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How to Write a Perfect Business Plan in Nigeria (And a FREE Template)

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Writing a perfect business plan in Nigeria shouldn’t be a difficult task, let talk about this!

Are you starting a new business in Nigeria and you don’t want to fail? Then writing a good business plan should be considered the second great deal after your initial idea before you put in your capital.

In today’s business world, one of the great ingredients for a successful business is proper documentation, one of such documents is your Business Plan; which is why I’ll be showing you how to write a perfect business plan in Nigeria.

Well, not as perfect as an angel. But, I’m sure this blog post will really help you understand the simple secret behind writing a good business plan.

But we need to understand some basic concepts in order to fully understand the proper crafting of a business plan. In business schools, we’ve got different definitions of what a business plan is.

What is a Business Plan?

Basically; a business plan is a comprehensive, yet concise description of a business entity, be it a startup firm or well-known cooperation.

It’s a document that describes several areas of your business as an entrepreneur, these include; financial, executive, operational, marketing, and goals of your business. A business plan may serve one or all of the following purposes, which is; 

  • To present current and potential investors what your business entails in a bid to make them invest, or;
  • To serve as a guide for the company – leading you from where you are present to where you wish to be in the future.

But often, business proposals and business plans are oftentimes, used interchangeably, while in essence, they differ to some extent. So, what are the differences between them?

Difference between Business Plan and Business Proposal

A business proposal is a document showing potential investors your business idea and how you tend to execute such an idea and how viable it is, all these are done with the aim of getting support from investors and clients. You don’t need to have a business up and running before drafting a proposal, just an idea is enough.

Business proposals are for a specified set of audience.

ALSO READ: How to Write a Good Business Proposal 

A good business plan in Nigeria as earlier stated serves as a document to guide a firm into its future or to seek investment from investors. You need to have a business up and running before you could write a business plan.

A business plan is meant for a much wider spectrum of people.

Importance of a Business Plan in Nigeria

Few advantages of crafting a good business plan in Nigeria include;

  • A Business Plan Makes It Easier to Make Future Prediction 

With a well-defined business plan, it’s much easier to predict the future of your business. When you’ve got a clear goal of where you are going, it becomes much easier to plan towards it.

  • It Gives You Better Understanding of Your Market

When crafting a business plan, you get to do quite a lot of research work which would include your target market. Doing this will give an insight into the market, something you probably didn’t have before.

  • You will Know the Business Pros and Cons

As you outline your plans, your strong points become more obvious to you, and that’s what you should focus on moving forward. You’d also see your flaws, with this knowledge, you can work on improving on them – turning them into strong points.

  • Business Plan Improves Decision Making

Irrespective of who your business plan is targeted at, you still get to keep a copy. This informs your decision, leading you to make better choices. If ever you lose track – which is quite certain, you could get right back with the knowledge of your intended plan.

There are many more advantages of why you should have a good business plan in Nigeria, these are just some of the more prominent ones. Therefore, it’s important you take time to carefully craft a business plan, which leads us to the next phase.

Things to Note Before Writing your Business Plan

Before you go-ahead to start writing that business plan, take note of these three points; 

  • Know your Audience: Who would be reading your business plan? Are they well versed in your field of expertise? probably not. This lets you choose your words so as to accommodate almost everyone, you can leave out the technical jargon because not everyone is acquainted with your field. The aim is to use simple grammar while writing, this makes it easier for any investor to comprehend what you’re up to. 
  • Not Too Long, Not Too Short: This is a really sketchy one, but you don’t want to tire out investors. Too long, it seems discouraging to read and most probably won’t be. Too short, you’re seen as not committed to the business. This is what you need to do; your entire document should be between 15 to 25 pages with a very legible font.
  • You don’t have to be an Expert to get started: Many entrepreneurs feel reluctant to start writing a business plan, with the mindset of being an expert with good writing skills to start writing their business plan. There are lots of platforms that could help you create a really good business plan in Nigeria. You could also research available templates to make it a lot easier.

To have a more personalized business plan, you need to craft it yourself, which leads us to the meat of the article.

