Small Medium Business

SME’s discussions goes here

Benefits of setting up a small business website

If you still haven’t set up a website or blog for your small business, here are some ideas from the Systemdigits team which may show why having an online presence is now essential rather than optional for most enterprises.

Shop Front

You may think that there is no point setting up a website for your business if you don’t conduct sales online, or even use email on a mass scale. These days, more and more potential clients and customers use the web to research products and services before approaching vendors or suppliers, which means that even a simple website can provide a useful window into your business world – rather like a brochure. You can provide the most basic details about the services you offer, as well as your contact details and even a map to help people find you.

Low Cost

The web provides a very low cost way of doing a variety of business tasks. The cost of buying a web address (domain name) and web hosting is also very cheap. You can pick up a .com.ng name for 2 years for N4000, and shared server hosting should not set you back more than N3000 per year. The only thing you might need to pay for, depending on your own level of expertise, is for some help designing your website and making it live, and that’s where Systemdigits can come in.

Ease of Updating

Pre-Internet, you would have to update any published business information by hand, such as reprinting brochures or adverts when things changed. With the web, you can update your contact and product information in an instance. Content Management Systems do pretty much everything for you being the most popular open source software out there currently.

Online Selling

The web has changed the world of retail more than any other sector. You can buy anything from shoes to car parts online, and the associated costs to retailers themselves have fallen dramatically, giving small businesses more of a chance of competing with their larger rivals.

Open All Hours

To state the obvious, your website will be live 24 hours per day, all year round, so potential customers may be looking at your pages while you are asleep. Of course, if you’re selling online, an eCommerce system can be taking care of any orders which are made whatever the time of day.

Testing

Due to the ease with which you can update your own website, you can test new ideas online without having to outlay any cash, or pay consultants. For example, if you are running an online shop on eBay, you can test new descriptions, graphics and prices safe in the knowledge that you can revert and changes with the flick of a switch.

Money Saving

By setting up your own business website, you will almost definitely save money, even if the savings are not immediately obvious. By creating an online presence, and spending some time promoting your site, you can contact a global customer base for just the cost of your own time. Aside from the obvious savings you can make by selling online, you can also access thousands of online tools to help you manage your business more efficiently – such as online accounting, webmail, and customer relationship management systems.

Save Money

Moving your business (or just a part of it) online will save you money. The savings can be as small as the difference between corresponding with clients via email, compared to the cost of a landline call. If you spend time on web marketing, you can also gain new customers via search engines (such as Google and Yahoo!) – at minimal cost.

List of 5 Banks Selected To Disburse N220Bn To Nigerian SMEs

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Last month we published an article on FG disbursing the MSME fund,  Part of the N220 billion set aside for Micro Small Medium Enterprises (MSME) through the Central Bank of Nigeria (CBN) would be utilised to fund the Youth Entrepreneurship Strategy. But the CBN initiative suffered a major setback as commercial banks were unwilling to participate. However that has been resolved.

Under the programme, each of the 36 states and the Federal Capital Territory (FCT) , would be entitled to access as much as N2 billion . But the funds will not be disbursed to the states directly but through banks which are expected to effect the disbursements directly to the beneficiaries. Already, the CBN, has signed an agreement with five commercial banks to disburse part of the N220 billion Micro, Small and Medium Enterprises, MSMEs, Fund to entrepreneurs in the country.

The banks include; United Bank of Africa, UBA, Skye Bank, GTBank, Zenith Bank and Fidelity Bank.

According to a joint report by the International Finance Corporation and McKinsey, the financing gap of this critical sub sector of the Nigerian economy is about N9.6 trillion as at 2010. In order to close this gap and unlock the potentials of the Nigerian MSMEs, the CBN initiated the N220 billion Fund as an innovative way of improving the access to finance at single digit interest rate, shoring up their potentials for job creation and enabling them reduce poverty within the country.

The MSMEs Fund will be disbursed and administered through the commercial banks . State governments will be able to access up to N2 billion each for on -lending to eligible beneficiaries through participating financial institutions in their States.

‘Our optimal goal is to see that this Fund get to our people at the bottom of economic and social pyramid at single digit interest rate .without achieving this ultimate goal , it will impossible to achieve job creation and poverty reduction . In order to ensure the attainment of our goal therefore, the CBN will be committing human , material and financial resources to monitoring both the disbursement and utilization of these funds in a robust and verifiable manner.

Considering the important contribution of SMEs to the nation’s Gross Domestic Product (GDP), accounting for over 60 percent, the President of Trade Union Congress (TUC), Bobboi Kaigama told Daily Independent that the effectiveness and transparency of the disbursement of the CBN ‘s funds will determine the impact of this financial intervention on the Nigerian economy.

He explained that in his personal opinion, If the government is interested in developing the non-oil sector and generating income from it, the best way to do this is to empower SMEs through easy access to credit and specific business-friendly policies.

