How To Start A Business In Nigeria.

This article will help you understand how to start a business in Nigeria, minimize risks, maximize your start-up capital, and increase profit.

We do amazing, meaningful things every day in small increments.

We build a life, a family, a career, legacy — all in bite-sized pieces that are impactful in the moment and magnificent in the long term. So as it is when starting a new business.

It requires implementing small simple business strategies each day till it sum up and result into a giant corporation.
Starting a business

It involves planning, making financial decisions, doing market research, and acquiring knowledge in areas you never thought you would learn about. Getting started requires a lot of work.

The amount of documentation, legal requirements, and strategic development can simply be overwhelming. Yet, putting in the effort is the only way you can turn the idea in your head into a successful business.

It’s about carefully executing a series of well planned business strategies. Obviously it’s going to take time, effort, and potentially a few challenges. The good news is that you can do it and succeed at it.

Put Your Best Foot Forward

Running a business can significantly impact your life and the lives of those around you and I have created this article “how to start a business in Nigeria” to help you put your best foot forward.

The steps described in this book will help you organize your thoughts, and iron out important details to guide you towards starting your own business in Nigeria.

Starting a business could be the best decision anyone can make for himself. Giving you the flexibility to work in your own time and space.

It also gives you the opportunity to maximize adverting platforms’ efforts to help increase profit for your business.

It’s also important to understand that starting a business in Nigeria could be a bit challenging considering the situation the country finds itself.
Factors That Cripple Businesses In Nigeria

I will like to mention a few of the key factors that cripple businesses in Nigeria so it doesn’t catch you unaware
Power Supply

Nigeria has a very low power distribution, many businesses end up generating power for themself so they can remain in business. Some businesses invest in solar plants while others use generators. This comes along with additional costs that should be considered before starting your business.

How important is electric power supply to your business and how will you like to source for adequate power supply that will be enough to keep your business afloat? This is a key factor you need a definite answer for before getting started.

Before we proceed, I will like to mention that this article on how to start a business in Nigeria will provide you with realistic challenges Nigerian businesses face.

How to overcome them so you can have an interesting business journey as a Nigerian who is doing business in Nigeria.

So, let’s proceed…
Transportation

Depending on the part of Nigeria where you reside, some major cities in Nigeria are known for heavy traffic.

That could result in delaying your commodities, making it spend a longer period of time before getting to its destination. Some cities known for heavy traffic in Nigeria include Lagos, Abuja, Port Harcourt, Ibadan, Aba, Onitsha, among others.

If you are considering starting your business in any of these cities, then it’s important to understand that heavy traffic needs to be considered while planning your business.

This will affect your product delivery, getting raw materials on time, meeting with clients and other factors that are paramount to having an effective business that delivers great value to its customers.

Government Policies

Apart from registering your company and filling your tax documents, some businesses require special government licensing to prevent them from operating an illegal business.

Some of these businesses include food production, beverages, skin care products, soaps, and so on.

If your business falls into any of these categories, you might need to talk to a NAFDAC official or check their website to figure out the procedure for getting approval for your business.

The above-mentioned factors are the key reasons why many business owners are kicked out of business untimely because it caught them unaware.

Now that you understand these challenges, I believe you will consider including them in your plan if any of these factors are likely to affect your business operations.
Let’s dive into how to start a business in Nigeria

Some other factors needs to carefully understood before starting your business, and those are the factors we analyzed in details in this part of the article.

Determine if entrepreneurship is what you want

Before diving into the details of your potential business, it’s best to take stock of yourself and your situation. It’s important you provide answers to these questions.

Why do you want to start a business? Is it money, freedom, flexibility, to solve a problem or some other reason?
What are your skills?
What industries do you know about?
Do you want to provide a service or a product?
What do you like to do?
Will it be a full-time or a part-time venture?
How much capital do you have to invest?
How much capital do you need?

Your genuine answers to these questions will give you a clear picture of why you are starting a business and help you narrow your focus to what matters most.

Knowing yourself, and working in a job that caters to your strengths is a sure way to be happier in your business journey.

