviews, and it reassures them about the quality of your products or services.
When they buy your product or service and enjoy it, they will in turn give you a good review and refer you to others.
6. Engage in Local Charity Events
Local charity events are another excellent way of generating free publicity for your business. Imagine a scenario where you partake in a local charity wearing a shirt advertising your business, maybe even go as far as providing free products.
This will not only improve your standing with the community, but it’ll also raise awareness to the general masses about your business.
7. Utilize Video Marketing
Video Marketing is designed to increase audience interaction through social activity around the video. It is a very effective tool in getting free publicity for your business.
In fact, 61% of marketers view this type of marketing as “very important”.
Some types of Video Marketing that could help boost your ratings and help you gain free publicity include;
Educational Videos
This video as the name implies helps to enlighten the customers about something new. The effect this has goes beyond free publicity. It builds trust between you and your customers as it portrays you as someone who is an expert in your field.
Tutorial Videos
I bet you’ve seen a ton of tutorial videos on YouTube, Twitter, Facebook, or Instagram. A tutorial video is a great way to show off your products and bands while showing them how to go about using them.
Product Launch Videos
You can choose to make product launch videos when launching your new products. The video helps to create hype and get people talking.
Here, you have to enlighten people about why they should buy your products. Make it look as if it’s the most natural and common-sense thing to do. Customers love a confident seller.
Whether it’s a YouTube video with numerous views or a creative video on Twitter with hundreds or thousands of retweets, a viral video guarantees your business publicity a massive boost. Time to strap on that director’s cap and go “lights, camera, action!”.
8. Write Articles About Your business
Another strategy employed for getting free publicity is by writing articles. Write a great article about your products and services. Highlight all the strong points about your product, what makes it unique, and why people should buy it.
Ensure your article isn’t too wordy or boring. The aim is to capture the attention of the readers, not to make them fall asleep. Write a good article and drop the link on your business’s social media pages and website for people to access it.
9. Get Featured by Popular Users or Platforms
Another fantastic way of getting free publicity for your business is getting featured. Whether you own a corporation or small business, or solo practice, what you want is to stand out against the competition as the better option.
What makes your business different could be your ticket to ‘clout-dom’, a unique aspect of your service, or a novel product.
You may have friends that have huge social media accounts. Ask them to feature your products there once in a while. There are a couple of Instagram and Twitter handles to feature entrepreneurs based on how hot their products are. So, start taking Instagram-worthy pictures and get to posting. You never know, you might be one picture away from getting featured on a large platform.
Conclusion
The idea of free publicity for business is often brushed off because it’s criminal to even think good things come for free. The reality is, a lot of good things out there are free and these tips are a great example of that.
With these free ideas, you would be able to get publicity without spending a single kobo for it.
It is advisable to try all of them, and enjoy a good amount of traffic while you grow your brand.
For more help on how to grow your business into a successful venture, check out Northpad Nigeria for business and finance articles.
I hope you find this piece worthwhile. If you do, kindly leave a comment in the comments section below. Thank you.
by Umar Farouk Kabir | Nov 15, 2021 | Business & Finance
A lot of people these days are drawn to business for numerous reasons. Everyone wants financial freedom, having to call the shots yourself without being answerable to anybody. A business offers you that and so much more. Over the years, the numbers of individuals going into businesses have actually increased, but have you ever wondered about the success rates of all these startup businesses? It is quite disquieting to learn that a whopping 90% of startups fail. A study carried out back in 2019 discovered that 9 out of 10 startup businesses fail.
The numbers are scary, aren’t they? In this article, you’ll get to learn why nearly a hundred per cent of startup businesses fail and what to do about it.
Why 90% of Startups Fail
1. Inadequate Creativity
One of the reasons why 90% of startup businesses fail is due to a lack of creativity. Business is a combination of science and art if we’re being frank. Creativity is crucial to the success of any business. An entrepreneur needs to be creative enough to bring fresh and bright ideas to market their products and services in such a way that customers are drawn to them.
Wanting to go into business and having the capital to finance it isn’t enough, you need innovation in order to stay ahead of the curve. There are so many business ideas out there. This makes the competition pretty stiff. Jumping head-first into the business sector without a solid blueprint is just another recipe for disaster.