He said: “We also believe that if SMEs are to play their expected role in the value chain of the economy, regulatory costs such as excessive charges by banks and government agencies, as well as problems that have to do with infrastructure, such as poor power supply and bad roads, should be urgently addressed. It has become essential to institute policies that are business and people-friendly”.

According to Kaigama, the N220billion MSME Development Fund by the CBN must be properly administered to achieve its desired objectives as the aim of the fund is to provide wholesale credit at 3 percent interest to financial institutions, for onward lending to MSMEs at 9 percent interest over a maximum period of five years.

He noted that many SMEs are complaining about their inability to access the loan, while allegations have been made by some that the banks have raised the interest rate beyond the 9 percent approved by the CBN.

“We urge the banks to be transparent in the processes for lending this fund to the MSMEs so that they can get back on stream and contribute their own quota to economic growth and job creation. If government is sincere about diversifying the economy, this is the time to pay genuine attention to the non-oil sector and support SMEs to generate revenue and jobs”, he said.

“Altogether, if our economy is to compete globally, priority should be given to SMEs by creating an enabling environment for them to thrive, let the relevant authorities do what is necessary to reduce the cost of doing business and make credit available and affordable to genuine businesses so that they can survive, and grow,” he stated.

-Source: Enterprise

BOI Secures A- Rating From Agusto & Co

The Bank of Industry (BoI) has secured a domestic credit of A- rating by Agusto & Co, a leading Nigerian credit rating agency.  By the rating , the Bank has been adjudge to be a financial institution with good financial condition and a strong capacity to repay obligations on a timely basis and it is also the first Nigerian Development Bank to be so rated.

Augusto & Co was engaged to carry out an assessment of the bank’s performance and to issue a credit rating based on a multitude of qualitative and quantitative factors. The objective was to provide useful benchmarks for the Bank against global best practices. The engagement was successfully completed and a rating of A- with a stable outlook was issued in December 2014.

The Bank had in 2014 commenced the implementation of a corporate transformation project leading to the development of a five year strategic plan while is currently being  implemented.The key strategic issues addressed by the transformation  plan include the diversification of the bank’s funding base, development of robust risk management systems, effective cost management, performance management system, credit process re-engineering and automation, customer service delivery, new product development, loan quality, corporate governance, national coverage, and stakeholder management.

The Managing Director, Mr. Rasheed Olaoluwa said, “The positive rating is an endorsement our ongoing transformation project at the BOI, and an affirmation of our strategic intent of adopting global best practices in all aspect of our operation.” He added, “We are determined to make increasing impact in our focus sectors and to continue to set the pace as Nigeria’s leading development bank.

-Source: BOINIGERIA

Stanbic IBTC Secures $90m for SME Development

Stanbic IBTC Bank has concluded a $90 million line of credit facility from a Dutch development bank, the FMO,.

The purpose of the facility, consummated recently, is for the bank to lend to small and medium sized companies for the financing of projects in the infrastructure sector, which include agriculture, oil and gas, power, ports, and telecom companies within Nigeria.

The facility will run for a term of five years and was provided to Stanbic IBTC Bank by the FMO along with the European Financing Partners (EFP) and DEG, European development finance institutions.

The FMO is present as a development finance partner in over 80 different developing countries and emerging markets around the world. The company’s mandate is to provide long term capital for projects in these countries, thereby, maximising development impact with a methodology designed to ensure that the FMO’s return on investment is not just financial but also has positive environmental and social effects.

The chief executive of Stanbic IBTC Bank, Mr Yinka Sanni, commenting on the transaction, noted that the commitment of the lenders shows the confidence they have in the Stanbic IBTC brand. He further emphasised that the facility will enable the bank continue its SME sector growth efforts and move the economy forward.

The chief information officer of the FMO, Linda Broekhuizen, said, “This second facility to Stanbic IBTC Bank is further testimony to the long and good relationship between the Standard Bank Group and the FMO.

-Source: Leadership

CBN’s N220 Billion MSME Development Fund- How to Access it.

Finally, the Central Bank of Nigeria has published the procedure for accessing the fund. Find text below.

1.0 Is your business in any of the following areas?
. Agriculture
. Manufacturing
. Cottage Industries
. Artisanship
. Services
. Trade and general Commerce
. Renewable energy/energy efficient products and technologies
. Other income generating projects as may be prescribed by the CBN

2.0 If “Yes”….
2.1 Prepare your business plan or statement on how much you want for your business
2.2. You can get loan of up to:
(a) N500,000.00 for your micro-business; and
(b). N50 million for Small & Medium Enterprise (SME)

2.3. Go to your bank or any of the following institutions to access the Fund:
. Microfinance Banks
. Commercial Banks
. Cooperatives
. Finance Companies
. NGO-Microfinance Institutions
. Development Finance Institutions, i.e. Bank of Industry and Bank of Agriculture

3.0. Tell your bank how much you need

4.0. Your bank will discuss your request and provide you the money
4.1 The maximum interest rate of 9.0% p.a (charges inclusive) is applicable to all loans

5.0. Period for the repayment of the loan:
a) For micro business, it is a maximum of one year
b). For small and medium enterprises, it is a maximum of three years

NOTE: 60% of the Fund is reserved for enterprises owned by women; 2% for persons living with disability and 10% for start-up businesses.

