Even if it might not seem so, starting a business in Nigeria is quite easy when you are a determined person who knows what to do. If you would like to know how to start a business, you should understand the business environment quite well. Here, we have gathered some helpful tips for future entrepreneurs in Nigeria. Check them out!
Profitable business in Nigeria: where to start?
No matter how much financial capacity you have, there is always a possibility for you to start a business in Nigeria. Even if you have a minimal amount of money, you can still invest in a start-up business and eventually make it successful. If you are willing to embrace new knowledge about business ventures, you will soon become quite experienced in this sphere – just enough to try your own start-up.
Nigeria is a good country to do business, because the population is high, and there is a better chance that your business enterprise will get a decent market. Actually, Nigeria is considered to be one of the most profitable countries in Africa to start a business. For instance, some of the telecommunication business companies, like MTN, have grown in the recent years, becoming commercially successful all over Africa. This is all because they were oriented to the Nigerian market, while some other companies turned their back on it and later came to regret it. Another reason to do business in Nigeria is the considerate tax policy. So, starting a potentially successful business in Nigeria is more than possible.
Since there are obviously a lot of competitors that will try as hard as you, you should put a lot of thought into your business, and here we will tell you how to do it.
1. Come up with a great business idea
The idea is the most important step when you want to start any kind of business, no matter where in the world it is. If you want to start a small business in Nigeria and make it successful, you must have a clear idea of what you want to do. There are plenty of different ideas and business opportunities, and almost all of them will have competition unless you come up with some new genius invention. It definitely does not have to be something completely new – if you possess enough capital, you can buy the existing business. However, if you want to start from scratch, your business has to be noticeable and attract the potential clients.
Most often, the business entrepreneurs connect their new ventures with something that they are passionate about and have a good knowledge of. If you have no passion for your business, it is more likely to fail. The good business idea has to be supported by strong level of feasibility, the thought-out business plan, and a qualified business team. The idea itself gives you no guarantees that your business will succeed. However, if it is interesting and attractive, and in addition, you possess enough capital, have a good team you, and a clear business plan, you are very likely to succeed.
2. Start the preparations
Of course, when you want to start a business, you need to prepare yourself for the future goals. This step might be just the factor that influences whether your business will be success or failure. Nigeria is a tough place, but it is not impossible to make your business profitable here, and you need to be prepared to face a lot of challenges.
You can start preparations by attending various kinds of workshops and seminars that concern the business you want to specialize in. They will give you all the needed information about being a business entrepreneur, which you have to absorb and use in the future. Psychological preparations are quite important, too. You have to be a tough person who accepts all the challenges, successes and failures with pride. Your entire way will not be full of only good moments, so you should take this as something that happens to everyone. However, you should develop the success mentality in your head and be ready to fight for your business despite competitions and odds.
3. Carry out feasibility study
Your next step is really important – you need to do a lot of research to make sure that the business you are planning to invest in is really profitable in Nigeria. Lots of Nigerian entrepreneurs make the same common mistake – they jump into some business because their friends or relatives have told them they can make money in it, and in the end, they do not get any profit and become disappointed. Entrepreneurship is closely related to risk, but starting something without a proper knowledge of how it works will not bring you any positive result in most cases.
4. Make a good business plan
Business plan in Nigeria is an essential part of entrepreneurship. Nobody just starts their business without a clear picture what to do and how to operate it. You should develop a full plan which will include all the possible aspects of your future business, and then you need to stick to it.
Many people seem to be overlooking this aspect, when in fact it is crucially important not only in the organizational aspect but also improve your psychological condition. Looking at the business plan and noticing how far in it you are will give you the additional strength and motivation to continue what you have started. It will also help you understand your business vision better and concentrate on the small tasks step-by-step.
The statistical data estimates that over 85% of Nigerian small businesses have no set business plan. However, you should definitely start one, because it will give you a lot of new possibilities. For instance, banks loan money only to the entrepreneurs who have a set business plan. Writing a good one is a whole separate art, so you can research some good articles that will help you with it.
5. Get to know the market
Before you get involved in any industry, it is incredibly important to know the basic rules, features, and qualities of the market. Every single business has the inside secret behind their success. In order to become successful, you need to find your own approach to it. The knowledge of the market of your preferred industry will significantly increase your chances to become a great entrepreneur.
You need to ask yourself some important questions, like: Who are my potential customers? In what way do they want to be served? Who are my main competitors? Who are the market leaders and what are they doing in a different way than everyone else? Is there a chance for me to survive? Is there a possibility to get some market share in my business area? These questions will help you understand the business and your own purposes better.
6. Secure a decent location for your business
Where is your business going to be situated? This question should be an important one when you are familiar with the business market already. There are a lot of commercial districts in Nigeria, and you need to familiarize yourself with all of them before choosing the most appropriate location for your enterprise.
7. Register your business
In Nigeria, a vast amount of businesses are sole proprietorships, and you can start your own in the same way. However, if you are really determined to create a successful business venture which will endure the test of time, you should register your business name. Obtaining all the needed licenses and permissions is also important.
You will need to choose between the following types of business: sole proprietorship, public liability or limited liability. Obviously, do not forget to research info about all of them. After you have chosen the business entity which is the most suitable for your business, you can have its name registered in Abuja, Lagos, or any other Corporate Affairs Commission office which is close to your place. Hiring a lawyer in order to avoid mistakes is strongly recommended. The lawyer will help you with formulating the policy of your business and the legal terms.
8. Source for capital and financing for start-ups
No business is possible without a starting capital, and this challenge is usually the biggest one that entrepreneurs have to face. However, it is absolutely possible to find the source that will finance your business.
If you have no start-up capital, the easiest way will be borrowing from your friends or from the bank. But in this case, you should be especially certain that your business will be successful because if it fails, you will fall deep into debt. Another way is looking for leverage. In most cases, it is getting a bank loan for business, credit from the suppliers, starting a strategic alliance with a bigger company, or signing a contract.
9. Start your business small
Remember that not even the biggest successes in the world were earned in a day. Everyone starts with something small and eventually expands. After successfully completing all the previous steps, you can finally start your business. You need to overcome the common fear of failure – remember that you need guts to start the business, and by starting, you can prove yourself that you are a strong person who always achieves the set goals. Do not let your plans go to waste without even starting.
What are the most profitable businesses to start in Nigeria?
If you have no idea where to start, we will give you the list of the potentially profitable businesses. Some of the most lucrative businesses that you can start are the following:
Agriculture (poultry farming, snail farming, cassava production, rice farming)Selling furnitureMaking fruit juiceWater productionOil and gas businessHaulage servicesHotel businessFast food restaurantInvestments in propertyTokunbo spare parts importDry cleaningProfessional car washBuilding material sellingTransport businessSchool businessRaw material exportOnline advertising agencyFashion businessMedia and show businessInvestments in internet companiesBlogging
The business venture is a risk, but with good planning and hard work, it can result in a huge success. Good luck!
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