The solution to this is not to rush head-first into anything. Take your time. Think of ways to make your products and services unique. Come up with something new and fresh. Customers love new products, fun products, products that scream innovation.
2. Insufficient Research
Another reason why 90% of new businesses fail is insufficient knowledge backing them. For a startup business to be successful, proper and adequate research must be carried out regarding the products and market availability. This is one of the first things you need to know as an entrepreneur.
What is the general public in need of right now? Is the market readily available for me?
How much would it cost to finance this business?
What is the competition like and how can I stay ahead?
How do I generate clout for my business?
You need to ask yourself these questions and set out to find the solutions to these problems.
Check out these steps to help you make proper market research for starting up a business
3. Trying to Create the Perfect Product Right from the Get-Go
The problem with trying to create the perfect product at an early stage is that, regardless of all the hours put into research, you might still come up short in a real-world application. What you need isn’t a perfect product from the start, what you need is MVP.
No, not the most valuable player but Minimum Viable Product.
Minimum Viable Product refers to any version of a commodity that has enough features to be usable by early-stage consumers who can critique and provide feedback for the further development of said commodity. This is a very useful technique in the sense that by the time the product is fully developed, it will be something that customers really want for the reason that it was developed according to their taste.
Customer satisfaction is always a top priority for any business, and what better way is there to satisfy customers than to give them exactly what they want?
4. Lack of Desire and Passion for the Business
This is something that you should truly focus on a mental level. Let’s face it; the majority of people go into various businesses in order to make money. But if money is your only motivation, then it’s safe to say that your startup is bound to fail.
You need the desire and passion to seek to make a difference in the market with your goods and services. The need to make a difference will invariably fuel your innovation and push you to do more, to be more. Success doesn’t come without desire and perseverance.
A solid reason why 90% of startups fail is that entrepreneurs give up easily once they hit a bump in the road. Those who desire success dig in deep and find innovative ways to bypass their challenges, and in so doing, they open doors of opportunities for themselves.
Passion is one of the best qualities of an entrepreneureur, and if you lack it. Well…
5. Building a Business with the Wrong Team
As your business grows, you will need to keep up with the pace by hiring a team. It could be just one person or more, regardless, the type of people you hire will have an impact on your business. You do not hire an engineer to do the work of a doctor.
To avoid falling into the 90% statistic of failed startups, take your time and search around for the best people to help build your business to the level you want. We all need some help at some point in time, so why not get the best possible help for your business?
6. Inability to Adapt to Changes in the Industry
Another reason why 90% of startups fail is their inability to adapt. In order to be among the 10% who see their startup businesses thrive, you must be able to adapt to situations.
A market can be a turbulent place as things are in constant motion. Being able to adapt to these changes, even going as far as making those changes work in your favour is a priceless skill. With it, you will not only have the upper hand in dealing with competitors, but you will also have longevity in the business.
You must be able to see these changes and act accordingly in ways that will see you succeed.
90% of startup businesses fail because the business owners are unable to adapt.
7. Funding Issues
Another top reason why 90% of startups fail is largely due to funding; overfunding or underfunding. Underfunding occurs primarily due to insufficient research by the entrepreneur. When you venture into a business underestimating the cost to run that business, it will inevitably crash.
You might raise an eyebrow at how overfunding could make your startup fail. I mean, isn’t lots of money good? You may be right but not entirely. Overfunding for startups is a double-edged sword. When there are excess funds for a startup, it speeds up development and the business expands rapidly.
That sounds great, doesn’t it? Well, here comes the tricky part; when a startup business expands at that speed, it gives rise to more expenses in hiring personnel, product development, and marketing. The warning light illuminates when revenue can’t keep up with the massive expenses; this is what experts call a negative operating cash flow.
Conclusion
A startup may fail due to any of the reasons mentioned above. A problem known is half solved, isn’t it? If you are just starting a new business, you will do well to read this article carefully and avoid the mistakes that lead 90% of startup businesses to failure.
This article was written to help be part of the 10% that succeed.
by Abdulganiyu Ibrahim | Nov 8, 2021 | Business & Finance
Why are some Entrepreneurs who are just setting up a business more successful than those who have been in the business for quite a couple of years? How do some Entrepreneurs who are starting a business for the first time make more money, and accomplish much more within a few years of establishing than the great majority of entrepreneurs who have spent years running the same business and haven’t accomplished much? What beginners guide do you need to entrepreneurship?
