31 Investment Opportunities in Nigeria (+tips for good returns

Credit; InvestmentU

Do you have money and wish to invest in Nigeria?

Are you an investment enthusiast who don’t have money to invest but want to know which area of Nigeria economy is much lucrative so you will strategize how to raise resources for your investment?

Let’s discuss about investment and business opportunities in Nigeria.

You’re welcome to the Africa Business Classroom (ABC).

I started my first business before I was a boy of 15. Today I run my company in Lagos and operate in different states of Nigeria.

Let’s start this tutorial.

First, what is investment?

Investment is like a seed planted with a hope of having multiple seeds in return or you call it a sacrifice made for a better tomorrow.

As business people, investment could be money, time and energy we put in a certain business with the hope of having good ROI (Return on Investment). There are various types of investments (as we will explain soon) and how to invest.

Now let me share with you some of the areas you can invest in. some of these industries may require that you have millions of naira to invest but don’t panic.

I will share also, some low investment opportunities and even one or two near-to-zero investment opportunities (such that you can invest in with little or no money)

33 Investment Opportunities in Nigeria

There are four major means by which someone can invest in Nigeria (or let me say four means that are simple and accessible by most of us)

1. You can invest your money in Nigeria through quoted companies listed in the Nigerian Stock Exchange.

Many of the companies listed on the Nigerian stock exchange market are successful companies who seek investment from various people in order to be stronger and to have resources to win competition in their various industries.

When you acquire a certain numbers of shares in such a quoted company, you will then become a shareholder. This makes you an automatic “partner” to the owners of such companies.

You will be recognized (either by law or by people) as one of the owners of such company.

Advantage of this kind of investment is that, you are not going to be involved in the day to day battles of the business world as regard the company you invest in (except of course if you actually own a lion share in the total company`s shares)

You will earn your ROI (return on investment) and every other entitlements (if any) every year ended.

Note that the year ended of some companies isn`t December 31st. Some companies usually start their new business year in July 1st and end it in June 30th or start by April 1st and end it by March 31st the next year. There is no business law that says that a company must prepare their end of the year financial statements by December.

You have seen the advantage of investing in stock… you can earn 300%, 500& even 1000% Return on Investment (ROI) just by investing your money in one of the companies listed on the Nigerian Stock Exchange Market.

Wait! There are some disadvantages.

You can lose your money too.

This is not just about investing in Nigeria stock exchange market alone. This is not about investing in stock alone, in fact, this is about business and investing generally.

I have invested in personal businesses and failed terribly.

You can invest your money in your own business and lose everything, if you don’t know the language (strategies, tactics) of the business world, but you see, when it comes to stock market, you`re not in control.

Just as it sounds easy to make money just by investing in stock (no business headaches, nothing), it may sound unfair that circumstances beyond your control or understanding can lead to lose of your investment.

Think about 2008 economic meltdown.

Few years after then, I looked at the stock prices of some companies in Nigerian stock market I was familiar with and I pitied their shareholders.

I saw companies that were having their stock prices as high as #80, #100 before the global meltdown then having their stock prices as low as #5, #8.

What a terrible lose!

You can`t possibly control what happens to the world economy, can you?

You think about this.

The speech, action or even travels of Nigerian president can affect the prices of stocks at the stock exchange market (not Nigeria alone. It happens everywhere).

Now tell me, can you explain the reason why the price of the stock you bought would go up because Nigerian president travels to Australia and stays there for one week?

Why will the worth of your stock come down because Nigerian president travels to China and doesn`t stay long?

I`m sure some investment experts will know the reason behind this, but I don`t know.

I`m only saying this so as to reveal to you how your stock investment is not in your control.

Think about this.

There is a grievous lose in the stock prices for Nigerian (and international) investors who invested in the Nigerian stock exchange market some days before 2015 general elections and just immediately after the election, there was an unusual rise in the price of the stocks.

Why this fluctuation?

I didn’t know, until I heard an expert talking about it on the television.

According to him, most people were afraid that there may be civil war in Nigeria after elections, so they withdrew and withhold their investments, but just after there is declaration of the general election winner and there was no problem, Nigerian investors and their overseas counterparts rushed back to the market.

Since stock investment works in the normal business principle of demand and supply, the higher demand rate led to the unusual increase in the stock prices.

I`m not making this analyses so as to discourage you from investing in stocks. If I do so, then I’m not qualify to be who I claim to be.

