Business plan and feasibility study for grants and loans in Nigeria are written to persuade an investor to approve a defined quantity of finance so that a businessman / woman can operate your company or grow it from a tiny to medium or large scale.
This guide published in this article refers to any company that you may ever think of. Now this question; do you want a fresh company to begin? Or would you like to grow your current company already? If yes, that’s right! Keep reading.
In establishing a new company, planning is crucial. This guide will assist you begin your company planning.
If you are proposing to apply for a LOAN / GRANT from a bank or financial organization in Nigeria (Kick-start Nigeria, SME, NPower, YEAP, or any State or Federal Youth Empowerment Programs, Agricultural Loans, etc.), the following data will form the foundation for assessing your willingness to join any loan program in Nigeria and abroad.
What You Take Home
We advise you to take enough time to find out the data you need to finish the investor’s forms for the best outcomes. Before writing a company plan or proposal, you need to prepare a loan or grant to persuade the investor.
Don’t just make it up or write what other individuals would like to hear you believe. There are prompts on the sort of background data needed to support the growth of your company concept throughout the manual we wrote below.
We employ you to explore all possible possibilities for gathering business-related data. Attach any extra data that you believe may be helpful to assist the investor see why you are worthy of receiving loan / grant data about their assistance.
Please note that this document is a scheduling guide only, it is intended to help you begin the process of creating your business idea for an investor to see.
You should be conscious that after completing your business plan (document), your firm or investor should be granted the status of “Commercial In Confidence.”
Eligibility for loans in Nigeria
You can’t just wake up from home and expect to get an investor’s loan without meeting certain criteria / requirements. You are recommended to read the loan or grant program eligibility.
A total waste of time is to be avoided. Some investors ‘ eligibility conditions or grant equipment are listed below.
Please note that not all of the points mentioned below are applicable to all investors or grant programs, sometimes eligibility may be limited;
To participate in grant programmes, you must:
- Be 18 years or older.
- You must be a proven citizen of the country (Nigeria) no older than 40 years (proof of identity: International passport/Drivers License/National ID/Voters card required)
- You must have a post-secondary school qualification
- Your proposed business venture must be within the national borders of the country (Nigeria), and with the intention of employing Nigerian citizens.
- Your proposed venture must not entail the production or distribution of weapons, alcoholic beverages, tobacco or/and gambling, or any activities in contradiction with the Nigerian constitution
- You must prepare an innovative business concept summary
- Be registered as unemployed (not in all cases)
- Be receiving a qualifying income support payment
- Not be an undischarged bankrupt
- Not have received assistance in the previous 2 years.
- Your business must: Have never operated commercially before
- Be independent, lawful and reputable
- Not duplicate an existing business unless an unsatisfied demand for your product or service can be shown
- Not involve the purchase or take-over of an existing business.
What is your Business Idea?
Before answering any question about your business idea, you must be familiar with the company in order to be able to answer all the questions correctly.
The following questions are intended to help you develop your business idea, your vision of the company future and detail the knowledge you bring to your new company venture.
- What are your reasons for wanting to start your own small business?
- What are your objectives for your business over the next twelve months?
- What are your objectives for your business over the following two years?
- List all the products and/ or services that you plan to provide at the commencement of the business.
- List all the products and/ or services that you plan to provide in the future.
- Who will operate the business?
- Who else will be employed by the business immediately?
- Who else will be employed by the business in the future?
This chapter will assist you calculate how much cash you need to get your company going. It also looks at your financial gaining capacity and who you are going to approach if funding is needed.
List all the materials you need for your company, such as: plant and equipment, fittings, instruments, office furniture, computer equipment.
Already Own Approximate value-this is the total amount of money you need to get approximate value if needed.
What are your Start-Ups Cost?
What are your start-up costs? You will need to clarify all costs incurred during the start-up of the company in this chapter.