These are some of the questions I asked my boss when I was still an apprentice at the fashion house. The reason for all the questions was as a result of me knowing I will one day be a boss of myself. And how to fit as one triggered a lot of questions.
In this Beginners Guide to entrepreneurship, I will be sharing some of the things you should know in becoming a successful boss (Entrepreneur) of your own. And trust me it will work out for you the same way it does for my boss and which I am seeing the impact in my business as well.
I know you are very hesitant to know what those things are, but I would like to ask you what that Boss (Entrepreneur) you want to be, really is? Who is an Entrepreneur? And what is that thing you are “bossing” on (Entrepreneurship) Okay, let me save you the stress.
Who Is An Entrepreneur?
An Entrepreneur is a person who buys mean of production at certain prices to combine them into a new product. But that particular kind of person sets up a business primarily to make money, through his/her intellectual property and must take a great deal of financial risk or business risk.
An Entrepreneur is also a person who starts a business and is willing to risk a loss to make money.’ But fortunately, ‘he earns profit as a reward for taking such a risk’.
Entrepreneurship, however, encompasses the art and science of innovation and risk-taking intending to make a profit in business.
Having known what an Entrepreneur and Entrepreneurship means, then let see what I have for you in the Beginners Guide to Entrepreneurship as counselled by my boss.
A Beginners Guide to Entrepreneurship; What I Learned From My Boss
1. Follow your Passion
When I stepped into my boss’s fashion house to learn the profession, the first question he asked me was”why do you want to learn fashion designing?” My answer was”I just like the creativity aspect of the work.” Furthermore, as days passed, he made me know that the reason for the question was to know if I had a passion for the work or was a result of me seeing others in the profession.
Furthermore, he made me realize that if I am due to stand on my own as an Entrepreneur, the main factor that will determine my success in the field is my “passion” for it. The one which has enabled him to move to that other side is called success. So, now you see why you should follow your passion in being that successful Entrepreneur you aspire to be.
When you have passion for that business, you will genuinely love what you do and be willing to invest more extra hours to make that Business blossom.
Hence, passion must be factored into the equation to enable you to succeed as a beginner in your Business. Because it is what keeps you going and moving even when the road seems rough. Following your passion is one of the qualities every entrepreneur should have.
2. Research What You Are Going Into
This is another important beginner’s guide to which most entrepreneurs don’t consider before going into Business.
It is advisable to carry out some research in other to widen your knowledge of the business you are going into. A study of the market is essential to determine if the market conditions are favourable and to check the viability of your business model.
3. Come Up with An Attractive Name for Your Business
As a Beginner in Entrepreneurship, one very important thing which is capable of attracting your target customer is the name you tag your Business; your business name.
Selecting the right and appropriate name for your start-up business does have a great deal of significant contribution to the flourishes of your business.
When selecting a name for a startup, try and ‘conduct a thorough trademark search’ this will prevent you from choosing an already licensed name for another organization or person, which can have you penalized.
However, in choosing a company name, avoid too long and hard to pronounce the name. You should try as much as possible to have a very simple to pronounce a name, so as not to give those that come across the name problem in pronouncing it.
Giving a business a very simple and beautiful name will always leave a lasting memory of your company in people’s heads, which will enable them to keep patronizing you.
Another thing that is very important to consider is when coming up with your business name is; Avoid picking a name that would not capture your business as it grows.
Taking myself into consideration, I sew for men when I started the business and knew as time passed, I would consider females wear also. So it will be okay going by “Brai’s apparel” which has encapsulated both men and women instead of saying “Brai men or women apparel” which won’t suit the business as it progresses. You should consider these seven tips for Naming your Business.
4. Know Where to Get The Funds
Getting finance is another most important thing an entrepreneur should know, taking into considerations in this Beginners guide to entrepreneurship.
Like you know, you can’t mount a house without money, so also with business. You need to have your finances ready.
However, you can get that through your savings, loan, family and friends, investors.
You might even succeed in finding an investor for your startup or small business once you successfully pitch your idea.
5. Have A Unique Approach to The Business
In this Beginners guide to entrepreneurship, I would want you to know that there is always a gap that hasn’t been filled in every business. So it is your responsibility to have if filled by adopting the three traits of an entrepreneur by “Harvey Leibenstein” which are;
Recognizing market trends
New Goods or Process in Demand
Determining profitable activities.
