Connect with us


Business Plan: An Important Tool For New Business




Business Plan: An Important Tool For New Business

It is well a known fact that a very high percentage of every new business fail. In fact, statistics have it that about 85 percent of new businesses fails within the first three years in operation. This fact has made many people dread starting a business. However, the advantages of owning a business are so many to individuals, communities and governments that in spite of the risks involved, efforts still are being made daily to start businesses: “Business Plan: An Important Tool For New Business.”

In order to avoid business failure and the dire consequences associated with failure, a lot of precaution ought to be taken before dabbling into enterprise setting. One of such precautionary measures is to prepare a BUSINESS PLAN. In setting up a business, preparing a business plan helps to serve the purpose of one looking before leaping.


A business plan is a detailed document of intent by an entrepreneur showing the existence of business opportunities and the ideas developed to exploit them with due considerations given to all the relevant environmental elements involve, the merits, risks and the potential rewards inherent in exploiting the opportunities.

In the short term, it may cover three years of operations or less. The plan could be referred to as the game plan or road map. It addresses such questions as; Where are we? Where are we going? How will we get there? It depicts the network of movement or travel plan.

Importance of Business Plan

The business plan is important in many ways. These include:

  1. It provides guidance to the entrepreneur in organizing their planning activities.
  2. It helps determine the viability/feasibility of a given venture in a designated market(s).
  3. It serves as a major instrument for identification of sources of finance and soliciting for financial aids from financiers.
  4. It helps in the establishment of accurate controls in the operations of the business.
  5. It brings to the fore the weaknesses and the strengths of the venture within the industry through a realistic self-assessment.
  6. It provides the entrepreneur with a tool for assessing the window(s) of opportunity and their economic feasibility and viability.
  7. It provides the entrepreneur with the vehicle for analysis/assessment of the venture’s opportunities in view of its capacity.

Feature of Business Plan [1]

  • It should be Concise, Simple and Clear: Given that you will not be there all the time to explain the details to the readers, some of whom may be far away from you, you need to make the plan understandable to any person reading it for the first time. It must sound convincing. Any plan that does not convey the necessary information to the desired (target) cannot be said to have communicated and consequently does not worth its salt.
  • It should be Accurate and Supported with the Necessary and Convincing Data and figures: The investors and financiers think in terms of money. They want to know what you will spend, what you will earn and what profit you will be making. Your underestimation or miscalculation of your potential sales or degree of competition is likely to make your predictions fallible. Always underestimate your likely earnings for sales rarely work out in the real market economy as optimistically as they initially appear on paper. However, always assume the worst when it come to your expenses – for the unexpected drain on your finances is capable of pushing you out of the business. Conservation is the rule in prediction of profits.
  • The Plan should be Realistic and Truthful: Financiers at some time in their careers would have been presented with business plans that are simple, profitable but not feasible. An experience entrepreneur in Nigeria in the financial market who predicts that his business will compete with First Bank Nigeria Plc or Union Bank Nigeria Plc within months will be regarded as time wasting crank that has no good business plan or one that contains a blatant lie.

Writing of a Business Plan

The length of time taken to develop a business plan is usually about three weeks depending on the experience and expertise of the entrepreneur. However, the nature of this investment or proposed business to a very great extent influences the time required to do a good business plan. A good business plan needs to be comprehensive enough as to give a potential investor a complete picture and understanding of the proposed business. It of course, will enable the entrepreneur to put in writing his thinking and views about the business. After all, planning is more an art of writing than just thinking.

A good business plan follows this format:

  • Introductory Page: This refers to the title page or cover page. It provides a brief summary of the plan. It sets out the basic concept that the planner intends to develop. It brings to the fore the amount of investment contemplated by the budding entrepreneur.
  • Executive summary: The executive summary presents a summary of the essential point in the business plan. It is usually about three to four pages. It serves as a stimulant to the potential investor. It highlights in a precise, concise and persuasive manner the key points of the business plan. It includes the nature of the business, capital requirements, market potentialities, and other necessary logistics. It is the degree of conviction exhibited by the executive summary that will determine if the entire plan is worth reading at all.
  • Industry analysis: The entrepreneur while evaluating his envisaged establishment on a number of performance index also needs an analysis of the industry. This will give him an overview of the industry he is going to do business in, including the historical analysis of the industry and a forecast of the likely future trend. He should know the customers, his competitors, the various segments of the market and the specific segment he intends to target.

