Latest / Closing Sales in Nigeria - Sales For The Nigerian Business Person: The Sales and Marketing Blueprint / How to Use AI to Draft Your Business Plan for FREE

Transcript

How to Use AI to Draft Your Business Plan for FREE · Closing Sales in Nigeria - Sales For The Nigerian Business Person: The Sales and Marketing Blueprint

0:00
Today on the podcast, we're going to look at some simple
0:03
questions that you can solve by using AI tools, artificial
0:08
intelligence tools that are already installed on your phone
0:11
or installed on your computer. Now, for those of you who are
0:16
listening to the podcast for the first time, you know, do not be
0:20
alarmed. Yes, I'm making today's
0:21
recording out and about because the kids are having catechism
0:24
classes. It's a Sunday and and usually I
0:27
just chill in the car and catch up on recordings.
0:31
So you want to hear noise in the background.
0:33
For instance, you know, there's some media driving by with the
0:37
with the convoy, you know, all of them, they're just blasting
0:40
what was I think called, you know, security convoys just
0:44
blasting noise up and down. So anyway, yeah, I'm making this
0:47
recording out and about. I'm in the car and you expect to
0:51
hear people making noise all over the place.
0:53
So today what we're going to do, like I said, is we're going to
0:56
look at simple questions that you can solve by using AI tools.
1:00
And the category of questions that you can solve by using
1:06
these tools, One of them is business plans.
1:09
Now, the reason why we're looking at that today is because
1:14
in the course of this podcast or in the course of my radio show,
1:17
that people who call in or people who send messages and
1:22
they want the answers to some questions.
1:24
And I get lots of these questions.
1:25
You know, how do you come up with a business plan for baking
1:28
business? That's what we're going to use
1:30
as the case study, by the way. Or how do you come up with a
1:34
business plan for architecture business, excuse me?
1:37
Or how do you come with a business plan for catering
1:39
business? How do you come up with a
1:40
business plan for this? How do you come up with a
1:42
business plan for that? So you guys, you, you, you, you
1:46
get the picture. Get what I'm trying to say now
1:50
in the past I have tried to freestyle or maybe do a little
1:55
bit of research and come up with the answers to these questions.
1:58
But I've started telling people that look, this business that
2:01
you're trying to do, you know now your own like it's your own
2:04
thing. So you can't stay and say you
2:09
don't know this, you don't know this, you don't know that that's
2:11
the reason why you haven't started.
2:13
And because of that, you're trying to reach out to
2:15
consultants or gurus or whoever you know, to try and to try and
2:20
show you the way. So folks like me, we are
2:25
important to your business journey.
2:26
Yes. But The thing is, if at the
2:29
beginning, at the very start, like you haven't done any
2:31
research on your own, you're coming to someone like me and
2:34
you're expecting that I'm the one that's going to show you the
2:36
way. Like you're, you're missing Rd.
2:40
you're missing the road. Especially nowadays, that
2:44
information is free because of the Internet and because of
2:47
artificial intelligence tools. You'll be helping yourself if in
2:52
the beginning, if in the get go, you go and do some research
2:55
first, no matter how adequate or inadequate The thing is.
2:59
And then you now try and be doing one or two things on your
3:02
own before you now say you want to call a consultant.
3:07
Now understand that there are some businesses that are highly
3:09
technical. So let's say you're getting into
3:12
the, I don't know, maybe you're getting into the oil and gas
3:14
business for the first time. Maybe you only sort of a
3:18
refinery, you know, to refine patriotism, you know, like
3:20
Dangote, for instance. Yes, I would understand it for
3:23
that kind of business. OK, maybe from the from the
3:26
beginning, from the get go, you go the whole consultant and then
3:29
two of you be moving step in step.
3:32
But for all the kind of businesses, you know, SM ES like
3:35
it, it needn't be this formal. Honestly, doesn't have to be and
3:40
you don't have to be. So like, oh, what am I going to
3:42
do? What am I going to do?
3:43
I don't know. I don't know.
3:44
There are some simple tools nowadays that make the business
3:48
journey a whole lot easier. Oh, by the way, if you're
3:51
interested in these sorts of questions, then subscribe to the
3:54
podcast on Spotify, on YouTube, on Apple, or any player of your
3:58
choice because these are the kinds of things that we talk
4:00
about over here almost every day on the podcast.
4:03
And if you'd love to connect with me, my name is Tavi Shima
4:06
Ayede. I'm the host of the show, so you
4:10
can call, send me a text message or a WhatsApp message on
4:13
08064662140. You can also connect with me on
4:20
LinkedIn as well. So like I said, examples of
4:23
questions today that you can easily solve using AI or that
4:26
you can just start the process by using AI.