Proper Structure to Write a Perfect Business Plan in Nigeria

If you want to capture the hearts of your future investors, and probably something to keep you from going on track, then you need this structure in place, in the following order;

N.B. Remember to use legible font while writing, proper paragraphing should be employed and also ensure to use infographics where possible.

  • EXECUTIVE SUMMARY

This is the first part of your business plan, it’s the summary of all other sections of your plans, and as such, it should be concise – not giving off too many details. A good executive summary will determine if the rest of the business plan will be read, especially by a potential investor. 

If this part of your document is nicely written, stating all the relevant information, a client may not need to read the whole plan because you’ve already conveyed the whole message. 

When writing a business plan in Nigeria, you should see this part of the document as your major selling point, so you need to get it right. 

A perfect executive summary should summarize the following; 

  • Value proposition
  • Problem(s) you wish to solve
  • Solution(s) you’re offering
  • Your target market, your competition
  • Overview of your business team
  • Means of funding and milestones reached. 

All these shouldn’t be more than two pages of your document, with you stating the most relevant points, facts, and figures of each.

  • PROBLEM & SOLUTION

As an entrepreneur, your business will definitely be solving a problem, directly or indirectly. You should know what the problem is, making this the second part of your document. If your company isn’t solving any direct or indirect problem, then its relevance is questionable. 

You’ve got problems to solve, how do you go about solving them? 

This is where you’ve got to show your ideas’ credibility. Certainly, you’re not the only one solving the stated problem, there are probably other small business owners like yours, who’re providing similar products or services. 

You’ve got to give reasons why your products and services outperform your rivals, how you intend to make it much better and easier, this is what investors care to know about. Offering a much more efficient product or service which tackles the challenges stated opens the door of investments.

ALSO READ: Top 10 Business Investors in Nigeria

  • TARGET MARKET

Another strong point that would make your business plan stand out is by identifying and targeting a section of the market. Gone are the days of making products or offering services with no intended market, it is critical to the success of any business in the current world.

Take, for instance, you’re into clothes manufacturing, you need to have a specific gender in focus, a specific age group, and probably, people with similar style tastes. In doing this, you’ve got a good chance of succeeding in your field as you already know who you’re targeting, this will surely make investors sign those deals.

  • COMPETITION

If you take a vivid look at the business world we have today, it is obvious that most business entities have direct alternatives, they may be one or more than one alternatives to your business, a perfect example is the Nigerian telecom sector. While this is good for the customers, as they’ve got varieties to pick from in case one option sucks, it’s a challenge you must face as a business entity.

RELATED: How to Start a Recharge Card Printing Business in Nigeria

What you should note therefore in your document are; what your target market entails, what your counterparts are doing currently, and how do you wish to improve on it. Remember, you need to offer better products or services than your competition, or offer these products/services in a much better way.

  • EXECUTION PLAN

After you must have written all the above sections, you then need to come up with an execution plan. Whatever will be written here has to be feasible, without knowing how to go about executing, your plan will remain just a mere plan without life. This is where your plan gets into action.

Execution” in business plan entails how you tend to market your products/services and your brand, and the mediums required to do so. There’s also a need to structure your pricing policy in relation to the current market.

You don’t necessarily need to give out the actual figures, but you could suggest pricing patterns – the same price as the market, or higher/lesser than the actual market figure. When writing your business plan in Nigeria, it’s important you’ve got steps to execute it, investors don’t invest in oral contents – they invest in the actual content. 

  • PUBLICITY

Publicity is one good point to note when writing a perfect business plan in Nigeria. Truth be told, no one is going to come to look for you if you don’t exist. If you’re just an entrepreneur starting out, then you need to make people know you exist.

Your branding, PR, and advertising all come under this part of your business plan. You’re competing against similar brands and you need publicity to grow your business beyond its current level.

  • TEAM & COMPANY OVERVIEW

Now your business plans have been stated out, revealing all the bits and pieces, and how to execute, but who will execute? Your team of experts is the people responsible for bringing this plan to life. You need to have a competent team, who should be able to carry out this plan and you have to include this in your document. 

You don’t need to highlight the titles of the personnel involved here, an apt description of their level of proficiency in their respective field will be enough.

