Starting a business in Nigeria can be really difficult especially if you are in a new place or you have no track record. It's even worse when you're on a budget and simply have to start a business or touch the money you have.

However, before starting any business it's wise that you sit down and consider a few things so as to ensure the survivability of your business.

It is statistically proven that about 98% of businesses do not exceed their second year and this has been related to the founder not taking some considerations before starting the business.

In this post, we are PalmCredit want to share with you three things you should consider before starting any business.

1. Expansion

One key question you should consider before starting any business is if you'll be able to expand the business. This is important because a business you cannot expand, that has only one base is very much likely to fold up once hit with problems.

One of the greatest reasons why most businesses don't go past their second year is simply an inability to expand.

So this is definitely one part of starting a business in Nigeria.

2. Profitability

Another key aspect of business you should consider is how profitable your business is and if it can sustain you. What this means is that you should consider if the proceeds from your business are enough to feed you so that you don't end up eating your capital.

This is another popular reason why most businesses struggle as the entrepreneurs are not financially literate, cannot differentiate business and personal finances, and end up using business capital to solve personal problems.

So before starting your next business, you should consider if it would be profitable enough to sustain you so you don't delve into your business capital.

3. Management

How fast can I move from doing the daily activities of the business to managing it?

A key question to consider when starting a new business is how fast you can transfer the running of day-to-day activities to employees and staff so that you are only tasked with overall management.

This is very important because if you're doing all the work in the business yourself, expansion can hardly take place. That's not all, what happens when you are unable to show up to work one day? That means you will lose money.

So these are important things to consider when attempting to start a business in Nigeria.

Talk to us. What else do you think one should consider before starting a new business? Tell us in the comments.