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Outcome Of The GST 302 Seminar Held On Saturday 30th of March 2019

IMG 20190326 WA0023 - Outcome Of The GST 302 Seminar Held On Saturday 30th of March 2019

IMG 20190326 WA0023 - Outcome Of The GST 302 Seminar Held On Saturday 30th of March 2019


Introduction: 

Echefu Richard is the Co – Founder and the Lead Business Developer at ISKOOL NG (formerly called JONSE Academy)
With over 3 years of experience in Business Development, he has helped numerous entrepreneurs developed a concise sellable plan to launch their business to the next level, while also overseeing yo the growth of ISKOOL NG

Our second speaker Obinna Nwamuo is the founder of NIGO Media, a startup that has won numerous awards and of recently bagged the ‘Best media Startup’ at the just concluded Abuja Business Fair.
He also was a beneficiary of the Business Plan Funding programme of NOUN in 2019, and this gave him the rare privilege to meet with the Vice Chancellor of NOUN
From the course material

GST 302 is a two-
credit unit course that has minimum duration of one semester. It is a compulsory 
course for all undergraduate students in the university. This course is to develop 
your competence and confidence in creating viable businesses with high potentials for new value addition and high income. The course is design to 
enable you direct your creative and innovative ideas into becoming an 
entrepreneur that will make you achieve economic independence after 
graduation. 

*Course Objectives*
The objective of this course is to: 
1. Make you appreciate the importance of businesses in the society 
2. Make you recognize the need to grow existing businesses 
3. Make you appreciate the value and importance of family businesses 
4. Challenge you to continuously diversity the scope of businesses 
5. Expose you to management principles and best practices 
6. Guide you on business start-up.
NOUN Business plan Template

1.0 Executive Summary
1.1 Briefly explain the gap the product or service want to fill
1.2 State the objectives
1.3 Present the vision (where you want to be or what you want to achieve. 
This sells your idea and presents your image) and mission (brief on how 
you will achieve the vision) 
1.4 Success Indicators – explain the product/service with focus on the 
sellable parts and how it will bring positive change in human life.
(the executive summary is the last to be written but first to appear in a 
business plan. It should be about 200 words)
2.0 Description of the Organisation/Company
2.1 Company Ownership (Describe how the idea of the product and 
company was generated, and legal ownership)
2.2 Start-up plan (For new business) or company history (for existing 
company)
2.3 Location of the company and facilities 
2.4 Organisational Structure
3.0 The Product/Service
3.1 Description of the produce/service
3.2 Product/service uniqueness (how is the product different from other 
competitive product. 
3.3 Give empirical trend of sales if the product is already in the market and 
if not yet in the market show how you intend to send it to market.
3.4 How would the product fit into the changing technology?
3.5 What is the future of the product/service
4.0 Market Analysis
4.1 Market segmentation (dividing your market of potential customers into 
groups such as demographic segmentation e.g. sex, age, specific 

workforce; geographical segmentation; psychological segmentation; 
behavioural segmentation etc.
4.2 Strategy for target market segmentation
4.2.1 Consumers’ needs
4.2.2 Market trends
4.2.3 Market growth
4.3 Analysis of the industry
4.3.1 Do a SWORT (Strength, weakness, Opportunity, Threat)
Analysis. In the strength state all that is within the organisation
that will help the product/service to grow, the weakness identify 
those things that are internal that may inhibit the growth of the 
business, opportunity is the external support that will help the 
business to grow, and the threat are external hindrances that may 
inhibit the growth of the product/service e.g. competitors. 
4.3.2 For Strength and opportunities, consider the hindrance to 
exploiting it, strategies for exploiting and enhancing it, and 
possible timelines. 
4.3.3 For weakness and threat, consider the effect on achieving the set 
objectives or goal, strategies to minimise or eliminate such 
weakness or threat, and possible timelines. 
4.4 Strategy for e-marking and technological challenges
5.0 Financial Analysis
5.1 Important Assumptions
5.2 Financial Indicators
5.2.1 Pricing
5.2.2 Proforma (forecasts and projection)
5.2.3 Proforma cash flow and cash flow projection
5.2.4 Proforma profit and loss
5.2.5 Fixed Cost
5.2.6 Goss Profit
5.2.7 Net Profit
5.2.8 Direct Cost
5.2.9 Indirect Cost/Overhead Cost
5.2.10 Unit Cost
5.3 Break-even Analysis
These are the sections of the school’s Business plan Template

