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Wednesday, July 13, 2016

16 Business Plan Writing tips for Nigerian Entrepreneurs to know about

 If you are in Nigeria and need reliable business plan writing tips, then I'll advise you to take a seat and patiently read and digest these business plan writing tips. You'll be glad you did.

Here are the 16 Nigerian business plan writing tips to know

1.      Write the marketing summary first and the executive summary last. This is because the ideas of what your business is and should look like always starts from the market opportunity and potential sales it can record within a given period

2.      Don’t rush your market research because the bulk of your business plan will be assessed by the quality and reliability of your market research

3.      Write a summary of the main points of your business plan in no more than 100 words at the cover page just below the author name, this is akin to a newspaper rider which piques the interest of the reader

4.      Do not write the executive summary beyond 2 pages. The executive summary ought to be a summary of the entire business plan section by section represented by paragraphs, stick to this and you’ll make your business plan easier to understand and save the intended reader valuable time in perusing your business plan

5.      Specify how long the projections in the business plan is intended to cover right from the executive summary and even in the financial plan itself

6.      Use graphics, tables, pictures and other forms of labelling to not only improve the appearance of your business plan but to also demonstrate knowledge of your facts and figures. This can also save the intended reader time because graphical representation of data is brief but detailed

7.      Use references in your business plan. This will tell whoever is reading it that you are not quoting a random source or guessing but actually using proven knowledge to make your projections and analysis

8.      Write in a business friendly tone and not in an academic or informal way. When you do this, the investor or bank can readily see through your tone and appreciate your professional touch and presentation

9.      Compare data from various sources. Your information sources should be as diverse and reliable as possible to make for improved inference

10.  Calculate your figures slowly, it’s better to take 3 or more days to compute very reliable figures than to do a 1 day job shoddily, the financials are very important

11.  Don’t copy and paste other people’s write-ups into your business plans because you might make some illogical and unconnected statements afterwards which would expose you as a copycat and ignorant business person besides not also making your work tidy

12.  Include summary reports in the financial plan to explain the main figures in your projections

13.  Your business profile segment under the company summary and description should be very detailed

14.  Avoid use of highly technical language except where unavoidable but even so providing explanation for terms used

15.  Write confidently, your projections should sound like they’ve already been achieved even if they are 3 or more years away, your language should also show that you have done this

16.  State what you’ll do with the money you want to raise and why you need to raise it

Thank you for visiting my blog and you may also want to read: A guide on how to write a Nigerian Business Plan

Do you need a professionally written business plan? Give me a call right away: 0803 206 4106 or email me: paulonwueme@gmail.com to get one written for you within 10 days

Tuesday, July 5, 2016

Small Scale Poultry Business Plan in Nigeria

There are two types of poultry businesses in Nigeria namely; backyard poultry and commercial poultry. The backyard poultry is usually a small sized poultry business which most times are run from residences and have a capacity for less than 1,000 birds which are reared for either meat or eggs. Most operators of backyard poultry business in Nigeria run them as an extra source of income for the family hence it’s not surprising to see civil servants and housewives running this business. The commercial poultry on the other hand is run from farm houses owned by businesses enterprises engaged in rearing chickens for meat or eggs. Unlike the backyard poultry, commercial poultries need huge capital outlay, technical expertise and complex marketing strategies. It’s not just enough to have birds for sale but getting those birds to the market on time is the real deal with commercial poultries. The faster the sales they make, the more profitable they can become.
Read Related Post: How to Start a Smoothies Bar and Fruit Juice Shop

Market Opportunities for poultry products in Nigeria
Nigerians consume about 1.2 million tons of poultry meat annually according to Poultry Association of Nigeria whereas all the poultry farms in Nigeria produce 300,000 tons per annum leaving the outstanding 900,000 tons to smuggling since officially there is a ban on importation of poultry products in Nigeria since 2004. Secondly, egg production poultry is more lucrative than meat production hence why Nigerian poultry farms generate 650,000 tons of eggs per annum. On average it costs N15 per day to feed an egg laying fowl daily but that fowl which will likely lay between 180 to 288 eggs per annum which can fetch you between N4,500 to N7,200 per annum for each bird. The average daily cost of feeding a meat producing fowl is about N13 per day and they can be sold off within 22 weeks after being purchased as day old chicks for between N1,200 and N2,200 depending on their size and breed. The poultry business can also involve large scale hatchery i.e production of day old chicks in large quantities for resale to poultry farms. 

Image result for backyard poultryPoultry Industry Challenges in Nigeria
There are many challenges poultry businesses face in Nigeria regardless

  • Presence of many middlemen and competition leads to low profit margins for poultry farmers 
  •  Smuggling and illegal importation of poultry meat mostly from Brazil which is much cheaper than locally
  • produced poultry products leads to reduced demand from local consumers 
  •  Inadequate finance to fund expansion for small poultries due to risky and unusual nature of poultry business which commercial and microfinance banks are not eager to lend to. 
  • Disease epidemics are a recurring theme in this business with bird flu resurfacing in February 2016. This has led to loss of birds by unfortunate poultry farms although government sometimes pays compensation 
  • Bird feeds are very expensive 
  • Transportation and logistics are major operating challenges for poultry farms in getting their products to their target market

Financial Projections Poultry Farming Business
  • Total sales for egg laying poultry is 1,000 birds is N8,640,000 and N6,000,000
  • On average annual net profit per egg-layer is between N1,200 and N2,400 per annum multiplied by total number of birds = N1,200,000 to N2,400,000 for 1,000 birds
  • On average net profit per broiler is between N100 and N400 per quarter multiplied by total number of birds = N1,000,000 to N1,600,000 for 4,000 birds reared per annum
  • Return on investment is between 10 to 40% per annum, that means if you invest N1 million into this business you should expect between N100,000 to N400,000 depending on the location of your poultry and proximity to your customers and other operating costs
How Much does it cost to start a poultry business in Nigeria?
The assumption for this startup cost is based on setting up in a residential part of a town or even a village. The second assumption is that the profits will be ploughed back into the business to fund expansion

  • Second hand Poultry bird Cages – N96,000
  • Poultry House/shed – 250,000
  • Animal Feeds – N120,000
  • 100 Birds – N120,000
  • Rent on 1 acre of Land – N50,000
  • Contingency – N150,000
  • Total – N786,000
Looking to start a small to medium scale poultry farm in Nigeria and need a bankable business plan? Give me a call: 0803 206 4106  or email me: paulonwueme@gmail.com to get one professionally written for you.