Since you will be spending most of your time working on your business, it’s important you choose a business you are passionate about.
Loving what you do

Loving what you do will keep you focused and get you going during tough times till you finally get things right and when you do, you will grow faster, bigger and stronger because you love what you do.

It’s not enough to start a business just to make money especially if this is your first business, starting a business you are passionate about helps you deliver better services.

You will be eager to learn about your business and making your customers happy will be your ultimate goal.
Before starting any business it’s important to conduct a self-assessment test

You need to plan, set goals, and above all, know yourself. What are your strengths? What are your weaknesses? How will these affect your day-to-day operations? You could conduct a SWOT analysis on yourself to figure this out.

SWOT is an abbreviation for Strengths, Weaknesses, Opportunities, and Treat.

At this point, you need to conduct a SWOT analysis for yourself and you have to do it now. Get a sheet of paper and a pen.

Write down your 8 biggest strength
Write down your 4 weaknesses
Write down 6 opportunities surrounding your business idea
Write down 4 possible treat you might encounter

The result of your SWOT analysis should give you a clear understanding of your overall business idea.

The result helps you focus on your strengths, pinpoint your weaknesses so that you can come up with solutions to help you address your weaknesses.

Identify the opportunities and advantages around your business idea and figure out possible treats so you can avoid them.

As you get started, your business will likely dominate your life so make sure that what you’re doing is stimulating and interesting, not completely outside of your expertise.

You’re going to be in it for the long-haul. Use what you learn from the SWOT analysis to think through what you want your life to be like, not just what you want from your business.
These are some questions you need to ask yourself

Get your sheet of paper and your pen so you can write down your answers. The questions are…

1) What would you do if money wasn’t an issue?
2) What matters to you in business?
a) Making a lot of money from your business no matter what the situation might be?
b) Delivering better services that will make your customers proud of your business?
3) What really matters to you in life?
4) Do you have the support of your family, especially your immediate family members? They may have to contribute largely to your business, so it’s important to have them behind you.
5) Write down 5 people you admire most in business
a) Why do you admire them?
b) What are their likable traits?
c) What can you learn from them?

Answering these questions will get you thinking about your goals and about what motivates and inspires you.

Use your answers to make sure that you are matching the business you want to start to your personal aspirations.

Find a Problem to Solve

While learning about how to start a business in Nigeria, it’s important to note that all businesses solve a problem.

Plumbers fixes leaking pipes. Hollywood movies fulfill people’s boredom, curiosity, interest, and the need to escape and relax. Clothing brands help people express themselves and feel attractive.

Here’s the golden rule: The bigger the problem you solve – and the better you solve it – the more money people are willing to pay.

Let’s use healthcare services as an example. They solve a big problem by giving people the chance to live, which is why almost everyone is willing to spend a lot of money on getting better healthcare.

On the other hand, not many people will pay you to stop their table from wobbling. It’s not a big problem, and they don’t need help solving it.

The bottom line is that: If you want to identify the best part about how to start a business in Nigeria, you need to find a good problem to solve.
Here are three examples:

Target market: Fashion-conscious men and women
Problem: The fashion-conscious want to stand out without spending too much money.
Solution: Create a clothing line that’s flamboyant and budget-friendly.

Target market: Marketing managers at multinational companies.
Problem: Businesses need to drive traffic to their website.
Solution: Write article that rank on Google to drive traffic to your website.

Target market: Working Moms with young children.
Problem: Many moms want to work out regularly, but they don’t have much time.
Solution: Create a time-saving fitness program and schedule.

Now that you have identified a problem to solve, it’s time to select a business idea that aligns with your personality and also develop your business idea.

Best Business Idea

The first stage on how to start a business in Nigeria is to choose a business you understand in details. Make sure you have a clear understanding of how the business works before getting started.

It’s not enough to assume you know it all, it’s time to start learning more about the business. Learn about how you can deliver the business in a unique way that will make you stand out from your competitors.

Your business idea is the most important and the most delicate aspect of starting a business, if you choose the best business idea for yourself then chances are you will have an interesting journey as a business owner.