*1.0 Executive Summary*


An executive summary, or management summary, is a short document or section of a document, produced for business purposes, that summarizes a longer report or proposal or a group of related reports in such a way that readers can rapidly become acquainted with a large body of material without having to read it all. It usually contains a brief statement of the problem or proposal covered in the major document(s), background information, concise analysis and main conclusions. It is intended as an aid to decision-making by managers and has been described as the most important part of a business plan.
*Example:*


Jolly’s Java and Bakery (JJB) is a start-up coffee and bakery retail establishment located in southwest Nigeria. JJB expects to catch the interest of a regular loyal customer base with its broad variety of coffee and pastry products. The company plans to build a strong market position in the town, due to the partners’ industry experience and mild competitive climate in the area.
*1.1 Explain the gap the product or services want to fill. (also known as the problem Statement)*


A gap in a market is an unmet consumer need or a group of potential customers who are not yet purchasing a good or service. Gaps in the market represent opportunities for companies to expand their customer base by increasing awareness and creating targeted offers or advertising campaigns to reach the untapped market. Identification of gaps in the market is an important step in increasing market penetration.
*How to find Gaps Market?*


Finding a gap in the market gives entrepreneurs a chance to innovate their business. Finding a gap and taking advantage can even allow you to build an entirely new business. There are several different ways in which you can look for gaps in the market to give you. 

You can come up with ideas from looking at trends to tweaking already existing products or services.
*Ways to find market gaps*

*1. Innovation* is at the heart of business success and growth. You need to be able to come up with fresh and new ideas to succeed and make sure that your competitors don’t outpace you. Coming up with an original idea and creating a business out of it doesn’t guarantee that your business will be unique. Therefore, you will need to stay on top of innovation and adapt to the ever-changing world and its consumers.
E.g.

During the early days of computing, only Government agencies, and big corporations could afford to own a computer system. But thanks to the innovative idea of Steve Jobs (Apple), his innovation brought about the creation of personal Computers that we have today
*2. Trends*
Keep an eye on trends as this is a great place to find fresh, new and relevant ideas. The world is rapidly changing and there are always new trends to pick up on. 

For example, *selfies* became a worldwide phenomenon, therefore there was a mass circulation of *selfie sticks*. 

You have to just be open to new ideas and jump on board when you see an opportunity. 

For example, Drone photography is becoming increasingly popular, especially in the last couple of years, therefore there are business opportunities there to explore. A drone business is not going to be groundbreaking, however, you could offer a drone rental service or a drone repair service. You need to think outside of the box to really get a good idea.
*3. Bringing the world home*

You might visit a country and notice something incredible that you just can’t get back in your home country. This could be authentic Italian gelato, so you decide to start a business selling that particular ice cream, importing it from Italy. You need to look beyond your town/country etc. and see how the rest of the world is operating in order to get inspired. You can travel and research what businesses are doing particularly well in different parts of the world, and find out the reasons why. Then you can look into starting a similar business and seeing if that business will work in your environment.
E.g.

2 days ago, the news of Nigerians ordering for London Pizza through British Airways was trending on social media. As funny as that may sound, imagine having a business idea that capitalizes on that. Imagine having a local distributor for London Pizzas (if there actually is anything as that )…?

