An organization( names withheld) is giving unemployed Nigerian graduates, grants of N5m to N7m to set up a business of their choice. The applicants cut across the six geographical zones and the selection is conducted in phases. Qualification for the grant is said to be based on the quality of business plans submitted in each phase.

There are many questions in the business plan forms.There are some questions that require professional knowledge and technical skills to answer them acceptably to win the grant. Two of them are as follows:

1) Business Risks
what risks or challenges do you anticipate that may affect the success of the business? How will you mitigate or reduce these risks?

For those selecting poultry farming as an option, the questions require intelligent answers.The sponsors want to test your knowledge of the business terrain, to be sure that you know the business that you are going into.
The common risk in the business is the disease risk but you need to provide more than that to be able to stand out from the herd of applicants stating that risk. Since the qualification for the grant is a survival of the fittest, then you should show the sponsor that you know more than average applicant also investing in chicken farming.
There are other risks in the business that the sponsors want to test your knowledge about, and you can find some of them in the signature below.

2) Financing
How much have you invested in the business?
How much will you contribute in the next one year?
How much do you expect from other sources?

The sponsors want to know your personal financial commitment to the business. No investor/sponsor/banker wants to invest in a business that the promoter is yet to commit his own resources.It will do you good not to state NIL as an answer.

Besides your personal financial commitment, where the sponsor is a bank,the bank wants to know what assets the business will have, that they can fall back on in a worst case scenario.The more solid the assets, the better the protection it gives them in case of default.Banks are interested in fixed assets.

You have to state your capital requirements and start up costs as well under financing in the business plan.You have to be accurate but conservative when estimating projected sales figures and support your projections with evidence and statistics that make a better and convincing presentation.If you exaggerate, they can see through it.
An organization that is giving N5m grant is no fool to throw its money away anyhow!

Also you should present a detailed cash flow section that list the monthly cash flow. This may be extensive to show the investor your potential cash flow growth over a period of at least 6 months to one year.it shows the investor/sponsor/bank how cash flows in. it gives them an idea of the company's progress in the 1st year.

Take note of the following questions
How much would you require to make the business a success?
How much do you want from the sponsor?
What will you use the money for?
How much sales do you expect to make in 12 months after receiving the award?
How much do you expect to spend in running the business in 12 months after receiving the award?

The last two questions require intelligent answers. If you rush into answering them by giving the sponsor 12 months sales figures just like that, then you have missed it. Read the questions again and again and think very well to understand them.The sponsor is testing your intelligence and your knowledge of the set up of the poultry farming business.Talking about 12 months sales in chicken farming, when does the sales start? Is it from the date of the award or from the date that the poultry products are ready for sale? There is a difference between the two.