Critical issues to consider in the analysis include the underlisted:

  1. The total industry sales over the past five years
  2. The anticipated growth in the industry
  3. Number of new firms that have joined the industry within the last three years
  4. New products that have recently been introduced in the industry
  5. The leading and recent competitors
  6. How will the proposed business operation be better than the leading or recent competitors?
  7. What is the status of the sales value of the major competitor, steady, growing or declining?
  8. The weaknesses and strengths of the competitors
  9. The profile of the customers
  10. How does the customer(s) profile differ from that of the competitor(s)
  • The venture description: This provides a comprehensive overview of the goods, services and operations of the venture. The size and the scope could be ascertained from this holistic picture including the location. To a great extent, the success of a business could be dependent on its location.

Basic issues to be addressed by the venture description are as contained below:

  1. What products and/or services does the business offer to the market?
  2. Description of the product/services
  3. State the location and site of the business
  4. State whether the building is old or new
  5. Is the building owned or leased
  6. Why is this building, site and location right for the business?
  7. What skills or personnel including additions will be needed to run the business effectively?
  • Production or Merchandising Plan: If the intended outfit is a manufacturing business, this section will be entitled production Plan and describe the entire manufacturing process. Where an aspect of the process is to be contracted, this should be stated including the names and locations of such contractors, why such contractors were selected, the contract fees and the contracts that have been completed if any. The production plan should prescribe the physical plant layout, the machinery, the equipment, the raw materials, suppliers’ names and location terms and future capital equipment requirements.

To intending investors this picture enables them to come to terms with the financial needs of the budding venture. However, for retail or service business, this is titled Merchandising Plan. The merchandising plan describes the process of procurement of the merchandise, the stock or inventory, control system, and the storage needs of the business.

  • Marketing plan: Marketing plan is an important part of a business plan. It brings to the fore, the marketing condition and strategies for distribution, pricing and promotion of products. Marketing has to do with process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individuals and organizations objectives. Marketing plan is considered vital to potential investors because in clear terms the goals of an organization and strategies they intend to use to achieve it.

Marketing plan attempts to answer this question:

  1. Who are the firm’s customers, their location, they are buying abilities, whom they personalize and their rationale?
  2. The promotional and advertising strategies of the firm and its effectiveness?
  3. Price changes in the markets, the initiators and their reasons?
  4. Attitudes of the market towards competitive products
  5. The distribution channels and their functionality?
  6. Who are the firm’s competitors, their location and address, what are their strengths and weaknesses?
  7. What marketing techniques are used by the lists and the most successful competitors in the market?
  8. What is the mission core objective of the firm? what are their philosophical dispositions vision statement?
  9. What are the company’s strengths and weaknesses?
  10. What are the firm’s production capabilities by products?
  • Organization Plan: Planning helps to critically assess the goal to see if it’s realistic. It facilitates decision making and allows setting a time frame by predicting when the company can achieve its goal. Organization plan is an integral part of business plan, that describes ownership structure of the business. It also shows the ratio of a proportion of ownership of the business among the co-entrepreneurs. It gives the investors understanding of who controls the business and his position in the organization.

Key questions in organizational plan:

1)What is the form of business ownership so partnership or corporation?

2) If partnership, who are the partners and the content of partnership did?

3) If incorporated –

  • Who are the major shareholders and how much shares do they have?
  • What type and how many stock of voting and non-voting have been issued?
  • Who are the directors?

4) Who has the Cheque signing authority and control?

5) What is the background of each of the members in the management team, and what are the roles and responsibilities of each of them?

6) What are the salaries, bonus and other forms of payment if any for each member of the management team?

  • The Financial Plan: The financial plan is the monetary (Naira) expression of entrepreneur’s operational plans. Financial plan paints a comprehensive picture of your current finances, your financial goals and any strategies you’ve set to achieve those goals. It’s a financial projection that enables the entrepreneur to determine the economic viability and feasibility of the envisioned establishment.

A typical business plan is made up of four statements;

1) Cash budget

2) Income statement

3) The balance sheets

4) Profitability (break-even charts).

Causes of Failure of Some Business Plans

  • Some entrepreneur rush into business without establishing a need gap they intend to close.
  • Goals set by some planned actions are not specific or measurable and sometimes unreasonable
  • Lack of insight into the threats available in the business segment.
  • Lack of experience in the business the entrepreneur wants to venture into.