Because you as an entrepreneur should be capable of fixing market failures, deficiencies, and the same process or method that has been used over and over again. Therefore, you should avoid ‘revising business model of existing enterprise’, rather bring your business from a unique angle of”gap-filling”.
6. Master the Concept of Time Management
Time! You need to be very conscious and know how to manage it if you want your business to progress. Time, however, ‘is irretrievable; once it is gone or wasted, you can never get it.
Therefore, it is time management that enables you to plan and control the time you spend executing sequential events on your to-do-do lists. This, however, is simple and easy to do, by adopting Vilfredo Pareto’s 80/20 rule of time management (Pareto’s principle).
This involves accomplishing 80% of a specific activity using 20% of the time you’ve got. This means you should focus on the most prioritized task which can bring more money to your business.
Some things you do are more valuable than other things, even though they share the same minutes and hours. So you can also follow the method I like to consider in managing my time by Brian Tracy’s ‘power of self-discipline’ (194-195) which is the ABCDE method and trust me it will also work for you.
A are must-do tasks with serious consequences for non-completion
B are tasks with little or no consequences for doing or not doing;
C Tasks Have No Consequences
D is for Delegate. Everything you possibly can to free up more time for those that only you can do;
E stands for Eliminate. Discontinue all tasks and activities that are no longer essential to your work and to achieving your goals.
7. Set a Template for Your Business
Having considered all those, you need to set yourself a Template.
This is a self dream or determination of what you want your business to achieve or where you want it to be in the next one year for start, then probably five years after, and subsequent years of your choice. However, this will be a guide and motivation for you as that you have a target to meet.
Therefore it is now advisable you should “be like an eagle that never gets its eyes away from a prey from afar until it gets on it”.
8. Master The Art of Self Discipline
The achievement of business success demands high levels of discipline from you in every area of business activity, both large or small.’ Without self-discipline, no success is possible. As Dwayne Johnson would say “All success begins with self-discipline. It starts with you.”
As an Entrepreneur who is self Disciplined, you will have that total control and power to stick to your decisions, no matter the situation and condition you might face in the business. This is just one of the reasons why you should learn self-discipline.
However, it is through self Discipline you would be able to know the difference between “a wish” and “a goal”. As a “Wish” is only but an ordinary wish, but a “Goal” Is a wish backed with actions. And how can you back your wish with actions to be a goal? Simple!! through self Discipline.
You can be selfly Disciplined by taking into consideration the CANEL FORMULA, which stands for “Continuous and never never-ending.”
Among other things an Entrepreneur should consider in this guide include;
You must have the quality of Obsession.
You must be Devoted to your Business.
An entrepreneur must be Inspirational, which leads to Creativity.
You must be smart enough to handle the Business.
You must be Dynamic.
Conclusion
I would like to sound it as an advice to you; Once you have finally started up the business, and you’ve become that boss you aimed, you must discipline yourself to give it at least 80% of your time and attention while the other 20% should be channelled into researching how to go beyond where you currently are. Remember the market is dynamic.
And finally, in this Beginners Guide to Entrepreneurship, Remember “A journey of a thousand miles starts with a foot footsteps. So, which step have you taken so far among those above? Don’t forget to share it with us in the comment section below. You could also check out these 7 Books That Every Entrepreneur Should Read in 2021
See you on the other side called success.
by Johnson Temiloluwa | Oct 17, 2021 | Business & Finance
Doing business anywhere can be tough. But it doesn’t have to be. When you have a business plan in Nigeria, your venture can be much easier than you think. A business plan is an invaluable tool that guides your business and prepares you for future risk. This article will show you how to write a good business plan in Nigeria.
What Is a Business Plan?
A business plan, as the name implies, is a plan for a business (usually a new business) in a written document that gives a sketch, describes, and draws in detail how the business will achieve, reach, execute and accomplish its goals. It is a writing conveying information that outlines the operational and financial aims of a business. It is safe to call it “the business strategy” or “road map”. There are specific step by step guides for writing a good business plan.