4:29
And the case study we're going to do today is come up how to
4:32
come up with the business plan for baking business because this
4:37
one is a real live question that I received from a caller from my
4:40
radio show. I can't remember the guy's name,
4:43
was it Benson, I think, or Franklin.
4:47
And let's just say Benson. So a question I received from
4:49
Benson based in Abuja, Business plan for baking business.
4:53
Now, First off, some of you might be hearing it for the
4:55
first time, but even if you are not, let's just have a simple
4:59
definition just so that we are clear on what it is that we're
5:01
talking about. Now, a business plan typically
5:04
is a document that is used when it comes to fundraising for more
5:08
purposes. That doesn't mean you shouldn't
5:10
create a business plan even if you're all looking for investor.
5:14
So even if you're not looking for investors, even if you're
5:17
not trying to raise funds, funds from a bank or from a mortgage
5:20
bank or whatever, it still would help if you come up with a
5:22
business plan. But you know, to be honest, you
5:25
know, let me not lie, A lot of us that have started one kind of
5:29
runs or the other, whether it's architecture, whether it's
5:31
photography, whether it's business consulting, whether
5:34
it's fashion, whether it's logistics business, let me not
5:39
lie you, lots of us just put it inside and then that's how we
5:43
started. But if you come with a business
5:45
plan, you know, won't be a bad idea.
5:47
But typically, at least in this part of the world, most people
5:50
who are looking for some sort of business plan is because they
5:54
want to raise finance. Maybe they want to approach me
5:56
down and see if they can get something, approach microfinance
5:59
banks, if they can get something, you know, go to
6:01
Zenith Bank, see if you can get something.
6:03
So, yeah, so typically that's what we use business plans for
6:07
in this part of the world. But remember, you don't have to
6:10
be looking for other people's money before you raise a
6:13
business plan. So the way that I define a
6:15
business plan is it is just that document that tells people who
6:18
you are, how much money you need, what you want to use the
6:21
money for, your sales and marketing plan, how you're going
6:25
to get customers for this business.
6:27
You're also going to talk about the expected returns that you're
6:29
going to get from this business. You talk about the payback
6:32
period, how much do people expect to get back?
6:34
Because when people are dropping back, when you're dropping money
6:37
for your business, everybody wants to know what's in it for
6:39
me, you know, when is my money going to start coming back,
6:42
what's my percentage and all those questions.
6:44
And then you also want to explore the considerations for
6:49
receiving the funds in the 1st place.
6:51
Now consideration is just a fancy way that lawyers say
6:56
what's consideration again, I'll put it now.
6:59
Let's just say consideration is a promise, a promise that you.
7:03
I'll put it, yeah, a promise that you give somebody so that
7:06
you guys can enforce a contract. So in this case, if you're
7:08
trying to raise funds using a business plan, you know, you let
7:12
them know like, OK, is this thing, is this thing a loan?
7:17
You know, is he borrow, you borrow me the money, therefore
7:20
I'm paying you back and then I'm paying you how much or is it
7:24
equity? Is it that you're going the
7:26
person is going to get a share in your business and then you
7:28
guys are going to become part owners.
7:30
So people have to discuss all these things, you know, what are
7:34
you exchanging for? What?
7:35
What are you dropping for what? What are the terms of contracts?
7:38
You know, things like that. So the business plan is that
7:42
document that pretty much covers all these sorts of things.
7:47
But let me say one more time, in case there's somebody who didn't
7:49
hear me and the person wants to quote me out of context, it is
7:55
still a good idea to come up with a business plan even if you
7:58
are not fundraising. Because trying to come up with a
8:03
business plan is going to be is going to be like a road map.
8:06
So it's going to force you to think about some things from the
8:09
beginning. So the chances are if you come
8:12
up with a business plan and you refer to it from time to time,
8:16
then God willing, you should not get stuck because most business
8:21
plans that you come up with, whether it's a template or
8:23
whether you do research, should help you think through a couple
8:26
of things to anticipate before you start the business.
8:31
So please hear me correctly. Even though lots of people draw
8:35
up a business plan because they want to raise money, you can
8:39
come up with a business plan even though you don't want to
8:42
raise money. Just use the thing as a road map
8:44
so that you will never get stuck, so that you will never
8:47
hang, so that you will never hook, so you will never jam with
8:51
it. So you will never be in that
8:53
situation where something happens and you're like, hey,
8:55
what the hell? I did not expect this.
