Starting a business from scratch in Nigeria can be a rewarding venture, but without a solid business plan, your chances of success may be limited.
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Why business plan is important?
A business plan acts as a roadmap, outlining your goals, strategies, and how you intend to achieve them.
If you’re new to this, don’t worry!
In this guide, I will break down how to create a beginner-friendly business plan tailored to any kind of business you are trying to build.
1. Executive Summary
The executive summary is a concise overview of your business.
It’s the first thing potential investors or lenders will read, so it needs to be clear and compelling.
The executive summary of your business should include the following:
- Business Name and Description: This is where you will tell the world about what your business is all about.
- Mission and Vision Statements: Here you have to answer the question of why does your business exist, and what do you aim to achieve?
- Goals: Your short-term and long-term objectives.
- Products or Services: A brief description of what you’re offering. This is exactly what you are offering as a business. What you sell to make money.
2. Business Description
This is the stage where you provide a detailed explanation of your business. Your business description should highlight the following:
- The type of business (e.g., sole proprietorship, partnership, limited liability company).
- Your business’s location and why you chose it.
- The problem your business solves and how it benefits your target audience.
- The unique selling point (USP) that sets your business apart.
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3. Market Analysis
Again, you must have an in-depth understanding of the kind of market you are entering. It is critical for business success in Nigeria.
So, you will need to conduct research to do the following:
- Identify your target audience (age, income level, lifestyle, etc.).
- Analyze competitors: Who are they, and what are their strengths and weaknesses?
- Understand market trends and opportunities in your industry.
- Highlight potential challenges, such as economic instability or infrastructural issues, and how you plan to address them.
Once you are done conducting the above research, you're set to move to the next phase.
4. Organization and Management
You need to pay attention here. This is where you have to adequately explain how your business will be structured and managed.
Some of what you are to pay attention to are as follows:
- Your organizational chart (if applicable).
- Profiles of key team members and their roles.
- Plans for hiring and training employees.
5. Products or Services
At this point, let me ask you this question.
What are you offering?
I believe you know your Products or Services by now! But, It doesn't stop at knowing and awareness.
You also need to explain the features and benefits of your products and services.
Don't forget to also highlight the pricing strategies tailored to your market including how your offerings address specific customer needs and your plans for future product or service development.
6. Marketing and Sales Strategy
This is where you will explain how you aim to promote and sell your offerings by utilizing various marketing channels such as social media, referrals, and conventional advertising while employing a competitive, value-driven, or cost-plus pricing approach, executing a customer-centric sales process to effectively attract and maintain clients, and establishing strategic partnerships with other companies and influencers.
7. Financial Plan
It is essential to account for your initial expenses (such as rent, equipment, inventory, licenses, etc.), anticipated income that illustrates your expected earnings, monthly operating costs covering salaries, utilities, and marketing, as well as your funding requirements detailing the amount needed and its intended use since this segment is vital for obtaining funding and maintaining your business's financial stability.
8. Operational Plan
Here, you will describe the day-to-day operations of your business which should include:
- The site of your enterprise and the amenities you will utilize.
- Suppliers and vendors.
- Necessary technology or machinery.
- A schedule for starting operations.
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9. Risk Assessment
At this stage of creating your business plan, you have to recognize possible threats and/or risks you could encounter, including economic volatility, alterations in government regulations, rivalry, and disruptions in the supply chain, and describe how you intend to reduce these risks.
10. Appendices and Supporting Documents
You should include any supplementary documents that bolster your business plans such as market analysis, legal paperwork like your business registration, CVs of your core team members, and images or prototypes of your products to ensure your approach is well-supported.
When crafting your business plan, employ clear and simple language, remain realistic by avoiding overestimations of your revenues and underestimations of your expenses, tailor your plan to account for local factors in Nigeria such as electricity supply, internet connectivity, and cultural preferences, and seek feedback from mentors, advisors, or peers for helpful critiques.
Creating a BUSINESS PLAN from Scratch FAQs
How do you start a business plan from scratch?
To initiate a business plan from the ground up, start by clearly articulating your business concept and pinpointing the issue you intend to address. Conduct research on your target audience and competitors to gather vital information, then lay out your vision, mission, and objectives.
This groundwork establishes a solid foundation for a comprehensive plan, guaranteeing you have a clear focus and an understanding of the market landscape.
How to draw a business plan for beginners?
For those new to it, simplify the planning process by segmenting your plan into distinct, manageable parts. Utilize a straightforward template to address your business concept, market analysis, operations, and financial forecasts. Prioritize clarity, practicality, and achievable goals. Keep in mind that a strong plan is a dynamic document that can be adjusted as needed.
What are the 7 steps to create a business plan?
The seven essential steps to develop a business plan are:
- Define Your Vision and Mission: Clearly articulate what your business represents and its long-term goals.
- Conduct Market Research: Examine your sector, target demographics, and competitors to shape your approach.
- Outline Your Business Strategy: Specify your product or service offerings, pricing strategies, and competitive advantages.
- Plan Your Organizational Structure: Clarify key roles, responsibilities, and the composition of your team.
- Develop Your Marketing and Sales Strategy: Detail how you intend to attract, engage, and retain your customers.
- Create Financial Projections: Anticipate revenues, expenses, and funding requirements to ensure financial sustainability.
- Draft an Executive Summary and Review: Condense the main points of your plan into a brief overview, then solicit feedback and make necessary adjustments.
What are the 7 main points in a business plan?
The seven key components of a business plan include:
- Executive Summary: A brief synopsis of your business and its aims.
- Company Description: Background details, mission statement, and the unique value you provide.
- Market Analysis: In-depth insights regarding your sector, target market, and competition.
- Organization and Management: Details about your team, leadership hierarchy, and operational setup.
- Products or Services: An overview of your offerings, highlighting benefits and distinctive features.
- Marketing and Sales Strategy: Your method for reaching customers and generating sales.
- Financial Projections: Comprehensive estimates of revenue, expenses, and capital needs to support your business framework.
Final Thoughts on How to Create a BUSINESS PLAN from Scratch For Your Business
Creating a business plan from scratch may seem daunting, but it’s an essential step toward building a successful business in Nigeria.
By following this guide, you can create a comprehensive and practical plan that sets you up for success.
Remember, a business plan is not static; update it regularly as your business grows and evolves.
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