How to Craft a Business Plan in Nigeria (2024)
A document that is alive and evolving, mapping out the intricate details of your business – this is what we call a business plan. In this informative piece, you will gain insights on how to construct a professional business plan.
A comprehensive business plan comprises the following: the products and/or services your business offers, the framework in which your business operates, an analysis of the market you’re entering, strategies for sales and marketing, the necessary funding, financial projections, and the mandatory documentation such as permits and leases.
A business plan is a crucial tool for securing funding or bringing new business partners on board. Investors are understandably cautious when it comes to parting with their resources, and a well-crafted business plan can be the difference between a successful investment and a risky one.
Despite the importance of a business plan, it is not an arduous undertaking. On the contrary, it is a simple yet effective tool that can be used to drive and manage business growth. A business plan enables a business to define its goals, strategies, timelines, and budgets, thereby providing a clear roadmap for achieving its objectives. Numerous templates for business plans can be found online, making the process even simpler.
The significance of creating a business plan cannot be overstated. It is essential to learn how to create a business plan that is tailored to your business’s specific needs and goals, and that will yield the desired outcomes. With this in mind, the aim of this content is to equip you with the knowledge and skills necessary to create a successful business plan that will help you achieve your desired results.
TIPS ON WRITING A BUSINESS PLAN
Here are some advice on crafting a professional business plan.
- DO YOUR RESEARCH
You must choose the firm’s structure, marketing approach, and financing before you can write a business plan. Your analyses and projections are more likely to be accurate with this information.
- IDENTIFY THE BUSINESS PLAN’S OBJECTIVES
Determine the objectives on how the strategy of the business plan will be used, such as internally or by outside parties. This aids in deciding what information to pay attention to. Before beginning the business plan drafting, it’s crucial to decide which portions of the plan apply to your company.
- ASK FOR ASSISTANCE
If you aren’t confident in your ability to prepare a business strategy, seek expert assistance. Pay attention while you are being assisted since it is crucial that you comprehend and can defend the information in your company plan.
- MAKE A NOTE OF THE ESTIMATED AND ACTUAL FIGURES
It’s important to convey expectations clearly when launching a firm in order to avoid misleading investors. Of course, you should have actual numbers if your firm is already operating.
- DECIDE WHAT MAKES YOUR BRAND UNIQUE
Being original is key. So, consider your company’s unique selling proposition thoroughly before drafting a business strategy. Set yourself out from the many nearby companies and competitors that offer the same products or services.
- MAKE THE BUSINESS PLAN CONCISE AND ORGANISED FOR QUICK READING
Business plans today are simple and less wordy than in the past. Don’t, for instance, mention every finding from your market research. Save these specifics in the appendix or somewhere else for your own use. Use headings, bullets, and italics to draw readers’ attention to the most relevant material since formatting is crucial.
- MODIFY IT AS TIME CHANGES
Because a business plan is an ever-evolving document, it should be updated as circumstances change and as necessary for specific purposes.
CONTENT OF A PROFESSIONAL BUSINESS PLAN IN NIGERIA
The manner in which a business plan is written should be professional. There are two ways to write a business plan: the standard and the lean startup type. The standard type is more popular in Nigeria. They have a set format and promote details, which means they need more effort and take up several pages.
Let’s speak about developing a standard business plan. This is best for someone who is meticulous, needs a thorough strategy, or wants to obtain money from conventional sources. It’s not necessary to follow the outline exactly. Use the areas that are most appropriate for your requirements, instead. You can see a free sample here.
The sections of a thorough standard business plan are as follows:
EXECUTIVE SUMMARY
The executive summary is the initial section of a business strategy. It simply explains to the reader the goals of your business and the reasons it will succeed. Writing the executive summary after writing the remainder of the plan will allow you to incorporate important ideas from other parts.
The executive summary should convey the company’s goal statement, a quick overview of the business, details about its products or services, and staff information.
If you aim to approach investors for funding, you should also provide financial details and growth strategies. Before readers delve into the specifics, the executive summary provides a comprehensive perspective of the business and your market.
The overview, business profile, products or services, market, and financial concerns should each be covered in 1-2 paragraphs of the executive summary.
BUSINESS DESCRIPTION
This part provides information about your firm, the issues it resolves, and the target markets you want to target. It details the team members’ specialties, the business’s location, and the competitive edge that would ensure its success. In order to persuade investors, you must describe the strengths of your business in this part.
MARKET RESEARCH/ANALYSIS
The success of your firm will be decided by the market. Will your product or service be of interest to the market? When you write your business plan, you must have a solid grasp of your market and industry. Competitive analysis will highlight the strategies and advantages of rival companies. See if you can perform better than they are. Be specific in this.
Incorporate your primary research (interviews, customer surveys, etc.) as well as a study of previous research (articles and publications regarding co-working spaces). Include competitor analysis as well in this, such finding out how many other co-working spaces have a market share. They, who? Describe the advantages and disadvantages of such rivalries as well as your own competitive techniques.
ORGANIZATIONAL MANAGEMENT AND OPERATIONS
You utilise this part to describe your company’s organisational structure and key personnel to the reader. Indicate your company’s legal form and whether you want to operate it alone or through incorporation. So, it will be clearer if an organisational chart is used to explain who is responsible for what.
Showcase the special expertise that each team member possesses and how those abilities will contribute to the project’s success. Provide each member’s bio and draw attention to their experiences and education. Describe the responsibilities of any role fills for any open positions as well.
PRODUCT PLAN
This section in the business plan should describe the products or services you sell as well as their life cycles. Describe how this helps your clients. Discuss your product or service’s intellectual property filing and research ambitions. Additionally, explain the issue you’re trying to resolve and the strategy you intend to use. You must also bring up the competition.
STRATEGY FOR MARKETING AND SALES
You respond to inquiries on your market penetration strategy, business expansion plans, preferred distribution methods, customer interaction strategies, sales strategy, and long-term growth.
BUDGET/FINANCIAL PLAN
The budgeting/financial plan is crucial, therefore be sure to include all initial costs, predictions, and financing requests for investors in your financial module. The resources required to launch your firm, such as the cost of leases, computers, phones, etc., are included in the beginning cost. Provide accurate estimations. Your financial predictions should be in-depth so that investors understand where their money is going and how it will be recovered. Existing businesses will provide cash flow, balance sheets, and income statements for the previous three to five years. Add any potential loan collateral you might have.
APPENDIX
The business plan is concluded in this section. The appendix contains supporting papers such as resumes, licences, leases, product photos, letters of recommendation, etc. But, the appendix is not mandatory.