8:57
I never expected it. So you won't get in that
9:00
situation. So if you're trying to drop a
9:03
business plan either by yourself or doing some research or
9:06
consulting with one or two people, there's no how, no how.
9:09
At least the major, you know, freak accidents happen in
9:12
business, you know, all the time.
9:13
But at least the major things, there's no way that those major
9:17
things will confuse you because you'd have thought through the
9:19
whole thing. So now how do we used to come up
9:22
with the business plans back in the day?
9:26
And you see the reason why I'm in love with AI, AI tools,
9:29
artificial intelligence tools, although I prefer to call them
9:32
augmented intelligence tools, because artificial intelligence
9:36
tools, yes, they're artificial, but they're not really
9:38
intelligent. But we can use them to augment
9:40
our own execution, augment our own thinking, augment our own,
9:46
you know, you understand every, every.
9:48
So I prefer to call them augment augmented intelligence tools.
9:54
So back in the day now, how do we used to do all these?
9:58
Even a business plan? How do you get a business plan?
10:01
Excuse me? So back in the day now during
10:04
military era, like during a Batcha area era, that's the
10:09
area. So at least like during that
10:11
time, now Internet no day, but at least everybody, OK, well,
10:16
not everybody because it's not as if we had computers and stuff
10:18
like that. But you know, at least there was
10:21
what did they used to call them before business center?
10:24
That's what they used to call them business center.
10:26
So at least on your street business center day, at least on
10:29
campus, you know, we get like your hostel, maybe like two or
10:32
three business centers that doesn't understand that.
10:35
And on that in that business center now if you go there and
10:37
you meet the person who's behind the keyboard and you, you know,
10:40
tell the person what you want to do, the person will just open
10:43
Ms. Word as Microsoft Word. Now for Microsoft Word, there
10:46
was a section then I think called templates or something on
10:50
that templates you will now see business plan.
10:53
So back in the day, you want to do some research, you want to
10:56
come with the business plan. That's so you could all right,
11:00
You just look for a business center.
11:03
You go there, you tell the typists all you want to do, they
11:07
will open template. You will begin to look at
11:08
templates. You select the one that is
11:10
appropriate. Then you start typing out the
11:12
whole thing. That's how you flesh it out.
11:14
So that's all you used to do during military era.
11:19
During that time I didn't write any business plan, but I saw
11:21
people who used to write business plan.
11:22
Some people used to do it as business.
11:24
OK, you want to say your architectural business, you need
11:26
business plan or outcome. I will do business now for you.
11:29
This how much you pay me. Then eventually, you know,
11:34
things opened up or passenger came into power.
11:37
You know the economy opened up. We being in the CGSM, you know
11:40
Internet start with the flow small, small.
11:42
Although not everybody had laptop, nobody, not everybody
11:46
had mobile phones because phones are very expensive back in the
11:49
day. In fact, phones are still
11:51
expensive now. But anyway, you catch my drift.
11:56
So then now instead of just Ms. Word doing research on Microsoft
12:01
Word, you could actually go to a.
12:04
Now these things had expanded because, you know, before they
12:07
used to call them Business Center.
12:08
So now they've expanded. Now they don't become Cyber
12:11
Cafe, not just Business Center. So it's not just that you go
12:14
there to write your project or to print out business plan or to
12:18
bind contracts or whatever, but you would also be able to access
12:22
the Internet. So you go to the Cyber Cafe
12:28
during or passenger era and then you hook up to the Internet and
12:31
then from there, you'll be able to get different templates from
12:34
the Internet that you can use to create your business plan.
12:40
So excuse me now, I'm sure you guys can appreciate what I'm
12:44
trying to say now that in Niger back in the day, some 20
12:51
something years ago, if you wanted to create business plan,
12:55
it actually was a hard thing to do.
12:57
You need to know certain kinds of people, you need to hang out
13:00
in certain kinds of circles. Or if you knew what's up, you
13:05
need to be able to, excuse me, find a business, a business
13:09
centre to start getting templates from Microsoft Word or
13:13
to go and start doing research on the Internet.
13:14
It's not as if everybody had Internet everywhere on their
13:17
computer or on their phones. And you still would have to talk
13:21
to people who are in the know because it's not as if
13:24
researching over the Internet was readily available to people.
13:28
So, so Internet templates now. And it's like a passenger era.
13:32
So let's move on now. Currently now we're in the AI
13:34
era, Tin Booz era, AI, artificial intelligence.
13:39
Now, this is the reason why I keep telling people that when
13:43
people ask me some kind questions like how do I come up
13:45
with a business plan for manufacturing plastic, for
13:49
instance, because you think I know everything.
