…this could be the most important business tool you ever acquired

So heres what Dr Strive Masiyiwa, a business mogul from Zimbabwe has to say about the necessity of a business plan…

 

A dear friend went into farming after many years as a corporate executive. I will never forget the day he walked into my office a year later, with his wife. I could hardly recognize them. They looked completely worn down.

“It’s tough,” they said, “we are up before dawn, and we are out all day. It’s hard work.”

I knew they wanted to borrow some money as they began to complain about banks, even before they sat down.

They talked and talked about all the wonderful plans they had, and it really was exciting to hear. Since I loved them dearly, I listened, then I asked some simple questions:

“Do you have some numbers, I can look at?”

“Numbers?”

“Yes. Can I see the business plan behind all these ideas?”

Silence. Then the wife said, “But we just told you what we are doing?”

“I look at numbers. What does all this mean when looked at in numbers. What is your actual production, revenue, costs, and projected returns? I need to see it in figures.

I thought farming was a business, right?

 

Sadly many entrepreneurs have never been taught that the most important part of a business plan are the FIGURES, not the project description write-up.

If you send me a project proposal of say 20 pages, I prefer to see 19 pages in Figures (numbers).

And if I ask for more information it will be for more “numbers”!

We do not do Business Plans so that we can borrow money from a bank, or talk to investors. We do Business Plans primarily to help run the business on a daily basis. The business plan helps to first convince YOU (the entrepreneur) that you have a viable venture, and it must be the platform for managing the operation that you set up.

Every business must have a Business Plan. If you are running a business and you have never done a Business Plan for it, it’s not too late. You can start today, and get some assistance, or even do a course until you can do it yourself. This could be the most important business tool you ever acquired.

Do a business plan if you are running a farm, or a supermarket, or simply trading…you might be in for a real surprise!

You can visit his Facebook page for more insightful advice on all aspects of business and the corporate life.

Cheers!

WHY YOUR BUSINESS WILL LIKELY FAIL IN 2016

Stop!!! Sit back, relax, take a glass of juice and read this…

About a month ago, I and my former boss went to see a client in Ikeja area of Lagos. The address on his business card led us to a very small shop where they sell fish feed. We were told to sit down, that the Oga is coming. After waiting a while, we were led down through a very long path in between ware houses of different sizes, trucks and workers. Finally after walking for what seemed like a long time, we met the Oga, a dark short man, it looked to me like he was in his late 50s, he introduced himself as Engr. S… he was glad to receive us and we were definitely happy to see him too. He walked on, suddenly leading us into what looked like an industrial estate, sitting over not less than 6 plots of land, there were huge structures which housed huge machines up to three storeys high, it was such an exciting experience as he took us through the factories explaining the production process… how the raw materials pass through the machines till fresh new fish feed were emptied into the packaging bags. It was however impossible not to notice the giant spiders and small birds in the factory moving about their business happily which obviously brought to our notice that the factory was practically …inoperative.

It wasn’t long after I began to think to myself, “Where in the world are all the workers?” that he began to explain the obvious. He had led us into his office by this time. We listened with rapt attention at his pitiful story.

Engr S. used to buy fish feed from the manufacturers in whole sale and used to supply to the many retailers in that area… this explained the small shops we saw first when we arrived. But as his customer base expanded, supplying almost all the fish feed retailers in Lagos, and with the entrepreneurship blood running through his veins, Engr. S decided to start his own manufacturing company. With enough collateral, he went ahead to secure a 150 million naira loan from the bank. Engr. S. seemingly had everything- his idea and enough money to carry it out… cool!!! He acquired plots of land, he built several one-storey factory buildings, and he got vans for supplying customers. Everything was going great. He had 75 million naira left; 45 million would be for installing the machines and hiring workers while the remaining 30 million would be for purchasing raw materials. Based on his estimations, he would be making at least 20 million naira net profit per month and in three years would have paid off the bank. HOWEVER, LITTLE DID HE KNOW THAT THIS WAS WHERE HIS DILEMA BEGAN TO MANIFEST.