I have told you before that business is a war. So is investing. It’s all about talking risk, fighting war and making money.

But wait….

Don’t take blind risk on any investment opportunities

You wouldn’t want to say that because Stephen has inspired you that business is all about taking risk, then you will go straight tomorrow morning to go and invest #1 million in just any listed company on the Nigerian stock exchange.

No.

That`s not risk. That’s foolhardy.

Take smart risk.

The difference between blind risk and smart risk is the education, financial education. Business education.

Robert Kiyosaki loves to say, “Investment is not risky. Ignorance is risky”.

Take for instance, the worldwide economic meltdown that happened in the year 2008 (and affects the world till now) has been predicted by Robert Kiyosaki about six years before it happened.

I read his book where he predicted that woe in the year 2007 or so and it happened just a year after.

How can someone know what is likely to happen in the world economy?

Studies. Knowledge. Business education.

Sometimes ago I wrote somethings on our Facebook page. Most people would think I was just being who I am (an advocate of entrepreneurship or a school hater) but it was more than that.

Some months after I had being expressing my opinions about how school is destroying our future while we think it`s building it, what I was “prophesying” actually happened in April 15th, 2014 (or so) when many Nigerians lost their lives in an attempt to get an immigration job.

Someone sent mail to call me a prophet, but I’m not. Knowledge makes you to see what others cannot see.

From my studies and insight, I know we are in trouble if we continue sending all our children to schools where they will brainwash them to love job. If you don`t see that woe, I see it.

Donald Trump wondered why he would see something (maybe a business opportunity or investment opportunity or a financial woe that`s coming) and 99.9% of people would not see it.

Starting business in Nigeria, Investing in Nigeria (or anywhere in Africa) isn’t risky, if you pay the price to acquire the business skills needed to make money through your business and investment.

Forget it. If you cannot learn, you cannot earn. If you learn little, you will only earn little.

The only exception to this is, if you’ll invest your money with someone who you’re sure knows much about how to make a business successful.

I grew up under a mother who was a businesswoman. I started my first personal business before I was 15 years old. I have spent most of my adult life starting businesses, reading hundreds of books about business, making mistakes, failing and succeeding.

I wouldn’t tell you that I’m swimming millions, I’m NOT, but I know how to make a business successful.

2. Invest in Real Estate Development in Nigeria. 

If there is any less risky (not risk-free, friend) investment you can venture into, then that is real estate. The reason is this… the prices of properties rarely come down, especially in cities (like Lagos, Abuja, Portharcut)

In a country as populated as Nigeria (the 10th biggest country of the world), demand for land, living apartments, offices and shops will always be at increase.

That is one advantage of this type of investment.

But you see, there are two or three disadvantages too.

First, the investment in real estate is a long term investment. Your Return on Investment (ROI) doesn`t come as fast as other sectors of the economy you can invest in.

Take for instance if you invest in a building with 10 million naira in Lagos, you may not be able to make such money back in 5years.

Yes, you can continue to make money from such investment for 200 years (ho, sorry you cannot live 200 years on earth. Well, your children and grandchildren could be profiting from your investment after you`re gone).

Another thing you have to watch out for is that, you really cannot know how to invest in good location (or what makes a location really good), until you train your mind to see invisible opportunities.

If you ask an average man what a good real estate location is, he may tell you it`s a populated area where the rent is high.

The problem with this thinking is that, whenever the rent is costly, the land and cost of building too will be costly.

What if you could sport an area with low cost of land and building, but which (as you have used your financial mind to calculate) in the next few years, the property there will be gold?

What if you could learn how to locate properties some people are tired of, buy them and renovate them?

What if you could actually be smart with your real estate investment in Nigeria and Africa?

You can, if you care to learn by reading good books on the subject of real estate.

Donald Trump is a man that comes to my mind. He is a genius real estate man. He has written few books on the subject if you care to read them, search for them in bookstores or online.

3. Invest with a friend or business partner.

As I am writing this, I have friends who have invested in my business ventures. They are busy and or not business minded, but they trusted me with their investments.

You can invest with a trusted (I mean trusted) friend or a business partner.

If it`s possible, let there be a solid business agreement. People change when money comes.

4. Invest into your own business.

So far we have discussed about how to invest in stock (through Nigerian stock exchange market), how to invest in real estate in Nigeria, how to invest with a friend or a business partner. Now, let`s check how you can invest in your own personal business.