In your team and company overview, you’d have to include the following to give more insights about the plan; 

  • Your intellectual property, 
  • Your mission statement
  • Business structure
  • Business history 
  • Location 
  • Your financial plan 
  • Personnel plan and your profit/loss profile. 

Now, Your FREE Business Plan Template

As you see in the title of this blog post, I promise to give a free business plan template, and here it is. Please enter your best email address and name in the contact form here and write in the message ox that “I need the business plan template“. Click on “SUBMIT” and the template will be sent to you.

CONCLUSION – Writing a Perfect Business Plan in Nigeria

Writing a good business plan could be an arduous task, but with proper research and commitment, you could craft a perfect business plan among your competitors in Nigeria. You don’t want to rush things, take it a step at a time.

If you need a good business plan writer in Nigeria, you can contact me here or use the free template to craft your own plan.

Don’t forget to subscribe to my mailing list, in order to be notified anytime I publish a new and helpful blog post like this. While waiting till then, you can also share this blog post with your friends by clicking on the floating social media icons here.

My name is Stephen Gbolagade, people say I'm a multi-skilled guy. I guess maybe because I'm a Blogger, Website Designer, SEO specialist, Content Writer, Business coach, Digital Marketer, and Self-taught Frontend Developer. But what do I have to say about myself? My contents, personality, and services will say and prove the person I am to you. __________________________________________________________________________You can hire me for Music Promotion, Website Design or Blog Setup, Marketing and any Digital-based tasks! __________________________________________________________________________ Contact me here on Facebook :: Instagram :: WhatsApp __________________________________________________________________________ If you're inspired by me and think it's necessary to buy me a cup of coffee, you can give me a tip HERE 👌

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How To Start a Logistics Business in Nigeria – (10 Easy Steps)

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Have you ever want to launch your own logistics business in Nigeria but don’t know how to start or what exactly to do? I’m going to show you an easy and practical approach to starting a profitable logistics or delivery business in the country.

Do you know that some businesses are complementary to others? Yes, they work for the benefit of both businesses. And in this age of the Internet, the tendency to shop online continues to increase as the days go by, hence, the need for a complementary service, that’s a service to fulfill the deliveries.

Logistics or delivery business in Nigeria or any place in the world is not ending soon because almost all e-commerce business owners or companies are now on the internet and they need a logistics company to help bridge the gap between the end of the buyers.

Just in case you don’t know much about the logistics business, below is a quick explanation;

Understanding How Logistics Business Work

In a business sense, logistics aid the movement of goods/services from the manufacturer/wholesaler to the consumer. By definition, it sounds simple but by the implementation, it is rather complex. This is why manufacturing firms sparingly have their own logistics team—relying on an independent logistics company.

Logistics companies are tasked with the responsibility of the planning, implementing, and movement of goods, services, and other valuables from the point of origin to the final consumer. The origin of logistics can be traced back to world war 1 (WWI) and WWII where the military had to make supplies available for their soldiers.

Logistics is now a full-fledged business today and lots of money can be made. This is why I’ve made this post to guide you on starting a logistics business in Nigeria.

If you have ever shopped on Jumia, Konga, Amazon, Aliexpress, and other top online shopping sites, I’m sure you understand that the guy or company that picked the products from the manufacturer’s warehouse and delivered to you, in operating under what we know as logistics business.

Now, let’s talk about starting your own logistics business in Nigeria or anywhere in the world!

How to Start a Logistics Business in Nigeria: 10 Steps!

#1. Develop Your Business Plan

Writing your business plan is the first step to take when starting a logistics business in Nigeria. Many take this for granted but having one is pretty important. You really don’t need to have good writing skills or be a business expert before crafting a good business plan.

Although, there are a lot of services that can assist you in generating a business plan I advise you to write manually or hire the someone who can personally do it for you. 

Since your business plan will be your guide as you grow your logistics business, a personalized version will always come in handy. I won’t go into great detail here as we already have a post on writing a business plan and a free template.

Check this guide on how to write a good business plan.

So, let’s talk about the next important step!

#2. Get Your Capital

After your business plan, the next thing is to get your capital – which you know is very important. And there are several ways you can source for your capital. You can choose to finance it personally or get a loan from the bank.