On their arrival, Engr. S discovered that the machines were too tall for one-storey buildings, so he had to raise his factory buildings to 3 storeys each. Also, he obviously couldn’t speak Chinese and so had to hire an interpreter to whom he paid 15,000 naira each day for two years. Also, many times, due to mistakes in the Plant plans he bought equipment’s that were either too large or too small. He had to also pay for the proper accommodation and feeding of the Chinese people till they finished the installation. That’s how he kept incurring all these extra expenses, till eventually after about two years the installation was complete. It was a tough time but he went through it victoriously.

The factory was there, perfect and ready for operation, the workers had all been hired, he had gotten NAFDAC approval for his product, retailers were expectant as they would now be buying from him at a cheaper rate since he now did the manufacturing himself. It was time to purchase the raw materials…. Alas on checking, the money was finished. He had spent all the money on installation, for one simple reason, THERE WAS NO PROPER BUSINESS PLAN. Engnr. S started trying to secure more loan from the bank but all to no avail. By the end of the third year, they put him on their list of debtors, decreasing even his chances of securing finance from other financial institutions. He had to shut down the factory and release all the workers. As business consultants, he called on us to help him overcome his challenge of raising finance.

A proper business plan would have put all the extra costs (even to the last kobo) into consideration. A proper business plan would have shown him that 150 million naira was not going to be enough for the project. A proper business plan would have saved him the stress and headaches he suffered while installing the machine. A proper business plan would have saved the workers and their families the emotional and economic trauma of securing a job and losing it in just about a month. A proper business plan would have saved him the pressure from the bank to collect back their money. It would have saved him the shame of being published publicly as a debtor. All it would have cost him is a PROPER BUSINESS PLAN.

As I sit in my office writing this story, I cannot but recall the parable of the 10 virgins recorded in Matthew 25 as told by my Lord, Jesus Christ. The story refers to them as foolish as they failed to carry extra oil in their lamps, “…¹⁰and while they went to buy, the bridegroom came; and they that were ready went in with him to the marriage: and the door was shut. ¹¹Afterward came also the other virgins, saying, Lord, lord, open to us, But he answered and said, Verily I say unto you, I know you not…”

Are you about to start a business, do not be hasty, prepare a business plan. “The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.”- Proverbs 21:5 ESV. Have you started a business already, it’s not too late, prepare a business plan. Do you have a business plan, if you do not review it regularly, your business still has a high risk of failing. I’ll be teaching on, ‘How to review your business plan’ soon.

YES, YOUR BUSINESS WILL LIKELY FAIL IN 2016 IF YOU DO NOT DRAFT/REVIEW YOUR BUSINESS PLAN.

I’ll be dedicating my next article to teaching you how to draft a business plan step-by-step, so do check back soon. It’s my desire to see your business ride upon all challenges and prosper.

I have posted some articles on this subject written by my mentor in business, Dr. Strive Masiyiwa. Do check them out in the category tagged, ‘Dr Strive’.

Please hit the ‘like’ button, make a comment and share this article with someone who needs it. You can also chat with me through my BBM channel: ‘Business Solutions’ or C0043E410. I’ll love to hear from you.

Cheers!

-JOY IJERE

13 BRILLIANT WAYS TO MAKE MONEY AS A CORPER

13 BRILLIANT WAYS TO MAKE MONEY AS A CORPER

Smart corpers have started looking at getting additional streams of income apart from the allowee paid to corpers during their NYSC year. They’re simply building what they can fall back on when the monthly bank alerts from government ceases. Some of what I’ve written are my own ideas while others were gathered over the internet. Enjoy!!!

1. Selling items during camp: public selling is not usually allowed for corpers except you register and pay a fee. Don’t try to sneak in contraband items as it is against the rules; besides your bags will be checked before you enter camp. What you can do is to simply carry extra items of what a corper would normally bring. E.g. extra plastic boots, socks, lip balm/gloss (during harmattarn), detergent, beverages, etc. then sell them to your fellow corpers in your room and nearby rooms.
2. Photography business during camp: You are also not allowed to do this wearing your corper kit as you will have to join others to participate in the activities. However, if you have a small portable camera or a phone with a good camera, you can take pictures just like others are doing with their phones but you’ll ask around for where you can print them out, with a little compensation. Just make sure you keep track of those whom you photographed so you can show them the photos and if good enough, they’ll buy.
3. Video coverage business: this is similar to the photography business only that it requires a little more effort. With your portable camera or phone, you can take videos of major events during the camp e.g. registration. Always try to cover as much people as possible while videoing as people will only want your video if they’re in it. You will also need to arrive earlier than the set time for such events. Ask around for where you can process your video and burn it into CD’s, then sell. If you were diligent enough to cover much people, then you’ll make more money.