There have been reports of bank branches claiming ignorance of the fund. In that eventuality or for more information, please send e-mail:
msmedf@cbn.gov.ng

SOURCE: MSMEDF-GUIDELINES

Six Co-operative societies to benefit from N600bn NIRSAL fund

THE National Association of Microfinance Banks, NAMB, South West zone, has short listed six Cooperative Societies that would benefit from the N600 billion Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Fund.

The names include: Livestock Farmers Association, Tractor Hiring Farmers’ Cooperatives, Fish Farmers Cooperatives, Agro Input Farmers’ Cooperative, Agro Processing Farmers’ Cooperative and the Cocoa Farmers’ Cooperative.

Olufemi Babajide, NAMB South West Zone Chairman, told Vanguard that the six cooperative societies were carefully chosen.

According to Babajide, “We are now in the pairing stage where we will pair these farmers with Micro Finance Banks (MfBs). This means that Microfinance banks in a particular area will be paired with all the identified groups in their area, so as to disburse the funds to them directly.

“Over the years, government has been setting aside special fund for farmers and those funds never get to them. MfBs were just funding farmers with their own resources which were not adequate but with this brilliant initiative from the authorities, modalities are now being put in place to ensure the Fund gets to the farmers.

“To get to the level of disbursement of the fund, it will take a lot of processes, we have sent list of our banks with interest and the national secretariat will recommend. Is not just a question of come and take money, there is going to be training in that area, hence it is not something that is going to be achieved in a day.

“Interested farmers who are not members but in need of the fund can meet any of the aforementioned societies for recommendations,” he explained.

It would be recalled that not too long, the Central Bank of Nigeria CBN set aside N600 billion agric Fund, to be accessed by Microfinance Banks for on-lending to small holder farmers.

The Fund, introduced under the NIRSAL Fund initiative was deposited in a special purpose vehicle by the Development Finance Institutions DFI’s.

THE National Association of Microfinance Banks, NAMB, South West zone, has short listed six Cooperative Societies that would benefit from the N600 billion Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Fund.

The names include: Livestock Farmers Association, Tractor Hiring Farmers’ Cooperatives, Fish Farmers Cooperatives, Agro Input Farmers’ Cooperative, Agro Processing Farmers’ Cooperative and the Cocoa Farmers’ Cooperative.

Olufemi Babajide, NAMB South West Zone Chairman, told Vanguard that the six cooperative societies were carefully chosen.

According to Babajide, “We are now in the pairing stage where we will pair these farmers with Micro Finance Banks (MfBs). This means that Microfinance banks in a particular area will be paired with all the identified groups in their area, so as to disburse the funds to them directly.

“Over the years, government has been setting aside special fund for farmers and those funds never get to them. MfBs were just funding farmers with their own resources which were not adequate but with this brilliant initiative from the authorities, modalities are now being put in place to ensure the Fund gets to the farmers.

“To get to the level of disbursement of the fund, it will take a lot of processes, we have sent list of our banks with interest and the national secretariat will recommend. Is not just a question of come and take money, there is going to be training in that area, hence it is not something that is going to be achieved in a day.

“Interested farmers who are not members but in need of the fund can meet any of the aforementioned societies for recommendations,” he explained.

It would be recalled that not too long, the Central Bank of Nigeria CBN set aside N600 billion agric Fund, to be accessed by Microfinance Banks for on-lending to small holder farmers.

The Fund, introduced under the NIRSAL Fund initiative was deposited in a special purpose vehicle by the Development Finance Institutions DFI’s.

Top 20 Lucrative Business in Nigeria That Makes Millions of Naira

Are you thinking of Investing in Nigeria but don't know where to start from or which business to invest your money into? Here are top 20 most lucrative businesses in Nigeria you can invest your money and be sure of making millions back in no time.


1. Poultry Farming – This business is making average Nigerians rich. It is so lucrative that even outsiders are coming in to invest in poultry farming the business in Nigeria. And why not, In a country of more than 150 million people, what would you expect? If you start with 1,000 birds and manage your poultry farm properly, when the turnover on investment begins to come, you will be making up to N30 million annually.