The costs should include the raw materials and products that you need to purchase, the transportation costs for taking them to the production site, shop house or company premises, the energy requirement, water source, insurance, company registration (if applicable) and any activities engaged in the company.
You should Complete the Expenses like the following checklist of Business start up expenses below;
- Business Name Registration
- Initial Stock
- Licences and Permits
- Advertising and Promotion
- Printing and Stationery
- Telephone – Landline -Mobile
- Others (if applicable)
The money you need to raise for you should be able to inform the investor. Do not go forward to drop the issues of the whole world.
Be directly with your responses as to what particular thing you want to use the finance you are going to get.
You should also be able to say how you plan to increase your finances to the grant or loan program coordinator or investor.
You should state that you’re going to fund from any of the following;
- Personal Income
- Bank Loan
- Building Society
Income and Turn Over
This should include your goods and products ‘ pricing. You should clarify how the price of generating your product / service and turnover has been calculated. Also expected turnover in the 1st to 3rd year is anticipated.
Never fail to demonstrate your work so that investors can understand how you calculated the revenue and turned over?
WHAT EXPENSES WILL YOU INCUR OVER THE FIRST 12 MONTHS OF OPERATION
Complete the following checklists of projected business expenses for the first 12 months of operation of your business. .
- Bank Charges
- Fuel, Light & Power
- Internet Service Provider
- Motor Vehicle – Fuel and Oil – Registration & Insurance – Repairs and Maintenance
- Protective Clothing
- Purchases – Equipment –Stock -Raw materials
- Telephone – Landline -Mobile
- Work Cover
What are your current financial commitments every month?
Here, the costs used to run the company every month must be listed in detail. In the quantity you are going to write in this chapter, you have to be very precise.
Be sure you did a precise calculation of all the expenditures before you penned it down. What you are expected to calculate is written below;
- Personal loans
- Car running
You will have to list any present mortgages, personal loans, hire buy, lease other obligations that you retain after writing all that. You must also work out the credit repayment period of the Financial Type.
Some instances are performed on a monthly basis by Institution and some instances per year.
Do a Market Research
This is a very significant element of the research of proposal, business plan or feasibility. Market study includes gathering data about your market segment–where they reside, what their revenue is, what they spend their revenue on–anything about them that will assist guarantee that they are appealing to your product.
Market research will involve:
- Talking to people who are in similar fields
- Talking to your “target market” (i.e. people you believe will use/buy your product or service).
- Talking to people who have specialist knowledge of the industry you are entering.
- Sourcing written material specific to your area of interest.
- Gathering statistical data relevant to your area of interest.
Prepare your questions before you approach people.
- To find out about your target market you must be prepared to ask “hard questions” or exploratory questions that will give you a sound understanding of your target market, how they think and what will appeal to them.
- To ensure that the information gathered is relevant, select people who have detailed knowledge and experience in the industry sector you propose to enter.
- Ask targeted questions, designed to provide realistic feedback on your business idea. Accordingly questions should be framed to draw information on the positives and negatives of the industry sector you propose entering.
There must be enough individuals to purchase your product or service to make a company successful. You also need to make sure that the individuals who might want to purchase your product or service are available.
It must be available in the right quantities in the right places and presented in a way that will make your customer attractive. Your “target market” or “market segment” are the individuals you target your product.
It is recommended that you write down the questions that will be asked to define your market segment by the suggested clients of your products. Examples of the issues you should ask are published below to the suggested clients or clients;
- Why would you choose this product/service?
- How would describe most people who buy this product/service?
- Where would you look to find this product/service?
- What would you expect to pay for this product/service?
- How often would you buy this product?
- If you would like more information about this product, contact.
After your market research has been successfully completed, you can then write the responses in the room given in the form of the business plan / feasibility study.
After filling the answers, it would be very good if you show the investors where you got all the information to prove t them yo did not fabricate any data yo have written. You should write them in the following format
- Number of questionnaire s Results
- Person consulted Date
- Summarize the information collected during this consultation.