13:51
You think I'm a computer. Actually, I'm not.
13:53
I'm not the smartest kid on the block.
13:55
I'm not. My key value is you started the
13:59
business, you're trying to gain traction, you're trying to
14:03
increase your sales and your marketing efforts or you're
14:06
having customer service issues, things like that.
14:08
My key value is when you have hook, you know, sorts of things.
14:12
I am the guy who knows how to help you unravel those
14:15
mysteries. Well, it's not as if in the
14:19
beginning you want to set up a plastic manufacturing business.
14:22
Therefore you reach out to me and say, well, you give me
14:24
business plan for manufacturing, manufacturing plastics.
14:28
Like how am I supposed to know that I didn't go to school for
14:31
all this? It's not my basic talent.
14:34
So this is the reason why I refer lots of you for those of
14:38
you who reach out because I give my contact details a lot at the
14:41
beginning and at the end of every episode.
14:43
In fact, let me do it again, 08064662140.
14:50
That's the reason why any of you who call me, who sent me a text
14:53
message or who sent me a WhatsApp message, that's why the
14:56
first question I'm going to ask you is, did you check AI?
14:59
What'd you come up with? Let's have a look at it.
15:02
What have you tried in the past? What do you think you can try
15:04
now, What seems reasonable, What seems workable?
15:08
And before we will start talking to anything else, I'll tell you
15:11
go and try, You know all these things now.
15:13
You did some small research. You came up with seven ideas.
15:16
You think you can do #1 number 7 and #12 Well, go and do them
15:20
now. Do it first and then come back.
15:22
Then we can talk. Now, the reason why I quickly,
15:30
quickly, quickly send people down this route is because now
15:33
you don't have to go to business center, you don't have to go to
15:39
Cyber Cafe, and you don't need to buy any expensive equipment.
15:44
OK, well the economy don't spoil, so phones are expensive,
15:48
but even if there's only 1120K or 150K that you have, there are
15:55
some cheap Android Go handsets. You can still have access to the
16:02
Internet and load up AI tools on that.
16:05
You'll be able to access Google Gemini on it.
16:09
So these things are already on your phones.
16:11
These things are already on your computers.
16:13
You don't have to leave the comfort of your house anymore.
16:16
You don't have, for those of you who are still in school, you
16:18
don't have to leave lecture hall, you don't have to leave
16:20
hostel. It's already on your phone.
16:23
Just whip it out and do some basic research first.
16:29
So this is the case study business plan for baking
16:31
business. I decided let me just go into
16:34
Google Gemini and just throw up a random search.
16:39
The how do I come up with a business plan for baking
16:41
business And this is what Google Gemini told me.
16:46
For those of you who are interested in starting baking
16:48
business, listen to this thing and tell me if this does not
16:51
make sense. So of course, usual now Google
16:53
Gemini because it tries to be very personable.
16:55
You know, that whole, congratulations, you want to
16:57
start a business, you know, blah, blah, blah, blah, blah.
16:59
It's a very good thing to do promising prospects.
17:01
Is that that OK, if you want to start up a business plan, these
17:05
are the sorts of things that you should be paying attention to.
17:09
So Google Gemini said you need a section that is called executive
17:14
summary. And basically Google Gemini was
17:16
saying that the executive summary is where you're going to
17:19
come up with the concept. You know, what kind of bakery
17:22
are you doing? Is it common bread you're doing?
17:25
Is it pop off that you want to do?
17:26
Is it meat pie that you want to do?
17:28
Or you want to do something fancy?
17:30
Maybe, you know, you're in Lagos or in Abuja and it's just common
17:34
bakery, you know, everywhere and you're thinking maybe you open a
17:36
bakery with some kind, maybe like French flair, you know,
17:40
something nice and sophisticated, you know, you
17:42
understand. Now do something different.
17:44
Like in Abuja, there's Chloe's cupcakes.
17:48
That's all they do there, just cupcakes.
17:50
So you want to go there, you want to hang out and you want
17:53
cupcakes. Only cupcakes.
17:55
I think cupcakes and ice cream, that's all they do.
17:59
But you see their own concept because you know, bakery is
18:02
there everywhere. So you guys to do your own in
18:05
such a way that there's a difference.
18:06
People will know you for something.
18:07
So Chloe's cupcakes, whether in Abuja or in Lagos, if now
18:10
cupcakes, you want Trump, that's all.
18:14
If it's meat pie, don't go there.
18:17
If it's birthday cake, OK, they will answer you.