Getting a loan or financing your logistics business yourself has its pros and cons and it’s totally up to you. Lots of commercial banks would be willing to offer you a loan, you can as well apply for business grants which will save you from the stress of providing collaterals. 

Once the funding is acquired, the next step is to;

#3. Get an Office Space

You don’t need a big warehouse, but an office where you can attend to clients and enquires in case a company or a customer need to see you before transacting with your company.

Ensure your office is well decorated, not beautifully but professionally.

Note that;

  • Your main office should be separated from where you keep customer goods
  • Your office should be easily located, don’t rent an office space very far to the main road
  • Your business location should be google (You can hire me for this)

If you’ve got your office space, then do this:

#4. Choose Your Delivery Mode

Logistics business in Nigeria can take different forms. We’ve got companies who make use of motorcycles, buses, mini-vans, or trucks. You can start with one of these, or you could mix them up for flexibility.

Knowing what means to use for transportation will determine what you choose to use as your capital. Using a motorcycle/bike means less capital expenditure but also, it limits you to carry certain goods.

Also, you’d be choosing between:

  • Intra-state (e.g within Lagos state)
  • Inter-state (e.g Within and outside Lagos state – to Kwara State, etc.) 
  • Inter-countries (e.g from the USA, China, etc to Nigeria)

Or perhaps, you can decide to do both but keep in mind that you’ll have to learn more travel routes in a short span of time.

Okay, the next up in purchasing the tools needed for your business and also, hiring some personnel to fill out different positions. From our definition of logistics, it is very evident that you will be needing a good number of workers to ensure everything is carried out seamlessly.

#5. Buy Necessary Equipment & Vehicles

You need to buy important Items like computers, stationery, dispatch box, telephones are some of the important items needed to run a successful logistics business in Nigeria. With these and more in place, it is expected that you have an effective logistics business like the top brands in the country.

Considering your mode of delivery, you can buy some motorcycles or small buses and brand them with your business identity, just like the like of Jumia, etc.

Some logistics companies also partner with taxi drivers and okada riders to fulfill the deliveries instead of using their own cars, motorcycles, and drivers.

If you want to deal with inter-countries, then you need to grow your network with aviation companies.

#6. Setup a team or Employ Staff

About getting the necessary requirements, the next big deal is to set up your own team or employ some people to work with you.

Also, make sure to hire staff to fill out different positions and not just drivers. Asides from delivery, business management, customer care service, and planning need to be top-notch which the driver can’t do. 

This team or staff includes;

  • The drivers (if you have motorcycles or buses)
  • The customer care agents
  • The marketing team

If you don’t have enough money to pay staff, you can hire university students, or those people who are smart and conversant enough, then train them yourself or hire an expert to come and train your team.

#7. Register Your Business

If you want your logistics business in Nigeria to be taken seriously as a business entity, then getting your business registered should be a top priority for you. These days people are getting more aware of fraudulent businesses. Failure to register yours puts up a red flag for potential customers.

Looking at it critically, the cost of registering your business with the Nigerian Corporate Affairs Commission isn’t expensive, so why not do it? Starting with N10,000, you can register your business in Nigeria. If you have a business name already for your logistics company but don’t have enough funds to register, you can reserve your business name for 6 months with just a little token of N500. 

Check out our post on how to register a business name in Nigeria.

If you need me to register the business for you, it cost N25,000 and I will get your business approved and your business registration certificate will be sent to you, or you collect it yourself.

#8. Go Digital with Your Business

The world is digital itself, all businesses are going digital and if you’re not on the internet, then you don’t have a business yet. And when I say you should go digital, I’m not saying you should just open social media pages and that’s all.

You should try and get a professional website, do your google business listings, list your logistics business on business directories, do Search Engine Optimization (SEO) and of course, your business social media pages are important.

If you need a professional website design or development, my Web Design and Digital marketing agency can handle that for you. Kindly contact me here or visit our website here >>> https://www.gbolabyte.com

We can also handle your digital marketing, google business listing, SEO, and other digital or remote tasks you need us for.

Remember that most of your customers are online, you also need to get your business and the first approach is to get a business website for your logistics business in Nigeria.

#9. Brand Identity Design & Branding

Business identity and branding will really differentiate your business from other logistics businesses in Nigeria. When it comes to branding, you need the service of a professional graphics designer.

