One of the ways money lenders know how serious a loanee is through the presentation of his business road mark. You must have a direction. You must have a projection. In this guide, I’ll guide you through how to write a recharge card printing business plan if you are soliciting funds.
In one of my guides, I told you the difference between a business plan and a business proposal, it’s important you know the distinction between the two terms, more details on this is available at: https://infomediang.com/difference-between-business-plan-business-proposal
As small as we think N100,000 is, it is a huge sum for some people, as such this set of people may need financial support through their business plan. This guide is meant for you if you fall in this category.
Why do you need a business plan for your recharge card venture
Starting a business without a plan can be likened to someone who embarked on a journey without a specific location he is headed.
An absence of a well-articulated business plan could lead to the failure of a startup. This guide helps you to avoid failure as you set out to roll out your voucher printing business.
For the purpose of this guide, I’ll be using Articulation Vouchers as the business name
This blog post is meant to guide prospective business owner of recharge card printing, any similarity in the name is highly regretted. You can tailor this guide to your need.
Articulation Vouchers is a recharge card printing business located in Lagos, Nigeria. Our company has obtained the necessary authorizations from our mega dealer to print recharge cards for major telecommunications service providers. The telecoms include the top 4 which are Glo, MTN, Etisalat, and Airtel.
Our market shows that there is enormous opportunities to contribute to the growth of the telecoms industry in Nigeria.
While we plan to make use of the already established distribution channels, our aim is to create additional channels. This will be achieved through the vast contacts we have on the ground.
The previous experience gained by the founder Ibiyemi Samuel is an asset to our successful operations.
Our products include the printing of recharge vouchers of four major telecommunication service providers in Nigeria. Already, we have entered into a partnership with MTN, Etisalat, Airtel, and Glo. The partnerships have culminated in the granting of authorizations to print their recharge cards.
Our vision is to create a dynamic business that adapts to the changing needs of telecom subscribers across Nigeria. With this strategic partnership, we are success-hungry to break into the top 10 leagues of the biggest recharge card printing companies in Nigeria by 2026.
We are actively involved in helping our telecom partners to offer the best services to the millions of subscribers spread across Nigeria.
Our recharge card distribution points within Lagos will be wide enough to cover all areas, particularly with the help of our existing distribution channels. Our mapped-out plan is geared at giving our vendors a better profit margin, this will make our products the most preferred.
Funding and Financing
Financing for our recharge card printing business will be raised from the sale of our shares. About 30% of our shares will be sold to a maximum of 5 investors to enable us get the required funding to commence business activities.
Under this arrangement, these shares will have a non-renewable tenure of 5 years, after which they would cease to be joint owners of our recharge card printing business.
An analysis of our areas of competence and weaknesses has been considered in our operations. The findings can be found below:
We have been able to zeal a great deal with four of our major telecom providers, thanks to our negotiation skills.
We have also entered into fruitful discussions with wholesalers and retailers as part of our growth and expansion plans and to enable us to gain a fair market share.
Financial constraints are one of our weaknesses. Also, due to the fact that we are new in the market, we might be able to capture the market immediately we in business. However, we plan to expand to dominate the market in five years.
The share number of Nigerians using a handset for their daily transactions. As of September 2020, 273.44 million subscribers on MTN Nigeria, according to the Nigerians Communications Commission (NCC).
Data obtained on Glo shows that there are 151,063,413 million Glo subscribers at the end of September 2020 while the number of millions of subscribers on Airtel and Etisalat os also mind-boggling!
To us, this number is a business opportunity to establish a recharge card printing business that is sure to thrive because there is a steady demand for these recharge vouchers.
The recent voucher recharge directly from bank accounts is a threat to our business that may lead to an eventual takeover of the of recharge card printing sector.
Also, online recharge by some vendors is also a threat, but they are surmountable.
Because of the recently introduced USSD charges by banks which is about N7 makes, subscribers are gradually coming back to embrace the conventionally printed recharge card. While you pay N106.98 using the USSD code to purchase from your bank, it’s far less patronizing us.
Guarded by the current trend, we have done a survey of our projected sales over a period of three years. Optimistically, the results are encouraging for our business. Within this time, barring any major economic shake-up like recessions, devaluation of the Naira, and other factors, we will see our profits rising considerably.
Take a look at it below:
- First Financial Year N4,000,000.00
- Second Financial Year N8,000,000.00
- Third Financial Year N28,000,000.00
We are aware of other recharge card printing businesses in the state we operate that offer similar services as we do.
We are not taking for granted our negotiation skills. We are already in partnership with vendors to give them better deals. It’s a win-win situation for both of us. Because of this, tens of other wholesalers have signified their interest in partnering with us.
Some of the marketing strategies we’ve rolled include Facebook Ads, billboard campaigns in strategic locations, points for social media shares by our followers.
As part of the move to make the business easy for our vendors, we’ve also collated their contact details where they only need to send a certain message to our customer support, and their order would be delivered promptly.
We’ve also launched an online platform for our vendors where they buy ePins on their laptops or internet-enabled phones.
As part of the marketing strategies, we’ll be giving out Articulation Vouchers customized printer to our top ten vendors in the first month of launch.
Recharge card printing is a lucrative business in Nigeria. You can use this business plan in case you need one to apply for a credit facility. The job has been done for you.