You can invest to a business which is going to be yours. In this case, you`re the Agfa and Omega. You own your business and you`re responsible for it day to day running and progress of the business.

In the future you may have the need to take such company to public and sell part of its share, you will still be the major share older and probably the CEO.

Let me tell you this. You can excel with any kind of business provided you`re skilled in the art and science of business.

A business minded person is like a skilled soldier. A skilled soldier can fight with any weapon (or even snatch the weapon of the enemy).

To be a skilled entrepreneur, you must be a student of business. You have to learn how to be an addict reader.

You can register for any of our great business training HERE or download my 2 free business books HERE.

After saying this, let me list below some of the ideas about the areas of business you can invest into:

5. You can invest in Nigerian Agricultural sector.

Whether we like it or not, oil will not be the hope of our future economy. Agriculture sector will be.

You may have any other area of interest apart from the ones I will talk about here, be sure you can make money from your investment in Agribusiness.

6. Can you invest in Fish Farming business in Nigeria?

Yes, you can. People may not buy clothes, but they must buy fish (at least many people have to).

Investment in fish farming could yield a good return in Nigeria because Nigerian government is not smiling at importation of frozen foods.

That`s a good news for local investors, don’t you think so?

7. What about poultry farming?

8. What about snail farming

9. You can invest in fashion industry.

Yesterday I was reading about the richest woman in Nigeria (Mrs. Alakija) who started her business career with a tailoring company.

You can have a fashion company which specializes on sewing clothes and training people to be fashion designers.

10. Sewing of specialized uniforms

You can brand yourself as a specialist in uniforms of all kinds; private school uniforms, clubs uniforms etc. if you keep on growing, you may soon be winning government contracts to sew police uniform, Nigerian army uniform etc.

11. Specialize on a particular kind of dress

I`m sharing with you strategies to succeed in your business. As I told you in how to sell more of your products, specialists are always respected.

Is there any way you could invest your money, time and brain power in mastering a single kind of modern clothe (i.e. English suit, Ibo dress, Yoruba natives, etc.)?

If you want to compete in the fashion industry (or any other industry for that matter), you will succeed faster if you`re a specialist than if you are “everything goes”

12. You can invest in a construction company.
13. Become a recruitment agent
14. Importation of wears
15. Importation of used cars
16. Importation of other used materials
17. Transportation business
18. Bakery business
19. Eatery and restaurant
20. Online retailing
21. Web hosting
22. Web designing
23. Bulk SMS portal
24. Blogging
25. Daycare center
26. Private primary school
27. Computer training/ICT center
28. Waste management company
29. Palm oil business
30. Solar energy company
31. Bottled water product, packaging and marketing.
32. Hairdressing/barbing saloon
33. Just anything, provided you are business minded.

Yes, you can venture into any business of your interest and make a lot of money out of it (even when most people doing such business don`t make money)

I think I know what I am saying. I have played for a while (not too long, anyway) in the game of business.

I know that a skilled business person or investor could turn sound to gold.

I have this three final advice for you

1. Focus on business education first.

How many times have I told you something similar to this? I can tell you one million times if the need be.

A soldier really don`t need to worry about where to fight (because there is always battles all around the world)

A soldier never have to worry about weapons to use in the battle (because he can always get one or snatch that of his enemy)

But a soldier has to worry about his skills, his military skills and tactics.

I have a book in my library written by the American real estate guru, Robert Allen. Allen claimed sometimes ago that if he was taking to anywhere in America, without a penny, he would buy a real estate asset.

Robert Allen was held to fulfill his claim. Everything was taken away from him and he was taken to a city he never knew he was going to be taking to.

Allen bought a piece of real estate property without a penny with him.

Robert Allen is known with his “nothing down” investment strategy. He believes that the number one thing anybody needs to be good investor is business education and investment skills.

If a soldier is truly skillful, he can never lack for weapon or the battle field to operate because there are battles everywhere in the world where skillful soldiers are needed and there are sophisticated weapons on ground for any soldier who can help win battles.

There are business and investment opportunities all around you in Nigeria and other part of Africa and there are resources to finance such investment too, but you need skills to learn how to see opportunities that are not visible to the physical eyes and the skills to get, gather and use resources in such a way as to get good return on your investment.