Note that some graphic designers are not experts when it comes to branding.

Branding is more than designing a logo, it involves anything that will make your business stands out. Brand Identity designer offers everything ranging from your logo, icons, social posts banners, ID cards for your staff, brand your company vehicles, brand your office equipment, and everything brandable.

This is very important and it goes along with your marketing, that’s what I’ll be explaining last!

#10. Market Your Business. 

You’ve come a long way in starting your logistics business in Nigeria. As a new player, unless you’re extremely lucky, no one is going to find out about you. Which is why you’ve got to market your brand.

The top logistics firms in Nigeria like GIG Logistics, Creseada International Limited, Ocenj Logistics, and more didn’t get to where they are today by chance. They sent the word out about their business and then delivered on the customer’s expectations.

And in this age of the Internet, it’s much easier to market your business by using available tools like social media. Remember, you’ve got to offer something different from the rest, or make a service offered by your competition better. With these, your logistics business will soar to great heights.

Part of your marketing strategy is to try and connect with e-commerce website owners or companies in Nigeria so that they can recommend you to their customers. Try to reach out to these companies and your business network will continue to grow.

CONCLUSION – How to Start a Logistics Business in Nigeria

E-commerce is getting bigger by the day in Nigeria and this is why the logistics business in Nigeria as a complimentary service is getting more traction. And yes, like every business, this has its own risks but with a good management team, these risks can be reduced to its bare minimum. 

At the moment, the logistics space in Nigeria isn’t that saturated which is a good reason to start as soon as you can. As you do, keep in mind the steps above as they’ll be your guide when you experience obstacles. 

So, over to you, when do you wish to start your logistics business in Nigeria? And if you own one already, how did you start yours? Let’s hear from you!

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President Muhammadu Buhari’s Full Speech on #EndSars Protest

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Have you watched the broadcast of President Muhammadu Buhari’s full speech on the #EndSars protest? Well, many of us are opportune to watched it live on NTA (their YouTube channel).

We all know what’s happening in the country since two weeks ago and the President hasn’t until today, address the citizens of Nigeria. Before he went live to deliver his speech, Nigerians had set their expectations so high to listen to see what Mr. President planned to do with Lekki Toll gate’s Massacre, Police brutality, bad government, corruption and other things happening in the country.

But, well… Nigerians are left disappointed.

I know by now, you have being seeing some posts on social media by Nigerians, saying they need need to leave this country and travel to Canada and sort of cruise like that regarding President Muhammadu Buhari’s full speech on #EndSars protest.

You’re eager to listen to it right? Worry no more! You can watch the video below or read the speech.

VIDEO: Full Broadcast of President Muhammadu Buhari on #EndSars Protest

You can read the speech speech below;

ADDRESS TO THE NATION BY HIS EXCELLENCY, MUHAMMADU BUHARI, PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA ON THE ENDSARS PROTESTS, 22ND OCTOBER, 2020

Fellow Nigerians,

It has become necessary for me to address you having heard from many concerned Nigerians and having concluded a meeting with all the Security Chiefs.

2. I must warn those who have hijacked and misdirected the initial, genuine and well – intended protest of some of our youths in parts of the country, against the excesses of some members of the now disbanded Special Anti-Robbery Squad (SARS).

3. On Monday 12th October, I acknowledged the genuine concerns and agitations of members of the public regarding the excessive use of force by some members of SARS.

4. The choice to demonstrate peacefully is a fundamental right of citizens as enshrined in Section 40 of our Constitution and other enactments; but this right to protest also imposes on the demonstrators the responsibility to respect the rights of other citizens, and the necessity to operate within the law.

5. As a democratic government, we listened to, and carefully evaluated the five-point demands of the protesters. And, having accepted them, we immediately scrapped SARS, and put measures in place to address the other demands of our youth.

6. On approving the termination of SARS, I already made it clear that it was in line with our commitment to the implementation of extensive Police reforms.

7. Sadly, the promptness with which we have acted seemed to have been misconstrued as a sign of weakness and twisted by some for their selfish unpatriotic interests.