Companies of all sizes can benefit from having a business plan. But when a business develops and its environment changes, so should its business plan. Therefore, business plan should be viewed as a dynamic document that will change as your company does, rather than as something that is static.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


Enlumi launches Next-Gen business management platform – Lumi Business to help businesses streamline key operations



Enlumi launches Next-Gen business management platform – Lumi Business to help businesses streamline key operations

Enlumi launches Next-Gen business management platform – Lumi Business to help businesses streamline key operations

Enlumi, headquartered in Lagos has announced the launch of its B2B product—Lumi Business. The platform offers a comprehensive array of solutions, including but not limited to Point of Sale, Inventory Management, Accounting, Expense Management, Loyalty Management and analytics.

Enlumi launches Next-Gen business management platform – Lumi Business to help businesses streamline key operations

As a retail business in Nigeria it’s long been believed that having a modern payment collection device is enough to run the business and the rest is left to chance, instinct, or clunky, outdated softwares and tools. However, to thrive in the market, businesses need much more. Business owners frequently struggle with inventory-related challenges such as surplus, slow-moving stock, expired items, stockouts of high-demand products, and employee theft, all of which can result in revenue loss or tied-up business capital.

Lumi Business is tailored to tackle the inventory requirements of businesses, irrespective of their size, stock quantity, or staff strength. It efficiently simplifies sales tracking, expenses, and facilitates the management of customers, products, services, raw materials, ingredients, and recipes. By leveraging the Lumi Business platform, business owners gain access to data-driven insights that inform decision-making, thereby enhancing sales and maximizing overall business profitability.

Wait there’s more! Lumi Business has a cloud-based multi-store management system, which enables business owners to exert full control over their operations from any location worldwide, using any device. Its storefront feature allows business owners to start up virtual stores and sell online. This capability allows them to monitor stock movements effectively and mitigate issues such as employee theft, lost products, and wastage.

Over 300 SMEs in Nigeria trust Lumi Business to manage their day to day operations, particularly due to its robust features and user-friendly interface. The company looks forward to growing its reach and capabilities as it actively pursues partnerships with other platforms serving SMEs.

Speaking on the launch, Wale Adeniji, Enlumi Data’s CEO said “We firmly disagree with the notion that Nigerian business owners aren’t ready for more than basic payment collection tools.

We’ve seen that businesses in Nigeria are ready for more advanced solutions, they just need to be delivered the right way. We’re focused on building a business management solution that Nigerian businesses are crying out for, addressing a myriad of pain points all at once”. Click here to learn more about Lumi Business or visit

Continue Reading


Rhebuch: Best Place To Buy Quality And Affordable Security Surveillance Cameras In Nigeria



Best Place To Buy Quality And Affordable Security Surveillance Cameras In Nigeria

Rhebuch: Best Place To Buy Quality And Affordable Security Surveillance Cameras In Nigeria


The world is already going digital with the spate of innovations that are constantly released to drive convenience and comfort. It often comes with the sense that technology is the present scope shaping the future. There are many tech products in homes, offices, and other places today, with respective designs to serve relative purposes for human causes. This is because of how effective and efficient they are in making life easy for us as a people.

Best Place To Buy Quality And Affordable Security Surveillance Cameras In Nigeria

Meanwhile, it is common knowledge that security is a serious business – concerning the safety of lives and property. As such, adopting technology takes cognizance of this through developing tools or gadgets capable of improving security across space and time. One such piece of equipment is the security surveillance cameras- designed to give real-time information about happenings around the vicinity of the installation. Although these have been around for quite some time, their relevance to enhancing security and safety has not waned, especially as they continue to improve.


Nigerians are not new to using security surveillance cameras, as you can find them at homes, offices, shopping centers, religious centers, banks, estates, streets, etc. But while some people believe the cost of acquiring these gadgets is expensive, others are skeptical of their effectiveness – both untrue. Rhebuch is changing this age-long narrative by providing quality and affordable security surveillance cameras to Nigerians.


What Is Rhebuch?


Rhebuch is a technological company that is a multi-brand distributor of smart homes, video surveillance, fire alarms, access control, smart lighting systems, and many more. Therefore, it is your one-stop shop to buy all automation systems for your home or office. This company is reputed for providing the latest global standard equipment to foster the safety and security of lives and property in Nigeria.


There are CCTV cameras of different brands on Rhebuch – some of which include DAHUA 4HDD EPoE, DAHUA 24-port Unmanaged PoE switch, DAHUA 8MP IR fixed-focal dome network camera, Hikvision fixed dome network camera, DAHUA unmanaged desktop switch, etc.


Therefore, Rhebuch is the leading place to buy your security surveillance cameras, as there are many benefits from shopping on this platform.


