10 Amazing Guide on How to Start a Business in Nigeria
It is quite funny seeing people talking about how to start a business in Nigeria without taking any action. Most persons have quit their jobs in the name of starting up a business in Nigeria, but yet still fail at it. To successfully own a business in Nigeria you have to follow the step by step guide with optimum carefulness because it is not easy setting up a business in Nigeria. A successful business needs time and resources for it to grow in Nigeria or in any part of the world.
Well, in order to be an entrepreneur, you need to follow up and put to action the step by step guide on how to successfully start up a business in Nigeria. Though you might be wondering if you can start up a good paying online business or a profitable online business in Nigeria, well you have your answers right here, so just follow this steps most Nigerian billionaires and millionaires followed while striving to achieve success in their respective business.
Here is the Step by Step Guide on how to start a Business in Nigeria.
- Develop and Reform a Great Business Idea / Set up a business plan
In order to start a business in Nigeria, you have to draw out a business plan. Then how do you draw a business plan?
Drawing a successful business plan starts from creating a business idea (choosing a brand), finding the problem the society is facing, creating a platform to offer help of solving the problem, then creating a market scale which is best for solving peoples problem, then raising standard and mapping out a standard price for your business product.
Always choose a business that you have skills and knowledge about. Don’t choose products that you know nothing about so that you can be able to defend the product at any point in time. Most persons don’t believe that they can succeed in some little businesses but they fail to know that every successful business starts with a humble beginning. Before someone starts thinking of how to start a business in Nigeria, he/she should be ready to execute an idea that would affect the business positively. This also applies to online businesses.
Here are examples of businesses in Nigeria that can grow to a powerful business with time:
- Starting up a tilapia fish business
- Setting up an online business
- Setting up a fast food business
- Setting up a piggery, rabbit, and snail farm.
- Cucumber plantation
- Setting up a block industry
- Opening a saloon.
- Start up a coaching business
Well, an undergraduate can choose any of this, and start working on them before graduating because it is best to know that there is no real Job waiting for you out there.
Related: How to make money online in nigeria
- Make careful choice of location
I will tell you my life story that affected me to this point which made e realized that location is one of the crucial things on how to start a business in Nigeria.
At the age of 22, I opened a store where I sell shoes. I go to Onitsha main market to buy shoes. Well, I thought that with time, the business would grow. People who come around to check my shoes, always repeat one thing “why not buy OKIRIKA SHOES?” it became an anthem. At a point, I now saw that these persons can’t buy the quality of shoes that I sell. They need low-quality shoes that means the kind of people that stay around that vicinity can’t buy the shoe.
So I advise you to choose a product that can sell in that vicinity. Make sure you sell an affordable product that people can easily buy.
You can start selling computer or phone accessories in rural areas. Or you start up a poultry farm in the urban area. You have to be in between a rural and an urban center. Choose an ideal location for your business. Don’t just open up a business. The best place to open a boutique business should be in the Ogbete main market, Enugu. You will sell big because of the location of your business.
- Get your Business Start-up Capital Ready
This is where every new businessman gives up. Raising capital could be so hard and frustrating. Most banks do give loans and mortgages to business start-ups. The Nigeria Bank of Agriculture also offers resourceful support to interested individuals who wish to join the agricultural exploit in Nigeria.
The YouWin Program is also empowering young entrepreneurs financially and otherwise in order to boost the energy channeled in business to a very profitable one.
You can as well run your start-ups for your business through so many ways like angel investors, to personal finance, friends & family, and a lot more. Immediately you have genuinely raised capital for your business, then channel it wisely.
Setting up a legal business structure demands that you study the various business structure platform and choose the best that would suit your type of business in Nigeria. Before someone starts thinking of how to start a business in Nigeria, he/she should decide on the business structure that suits the business.
There are three modules in every business in Nigeria. These business structures are basically based on ownership. They are as follows:
- Sole proprietorship
- Public limited liability company
- Co-operative society.
A sole proprietorship business is actually a one-man business that needs no external influence. The person is the sole heir and genuine of the business. The decision making of the company depends on the person. The type of business insurance the person wants to go for depends on him/her.
A public limited liability Company can be made up of two or more partners. The decision making in the company lies in the hands of the partners in the business. There is quite a slow action in decision making because they need to be an agreement between the partners of the business. They all bear the losses of the business and that is one of the most important points.
A co-operative society can be owned by two partners or two companies that merge to control their market power in cases where they deal with the same product.
So having a legal structure for your business is very paramount before thinking of how to start a business in Nigeria.
- Apply for a business Registration in Nigeria
Most entrepreneurs fail to legally register their business with the government. Before someone starts thinking of how to start a business in Nigeria, he/she should be ready to face the government except it is an online business. This gives rise to the legal filing which would very bad on the long run. So before registering your business, you need to prepare an article of association. This article must contain everything about your business, your business location, description of the product you deal on, the type of business structure you set up, and the nature of your business.
In order to do this, you need to involve a legal practitioner for this. Though it’s not mandatory you need a lawyer for this, you can it just with the necessary information’s and documents required from you. In most countries, things might be different.
You can forge ahead to register with the federal and state tax offices. The Federal Internal Inland Revenue Service (FIRS) allows business owners to register their business with them so that they would be provided by Tax Identification Number which could be used for other future business actions like opening a business account with the bank.
- Open a business bank account
With the Tax Identification Number (TIN), you can easily open a BUSINESS BANK ACCOUNT. This would guide your business in terms of internal revenue. It would also allow you to get loans from banks for business start-ups or other business agendas.
Here are the lists of Nigerian banks where you can open up a business bank account: Zenith Bank Plc. FirstBank of Nigeria, UBA bank, GTBank, Fidelity Bank, Diamond Bank, and Union Bank of Nigeria etc.
- Choose the best team for your business
Teamwork in every business is a determinant for a successful business in Nigeria and other countries. The right team will give you the best business strategy.
Apply the basic skill in employing the best team. Don’t only rely on qualifications, also be mindful of character and job experience. This helps a lot. If you feel you can do the job interview, you can employ experts to help out. Always work with smart ones.
Well in Nigeria, this is not compulsory. Big companies should always look out for Insurance brokers in Nigeria in order to get the best business insurance and other insurance quotes in order to keep the business owners and the employees in check for life or health damages.
As soon as you have legally validated the business paper works and have armed yourself with the compulsory business documents that your business requires, then kick off with the big thing. Start your business with every focus because that is the only tool you need.
Identify your competitors in the business field, know your target market, study the business with optimum carefulness, choose the best selling strategy that suits your products, avoid adulterated products because that could harm your business.
Most importantly, every business requires patience and hard work. So you need to put in your best. Study the outside market and always be ready to make a decision and apply changes in the market if there is any abnormality in business sales.
Always know when to buy and where to buy. Target to buy high-quality products from the best and cheapest source so as to make more earnings. Always create room to hear your customers complains about your product and learn to address them in a smart way.
As an entrepreneur, you need to be smart, very smart in doing businesses in Nigeria.
- Maintain and grow your business
One difficult thing to do is business maintenance with the idea of strong sustainability. You need to grow your business in order to this you have to follow this simple and trusted steps below:
- Always check what your competitors are doing
- Know the right audience to sell to
- Always make your product relevant to your audience
- Expand your location
- Grow your brand name
- Create adverts for your business
- Keep your products fresh and outstanding always.
With this information, believe me, that you are fully equipped with the necessary things you need to know about how to start a business in Nigeria. The best thing is to follow the step by step guides and share with your friends.
You can leave a comment on the box below in case if you need a business coach and adviser to help you grow and sustain your business.