But! if you choose the wrong business idea it will difficult to overcome the challenges that come with starting a business.

The truth is that…

There’s no business idea that runs smoothly from the idea to the launch stage.

Every business comes with its own challenges that’s why you need to be clear about your business idea, make sure it’s a business you are passionate about so that whenever you face any challenge your desire to see your business succeed will keep you going.

By then it becomes easy to endure and overcome the challenges that usually appear at the beginning of most new business.
Refine your idea

After choosing your idea, it’s important you refine your idea. Talk to people who are already in the same business, they are the best set of people you can learn from, spend time with them to help you see how the business really works. These are your mentors and competitors.

Learning from them will help you decide if you are ready to embark on the day-to-day activities you see them engage in.

This also gives you the opportunity to refine and find a better solution to the areas they are having issues with their business so you don’t end up having the same issue.

During this process, you get to understand how customers are responding to competing brands, things customers like and dislike about the business, and especially about your competitor’s mode of operation.

These are the pieces of information you need to help you improve on performance.

Validate Your Business Idea

It’s not enough to just think you have a good idea and run with it. You need to validate that there is a need for your business. You also need to start addressing whether this idea is sustainable or not.

Once you decide on a business that fits your goals and lifestyle, it’s time to evaluate your idea. Who will buy your product or service? Who will your competitors be?

This process will help you address your opportunity, value proposition, the market size, and competition sections of your business.
There are a number of ways you can do this, including:

Performing general Google searches.
Speaking to people already working in your target industry.
Reading books by people from your industry.
Researching key people.
Reading relevant news sites and industry magazines.
Taking a class on Marketing & Sales.

The more you know about your industry, the more advantage and protection you will have.
Evaluate your target audience

It’s not enough to just state the current market. You need to know what portion you’ll be able to claim and if it’s really possible.

To determine how attractive your prospective market really is, I suggest doing a market analysis.

A quick way to conduct a market analysis is to provide answers to these questions:

How urgently do people need your product or services?
What’s the market size? Are there already a lot of people paying for products or services similar to yours? Have you honed in on who exactly your target market is? Being specific will help you focus your marketing message and investment.
How easy is it (and how much will it cost you) to acquire a customer? If you’re selling real estate, this may require a significantly larger advert investment than a clothing store.
How much money and effort will it cost to deliver the value you would like to be offering?
How long will it take to get to market? A month? A year? Three years?
How much up-front investment will you need before you can begin?
Will your business continue to be relevant as time passes? A business that repairs iPhone X screens will only remain relevant so long as the iPhone X sticks around. If your business is only relevant for a specific period of time, you will also want to consider your future plans.

If you like, you can even take things a step further and consider the consumer needs currently not being met by businesses in the industry.

Take a look at potential competitor

This is a good time to take a look at potential competitors. And remember, the presence of competitors is oftentimes a good sign!

It means that the market for your product or service already exists, so you know that you have potential customers who are willing to spend money on your product or service.

While you’ve got the time, learn as much as you can about your competitors, about what they provide to their customers, how they attract attention, and whether or not their customers are happy.

If you can figure out what’s missing before you even get started, your job will be made that much easier when you finally start your business.

Lastly..

It’s important to field test your idea, services, or products. As you conduct research, take the time to speak to your potential customers.

Present them with the concept you intend to launch, ask about competitors they may have used and the price they’d be willing to pay.

If you can, it may be worth developing a minimum viable product (MVP) to help showcase what you’ll be providing.
Until people pay you, all you have is a list of assumptions.

Market research, surveys, and feedback from friends and family can point you in the right direction, but the calling card of real product validation is the sound of the cash register ringing.

So, the first and arguably best way to validate your product is to make a few initial sales.

There are a number of ways to validate your business as you’re developing it. Most focus on a single essential action: commitment.

Let early customers have some form of commitment to show that, yes, people really are interested in buying this product and they aren’t just telling you what you want to hear.

This simple practice proves to you that you are selling something that people truly want.

Source: https://realone.pro/how-to-start-a-business-in-nigeria/

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