8. The result of this is clear to all observers: human lives have been lost; acts of sexual violence have been reported; two major correctional facilities were attacked and convicts freed; public and private properties completely destroyed or vandalised; the sanctity of the Palace of a Peace Maker, the Oba of Lagos has been violated. So-called protesters have invaded an International Airport and in the process disrupted the travel plans of fellow Nigerians and our visitors.

9. All these executed in the name of the ENDSARS protests. I am indeed deeply pained that innocent lives have been lost. These tragedies are uncalled for and unnecessary. Certainly, there is no way whatsoever to connect these bad acts to legitimate expression of grievance of the youth of our country.

10. The spreading of deliberate falsehood and misinformation through the social media in particular, that this government is oblivious to the pains and plight of its citizens is a ploy to mislead the unwary within and outside Nigeria into unfair judgement and disruptive behaviour.

11. On the contrary, both our deeds and words have shown how committed this administration has been to the wellbeing and welfare of citizens, even with the steadily dwindling revenues, and the added responsibilities and restrictions due to the Coronavirus pandemic.

12. Government has put in place measures and initiatives principally targeted at youths, women and the most vulnerable groups in our society. These included our broad plan to lift 100 million Nigerians out of poverty in the next 10 years; the creation of N75 billion National Youth Investment Fund to provide opportunities for the youths and the Micro, Small and Medium Enterprises (MSME) Survival Fund, through which government is:

a. paying three months salaries of the staff of 100,000 micro, small – and medium – enterprises,
b. paying for the registration of 250,000 businesses at the Corporate Affairs Commission,
c. giving a grant of N30,000 to 100,000 artisans; and
d. guaranteeing market for the products of traders.

13. These are in addition to many other initiatives such as;
a. Farmermoni,
b. Tradermoni,
c. Marketmoni,
d. N-Power,
e. N-Tech and
f. N-Agro.

14. No Nigerian Government in the past has methodically and seriously approached poverty-alleviation like we have done.

15. With regard to the welfare of police personnel, the National Salaries, Income and Wages Commission has been directed to expedite action on the finalization of the new salary structure of members of the Nigeria Police Force. The emoluments of other paramilitary services are also being reviewed upwards.

16. In order to underscore the importance of education in preparing youths for the future, this administration has come up with a new salary structure and other incentives for our teachers.

17. Let me at this point reaffirm the Federal Government’s commitment to preserving the unity of this country.

18. We will continue to improve good governance and our democratic process, including through sustained engagement.

19. We shall continue to ensure that liberty and freedom, as well as the fundamental rights of all citizens are protected.

20. But remember that government also has the obligation to protect lives and properties, as well as the right of citizens to go about their daily businesses freely and protected from acts of violence.

21. To our neighbours in particular, and members of the international community, many of whom have expressed concern about the ongoing development in Nigeria, we thank you and urge you all to seek to know all the facts available before taking a position or rushing to judgment and making hasty pronouncements.

22. In the circumstances, I would like to appeal to protesters to note and take advantage of the various well-thought-out initiatives of this administration designed to make their lives better and more meaningful, and resist the temptation of being used by some subversive elements to cause chaos with the aim of truncating our nascent democracy.

23. For you to do otherwise will amount to undermining national security and the law and order situation. Under no circumstances will this be tolerated.

24. I therefore call on our youths to discontinue the street protests and constructively engage government in finding solutions. Your voice has been heard loud and clear and we are responding.

25. And I call on all Nigerians to go about their normal businesses, and enjoin security agencies to protect lives and properties of all law abiding citizens without doing harm to those they are meant to protect. Let me pay tribute to officers of the Nigeria Police Force who have tragically lost their lives in the line of duty.

26. I would like to thank those state Governors, traditional and religious leaders who have appealed for calm and restraint. I also thank youth leaders who have restrained their followers from taking the law into their hands.

27. This government respects and will continue to respect all the democratic rights and civil liberties of the people, but it will not allow anybody or groups to disrupt the peace of our nation.

Thank you all. God bless the Federal Republic of Nigeria.

That’s the full speech of President Buhari on #EndSars protest 😉

I don’t know what to say on this… But someone commented on Twitter that the President Buhari’s speech make the whole country “speechless” — Maybe that’s why I don’t know what to say.