2. The second advice I have for you is that, you have to look through the above list and think about anyone of them you actually love to invest in.

You cannot just invest in things you don`t have passion for. If you do so, you will fail.

Before you can make money through real estate investment, you have to love properties, constructions and stuffs like that.

If you want to invest in stock or bond, you just have to be a lover of them.

You cannot make money in the fashion industry if you are not passionate about clothing and fashion, no matter how much money you have to invest.

3. My third and final advice is, it`s not a must you start your investment journey with one million naira.

The first time I invested in stock, I invested something less than #10,000. Yes, I didn`t make millions from that investment nor did I later become a stock investor, but I made a step forward.

Start somewhere. Acquire business skills. Invest and make money.

Business from scratch. 10 steps of a beginner businessman.

Many people dream of their business. At the same time, the reasons why people decide to open their own business are different for everyone. For some, this is an opportunity to realize oneself, for others it is a way to earn money and be independent, for the third – this is the withdrawal from unemployment. Desire, this is just the beginning. And what to do next? With what to begin, to whom to go? LSBC prepared for you 10 steps of a beginner businessman.

1. Answer your question – are you ready?

The business, especially at the very beginning, is fraught with many problems, huge time investments and expenses, and only then it brings income, freedom, independence and everything else.

Ideas of business from scratch. Prospective American start-ups |

You will have to work hard at least 10 hours a day and without days off, because the business at the initial stage is extremely unstable and prone to bankruptcy.

2. Determine what you want to do!

If you have already firmly decided that you want to work only for yourself, then you need to decide what exactly you will be doing. A correct and competent idea is already half the success. However, when choosing an idea of business, it is necessary to remember the following: if the idea is pleasant to you, your friends and friends, unfortunately, it is not a fact that she likes others.

3. Make a plan for building and developing your business!

A good and competent plan will help you increase your chances of success. Starting a business without a plan is the same as going to foreign lands without a roadmap. This document describes all the main aspects of the future of your firm, predicts and analyzes possible problems that it may encounter, and also determines how to solve these problems.

4. Count it!

At this stage, you will need to answer the following basic questions:

– How much should you invest in your business?

– Is your own money sufficient or do you need borrowed capital?

– Will your business be profitable, profitable?

– Is this profit enough for you to support yourself and your family?

Also, you will need to calculate the costs of opening your business – it’s worth thinking about before, and not after you opened. After all, if you for some reason have to close, then the funds spent for its opening to you, most likely will not return.

5. Decide on the sources of financing!

I will not write much here, but I will simply say that not only bank loans are related to financing sources. This can be leasing, private investment, and various grants and government subsidies.

6. Identify the form of the enterprise!

At this stage, you need, first, to understand whether you can manage your own business, or you need partners.

Secondly, you need to decide whether you will limit your responsibility or not.

7. Gather information on how to properly register a business!

Practically everything exists either by law or by rule. At this stage, you will need to find out in which organizations you need to register your company, whether you need to pay fees, etc. Such information you can get from both tax and business consultants.

8. Find reliable business partners!

At this stage, we are not talking about partners with whom you could start a joint business. We already spoke about this in the seventh paragraph. Here we are talking about those individuals or firms that help you develop your own business. These are, for example, tax consultants, lawyers, accountants and business consultants (who, besides helping with the writing of business plans, also lead firms on very many issues after the opening).

Partners can also include your suppliers, advertising agencies, recruiting firms, etc.

9. Plan your first advertising strategy!

As you remember, they meet in clothes. The way you enter the market will in many ways predetermine your future success. Do not forget to think not only about business cards but also about where you will advertise, in what form, in what volume and for what amount.

10. … and open up! But remember that this is only the beginning. The further success of your business depends only on you!

Of course, this is not a complete list of what needs to be done before the opening. Nevertheless, I tried to list the most important steps.

Taking Your Local Business Nationwide Tips for that

If you’ve been enjoying success in your business, but are as of yet still only operating in your local area, you may be looking to extend your reach out of town or indeed across the country. This can be a daunting process – are you truly ready? How much do you need to invest in this growth, and how can you be sure it will pay off? Who can you employ to help deliver your ambition in the best way?

While all business ventures require some amount of risk, grit, and optimism, you can also prepare yourself thoroughly and take the right steps to ensure yourself success. If you’re looking to go nationwide with your local business, here’s what you’ll need to consider:

Who is your new customer base?

