Writing a business plan in Nigeria that will gain investors’ confidence is not an easy thing to do but with a little help and guide, anyone should be able to write one. In this article, I have decided to show you how you can write one and be successful at it. A business plan contains several component parts.
These parts have been divided for you below. Just follow the easy steps as stated below
Firstly, Your executive summary
This is the first part BUT the last part to be written. What I mean is that it’s the first page but the last page you will have to write. Here you will have to state the business opportunity and how much it will cost. Are you the person that will manage the business?
Company legal status
How will the business be run? Will it be a sole proprietorship or partnership? Will it be registered as limited liability company?
Check the market size
Now the size of the market has to do with the demand. A simple explanation is what number of people would need your products and services. You need a fair number especially if you are a start up.
How much will you earn each year
Let me tell you the truth. If your business will not make much or any money, do not bother to write a business plan. One of the things investors look is the profitability of the business.
Who are your customers
Know your direct and indirect customers. You cannot sell yam to everybody as food. Even though everyone eats yam at some point. You probably would want to focus on restaurant and food vendors
What do your customers want
What do your prospective clients want? Can you satisfy it very well? If yes, then you will remain in business for a longer time
Can you say a thing about similar businesses around? Who are they and how will you do better than them?
This is a careful and honest analysis of you competitors while knowing your advantage.
Marketing and pricing
How will you promote your business to potential customers? Marketing is a key aspect of business proposal. Are you using posters and flyers or radio and television marketing mediums? And what price will your products be sold?
This section will cover the day to day running of the business. When a customer comes, what is the process of rendering service in your company. This is known as the operational process.
The financial planning
Before you enter any venture, you have an estimate of the cost of equipment’s and various things you will need. Be honest here. Go and find out the correct prices and mention them in this section.
The funding requirement
So how much money will be needed for your business proposal? This is where you state it. Be sure you have done all your homework as regarding the financial obligations. If you are going to pay salary then states it there and how many workers you will employ.
The exit strategy
Investors will like to know if there is a reason for closure of the business in future, how will it be closed? Will everyone get his money back? Is it a limited liability or an unlimited liability?