18:20
If it is cross on, don't go there.
18:23
They don't make anything else. So executive summary, that's
18:27
where you say this is my concept.
18:29
Bam. So if you're raising money for
18:33
investors, this is the kind of thing that I don't want to hear.
18:35
They want to know very clearly what is it that you're trying to
18:37
do? Even if you're not trying to
18:40
raise money going through these exercises that Google Gemini is
18:44
saying that is what you should be thinking of is very, very
18:46
beautiful because now you already begin to arrange the
18:50
pattern in your mind. Like, OK, what am I doing
18:53
exactly? Is it just because, you know,
18:56
moms used to bake and you know, I like hanging out with moms in
18:59
the kitchen, therefore I must be a Baker?
19:02
No, you go through the exercise, I start to narrow it down.
19:05
What exactly is the concept? And then of course, mission
19:09
statement and you know, all that jazz.
19:10
But of course, you know me now, as far as I'm concerned, you
19:12
know, mission statement is down. I wash.
19:15
But of course, you have to put it there.
19:18
Then Google Gemini also said you suppose have your company
19:21
description over there. Go through the legal structure.
19:24
Are you going to be a 1 Marshall?
19:26
Is this going to be, are you going to register a business
19:28
name? This is going to be a limited
19:30
liability company, You know, blah, blah, blah.
19:32
You're trying to raise money. Your investors want to know
19:35
those things. Even if you're not trying to
19:38
raise money, but you're trying to start up a business on your
19:40
own, you'll be good if you think through some of these things now
19:44
you can see at the level where you can start reaching
19:47
consultants. So if at this stage you now
19:49
realize that our legal structure mean, what do I know?
19:53
If you reach out to a business consultant now or a lawyer at
19:56
this stage is making sense because you don't inquire,
20:02
execute or arrange some things in your mind.
20:05
So you'll now be getting out to specifics if you reach out to
20:08
someone. So in one moment.
20:13
OK, sorry about that. I had to pause because my son
20:17
had just finished his Cartesian classes and they were doing
20:22
tests for first holy convenience, so I just wanted to
20:24
know how things went. All right, so let's get back to
20:27
it. So I think I was talking about
20:30
the company description and where was I?
20:35
OK, yes. So at this point, now if you try
20:37
to engage the services of a consultant, you know, whether a
20:40
lawyer or a business consultant, yes, it will make more sense
20:43
because you have started doing some research on your own and
20:46
you're running into specific troubles.
20:49
And you see, coming to calling somebody up to ask them what
20:53
legal structure would be best for a baking business is better
20:57
than just calling somebody up from the beginning and asking
21:00
the person, you know, how do I come up with a business plan for
21:02
baking for a baking business? The first one is just too broad
21:06
and nobody's an encyclopedia. But if you come with a very
21:10
specific thing, I want to start a baking business, and I don't
21:13
know which legal structure is best.
21:16
Very good. Now you can engage your
21:18
consultant. Then let's see what else.
21:22
OK, Then Google Gemini also recommended that we need a
21:25
section on products, on services.
21:28
You know, that's where you talk about the general menu.
21:31
So if you remember at the beginning of the podcast, I
21:34
think, or some way in the middle of the podcast, I spoke about
21:37
the core menu. Sorry, not the core menu.
21:40
I spoke about the, what would I say, the thing that would
21:44
distinguish your, your bakery or your baking business apart from
21:49
others. So you'd have to come up with a
21:50
core menu, you know, a menu that is different, that sets you
21:53
apart. And if I remember correctly, I
21:56
think I spoke about Chloe's cupcakes.
21:58
Yes, Chloe's cupcakes in Abuja and in Lagos.
22:01
So for Chloe's cupcakes, their core menu is just cupcakes,
22:06
nothing else. So, you know, fondant cupcake,
22:09
strawberry cupcake, chocolate cupcake, this cupcake, butter
22:13
dash, butter squash, you know, on and on and on and on.
22:16
You know, So for those of you who know things about baking,
22:18
you know, forgive me, I'm not a baking person.
22:21
I like to eat. I don't bake.
22:22
So I'm just running off of memory.
22:24
Memory. So yeah, the call menu, you
22:29
identify your products or service.
22:31
So what is it that you're going to be baking?
22:33
What is it that you're going to be doing?
22:35
In this section, Gemini recommends that Google Gemini,
22:39
that is their native artificial intelligence tool.
22:41
They recommend that we should come up with pricing strategy as
22:45
well. So how much are we going to be
22:47
pricing this, bread pricing this, croissant pricing the
22:49
cupcake pricing this, pricing the that And then a section on
22:52
sourcing. Sourcing is very, very
22:55
important. You know where you're going to
22:56
be getting your ingredients from.