But I know most Nigerians are disappointed.

But just in case you’re thinking of traveling out of the country and you don’t know how to start, here is how to get your international passport in Nigeria

What do you think about the 10 minutes speech? Kindly use the comment box below.

 

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8 Effective Ways to Reduce Your Household Expenses

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Are you finding it quite difficult to reduce your household expenses? Okay, don’t feel depressed, this page is what you need to get motivated and take that action!

Among all lessons we have learned during this COVID-19 “pandemic period”, one good lesson we should always stick to,  is how to manage our funds and resources. Millions of people across the world became unemployed as a result of this world-renowned virus, but how do they survive? By simply cutting their expenses and wise management of their savings.

It is very important we learn how to manage our money wisely, or hence, we might end up becoming financially broke or a debtor. I know you don’t want that!

Today I’ll be showing you how to reduce your budget and lower your household expenses. These tips work for everybody, regardless of who you are, either you’re a 9-5 employee or an entrepreneur.

So, let’s check them together!

8 Ways To Reduce and Manage Your Household Expenses

Tip #1. Cut Off Your Cell Phone Plan

Having and using a cell phone is quite expensive when studied critically. No doubt they’re beneficial… but we also get charged for services, tax, etc., that we can’t even explain. This is why it’s important to choose a good cell phone plan.

According to NCC (Nigeria Communication Commission), Nigerians collectively spent about N450 Billion per month on recharge cards and data connections. That is approximately $1.17 million spent every month on cell phone plans.

You know what?

The amount of money spent on recharge cards and data connections covered about 73% of Nigerians’ expenses while the remaining 27% covered foodstuff, emergency funds, skincare, and other personal stuff.

I’m sure you’re one of those people enriching these telecommunication companies every month, I personally buy data worth N15,000 every month!

We need to learn how to reduce these expenses, and the best way we can do that is to reduce the hours we spent on social media apps (especially, Instagram and Facebook), YouTube, and online streaming sites.

Also, a prepaid plan is the most suitable option. You can get it with the major carriers at almost half the price of the regular plan. The beauty of prepaid plans are the added bonuses and incentives. Things like unlimited calls, unlimited SMSs, reduced call rates, and lots more. 

RELATED: How to Start Recharge Card Printing Business in Nigeria

If you’re looking to save some bucks, cut the regular plan and switch to a prepaid plan.

Tip #2. Do Away With Cable Subscription

One of the best ways you can reduce your household expenses is by ditching your cable plan. I know it feels good to lay on the couch after the day’s work… sipping your favorite drink… watching a good movie. I get it. But you’re on a budget and some things have to go.

Thankfully, we have digital platforms today where you can watch your favorite TV and sports shows. You can watch TV on YouTube, Netflix is a good option—it costs less per month, Showbox for Android users is great, or you could get a fire stick. 

There are lots of these services out there, using any will help in maximizing your finances in the long run.

Tip #3. Get an Insurance

We live in a world where everything is risky either on land, in water, or at home. Accidents can happen anytime, you can start developing a kind of sickness any day, your car might develop faults and different unforeseen circumstances that may suddenly require you to spend money.

Sometimes, you have to borrow money from your friends, co-operative society, or take a loan from your bank, in order to take care of those issues. 

But to help you manage your funds and reduce your expenses, Insurance plans are ready to cover that for you.

If you are a car owner, it is very important to have auto insurance. It comes in handy because you never know when uncertainties or accidents may occur. But the cost of these plans does take a toll on your finances.

If your business requires traveling a lot, you can opt-in for travel insurance, and you can do the same for health insurance.

You can always shop around for a less expensive plan. The big carriers tend to charge you higher than necessary. This may be due to you having certain covers you don’t need at the moment, or you’re probably in a wrong plan.

Take out time to review your current insurance plan, do away with covers you don’t need. Or better still, check out smaller firms with similar benefits but at a lower cost.

Tip #4. Cancel Memberships

Membership plans do get you exclusive features and other juicy benefits. This could be membership plans from your gym, Netflix, Amazon, or Audible. Whatever it is. If it’s not necessary at the moment, cancel it.