In order to make your larger business a success, you’ll need to affirm that there’s a need, from a willing audience, in the space you’re advancing in to. If you’re aiming to launch into an untapped market – such as a new city or releasing a product that’s tailored to a slightly different customer than you have now – ensure you understand what your audience want from you, and why they want it.

You can use the Internet to research the existing market and identify opportunity spaces. Failure to do so may mean you spend money launching a product or attempting to reach an audience, which simply lacks interest.

How will you support your growth?

Once you know you’ve got a captive audience, you’ll need to confirm that you can get the product to them easily.

Perhaps you need to invest in an e-commerce site, to enable you to sell and ship across the country. If so, ensure you partner with the right developers who can assist you with optimal user experience, brand portrayal, and marketing power – click here for more information on BigCommerce website design. Ideally, your website will act as not only a purchasing platform for your consumers but also provide them with all the information they need, and engage them emotionally, so that you make loyal customers out of them.

On the other hand, you may decide you need to invest in physical retail space. If so, ensure you go to visit these locations in person to truly get a read on the local area and footfall quantity. Equally, you should meet all future employees in person too, as they’ll be the driving force for your new franchise.

Where are you aiming to go?

Having a defined business plan and growth strategy will be crucial to your success. You should be realistic, but ambitious, with your desires.

If your local business is a joint ownership, sit down with your co-founders or co-workers and discuss where you’d all ideally like to see the business go. Make sure you all define your roles, and how each of will assist in making this ambition a reality. Share responsibility for the success and all actively input in your plan for the next 12-24 months.

Growing from local to nationwide: small steps to success

You can certainly extend your business into uncharted territory if you plan ahead and partner with the right people. Do your homework, so you understand the space you’re moving in to, so you avoid any nasty surprises. Then, take a confident step forward in reaching towards your goals.

Top 5 Benefits of Business Loans That Can Help Expand Your Business

Are you a dynamic entrepreneur whose ultimate goal is to turn your passion into reality? Are you looking at starting or expanding your small and medium-sized enterprise (SME)? Do you believe that all you need is a push to fulfil your dreams? In that case, you can look at any of the several sources of business loans – banks, non-banking finance companies (NBFCs), government institutions, venture capitalists –  that are here to work with you as a partner to help actualise your business ideas.

In the current economic climate of India, SMEs are in constant need of funds to expand their businesses, meet working capital needs, or make optimal use of business opportunities.  Business loans, either from traditional sources or from FinTech companies such as Capital Float, can provide an optimal solution to meet such financial requirements.

Such loans, besides their obvious benefit of the right funds at the right time, carry several advantages that make their choice a good one. Here is a look at the benefits of availing a business loan for expansion:

1- Helps with the cash flow

Business loans can be either utilized to boost revenues or to gain competitive edge. So a company may look to open a new branch, launch a marketing campaign, add to inventory for seasonal demand spikes, and so on. Any money can be good money, provided it is used efficiently and wisely. You can opt for short- or long-term financing, small loan or large, whichever works well for you. The idea is that the income generated from such avenues goes towards repayment of the loans, and leaves a tidy sum for you to use otherwise. You get to achieve your business goal without having to spend your cash.

Banks are generally the first choice when it comes to applying for loans. Their primary advantage lies in their accessibility and familiarity, especially for long-term customers. Although it is tough to get a loan approved, you carry home the satisfaction of getting away with lower interest rates. Also, unlike venture capitalists and angel investors, you need not part with either ownership or profits from businesses.

2- Simple and speedy loan disbursal process

New age FinTech companies in comparison are catering to a huge demand for business loans by focusing on start-ups and SMEs. With government support and positive economic outlook working in favour of such ventures, there is massive scope for funding new businesses or expansions. Digital lending platforms tap this market by providing business loans, which work well for the borrower as well as the lender. The loan processes are simple, friendly and hassle-free. Capital Float is one such company that offers small business loans in a simple 4-step electronic process, ensuring enhanced customer experience.

All you need to do is fill up the online application form by visiting www.capitalfloat.com from anywhere, anytime, and upload the required documents. The minimal, hassle-free, and user-friendly documentation process is followed up with on-time finance disbursal to borrowers. Specialised companies like Capital Float ensure that your loan is disbursed within 72 hours.