2. Cassava Production – People are beginning to turn their attention to this aspect of farming in Nigeria that have been neglected for years. Cassava derived foods are some of the most consumed in Nigeria. If you can invest in cultivating 50 – 100 Acre in a fertile area like Ondo State, your harvest will be great.

3. Import Used Cloth – Tokunbo market in Nigeria is very big and many people prefer to buy used items that are high quality than buy fakes.The cost of buying and importing used cloths is low compared to the prices in the market here in Nigeria, guarantying good turn over on investment.

4. Sale of Furniture – Buying and selling of Locally make furniture is a goldmine. You don't need to be a carpenter to do this, just arrange for regular supply from reliable Carpenters while you display and sale in your showroom. It is a very big business in Nigeria as only few can afford the imported designers.

5. Snail Rearing – Snail farming is one of the choice Animal farming for many reasons. It is a low capital investment with high yield and the market is big. There are few people currently doing this – and most of them are doing it in a very low scale. If someone invest heavily in Snail farming, he is sure to make good money in Millions within a year.

6. Rice Farming – Rice remains the most consumed food staple in Nigeria and Billions of dollars goes into importation of this product yearly from China and Thailand because the local farmer are unable to meet up the demand due to poor funding and limited knowledge. Anyone who have a million dollar to invest should get in touch and partner with me with 100% return. $1,000,000 = $2,000,000 guaranteed

7. Making of Fruit Juice – Nigerians drink fruit juice more than any other people. That's why companies like La Carcella and Chivita who came into the country as nobody are today making billions of naira annually. This business in capital intensive but if you can afford it, it's well worth it.

8. Pure Water Production – You know how popular this is in Nigeria and how many that are dispensed daily. Though this business is capital intensive but well worth investing into, especially if you can manage it properly with professionalism.

9. Oil and Gas Business – We are blessed and cursed with huge deposit of oil in our land which presents some of the finest business opportunity for Nigerians and Foreigners over the years. Owning a Petrol Filling Station, Supplying of Diesel, and Distribution of Kerosene are some the areas you can invest easily and make good money for yourself.

10. Haulage Services –  The cost of taking a truck from one place to the other in Nigeria is between N20,000 to N200,000 per trip. Due to poor rail transport system, most of the Nigerian goods are transported through the road, making haulage business in Nigeria a viable one.

11. Hotel Business -This is probably the coolest money making opportunity in Nigeria. Invest in small scale hotel of just 10 suites and watch as the money flows in. This has nothing to do with tourism boom of any kind; there is just something in Nigerians system that make this business very lucrative – Nigerians are jolly people!

12. Fast Food Eatery – Eatery business is another goldmine though poor management can kill it death! If you wish to go into this business, be sure to get everything right and don't forget it's a bit capital intensive and requires good management skills. But if you get everything right, free money is yours.

13. Importation of Tokunbo Spare Parts – If you are in USA, this business is good for you. Don't just keep importing exotic cars, gather tokunbo spare parts in containers and ship down here. There is huge market for it in Nigeria.

14. Investing in Property – Property appreciate everyday in Nigeria. Right now, Nigeria is one the countries in the world where landed property is most expensive. If you buy land now anywhere in Lagos, you are sure to make 100% profit within two years. You can buy and quickly resell and make profit. Or you buy keep and sell later.

15. Dry Cleaning – Professional dry cleaners at affordable prices are scarce in Nigeria. What we have are professional Dry Cleaners whose service fees are extremely high or mediocre dry cleaners who can never keep with time. Give them cloths today and meet it unwashed after one week. This business is a money maker if you balance it up.

16. Professional Car Wash – This business is good if you can set it up in a strategic location in a place like Lagos where there are good number of cars. You.

17. Sales of Building Materials – The rate at which new houses are springing up in Nigeria, you get to wonder why many people still complain of housing problem. Investing in building material is a good business and I can count some guys who are making millions almost daily in this business.

18.Transport Business – What we have in this sector are transport companies that are badly managed by local chiefs and touts. Invest in this business with good management and you will be wondering what hits you with bags of money.

19. Nursery and Primary School – School business has no rival among it's mate. My little kids school fees take away close to a million naira per term just to learn ABC!

20. Investing in Internet Companies – This is a new crop of powerful investment opportunity that is creating Billionaires around the world including Nigeria. It's simple! You don't have to be a Tech person, all you need is to look for a creative online tech startup with good ideas and invest into. Within 1 to 2 years you will be counting your profits in millions.

 Invest with us and Make 100% Profit

Our number one goal has been to share business ideas freely and encourage fellow Nigerians to start business of their own. This investment plan is designed for those who know how to take advantage of opportunity. Instead of letting the money sit in the bank for nothing, we can help you make 100% profit on your money.

The most important thing is that you do something with your money instead of keeping it in the bank where the bank will use it for business and give you little or nothing. 

Culled from http://www.wealthresult.com