22:57
Are you going to be importing them from Mumwa here or are you
23:01
going to be ordering them off TAMU or Alibaba?
23:05
Are you going to be getting them from China?
23:07
But you know, sourcing is a very, very important part of the
23:11
equation As for those of you who run these sorts of businesses.
23:17
So if you are going to be getting, if you're, if you're
23:20
going to be raising funds, the people who you're going to be
23:23
raising funds from would like to know about these sorts of
23:26
things. But then again, even if you're
23:28
not going to raise funds from an operational perspective, it will
23:31
be nice before you begin that you have already started
23:34
considering these sorts of things.
23:36
You know, how are we going to be pricing this cupcake?
23:38
How are we going to be pricing this bread?
23:39
How are we going to be pressing this meat pie, this croissant,
23:42
this blah, blah, blah, all of them, and then sourcing, Where
23:46
are we going to be getting these things from?
23:48
Absolutely important. Now, if you're listening to the
23:52
podcast for the very first time, I hope you're beginning to see
23:55
how these simple artificial intelligence tools can help you
24:00
to figure out a whole bunch of stuff before you begin your
24:04
business journey. Now, I am not saying that these
24:07
things are perfect and I'm not saying that these things are
24:09
absolutely correct 100% of the time.
24:12
No, but I'm saying that these are handy, useful tools already
24:16
in your pocket because you have a phone already on your computer
24:20
that you can use to sort out your business to start your
24:24
business journey. Then Google Germany also
24:27
recommended a section on OK, sorry, one moment I have to
24:34
attempt to one more person. OK, sorry about that.
24:39
The catechism teacher needed my attention.
24:41
So back to the recording. So next Gemini recommends a
24:46
section on market analysis where we go into the industry
24:50
overview. Industry overview.
24:51
That's just where you consider you consider the layer of the
24:54
land. So you want to start up a bakery
24:56
in Abuja or in Omaha or in Olicha or in Lagos or whatever?
25:03
So what is the baking industry like in that particular part of
25:07
the world? What are the target market that
25:09
people are going after? So like, sorry, forgive me for
25:13
referring to Chloe's Cupcakes, Bob, to be honest, that's the
25:16
only baking business I can think of at the moment.
25:20
So, yeah, so I'm sure that the founder of Chloe's Cupcakes, you
25:25
know, she had to consider these sorts of things.
25:27
I'm coming in here. I'm setting up these things.
25:30
What are the kind of business that will move?
25:31
Who are the other players in the market?
25:34
What do the other people offer? Is there any space in the
25:36
market? What can I do that is distinct?
25:39
What can I do that is different? What can I do that is unique?
25:43
OK, we've decided on cupcakes now.
25:45
Is there a target market for cupcakes?
25:47
You know, are there any people that eat cupcakes in Niger?
25:51
You know? Sorry, 1 moment.
25:57
OK, sorry about that. It's like today's episode.
25:59
Get interruption. Plenty, plenty, plenty.
26:02
So what happened was there was this idiot who was driving on
26:04
the road and you know how we are in Nigeria, very, very lawless
26:08
fellows. So the guy was transporting
26:11
roofing sheets. But instead of using like, you
26:16
know, big tipper to carry this thing, they use these small
26:19
trucks, these these tiny trucks that they're like the size of a
26:23
Picanto very useless trucks. So the guy carried the roofing
26:28
sheet now and then they tied the thing on the on this small
26:32
truck, this Picanto size truck and as well moving as if the
26:36
back of the zinc now fell and he was now scratching the ground.
26:40
So that noise that you guys were hearing, that's that's where the
26:42
noise came from. There's just some idiot who is
26:45
transporting roofing sheets but the guy did not use a proper
26:50
truck. He's using a Picanto size truck
26:53
and then he's driving and roofing sheet is just scratching
26:56
on the ground and see there's a problem of doing business in
26:59
Niger. The guy will now carry this into
27:01
sight. Mind you, the roofing sheet
27:04
would have been scratching on the floor the whole way.
27:07
He will now go and deliver it to the person and he will now say,
27:10
Oh yeah, take your roofing sheet.
27:11
He will say that he has delivered now that he has not
27:13
worked and then the guy will want to collect, collect money.
27:18
Now you see why on the podcast, This is why I keep talking about
27:21
how if you just do some basic, some sane stuff in Nigeria, you
27:25
will already stand out. So if you're in the roofing
27:27
sheet market, you know, building materials market and you just
27:31
make sure that you observe some simple basic stuff when you're
27:34
transferring things, you know, proper care.