3- Customised solutions for SME needs

Business loans can give the ultimate boost to your company in an efficient and effective way. Banks as well as Fintech lenders like Capital Float believe in the uniqueness of every business, and provide a wide range of flexible, tailor-made loan products that cater to the specific business needs of SMEs in India. You can choose the most suitable option that meets your requirements.

The repayment options are equally flexible. Based on your financial needs, most lending companies provide you business loans ranging from Rs 1 lakh to Rs 1 crore for varied tenures. For example, you can avail business loans for a tenure of 1-12 months with no pre-closure penalties and extremely flexible repayment options (ranging from 12 months to 36 months) from Capital Float. These features are designed to specifically cater to the needs of SMEs in India. SMEs taking loans against receivables can repay it in a single “bullet” instalment at maturity, while those taking unsecured loans can repay through EMIs.

4- Competitive interest rates

Not only banks, certain NBFCs and other lending companies can also offer business loans at competitive interest rates. Capital Float for instance provides business loans to small and medium businesses in India at very competitive interest rates, nominal processing fees, with absolutely no hidden charges. These features make FinTech companies like Capital Float some of the most preferred lenders in the present small business loan market.

5- Collateral free finance

Business loans provide financial support to a very wide range of SMEs, such as B2B service providers, manufacturers, traders, or distributors. Companies like Capital Float work as a partner to provide seamless support to SMEs in fulfilling their dreams. You can avail collateral-free finance, which doesn’t require you to pledge any property or asset to get a business loan. Your business is evaluated based on the strength of your cash flows and expected receivables. Any SME with a minimum of one year of business operations can avail of such business loans.

Very few lenders really believe in embracing new ideas with open arms. New-age lenders however are more willing to invest in new ideas. Capital Float, for instance, provides small business loans to new-age businesses in India along with financing the needs of traditional businesses.

My Business:Where will your business be in 50 years?

Most small business owners I encounter do not have longevity as a focus. The two common reasons for this are:

The business was setup as a lifestyle business or
The entrepreneurs do not have the know-how to develop a solid succession plan

Working sustainability into your business strategy is a must (even if you have a lifestyle business – after all, there is no reason the next generation must not benefit from all your hard work). Below are some recommendations for getting started:

Commit to making longevity a key business focus

Mentally committing to making your business outlive you means that you will not take business decisions that threaten long-term goals. Get a board or advisory team that will hold you accountable to this goal.

Get help

This can come from the board or advisory team you have assembled. You can also get external help (consultants and experienced executives who have helped other companies create effective succession plans). For young businesses and startups, there are ways in which you can get this help at affordable rates.

Ensure compliance to the right business structures

The result of #2 above will be a well laid out plan with the right policies and internal controls to ensure success. The effectiveness of the succession plan will result from a concerted effort from the leadership team to adhere to and enforce succession plan regulations.

Build the right team

To me, this is the most important factor. A bad team in an excellently structured organization is like adulterated oil in a fine machine. Hire right and invest in building your team to lead the organization.

How to Write a Business Plan: Tips from the Experts

For even the most organized and motivated entrepreneur, writing a business plan can be a daunting task. After all, your business plan is your first opportunity to make critical evaluations of your idea, and to view it from the perspective of different stakeholders.

Below, we will discuss some of the universal best practices that apply to any business plan. To ensure that we’re promoting the most up-to-date best practices for writing a business plan, we asked a few successful business strategists and financiers what guidance they have for entrepreneurs new to formal business planning.

Bertie Stevens, Co-Founder and CEO of Flubit.com

1. Keep it simple: Creating a coherent plan doesn’t mean writing a 100 page tome. Getting your idea down on paper will help you formulate your thinking and will ensure you have thought through how you are going to get your business off the ground, what resources you need and what your objectives are. If you are looking for investment or are looking to build a team, a clear, credible plan is necessary to get those individuals interested in being part of your business. Aim to keep your plan as succinct as possible.
2. Create a simple forecast: Show how your business will grow in the short, medium and long term and clearly demonstrate what the end goal is. If nothing else, it will show how feasible your business is and how far it could go. But be realistic and conservative – it’s better to underestimate your cash position at any one time than vice versa.
3. Tell a story: You want people to be excited by your business, so clearly show how you are solving a problem, doing something groundbreaking or creating something that has global potential.
4. Understand your customer: Clearly show you’ve done your research and understand where the market is for your product or service, how big the potential is, who is going to buy it and why they need it.
5. Tell the truth: Make sure you know your numbers back to front and only include information and data that you can back up with hard facts and stats. It’s tempting to exaggerate claims, but be prepared to be challenged.