*Think out of the box*
*3. Customers’  feedback*

For already existing businesses, Listen to what your customers say and actively ask customers to give feedback. Ask customers about any improvements you can make to provide a better service or product, and what are some things that your competitors are doing better than you. You might be able to spot a gap in the market whilst looking over customer feedback, which could lead to innovative products or services.
*1.2 State the objectives*


The dictionary says the definition of objective is “a thing aimed at or a goal.” But making a business objective means setting a long-term path for your business. Objectives are what a company aspires for over say, a year, five years or thereabout.
*Why Do You Need An Objective?* 

When you’ve got somewhere to go, you don’t hop in your car unless you know how to get there, right? It’s the same thing with a business objective. It’s your destination, a place you want to reach.
Ask yourself, in the coming year, what do you want to achieve? How will you define success at the end of that year, or further down the road?
There’s no one answer for this; every objective is unique to each company and its market.

*How to Determine Your Company Objectives*

When determining your company objectives, it’s a great idea to use the “SMART” method. This acronym has all the key points in setting good business objectives and goals.

For goals to meet the SMART standard, they should be realistic and achievable. This means:

*Specific* – Have a clear idea of what you want to achieve.

*Measurable*– By having a measurable objective, you’ll know if you were successful.

*Achievable* – Have a realistic objective that can be met in the time you have, with the money and resources at your disposal.

*Relevant*– Set an objective that makes sense for the company, ensure it’s relevant to where you need to go, for example, aspire to hire more staff because it means delivering better service and having greater reach.

*Timely*– Have an end date in mind, but be sure it’s a realistic timeline for the objective.
For example; one of the participant wants to start a Laundry and Drycleaning business.

The objective will be something like this;

At *J and J laundry and Drycleaners* We plan to become a reputable Laundry firm in Surulere and its environs by ensuring that we make contact with atleast 1000 potential customers with expectations to convert 700 of the potential customers into regular customers with topnotch service delivery  within the space of 6 months

*1.3 Present the vision* (where you want to be or what you want to achieve. )

This sells your idea and presents your image and mission (brief on how you will achieve the vision)

Vision statements are future-based and meant to inspire and give direction to employees of the company rather than customers. “Your mission statement is your company’s reason for being – it’s all about what you’re doing right now. 
While a mission statement focuses on the purpose of the brand, the vision statement looks to the fulfillment of that purpose,” 

*How to write a vision statement*

 Vision statement should be concise, no longer than a sentence or a few paragraphs. According to Falkowski, you want your entire team and organization to be able to quickly repeat it and, more importantly, understand it. However, a vision statement needs to be more than a catchy tagline. “[It] can be smart and memorable, but this is for your team and culture, not for selling a specific product,”

Example:  

Mission: JJB aims to offer high quality coffee, espresso, and pastry products at a competitive price to meet the demand of the middle- to higher-income local market area residents and tourists.

*1.4 Success Indicators* – explain the product/service with focus on the sellable parts and how it will bring positive change in human life
The sellable part of your product is the value added services your product will have to offer,  and how your product will bring positive change in human life. For instance with  UBER, you can stay in your home and order a taxi rather than going to the park to order a taxi. Also with Jiji you can advertise your product without geographical restrictions to millions of people.  

Example:
*Keys to success for JJB will include:*
Providing the highest quality product with personal customer service.
Competitive pricing.

BUSSNESS PLAN TOPIC : A BANKABLE BUSSNESS PLAN OF SETTING UP A POULTRY FARM IN THE AREA OF ABUJA (FCT)

*Description of the Organization/Company*
A “business organization” offers a legal framework that defines the company’s structure, profit dispersal and liability risk. Unlimited liability business organization types are a sole proprietorship and general partnership. Limited liability business organization types are limited liability partnership (LLP), corporation and limited liability company (LLC).
*Example:*
JJB is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation. A ten-year Small Business Administration (SBA) loan will cover the rest of the required financing. The company plans to build a strong market position in the town, due to the partners’ industry experience and mild competitive climate in the area.