27:37
Are you on time? Let the consignment not damage,
27:40
you know, small, small, small things like that.
27:42
You just do some basic, basic stuff already.
27:44
You're standing apart in a very crowded market and people will
27:48
say this guy gets us so that when they're building, they will
27:50
call you. So back to where I was.
27:56
Chloe's cupcakes. Yes.
27:57
So Chloe's cupcakes. Yeah.
27:59
Target market. So then they chopped cupcakes in
28:01
Abuja or Lagos. You know, you ask yourself that
28:03
kind of question. OK.
28:04
The people that eat cupcakes, you know, like, well, who are
28:06
they? You know, is it old man?
28:09
Is it young boys? Is this CCA Co?
28:12
Is it old mummies? You have to ask yourself these
28:15
sorts of things. So these are the questions
28:16
you're asking yourself when it comes to target markets.
28:20
Then of course, like I said, you also look at the competition.
28:24
You know, you do your competitive analysis and then
28:27
because you want to make sure that you stand out apart from
28:29
the market. So these are some of the
28:31
questions and suggestions that Google Gemini came up with.
28:35
Then Gemini also recommended, and this is my favorite segment,
28:41
my favorite part of the business plan.
28:43
And I recommend, in fact, if you don't do a business plan for
28:48
anything else, this is the main reason why I say everybody must
28:52
do a business plan, because it forces you to think about
28:54
marketing and it forces you to think about sales.
28:58
So you have to come up with your marketing strategy, you have to
29:02
come up with your sales strategy.
29:05
So how are you going to come up? How are you going to promote the
29:08
business? How are you going to promote it
29:09
online? Are you going to promote it
29:12
offline? Are there any local
29:14
considerations to take on board when it comes to promoting a
29:18
baking business, a cupcake business, a whatever business in
29:21
Lagos that is different from marketing in Abuja, that is
29:25
different from marketing in Umuahia, You know it depends.
29:28
So and then also the question of sales channels.
29:31
So what kind of sales channels are you going to adopt in
29:36
starting this business? And the sales channel basically
29:40
how I put it now I'll explain it, OK.
29:42
A channel is just a, a channel is any medium, any conduit,
29:52
anything between you and the final customer.
29:56
Basically how you get your product or your service across
29:59
to the final customer. So back to Chloe's cupcakes.
30:02
So for Chloe's Cupcakes, she has physical locations in Abuja, she
30:06
has a couple and then physical locations in Lagos and I don't
30:09
know where else. So obviously sales channels.
30:13
Part of it is #1 the in store experience.
30:15
Then I don't know if I'm sorry. One moment just had to dab my
30:24
eyes because I was sweating a little.
30:27
What was I now channels, channels, channels, channels,
30:30
channels. OK, so the in store experience
30:32
that is an important part of sales channels for Chloe's
30:37
cupcakes. Then I'm not sure if she's into
30:39
online retail now because you know, I'm not in that part of I
30:44
don't, I don't flow in those circles.
30:45
Like if you give me cupcakes, yeah, I'll eat definitely, but I
30:48
don't go out of my way to go and look for cupcakes.
30:50
So I don't know if she has an online experience, online
30:53
channels. So when we say sales channels,
30:55
those are the things that we're talking about now.
30:56
Do people have to come into the store?
30:59
Do you have your own website where people can place orders
31:02
and all those sorts of things? Then Germany also recommends
31:06
that you come up with an operation plan, operations plan.
31:10
So what kind of equipment are you going to need?
31:12
How are you going to do inventory management?
31:15
Then of course, there's also the financial plan that has to be a
31:19
part of the the business plan because if you're raising money
31:25
from investors or people who want to, people want to get, who
31:30
want to partner with you on equity, you know, they need to
31:33
know what are your startup costs?
31:34
How much money do you need? Yeah, how much money do you need
31:38
to start up with, you know, whether it's operating capital,
31:42
how much money you're going to need every single month, money
31:46
for buying material, money for machine, money for this, money
31:49
for that. Then let's see what else.
31:51
OK, so startup costs then your financial plan will also need a
31:56
sales forecast. As some people say, forecast
32:01
there is not just guessing. It's not just manufacturing
32:03
numbers. Well, in a sense, yes, sometimes
32:06
it's like manufacturing numbers. But see, this is the reason why
32:09
I say that in the beginning, it helps if you have been doing
32:13
this thing, small, small, small. If you have some form of MVP,
32:17
the MVP is the minimum viable product.