---

Shweta Jhajharia, Principle Coach and Director at The London Coaching Group

1. Start with a review of the past and present: Before you start planning for the future, you need to have a firm grasp of what you have done in the past and where you currently stand. By asking yourself the following questions, you will set yourself up for determining the best course of action going forward, with a more focused, relevant and useful plan:
   • Has my team been working effectively and productively? Why/why not?
   • What goals/milestones have I achieved in the last year?
   • What impact and difference has this made to the business?
   • What were my profits over the last quarter?
   • What have I not achieved that I intended to? What impact has that had?
   • What do I need to carry over and what do I need to drop from that list of things to achieve
2. Set personal as well as business goals: In my experience as a business coach in London, we find that the drive to achieve business success is stoked by the knowledge that your success in business enables you to achieve your personal goals. Set personal goals and see how they synchronize with your business goals so that you are more motivated to achieve both together. Some quick tips for writing goals:
   • We find the best way to actually achieve goals is to define long-term goals (five to 10 or more years), then break those down into three year goals and then into one year goals.
   • Write emotively and write in present tense. For example, “I feel elated and humbled to have completed the Kokoda track on Anzac Day 2016.” This creates a deeper connection to your goal and comes from envisioning success already having happened rather than “working” towards it.
3. Don’t just write goals; craft a plan: When you create a solid plan, it becomes a lot clearer what is and isn’t achievable over the next year. You can also see what actions you will need to take on a regular basis and create a default diary where you can block out time every week to get those regular tasks done.
   • Categorize: Group your one year goals into categories (travel, family, social life, community etc.). You can also extract your business goals from this and further categorize, if required (e.g. marketing, recruitment and finance, etc.).
   • Prioritize: Categorizing allows you to then prioritize more easily. Choose just one goal in each category and highlight that as your most important to achieve.
   • Actions required: This is the important part. Next to each goal, write down what you actually need to do to achieve it. Get specific, be realistic.
   • Divide: Now you have a list of actions to achieve over the year. Split those out over the four quarters. If you can, split them out over the 13 weeks of each quarter, too.
4. Always assign accountability: You now have all of these actions for your business, but you also need to clarify who is going to achieve them. You should draw up an “accountability chart” in your plan which clearly shows all the important functions of your business and exactly who is in charge of what function. These functions may include things such as head of company, marketing, R&D, finances, sales and recruitment, etc. These required functions should be clear from when you categorized the goals for your business. Even if you are a one-man-band, this is an important exercise. You may be doing everything yourself, but you still need to wear different “hats” to ensure that all aspects of your business are being dealt with. Organizing yourself this way will make it much easier to bring on team members when you eventually get to that stage, as processes will already be in place.

---

Anna Morrish, Marketing Executive at DMC

1. Write for your audience: The most common business plans are written for investors, lenders and current employees. Know which one you’re targeting and write the plan with them in mind. For example, if you’re writing a plan for a potential investor, it needs to get to the point swiftly, as they don’t want to spend their time reading a long business plan full of irrelevant information. Provide informative ideas which will get them interested in your business. Don’t try to pack every piece of information into the plan, but just enough to make them want to meet with you to discuss your ideas in much more detail.
2. Know your competition: Don’t become blind sighted by your excellence. You may believe you’re the best in the business with no threat of competition, and maybe that is the case, but if you’re creating a plan for investors, they want to see that there is a market for your business. If there is no competition, where is the market? Make it clear in your business plan how you’re going to compete. The use of charts, graphs and images will provide factual and visual evidence which can help to back up your potential ideas.
3. Look to the future: Show your audience where you see the business progressing to in the future. Set clear realistic goals for individuals, plans to reach those goals and what the result of reaching those goals will be. If you’re directing your plan at an investor, make sure to include how they will financially influence and benefit the company, and tell them exactly what they are able to get out of the business to benefit themselves.
4. Make sure you communicate: Communication is key to a successful business plan. The simple but effective act of writing down ideas will help everyone understand and support your clear, well thought through goals, ensuring you’re all on the same page so that the plan can be followed and work effectively.

BUSINESS TRENDS WE EXPECT TO SEE EVERY YEAR

It is set to be a good year for business.