Benefits Of Shopping For Security Surveillance Cameras On Rhebuch


1. Affordable And Quality Cameras


Rhebuch operates in sync with its mission of providing its customers with the best and latest gadgets in the marketplace – which it still upholds. As such, this platform is where affordability and quality melt, such that you purchase original security surveillance cameras at the best prices that are relatively lower than its competitors.


For instance, you can buy a DAHUA fixed focal dome network camera for as low as N75,000, cheaper than other marketplaces selling the camera. Therefore, you are saving more when you buy on Rhebuch.


2. Multiple Camera Options


Rhebuch provides a wide range of options when buying your security surveillance cameras. This is because they vary in type, purpose, and price, making the platform a store for every budget. This aims to change the misconception that these cameras are expensive or ineffective. You can find your preferred security camera with a particular focal dimension and coverage on Rhebuch without buying whatever is available.


3. Fast And Free Delivery


You are eligible for fast and free delivery when you purchase security surveillance cameras and other systems on Rhebuch. This is to make the logistics of your purchased products seamless through its unique way of proving that the company is highly customer-centric. Therefore, your cameras will be delivered to the platform within 24 hours of purchase.


4. Fast Returns


Rhebuch allows its customers to return their purchased products if they are no longer interested or unsatisfied. Irrespective of the reason, if it is valid, there is a window for you to return your camera for another. You can complete the return process on the platform within 24 hours.


5. Discount Offers


You can get the best deals for purchasing security surveillance cameras on Rhebuch. This is always available during special sales seasons, where you will have price slashes for your sales. It can go as high as a 30% discount on the platform. That is why it is important to always keep up with the sales and deals on the platform so as not to miss out.




You can get quality security cameras in your home or office at the best prices on Rhebuch, as it boasts a large customer base that trusts the platform for security and safety automation needs. So you can buy all your security gadgets on Rhebuch to give you the sense of safety you desire.


Continue Reading


Financial Analysis: A Comprehensive Study of The Well-Being of A Country 




Financial Analysis: A Comprehensive Study of The Well-Being of A Country

Understanding the financial stability of a country requires a thorough understanding of financial analysis. In order to offer insights into the overall financial stability and overall wellness of the country, it entails evaluating a range of economic indicators, financial performance, and market movements.

In this article, we will delve into the fundamentals and importance of financial analysis in evaluating a country’s economic situation.


Ancient Beginnings:

The roots of financial analysis can be traced back thousands of years. The ancient Mesopotamians, Egyptians, and Greeks were among the pioneers of documenting financial transactions, creating basic records of assets and liabilities. These early attempts laid the groundwork for the concept of financial analysis through the study of financial statements and ledgers.

Medieval Europe:

During the Middle Ages, Europe witnessed the rise of merchant guilds and the emergence of double-entry bookkeeping. Italian mathematician and Franciscan friar, Luca Pacioli, is often credited with formalizing double-entry bookkeeping, publishing his seminal work “Summa de arithmetica, geometria, proportioni et proportionalita” in 1494. The concept of balancing debits and credits within financial records formed the basis for modern financial analysis techniques.

Industrial Revolution:

The Industrial Revolution in the 18th and 19th centuries revolutionized business and the need for financial analysis grew rapidly. As companies expanded and diversified, investors began demanding more comprehensive financial reports to assess the potential risks and returns of their investments. The birth of limited liability companies further accelerated the need for financial analysis, as shareholders sought transparency in the performance of their investments.

Modern Era:

The 20th century witnessed significant advancements in financial analysis techniques. The advent of electronic computing in the mid-1900s enabled the processing and analysis of vast amounts of financial data, leading to the development of sophisticated financial models and ratios.

The Great Depression of the 1930s laid the groundwork for modern financial analysis as regulators sought effective ways to prevent future economic crises. The establishment of the U.S. Securities and Exchange Commission (SEC) in 1934 brought about standardized reporting requirements, including the filing of audited financial statements. This increased transparency and standardized financial reporting provided analysts with a more accurate and consistent basis for their analysis.

The Rise of Quantitative Analysis:

In the latter half of the 20th century, the growth of computing power and the availability of large data sets propelled financial analysis into new territory. Quantitative analysis, utilizing statistical models and mathematical algorithms, started gaining prominence. Financial analysts began incorporating complex mathematical methods to assess investment opportunities, risk management, and portfolio optimization.

Modern Financial Tools:

With the advent of the internet and the digital age, financial analysis has become even more accessible and data-driven. Sophisticated software programs, data analytics tools, and artificial intelligence have revolutionized the way financial data is analyzed and interpreted. In recent years, technologies like machine learning have been leveraged to develop predictive models that can assess future trends and make accurate financial forecasts.


Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to warrant a monetary investment.

