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Friday, October 18, 2013

How to set up a Creche/Day Care School in Nigeria

A day care or crèche is a place where babies, toddlers and young children are kept during the daytime while their parents are busy with work. It’s a sort of playground/classroom setting where these younglings hang out, play, rest and are taking care of by trained handlers so that later in the day after work the parents can come pick them up.

The Opportunity

There is a high demand for Creche and day care schools in our urban centers in Nigeria. Why do I say that? How many working class mothers do we have in many of our cities? How many of them have nannies to look after their kids? Fact is toddlers can be a big distraction in the workplace and many mums know this hence why they choose to enroll their darlings in Creches and day care centers. This is the reason many primary schools set up nursery arms to serve as day care centers.

Who is the business for?

If you love children and you’re very good at looking after them then you may want to consider going into this business. However the challenge is always keeping your kids in safe hands and making sure that nothing bad happens to any of them. If you’ve handled children in Sunday school or have taught in a nursery school or have looked after children before then give it a try.

Marketing

This is a business you can start from your home informally approaching nursing or working mothers in your neighbourhood, at church or any other gathering letting them know what you do. If you wish to rent it makes sense to pick a room in a strategic location which is easy to access by your target group. You can later start printing fliers when you have attracted a small number of clients. Even if you can find 4 or more people initially it’s worth it, make do with that and as you become more consistent and better at what you do, you’ll gain more customers.

Requirements

To set up something like this you’ll need the following;
Mini Flat – N800,000 per annum
12 Small Chairs – N24,000
3 Small tables – N24,000
Toys – N40,000
TV set – N40,000
VCD player – N15,000
Book shelf – N60,000
Kiddies books and stationery – N30,000
Others – N500,000
Total: N1,533,000

How profitable is the Creche Business in Nigeria?

Like all businesses that depends on many factors but considering that parents pay N30,000 per term for nursery schooling you could charge each parent say N5,000 per month. Let’s assume you have 12 enrollments multiplied by 5 that’s N60,000 for the first month.

Breakdown first year (this is an estimate)

50 enrollments X N60,000 = N3 million
Running expenses (rent, salary, electricity etc) = N2.4 million
Profit before tax = N600,000
Return on Investment = 40%
Pay Back Period = 2 to 3 years

This is a business you can run for years without approaching banks for loans as it can expand on it’s own. It’s a cash cow.
Good luck.

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

Thursday, October 10, 2013

What kind of business and How Much Capital do I need to start in Nigeria?


This question keeps repeating itself in many ways from people asking what kind of business can I start with N1 million or N500,000? etc. Or I have N50,000 what kind of business can I do with it?

There’s a problem with this kind of thinking which is that the person asking it is looking for a business he can start with a certain amount of money in order to make profit. If it’s that simple then any kind of business is suitable for anyone but that is not the reality on ground. 

The problem isn’t with the amount of money or the kind of business it’s more like is the business in question right for you to do? Forget about the capital needed to start but ask this question: what kind of business is suitable for me to start? Once you can answer this then finding the capital to start should follow suit.

On the other hand if you have money but don’t know what to do with it and haven’t found a profitable way to invest it, do the wise thing which is to put it into an interest yielding deposit like treasury bills or buy real estate with it till you can truly say to yourself this is the kind of business I want to do because I understand it well.

Dangote owes the success of his business to understanding it like he was once quoted as saying “I don’t invest in any business I don’t understand” same applies to Bill gates, Mike Adenuga and any other successful business man you know.

To answer the second question “how much capital do I need to start?” that also depends on the kind of business. Some businesses require no start-up capital like the service based businesses while others such as retail businesses require start-up capital ranging from a few thousands to even millions of naira.


Good luck as you search for your next big business venture to set up.