*2.1 Company Ownership (Describe how the idea of the product and company was generated, and legal ownership).*


In this section you describe how you came about the idea of the company, where were you?, what were you doing?, who you with, what circumstances initiated the idea. And also describe the legal ownership {this actually means if the idea/company has been registered by CAC , if yes you talk about the people actually involved in the process}
*2.2 Start-up plan (For new business) or company history (for existing company)*

Startup plan is a comprehensive paragraph that explains the processes or steps you will take in order to execute the idea. The plan must be comprehensive so that the investor will know the steps you are likely to take to start your business

If you already have a company, in this section you can outline the history of the company from when it was founded to date.
*Example:*

JJB is incorporated in the state of Washington. It is equally owned and managed by its two partners.

Mr. Austin Patterson has extensive experience in sales, marketing, and management, and was vice president of marketing with both Jansonne & Jansonne and Burper Foods. Mr. David Fields brings experience in the area of finance and administration, including a stint as chief financial officer with both Flaxfield Roasters and the national coffee store chain, BuzzCups.

The company intends to hire two full-time pastry bakers and six part-time baristas to handle customer service and day to day operations.
*2.3 Location of the company and facilities*

This section talks about the location of the company, and all the facilities the company is comprised of. You can also list our most of the essential tools your company has and the function of it. 

For a startup, you should include the proposed venue for your company, and also the facilities the company will acquire.

*Example*
It is located at No 9 Kola Bustop Along Origie Express Road. Our facilities and departments include bakery where the bread and snacks are being baked, the account dept, call center, receptionist, food stand, etc.

*2.4 Organisational Structure*

This section talks about the company organogram(company organisational chart). An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities. The organizational structure also determines how information flows between levels within the company

*3.0 The Product/Service*

In the Products and Services section of your business plan, you will clearly describe–yep–the products and services your business will provide. Keep in mind that highly detailed or technical descriptions are not necessary and definitely not recommended. Use simple terms and avoid industry buzzwords so your readers can easily understand.

*3.1 Description of the produce/service*

Here you draft out all the information about your product and services. What is your product or service, and how does it work? How does it benefit customers? How do you make it or how will you get it made?

*Example:*
JJB offers a broad range of coffee and espresso products, all from high quality Columbian grown imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.
The bakery provides freshly prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available.

*3.2 Product/service uniqueness (how is the product different from other competitive product.*

On the other hand, describing how the company’s products and services will differ from the competition is critical. So is describing why your products and services are needed if no market currently exists. (For example, before there was Federal Express, overnight delivery was a niche business served by small companies. FedEx had to define the opportunity for a new, large-scale service and justify why customers needed–and would actually use–that service.). What makes this product or service unique or better than what’s already available in the market? Why would someone choose to buy your product or do business with you over someone else?
*3.3 Give empirical trend of sales if the product is already in the market and if not yet in the market show how you intend to send it to market.*

Here, you are to give an analysis of how your product is selling in the market, the numbers sold at daily, monthly quarterly and yearly interval.  If you are rendering a service you are to indicate the number of clients your company attends to at certain intervals. If your product is yet to enter the market, you are to give a proper analysis of how your product will penetrate the market and how many products you are likely to sell over time.

*How would your product fit into the changing technology*

Here you are to describe how your product will affect the technological trend, how it will improve the life of individual technologically and also the impact of technology itself. 

For instance, due to spread of mobile phones and the internet,   the numbers of people shopping online has increased

*4.0 Market Analysis*
This is the part of your business plan where you really get to shine and show off that awesome idea you have. Of course, your product or service is the best! Now, let’s talk about how you know it’s a hit. Be prepared to show you know your market AND that it’s big enough for you to build a sustainable, successful business
In writing up your market analysis, you’ll get to demonstrate the knowledge you’ve gained about the industry, the target market you’re planning to sell to, your competition, and how you plan to make yourself stand out.
A market analysis is just that: a look at what the relevant business environment is and where you fit in. It should give a potential lender, investor, or employee no doubt that there is a solid niche for what you’re offering, and you are definitely the person to fill it. It’s both quantitative, spelling out sales projections and other pertinent figures, and qualitative, giving a thoughtful overview of how you fit in with the competition. It needs to look into the potential size of the market, the possible customers you’ll target, and what kind of difficulties you might face as you try to become successful.