Financial analysis is a fundamental tool that allows organizations and individuals to assess the past, present, and future financial health of a business or investment. Through a systematic examination and interpretation of financial statements, ratios, and other key indicators, financial analysis helps in making informed decisions, optimizing resources, and improving overall financial performance. In this article, we will delve into the meaning of financial analysis, its prominent components, and its significance across various sectors.

Financial analysis involves scrutinizing financial data to evaluate the performance and profitability of an entity. It assists in quantifying the effectiveness of financial decisions, identifying trends, predicting future outcomes, and benchmarking against industry standards. By analyzing financial statements, investors, analysts, and other stakeholders gain valuable insights into the financial position, liquidity, solvency, and operational efficiency of an organization.


  1. Gross Domestic Product (GDP): GDP is a primary indicator used to gauge the economic performance of a nation. Financial analysts analyze GDP growth rates and its components, such as consumer spending, government expenditure, investments, and net exports. This analysis helps in determining the overall strength of the economy and identifying areas of potential growth.
  2. Trade and Balance of Payments: Trade analysis focuses on a country’s imports, exports, and balance of payments. Evaluating trade patterns helps identify sectors driving the country’s economic growth, trade imbalances, and potential risks to the economy from external factors such as changes in global demand or disruptions in supply chains.
  3. Inflation and Interest Rates: Analyzing inflation rates and interest rates provides insights into the stability of a country’s economy. High inflation erodes purchasing power, while high-interest rates can impact borrowing costs, affect consumer spending, and investment behavior. Financial analysts assess the impact of inflation and interest rates on an economy’s overall competitiveness and economic growth potential.
  4. Government Debt and Fiscal Policy: Analyzing a country’s government debt levels and fiscal policy is crucial in understanding its financial sustainability. A high level of government debt may lead to increased borrowing costs, reduced investor confidence, and potential risks to economic stability. Evaluating fiscal policies helps determine whether a country is managing its finances effectively and implementing sustainable economic growth strategies.
  5. Stock Market Performance: The stock market reflects investor sentiment and provides valuable insights into a country’s economic outlook. Analysts evaluate key stock market indices, such as the country’s primary exchange, sector-specific indices, and market capitalization trends. Monitoring stock market performance allows for an understanding of investor confidence, economic growth expectations, and potential risks to the financial system.
  6. Banking Sector and Financial Institutions: A robust banking sector is essential for economic stability. Financial analysts assess the health of the banking system by evaluating indicators such as non-performing loans, capital adequacy ratios, and the overall stability and soundness of financial institutions. Understanding the well-being of financial institutions helps gauge the potential risks to the overall economy, including credit availability, liquidity, and financial contagion.
  7. Regulatory Environment and Governance: The regulatory environment and governance play a critical role in attracting investment and fostering economic growth. Financial analysts assess the effectiveness of regulatory frameworks, transparency in financial transactions, and the overall credibility and efficiency of institutions responsible for enforcing regulations. Evaluating the regulatory environment aids in understanding potential risks and opportunities for sustainable economic development.


Financial analysis plays a vital role across various sectors, serving the following purposes:

  1. Evaluating Financial Performance: By conducting a comprehensive financial analysis, companies can assess their performance, profitability, and financial stability. This, in turn, helps in identifying areas for improvement, developing strategic plans, and making sound financial decisions.
  2. Assessing Investment Viability: Investors rely on financial analysis to evaluate the profitability and risks associated with potential investments. Through detailed scrutiny of financial data, investors can determine the financial health and growth prospects of a company, aiding in making informed investment decisions.
  3. Facilitating Lending Decisions: Financial institutions utilize financial analysis to assess the creditworthiness of loan applicants. By analyzing financial statements, evaluating ratios, and assessing the risk profile, lenders can ascertain the borrower’s ability to repay loans and make sound lending decisions.
  4. Supporting Strategic Decision-Making: Financial analysis aids in strategic decision-making, such as expansion, diversification, or mergers and acquisitions. Understanding a company’s financial position and performance provides a foundation for evaluating the feasibility and potential outcomes of such decisions.


Conducting a comprehensive financial analysis provides valuable insights into the economic landscape of a country. By evaluating indicators such as GDP, trade patterns, inflation rates, government debt, stock market performance, banking sector health, and regulatory environment, financial analysts can gauge the overall financial health, identify potential risks, and recommend strategies for sustainable economic growth. Accurate and timely financial analysis acts as a compass, guiding policymakers, investors, and businesses to make informed decisions and contribute to the overall prosperity of the nation.

Continue Reading