According to forecasts by The World Bank, this year will see global economic growth hit 3.1 percent following a surprising year of stronger-than-expected recovery in trade, manufacturing and investment in 2017. In particular, growth in the emerging market and developing economies is expected to strengthen to 4.5 percent in the coming 12 months – and these patterns of strong business growth will, apparently, be replicated worldwide.

And the ways in which businesses will grow are surprising.

While in recent years growth hack techniques were fairly straightforward to business owners… we’re talking creative marketing, market survey incentives, double-edged referral schemes and perhaps the introduction of CSR initiatives… in 2018 things will become a little more complex.

In the marketing space, consumers will see more personalization of marketing than ever before in 2018. A strategy by which companies leverage data analysis to customize product offerings to potential customers, personalised marketing rejects generic campaigns or impersonal calls to action, instead focusing on targeting potential high-value sales. Remember the last time you opened Facebook and eerily noted that flights to Barbados – the exact destination you were researching late last night – were being advertised by Facebook? This is a fantastic example of personalized marketing. Yes, it may be somewhat disconcerting that your every move is being closely watched, but it’s best you get on board with the idea if you have a product you want to sell. By 2018, companies that have invested in all types of personalization will outsell companies that have not, by almost 20 percent.

Oh, and those stunning models flaunting Gucci on their Amalfi Coast Instagram account? Those ‘micro-influencers’ (audiences of 1,000 to 100,000) will become four times as likely as ‘macro-influencers’ (typically 10 million plus followers) to attract comments on a post from their followers, making them an invaluable tool for digital marketing schemes. According to Huffington Post, a staggering 90 percent of consumers trust recommendations by micro-influencers and only 33 percent trust ads. So quick, find yourself an insta-model!

Live interactions over social media will similarly become a favoured social marketing tool, with smart companies realizing that since consumers are already connected in the virtual world, such relationships can be strengthened by virtual ‘face-to-face’ meetings to increase engagement. Sell-out events will be broadcast via Facebook and Instagram, live interviews will be fed through to followers, Q&A sessions with makers, employers and CEOs will be streamed live and even a behind-the-scenes look at a company’s headquarters will attract viewers in the year to come.

We will also see the rise of the sharing or “collaborative economy” – and of social enterprise – as trust and familiarity with such models continues to grow among consumers.

Uber, Grab and Airbnb will soon be just some of the many sharing companies taking a bigger slice of the economic pie than ever before, with new research by Juniper estimating that the sharing economy will reach $40.2 billion in 2022, up from $18.6 billion in 2017. The collaborative economy already has, and will continue to disrupt traditional retail, automative and server industries, though trust will remain a major barrier to widespread adoption of the sharing economy particularly when it comes to accommodation services. According to an April 2017 report, 31 percent of US consumers still do not consider home-sharing platforms such as Airbnb as safe.

As for the growth of social enterprise, it was predicted back in 2012 that social entrepreneurship would secure a future in capitalism, but we will only truly begin to see how this plays out in 2018. Defined broadly as any kind of organisation or initiative that has a particularly social, environmental or community objective, social entrepreneurship could provide innovative solutions to our worsening environmental crises and social problems – and could help the plight of those in developing countries in particular . It might come as a surprise that Sub-Saharan African has one of the highest social entrepreneurial activities in the world, representing 9 percent of the economy, followed by Southeast Asia with 3.8 percent, with both lower than the United States and Australia at 11 percent. Will capitalism be given the social conscience that could ensure its longevity in 2018? Let’s wait and see.

And, while it may have been okay to ‘make do’ with a freelance or external IT service team last year, this year however, a greater investment in expert IT services will be absolutely essential if one wishes their company to survive and thrive. Enterprises will, according to vice president of Infoblox Prakash Nagpal, begin to invest in dedicated security operations centers rather than rely merely on anti-virus software and forming reactive responses to cyberattacks. “Hybrid security offerings combining on-premise and SaaS/Cloud solutions will become the dominant architecture with customers beginning to integrate these offerings starting in 2018”, Nagpal said.

There are a whole host of other predictions for the business world in 2018, including the emergence of AI as a critical marketing tool, the widespread acceptance of cyptocurrency as a valid form of accepted payment and an increase in anti-harrassment policies in the workplace, to name a few. Business will evolve in new and wonderful ways. Watch this space.