*4.1 Market segmentation (dividing your market of potential customers into groups such as demographic segmentation e.g. sex, age, specific workforce; geographical segmentation; psychological segmentation; behavioural segmentation etc*
The market analysis section of your business plan comes after the products and services section and should provide a detailed overview of the industry you intend to sell your product or service in, including statistics to support your claims.
In general, the market analysis section should include information about the industry, your target market, your competition and how you intend to make a place for your own product and service. Extensive data for this section should be added to the end of the business plan as appendices, with only the most important statistics included in the market analysis section itself.
*What Does a Market Analysis Section in a Business Plan Include?*

*Target Market:* Who is your ideal client/customer? This data should include demographics on the group you are targeting including age, gender, income level and lifestyle preferences. This section should also include data on the size of the target market, the purchase potential and motivations of the audience, and how you intend to reach the market.

*Lead Time:* Lead time is the amount of time it takes for an order to be fulfilled once a customer makes a purchase. This is where you provide information on the research you’ve completed on how long it will take to handle individual orders and large volume purchases, if applicable.

*Competitive Analysis:* Who is your competition? What are the strengths and weaknesses of the competition? What are the potential roadblocks preventing you from entering the market?

*4.2 Strategy for target market segmentation*

*4.2.1 Consumer Needs:* Before you start promoting your business you need to know what your customers want and why. Good customer research helps you work out how to convince your customers that they need your products and services.

*4.2.2 Market Trend:* A market trend is anything that alters the market your company operates in.
Imagine that the first cell phone has just been released. People are excited and confused by the idea of carrying a phone outside of their home. Few people have cell phones, and some are uncertain that they will become popular. Fast forward 20 years and the streets are dominated by cell phones. A couple years later, the smartphone takes over.
In order to keep your company ahead of the competition, it is important to utilize market trend analysis, or the process of evaluating changes to your market. *Market trend analysis* looks at how your industry started in the market, how it has grown, and where it is expected to go. For example, how cell phones first come about, how their popularity changed, and how manufacturers and retailers expect the market to change

*Customer Needs and Interests*
When you conduct a market trend analysis you want to consider the needs and interests of your consumers. For example, as technology advanced, so did cell phones. As cell phones advanced, so did the needs and interests of the customers. On the other hand, if you don’t continue to meet the needs and interests of your customers, you will be left in the dust as they move on to the products they desire.
Consider that the cell phone is now used for email, Facebook, Skype, and various other methods of communication. Because of these market changes, the phone industry is constantly looking for new ways to meet the needs and interests of their consumers. Phones are becoming smaller and easier to carry, they now have cameras, alarms, schedule books, and some are even able to turn the lights off in your home.
Market analysis allows the phone industry to understand the psyche of their consumers, and thus, they are able to make the phone fit the daily needs and interests of the people who want to buy the products. Leave the oven on at home? No problem, your cell phone can turn it off! By analyzing the current and future needs and interests of your customers, you can ensure your products and services are cutting edge.

*4.3 Analysis of the industry* 

*4.3.1 Do a SWORT (Strength, weakness, Opportunity, Threat) Analysis. In the strength state all that is within the organisation that will help the product/service to grow, the weakness identify those things that are internal that may inhibit the growth of the business, opportunity is the external support that will help the business to grow, and the threat are external hindrances that may inhibit the growth of the product/service e.g. competitors.*


A SWOT analysis is an incredibly simple, yet powerful tool to help you develop your business strategy, whether you’re building a startup or guiding an existing company.