AFTER CAMP

4. Start home tutorial: you will likely be serving in a primary or secondary school. This gives you access to numerous students you can offer to take tutorials at home. Just try to get in touch with their parents and strike a deal. If you can teach students preparing for WAEC, NECO, GCE, JAMB, POST-UME, that adds extra value to you.
5. Helping with students projects: Students of tertiary institutions are not left out. If you are posted to serve close to a university or other tertiary institutions, you can offer to analyze their project data using SPSS. It is not hard to use, a simple video tutorial will teach you what you need to know. You can start with projects on fields related to the course you studied as you will do a better job than a field you know nothing about.
6. Blogging and other online business: it’s so easy to start a blog and you can get one for free. You can reach millions of people over the internet with your write ups about your areas of interest and in the comfort of your home. Before you start this make sure you read up on blog management online especially since you also want to make money through your blog. There are many other ways to make money online. You can contact me through my BBM Channel to get more info on this.
7. Monetize your skills: web design, Ankara bags and accessories, leather works, painting, soap making, make over, gele tying, interior decoration, cake& confectionery, fashion design, photography and any skill at all that you have can be monetized. Do contact me if you don’t know how to go about monetizing your skill.
8. Agriculture: even if you’re posted to a very rural area, there is hope for you. You can lease a piece of land easily and cheaply…. Just ask the community people. You can rear snails, and other livestock and resell at a good price. You may not like to get your hands dirty though, chat me up on BBM and let’s rub minds together on how you can still do agriculture but in a branded way. I have a great idea on this already.
9. Laundry: you can start up a small laundry business in your home. You’ll do this at your spare time with little effort using a washing machine. You can even add value by offering pick-up and delivery service.
10. Writing, editing and proof reading: chances are, the local community people don’t read and write very well in English. You can solve this problem with a little publicity, letting them know what you can do, where and how to reach you in case they need to write letter or proof read and edit other paper work.
11. Bulk SMS: Yes you can be a bulk SMS service provider to churches, banks, schools, etc. If you’re able to strike a deal with at least two churches with say over 200 members each and maybe one school, each sending messages every week… that’s already a steady weekly income. You should read more about this online before going into it though.
12. E-book production for students: maybe you have good knowledge in specific areas such as how to pass exams well, or how to do any other thing, you can package them in e-books and publicize to your targeted audience. You’ll be developing your writing and marketing skills while gaining extra income.
13. Small scale importing: you can do some feasibility study and find out things that are lacking in your community which you can get in surplus back at home. The period between when you leave camp and when you move to your PPA, you can go home and get such goods in small quantity and try to sell them. If it sells well, you can start importing in larger quantities from even nearby states where it is available. Just let it be something portable and that won’t take too much time to get to where you’re posted. Examples are phone accessories.

I hope you’ve been able to choose one or two you’re comfortable with. I’ll be sharing even more intriguing and profitable ideas at my BBM channel. Feel free to join in: search for ‘Business Solutions’ OR C0043E410 on your BBM. If you don’t find it, just send me your pin and ill invite you directly. You can also email me at mybiziblog@gmail.com

Lastly, I have to say this or ill be causing harm to your life and finances. No matter the business idea you choose, IF YOU DO NOT HAVE A BUSINESS PLAN, YOU ARE JUST PREPARING YOURSELF TO FAIL. You’ll waste your precious time and money while gaining a few emotional scars. Save yourself this danger and contact me now, if you do not know how to draft a proper business plan. Don’t assume you know it, be humble enough to ask. I’ll be glad to answer.

Do share this post with other corpers or prospective corpers you know.

Cheers!