32:20
It is the smallest version of your product, your service, your
32:22
idea that people can see, can taste, can touch, can smell, can
32:26
try out. And the reason why the MVP is
32:28
important is because that is what will let you know whether
32:31
you are making some traction in this business or not.
32:34
So before you go and do this business on a big level to like
32:40
Louis cupcakes cupcakes, if you have already been selling
32:43
cupcakes small, small, small, you know, like during PTA
32:46
meeting, you know, you bring cupcakes yourself for other
32:49
parents people's birthday party, you supply to different parents
32:55
celebrations going on in the office or in the department you
32:57
supplied cupcakes. So if you don't supply cupcakes
33:00
like that small, small, small, small, small, that is where you
33:04
can now come up with the figures.
33:05
They'll be able to help you in the sales forecast because you
33:08
will now know that OK based on the horse where they do in the
33:12
past, based on one or two things, I have been moving this
33:16
amount in cupcakes. So therefore, by the time we
33:19
start on the bigger level, if we try them like this, we do them
33:21
like this, I think I should be able to sell like this, like
33:26
this and like that. So that is how you get around
33:30
the sales forecasting thing. But yeah, but for a bunch of
33:33
people who haven't done anything, they just start
33:35
manufacturing numbers. But please, this is the reason
33:37
why I say we need to we need to have done.
33:47
Sorry about that. A message came through on my
33:48
phone. I just wanted to make sure was
33:49
nothing important. So we need to have been doing
33:52
this thing small, small. So at least from there we'll now
33:55
know what is realistic when it comes to a sales forecast.
33:58
Then you also do a break even analysis.
34:01
That is how much should I, how much should I be selling?
34:05
How much should I be producing before I even break even?
34:09
That's break even just means you recoup your investment now as if
34:12
you're making profits. So let's say you collect 5M, how
34:16
much activity do I have to form before I get to the level of say
34:20
we are making back that five M before we now even talk of
34:23
profits? So that's break even analysis.
34:25
Then of course the funding request, that's the part where
34:27
you ask people that, OK, based on what I've said so far, I'm
34:31
going to need, you know, 5 M, I'm going to need 20M30M,
34:34
whatever. I'm going to need this amount of
34:36
money, you know, will you guys be willing to fund it, you know,
34:39
blah, blah, blah. And if you found it, this is how
34:42
and when we're going to pay you back.
34:44
So there are other things that char GP, sorry, Google Gemini.
34:49
I know char GPT is more popular, but I prefer to use Google
34:51
Gemini. So there are sort of things that
34:53
Gemini recommended. But as you can see, if you've
34:58
been following me, that this is a useful exercise to go through,
35:02
whether you're trying to raise finance or not.
35:06
Because if you're raising finance, then you'll be prepared
35:09
to answer a question when you stand in front of your investor,
35:14
you know, people you want to raise money from.
35:16
But if you're not, this exercise will help you think through all
35:22
well, not say all most major considerations before you begin
35:26
in this business. And so this is the reason why it
35:28
is useful. And I will say again, please
35:34
only consider reaching out to a consultant or some honor
35:39
personality or whatever when you have some specific questions
35:45
that you need to address, specific in the weeds questions.
35:49
Because all these generals, excuse me, all these general
35:52
questions like how do you come up with a business plan for
35:55
architectural business? You go and meet a consultant to
35:58
go and start talking at that level, you're just wasting the
36:00
person's time. It's too broad.
36:02
It's not a very helpful question.
36:05
And especially if you're asking for free advice, it's these are
36:09
not the kind of issues that we want to waste our time talking
36:12
free advice on. But if you've done some research
36:15
by yourself with these tools that are already in your pocket,
36:19
that are already in your house and they are there for free, and
36:22
then you now try and implement one or two ideas on your own.
36:25
Then you now reach out to the consultant to say this is what
36:29
I'm doing, this is where I'm heading.
36:31
You know, I Jang with it here. Yeah.
36:33
OK. Now we can start having some
36:36
some useful conversations. So the reason why I made today's
36:39
broadcast episode is just to give a demonstration live and
36:43
direct about how you can use these tools to help clarify your
36:47
thinking before you start your business.
36:50
So thank you very much for your time and attention.
36:53
It's already more than 30 minutes.
36:54
So let me bring this to a close. Remember, if you would like to
36:59
get in touch because you have questions, you have comments,
37:02
you have queries, you can call or send me a text message or
37:06
send me a WhatsApp message on 08064662140.
37:13
So thank you very much for your time and attention.
37:14
I'll catch you all some other time.