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths and weaknesses are internal to your company—things that you have some control over and can change. Examples include who is on your team, your patents and intellectual property, and your location.

Opportunities and threats are external—things that are going on outside your company, in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them. Examples include competitors, prices of raw materials, and customer shopping trends.

A SWOT analysis organizes your top strengths, weaknesses, opportunities, and threats into an organized list and is usually presented in a simple two-by-two grid.

*4.3.2 For Strength and opportunities, consider the hindrance to exploiting it, strategies for exploiting and enhancing it, and possible timelines. 4.3.3 For weakness and threat, consider the effect on achieving the set objectives or goal, strategies to minimise or eliminate such weakness or threat, and possible timelines.*

*5.0 Financial Analysis 
5.1 Important Assumptions
 5.2 Financial Indicators 
5.2.1 Pricing 
5.2.2 Proforma (forecasts and projection) 
5.2.3 Proforma cash flow and cash flow projection 
5.2.4 Proforma profit and loss 
5.2.5 Fixed Cost
 5.2.6 Goss Profit
 5.2.7 Net Profit 
5.2.8 Direct Cost 
5.2.9 Indirect Cost/Overhead Cost 
5.2.10 Unit Cost

A business plan is all conceptual until you start filling in the numbers and terms. The sections about your marketing plan and strategy are interesting to read, but they don’t mean a thing if you can’t justify your business with good figures on the bottom line. You do this in a distinct section of your business plan for financial forecasts and statements. The financial section of a business plan is one of the most essential components of the plan, as you will need it if you have any hope of winning over investors or obtaining a bank loan. Even if you don’t need financing, you should compile a financial forecast in order to simply be successful in steering your business.

*5.2.3 Cash flow and cash flow projection*


A cash flow statement is a financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.
*5.2.4 Proforma profit and loss*
The profit and loss account shows what net profit and loss your business has made within an accounting period after deducting all expenditure from the income. A net profit is earned if the total expenditure is less than the sales and a net loss if it is greater.


An essential objective of a business is to make a profit. The P&L statement shows the extent to which it has been successful in achieving this objective.

Companies are expected to keep their P&L statements in certain formats. Typically, the P&L statement will show the revenues received by a business and the costs involved in generating that revenue. In simple terms:

Revenues – Costs = Profits
*5.2.5 Fixed Cost*

fixed cost is an expense or cost that does not change with an increase or decrease in the number of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any business activity. It is one of the two components of the total cost of running a business, the other being variable costs.
*5.2.8 Direct Cost*


A direct cost is a price that can be completely attributed to the production of specific goods or services.
Examples of direct costs include manufacturing supplies and commissions. Rent expense may only be a direct cost if only one cost object relates to the facility being rented.

Because direct costs can be specifically traced to a product, direct costs do not need to be allocated to a product, department or other cost object. Direct costs may be related to labor, materials, fuel or power consumption. Direct costs usually benefit only one cost object. Items that are not direct costs are pooled and allocated based on cost drivers.
*5.2.9 Indirect Cost/Overhead Cost* 

Indirect costs are costs used by multiple activities, and which cannot therefore be assigned to specific cost objects. Examples of cost objects are products, services, geographical regions, distribution channels, and customers. Instead, indirect costs are needed to operate the business as a whole.
Examples of indirect costs are:

Accounting and legal expenses

Administrative salaries

Office expenses

Rent

Security expenses

Telephone expenses

Utilities
*5.2.10 Unit Cost*

A unit cost is a total expenditure incurred by a company to produce, store, and sell one unit of a particular product or service. Unit costs are synonymous with the cost of goods sold and cost of sales.


Unit cost is a crucial cost measure in the operational analysis of a company. Identifying and analyzing a company’s unit costs is a quick way to check if a company is producing a product efficiently.
That explains the 5.0 section of the business plan

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