AXA

AXA Mansard Promotes SMEs in Nigeria; launches Business Insurance Plan

In line with company’s strategy of fostering the growth of Small and Medium Enterprises in the country, AXA Mansard Insurance PLC, a member of the AXA Group and global leader in insurance and asset management, wishes to announce the launch of its ‘Business Insurance Plan’.

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The official launch of this product took place on the 25th of March 2021 at AXA Mansard’s office at Ozumba Mbadiwe Road, Victoria Island.

The Business Insurance Plan (BIP) is a one-stop insurance solution that addresses the business risk exposures of small and medium enterprises. It is a pot-pourri of highly beneficial insurance risks management solutions bundled together. These solutions include Business Content, Group Personal Accident, SME Life, Health Care, Public Liability, Optional Covers, Professional Indemnity, Comprehensive Motor, Stock and General Conditions.

Every business comes with a certain amount of risk. Although pitfalls and challenges cannot be avoided, but they can be mitigated with the proper precautions, planning, and Insurance coverage. These risks and pitfalls are what the Business Insurance Plan seeks to address.

The BIP is available for purchase seamlessly on the company’s transaction website. www.axamansard.com. Purchases can also be made through sales agents and at any of our offices nationwide.

Speaking at the event, the Chief Executive Officer of the company, Mr Kunle Ahmed stated, “Our aim is to deliver the appropriate solutions for small to medium enterprises at a competitive price. It is our expectation that this product will enable the SMEs hedge the risks they face and focus on strategizing and growing their businesses knowing that they are protected.”

With 17.4 million SMEs in Nigeria, the role they play in the growth & development cannot be overemphasized. They are a significant force in reducing unemployment and accelerating GDP growth. We are therefore very excited to be able to provide this innovative solution that ensures they continue to thrive.

The Chief Client Officer, Mrs Rashidat Adebisi stated that “the driving force behind the development of this product is AXA’s purpose which is to “Act for human progress by protecting what matters”. At AXA Mansard, we care about people and their businesses, therefore we constantly listen, think and innovate.”

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Start-Up

What start-ups need to attract investors

It is important as a start-up to ask yourself whose money you will use in the process of making your business idea a reality.

Would you fall back on your own nest egg to fund your start-up, this means you have saved up some money over time. It appears not many young entrepreneurs have nest egg to fund their start-up.

Now, will you go the route of debt financing? In other words, will you take out loans and pay them back with interest? This is an option to be considered with great care.

One of the benefits of using your own money is that you retain the profits and all control of your business if it succeeds. Your other option is to seek equity financing from angel investors, venture capitalists and others. In this business model, you owe less money, but you will share the profits with your investors. You are basically trading equity in your company for cash.

Going this route enables you to raise large sums of money for your start-up without going into debt. You will lose a bit of your control, giving your investors a “say” in your company. After all, they do expect a return on their investment. There is a catch.

Intending entrepreneurs brimming with confidence in their business ideas tend to believe all they need to take-off is see capital from venture capitalists. For venture capitalists the story is different because they are aware that nine out every ten start-up fails, they understand that funding is usually not the most important thing to consider when starting a business but structure.

Venture capitalists want clear answers to questions about who the business targets as customers, market size and how the business plans to grow and expand.

David Tele, managing director at Seedstars Academy, a seed capital venture firm at a Career Fair organised by BusinessDay in 2017 said that they evaluate start-ups approaching them for seed capital based on the Content, Process, and Results (CPR) method. The content dimension of the evaluation is data-driven: customer, market size, and projected revenue.

Process entails setting clear specific, measurable, ambitious, and time bound goals. It starts with setting annual goals, broken into monthly goals, then down to weekly and actionable daily goals.

Results comprise outcome from the two preceding phases and the cycle is repeated. Therefore, a start-up needs to do substantial due diligence before it approaches a seed venture capitalist. Below are a few things a start-up must do to attract seed capital.

Have a Business Plan

The first item on your list is to create a business plan. Venture capitalists deem this your most important task because, without a business plan, they are flying blind. You must create a plan that presents your overall business summary and a description of how it will make money.

In addition to your business plan, your investors will appreciate seeing one, three and five year plans. They want to see your goals and strategies for growth. They are looking for your “staying power.”

Conduct Market Research

Your investors want to see your market research. They want validation that the market can sustain your business and that your start-up is viable. This is the “proof” that your business plan is sound and provides you with numbers to back up your claims that your start-up will be successful.

Prepare Financial Models

Venture capitalists and angel investors are smart, and they know how to drill through your materials to the proof that your business can actually make money. Your financial models should include spread sheets of projected costs, acquisitions, sales and revenue, profit margins and growth rates. Bottom line: they want to know when they can start seeing a return on their investment.

Article by Stephen Onyekwelu

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Types of Business plan

. The traditional business plan uses some of the nine sections that make most sense to the business.
They include:
Executive summary
Company description
Market analysis
Organisation and management
Service or product description
Marketing and sales
Funding request
Financial projections
Appendix

2. The lean business plan projects fundamental facts about the company. The most well known is the Business model canvas, developed by Alex Osterwalder. Its features are:
Key partnerships
Key activities
Key resources
Value proposition
Customer relationships
Customer segments
Channels
Cos structure
Revenue streams

Browse about the types of business plans to choose the most suitable for your business.

Note: after conducting your research and you still don’t know how to write your business plan, consult the services of a professional.
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