You wouldn’t miss much. There are alternatives you could check out: YouTube for Netflix, visit a local library in place of Audible, and work out at home instead of going to the gym. Remember, you’re trying to cut costs.

Tip #5. Consider Reducing Your Rent

It’s time to do away with luxurious living if you stay in a rented apartment. Take for instance you live in a 3 bedroom apartment…you could switch to a 2 bedroom or 1 bedroom to reduce household expenses.

Also, if you can, assuming this wouldn’t affect your work: try switching locations if possible. Certain areas are characterized by huge housing costs but you can change to less expensive areas if possible.

I know a guy who spent up to $2,500 (N800,000) on his new rented apartment, he had enough money in his savings to take care of feeding and other necessary stuff for the few months. But as an entrepreneur, he invested the savings on a business which went against him!

Dude is broke, and the next thing for him is to relocate to a small apartment which will cost N40,000 per year ($100/yr) instead of his previous N90,000 per year ($220/yr).

So, don’t be afraid to reduce your rent, change the location, and start looking for the bigger picture (stabilizing your business and getting your own house).

Tip #6. Cook in Your House, Stop Eating Outside!

Yes, you read right. And you’re asking if it’s possible? Of course, it is possible. We don’t tend to keep records of how much we spend on food and restaurants. I don’t do that.

And so we go ahead without knowing because we think the amount we spend per meal or snack is little. No, it’s not. When summed up, we could see how much we’ve spent and how big the amount is.

I was a regular fan of a restaurant close to my house. I spent up to N1500 on every meal. To me, I thought that’s cool and not too much to satisfy my belly. But at the end of the first 30 days, I realized that N45,000 has left my pocket on just a 1-square meal per day. And that doesn’t include the transport fare to buy the food, the tips, and money spent on food for another 2-square meal.

Averagely, I spent up to N60,000 in that month on food. 

Again, you may think it’s very small when you’re spending it, but when you calculate the total money spent at the end of the month, you’ll see how much you’ve spent.

So, I decided to start buying foodstuffs and cooking at home (I have kitchen utensils already). I spent an average of N15,000 per month on foodstuff, and like N200 per day on other things I need to buy, that is N6,000.

It means I spend N21,000 on food I prepare myself instead of the previous N60,000 on outside food (saving N39,000)!

So please… stop eating out. Start cooking at home and see how much of an impact it makes. Yes, it might be difficult but you need to stop.

Tip #7. Reduce Your Grocery Bill

Staying with our previous tip, I asked you to cook at home. But wait! What if you’ve been spending more than you should on groceries? If you’re guilty of this (maybe you’re not) here’s how you can reduce your grocery bill.

You can start patronizing stores that offer discounts. Others may have deals like “By One, Get One Free”, or you could shop online using coupons. Don’t tell me you don’t love those deals…those discounts. You do, right? So go ahead and change your grocery store or supermarket.

Buy your groceries in bulk instead of buying at a very expensive price per one or two.

Also, notice those things you don’t really use and stop buying them or maybe, reduce the quantity. 

Tip #8. Fancy Grooming… Are They Even Necessary?

Sure they are! I know we all crave those fancy stuff such as good shoes, chains, clothes, coffees with milk, cream, sugar, or whatever. But there comes a time when we need to sit back and ask: Do I really need this? Especially if you’re like me who is grinding to save some money.

Go get yourself a coffee maker and start making yours at home. If you’re not going to any occasion that demands you for new clothes, don’t buy it, if your shoe leather is getting worn-off, fix it by giving it to a professional shoemaker instead of disposing of it.

I know it’s convenient to get out there and fix your nails, make your hair, or do some makeup. Right now you need to consider doing these things yourself.

Are they difficult?

Not at all. Unless you’re too busy. If you’re not, pick up your phone and head over to YouTube to start learning these things and start saving money. 

CONCLUSION – These Tips Will Help You Manage Your Funds and Reduce Your Expenses

There you have it: 8 Ways to Reduce your household expenses. I know we love to do all these things: we love to eat out, live in luxurious homes, have some fancy coffee daily, then come home to watch our cable TV.

But right now, you need to implement these tips above. If you can’t do it all, no problem. But make sure you implement the ones you can.

So over to you, which of these things will you be cutting? Let’s hear from you.

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