- Profile your prospective customer or “market segment”
- (i.e.:- where do they live? how much do they earn? how old are they? are they men? women? etc.)
Strategies for Sales and Distribution
This is another significant element of the proposal, business plan or feasibility study because the investor needs to see that you will sell / render your products and services to customers in Nigeria and the company will produce earnings. That said, you’ll have to answer these questions below:
- Why will your prospective clients use your product or service?
- How will you sell your product or service? (eg: from home, production point, door to door, wholesale, retail,
- mail order etc.).
- Will you sell your product to the wholesale or retail market?
- Who will the wholesaler sell to?
- Will you sell locally, regionally, statewide, nationally or internationally?
- How will you deliver your product to the point of sale?
Each company has a competitive edge. To the other rivals who also render the same products and services in which you are engaged, you will need to figure out your competitive advantage.
Find out if the same or similar product or service is provided by other companies. Look at local paper advertisements to do this, check the phone book, and speak to individuals.
If there are other companies that provide your product or service, then you need to make it very clear that there is an unsatisfied demand in the marketplace that will target your company.
It is essential that you are familiar with your contest. Identify what you can do better from what they do well.
Competition doesn’t just come from companies that are the same or similar to yours, you compete for the Naira people spend in the “market segment” You have to do the following with that said;
- Report your findings.
- Who is your competition?
- What do they do well?
- What can you do better/differently?
- How does your business address unsatisfied market need?
Getting Started with Your Business
Look in the local paper and speak to other service or industry individuals to find out who delivers the highest service or has the greatest facilities and follow-up service.
Consider conditions, discounts, time for shipment, contracts for maintenance, products from second hand, etc. Where are you going to get your company machinery?
- Local suppliers
- A nearby town
Do you intend to buy, lease, hire purchase or rent the equipment for your business? Explain all this in your form in details.
Stock Market Analysis
When considering which supplier you will receive your stock from, you must first find out the reliability of that supplier, the credit terms they provide, the type and quality of the stock they distribute, the consistency of the supply, the follow-up support they provide and the technical advice they give. What inventory are you going to buy regularly? Try to be precise here.
Business Name Registration and Permit Operation
- Business Name registration (Provide details or evidence of research undertaken on requirements).
- ABN/GST Registration (Provide details or evidence of research undertaken on requirements).
The Business Licensing Information Service & Small Business Victoria can provide information on many things for Small Business. You also need to check with your local council to make sure you comply with any regulations they may have.
- What essential licences/permits do you need to operate your business? (Provide details or evidence of research undertaken on requirements).
- Insurance requirements (Provide details of Quote obtained or evidence of investigation undertaken on Requirements).
- Business are expected to have insurance coverage appropriate to the Business and the industry.
- Such insurance should be what a reasonable, informed, person would consider appropriate for the business.
- Appropriate insurance for the business and industry should be determined during the training and incorporated in the prospective participant’s final Business Plan.
Identify Your Business Idea
- What Small Business experience do you have?
- List the skills you need to operate this business.
- What skills do you have now that will allow you to produce your proposed product or provide your service?
- What skills do you need to gain to further develop your product or provide your service?
Find areas that you currently hold business management skills in
- Record Keeping
- Personnel Management
- Time Management
- Communication skills
- Planning and Goal Setting
- Business Licensing and regulation
- Customer Service
- Others (specify)
- We recommend that you attach your current resume and relevant qualifications.
We can assist you write a business plan and make it possible on any company to either a tiny, medium or large scale.
You can use the business plan to obtain a grant or loan from a bank with or without collateral as it will include all the financial models and balance sheets that banks require.
You must select the one you need. We do not send the already written business plan and feasibility study to the customer because the study and price quotes may not match the states that you intend to set up or run the business.
Reference: Proposals, Business Plan and Feasibility Study for Grant and Loans in Nigeria https://martinslibrary.blogspot.com/2015/09/proposals-business-plan-and-feasibility.html 2015 Publication.