Overview of The Concept of Business Plan In Nigeria
If you fail to plan, then you plan to fail. Business plan is to business, just as what google map is to some transporters. Imagine being lost in an environment totally alien to you. You have to ask questions if you have the energy and time or simply put on your google map. The google map gives you confidence because it tells you your pinpoint location and tells you where to move next. The same is applicable to business plan. It helps direct your path and guide and convince investors.
My bet is that an average Nigerian who is educated or enlightened or exposed to say the least has heard of the concept of business plan. I promise not use ambiguous terms and remain as explicit and simple as I can. A business plan is in its most rudimentary sense the outline, preferably strategic, of what your business is, how you intend to run it and your projections of financial inflow and outflow.
Business plan and success in business are intertwined. They are joined together and coexist. If you must succeed, then you must have a business plan. The idea guys, is to give you a holistic analysis of how important a business plan can be to your business. In our subsequent posts, we will guide you on how best to put up a business plan without necessary boring your investors and having a plan that concretizes your idea. Hope you like the sound of it? Don’t go anywhere. below are the 4 major importance of writing a business plan in Nigeria for the well being of your business
The 4 Benefits Of Business Plan In Nigeria
- For future purposes
The essence of business plan is not just start up well, that one is necessary but more important is the fact that the future has to be secured. You don’t want to collapse after a few weeks or months. You want to stay in the game for as long as you can, possibly forever. To do this, you have got a good business plan because it covers the future projections and guides you towards actualizing that dream. Am sure you got that into your head.
- Sustainable growth and steady funding
It is important to note that staying in the business is different from growing in the business. Some people sustain their business and stabilize it without necessary growing in the business. Holding tenaciously to your business is the first step but sustained growth is taking it up a notch. Business plan helps you achieve both feats. On the other hand, it should be noted that if sustainable growth is to be achieved, funding must be sorted and sorted well. Of course you are going to be providing fund but that will not be enough if sustained growth is to be reached. Investors must come in and loans must be secured from any entity of your choice.
The question of profitability must be answered if people will be convinced to invest in your business. They know that you need them, no problems there. What you must do is to convince them that they need you. The business must appeal to their interest not their pity. Very important, don’t forget that. This issue will be solved by a good business plan. Superb right?
Related: 9 sections of a business plan
- Cash Flow Management
An essential aspect of any business venture is the cash flow. For start ups, the obsession is usually with the break-even point. That’s the point where total revenue will be equal to total cost. After that, there is bound to be growth and more inflow and outflow of cash. To be able to manage that cool money coming into your business, you will need a good business plan. That will avoid unnecessary expenditure. Get ready to get yours. Don’t forget to contact us for your business plans. We can give you quite professional and easy to comprehend plans.
- To set up an strategic exit
A good business plan contains an exit strategy. The exit strategy covers how the owner of the business intends to transition at one point. This transition could be the form of handing the business over to a successor or selling the business or even expanding the business.
Common exit strategies include;
- Initial Public Offering of stock (IPO’s)
- Acquisition by competitors
- Family succession
- Management buy-outs
From the above discussion, business plans are very essential to the success of any business. Try to get one prepared for that your business. We can help you get one or read up our step by step guide on hoe to write a business plan. More money to your wallet guys.