Purpose of Business Plan for Entrepreneurs in Nigeria | Major Benefits, Importance & Advantages
Major reasons of business plan for entrepreneur PDF: In this article, we will highlight and explain four (4) Major Importance of Business Plan In Nigeria any new and existing business owner must have to have a successful business over a long period of time.
The importance of business plan in entrepreneurship will come in details. Now what do you need to do? Its simple. Sit tight and read carefully till the end to see the advantages of business plan and the purpose of preparing business plan.
What Is the Importance & Purpose of a Business Plan?
According to www.smallbusiness.chron.com, a business plan conveys the organizational structure of your business, including titles of directors or officers and their individual duties. It also acts as a management tool that can be referred to regularly to ensure the business is on course with meeting goals, sales targets or operational milestones. You can read more on How to Write a Business Plan Here. Feel free to Contact us and place an order for a professional and/or Standard Business Plan and Feasibility Study for loans/grants.
Overview of The Concept of Business Plan In Nigeria
First of all, you know this popular saying that if you fail to plan, then you plan to fail. Presently, Business plan is to business, just as what google map is to some transporters. As a matter of fact, imagine being lost in an environment totally alien to you. No doubt, you have to ask questions if you have the energy and time or simply put on your google map. Of course, we all know that the google map gives you confidence because it tells you your pinpoint location and tells you where to move next. All things considered, the same is applicable to business plan. It helps direct your path and guide and convince investors.
Meanwhile, it will be my bet that an average Nigerian who is educated or enlightened or exposed to say the least has heard of the concept of business plan. For this reason, I can go ahead and promise you all that I will not use ambiguous terms and remain as explicit and simple as possible. Generally speaking, 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.
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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
1. For future purposes
First and foremost, 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. Furthermore, you don’t want to collapse after a few weeks or months. However, you want to stay in the game for as long as you can, possibly forever. Meanwhile, to do this, you have got a good business plan because it covers the future projections and guides you towards actualizing that dream. Finally, am sure you got that into your head.
2. Sustainable growth and steady funding
In the first place, it is very important to note that staying in the business is different from growing in the business. Furthermore, it as been revealed that some people sustain their business and stabilize it without necessary growing in the business. Similarly, holding tenaciously to your business is the first step but sustained growth is taking it up a notch. Additionally, a business plan helps you achieve both feats. Now, on the other hand, it should be noted that if sustainable growth is to be achieved, funding must be sorted and sorted well. No doubt you are going to be providing fund but that will not be enough if sustained growth is to be reached. Of course different investors must come in and loans must be secured from any entity of your choice. You can read my previous article about the Sources to Get Fund for Business Finance in Nigeria: Capital Money for SME Businesses
For the most part, the question of profitability must be answered if people will be convinced to invest in your business. Ordinarily, they know that you need them, no problems there. What you must do is to convince them that they need you. Usually, the business must appeal to their interest not their pity. Very important, don’t forget that. In either case, this issue will be solved by a good business plan. Superb right?
3. Cash Flow Management
Equally important in the aspect of any business venture is the cash flow analysis. In short, for start ups, the obsession is usually with the break-even point. On the whole, 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. You should read bout Agricultural Business in Nigeria | Most Profitable Farming Opportunities in Agriculture Sector. 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.
4. To set up an strategic exit
In the last place, A good business plan contains an exit strategy. Generally speaking, the exit strategy covers how the owner of the business intends to transition at one point. By the same token, this transition could be the form of handing the business over to a successor or selling the business or even expanding the business. READ: Nigerian Entrepreneurs and Economic Recessions | Global Entrepreneurship Monitor
Common exit strategies include;
- Initial Public Offering of stock (IPO’s)
- Acquisition by competitors
- Mergers
- Family succession
- Management buy-outs
The importance of business plan pdf - In conclusion, given the points in the discussion above, you now know that a business plan is very essential to the success of any business. Try to get one prepared for that your business. In summary, 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.