Aside from the common mistake that most entrepreneurs make in their business, quite a number of businesses have started and crashed down because of a poorly written business plan or the lack of one. Having a good business plan in Nigeria will serve as a guide through every stage of your business from starting to managing and even dealing with your profits. A business plan can also be used to help you get loans from banks and get people to invest in your business. Likewise, securing grants for your business.
I know how confusing it might seem, and that’s why I’ll be sharing with you 9 easy steps to guide you in writing a business plan in Nigeria:
1. Executive Summary
Here is an important part of your business plan because this is the first part that the reader encounters. It should contain everything about your business including your mission, your objectives, business background, and keys to success. While you must cover everything on this page, be sure to keep it straight to the point.
2. Business Description Summary
In this section, you should state the nature of your business, who your target audience is, and what gives your business an advantage against the others. Be sure to define the services you offer clearly and the problems you hope to solve. Perhaps, you want to run a business of dried fruits, under this section, you’d state that you hope to solve the problem of fruit spoilage when large purchases have been made or for a long time.
This is an essential part of writing your business plan in Nigeria. It will give whoever is reading your plan a true insight into what you’re doing and if they should invest or give you a loan. If you have a location where your business is located, it should be mentioned here too. Your business description should contain all of your strengths and should be appealing to whoever reads it.
3. Product and Service Summary
You cannot write a business plan in Nigeria without in-depth details of the things your business is about.
What sort of products are you producing? What are the services you offer? Are those the only products and services you will offer? Do you intend to add more? Where do you get your raw materials from? How much does it cost you to get a full batch of production? How much profit return does your product bring back?
These are the questions the product and service summary section answer.
4. Market Analysis Summary
Before writing this, you will need to conduct a SWOT analysis. SWOT stands for Strength, Weakness, Opportunity, and Threats. This analysis will show you what other businesses are doing, what is the trend and theme related to your business, what’s its position and value in the large-scale market. It’ll help you understand who your competitors are, their strengths, what do successful competitors do? How it works.
After knowing all of that, you should include it in your plan and also, plan strategies on how you can do it better than they did. This is really an essential step in writing a business plan in this country.
5. Management Summary
Here, details of how the business or company is being run, about yourself, and partners you might have (if you are not running it alone) should be noted. How many shares do you have and how much percentage do your partners have?
In addition, include the team that runs the business and highlight their expertise and abilities. It’s safe to mention notable staff, their roles, and talents also. You should also include your plans of getting more people in the team as your business expands if you have any.
6. Strategy and Implementation Summary
In this aspect, it should contain details about how you intend to interact with your target audience – your customers. You should include your brand message, planned advertisements, and promotions that will attract people to your brand.
Furthermore, sales representatives and marketing agents, as well as methods of marketing and outreach, should be included with the strengths. In addition, it should include the advantages your business has over others and how you intend to use that to your sales advantage.
This is a crucial part of your business plan in Nigeria. It plays an important role in convincing your investors that investing will not make them suffer losses.
7. Financial Summary
Here is also an important part of your plan and should include accurate and up-to-date details of your finances. You should include cash flow statements, assets, debts if you have any. More so, the financial state of your business should also be up to date at the time of writing the plan.
You should also include how your finances are being managed, how revenue is being generated. Again, you should include who is in charge of finances, how accurate your financial predictions have been, and if you have been able to reach the goals you set out.
At a glance, your readers should be able to tell if your business is in a healthy cash position or not. If your business is just starting, be sure to include the present relevant details and avoid including false or twisted information.
8. Funding Request
There might not be a need to include this if you do not intend to ask for a loan or grant. This should contain how much you need and details on how the funds acquired would be spent. Additionally, if you are getting a loan, indicate your payment plan and if it is an investment, state the benefits that the investor would gain from their investment in your business.
You should make sure that the details you provide are accurate and detailed to clear every doubt your reader might have.
9. Appendix
Lastly, this should contain other information you may want to add including legal documents, contracts, etc.
Conclusion
Now, with your understanding on how to write a business plan in Nigeria, be sure to be straight to the point and honest with every detail you provide. If you’re still confused, you can head over to a site called bplan. There you can get different samples to practice with.
For people who have so much on their hands or can’t just find time to write a business plan themselves, just visit Mediahooch. They handle writing business and every or anything regarding branding and marketing, can be professionally executed by them.
You should also check out tips for new business owners, this will greatly help your business.
Good luck!
