Everything You Need To Know About Starting A Business In Nigeria
In starting a business in Nigeria, the first thing is to have a business idea. Secondly, you need capital, depending on how large you want your business to be. Thirdly, you need mentorship. But in all, you need the following:
Be Self-Developed, Be Prepared
You need to firstly be self-developed before thinking of starting a business in Nigeria. This is undoubtedly the thin line between failure and success in starting a business in Nigeria, given the rugged nature of Nigeria business terrain.
This self-development may be by way of enrolment in a business school, formal education or apprenticeship in your chosen business line. Also, you need to be mentally and psychologically fit.
Do a Feasibility study
Secondly, do a proper feasibility study prior to starting a business in Nigeria. This will give you a foresight of the past, present and future market indices.
Understand your Market
Having a comprehensive comprehension of your proposed business insight is very important in starting a business in Nigeria. You can measure these using the following yardsticks:
- Who are your customers?
- How do they want to be served?
- Who are your main competitors?
- Who is the market leader?
- Do you stand a chance for survival?
You must provide succinct answers to the above question and more before going into business.
Carve Out A Unique Business Idea
An appropriate research of a unique and smart business idea is the first port of call. You just don’t have to imitate others in starting your business. You can be unique, and that’s the best. So, where a problem exists, carving out a solution to such will go a long way in deciding your success. Alternatively, where solutions already exists, come up with a better way to solve the same and related problems.
The master plan of your business is your business plan. It indicates the directions of your business, it profitability indices, risk factors etc. Writing a good business plan is not hard at all. With some recommended softwares, you can achieve this effortlessly. Alternatively, get someone to do it under your supervision.
Register your business
You need to register your business with the Corporate Affairs Commission (CAC) for it to be a legally, recognized business in Nigeria. There are three core categories of business which can be registered in Nigeria. They are:
- Sole proprietorship.
- Private Limited Liability Company.
- Public Limited Liability Company.
Here are the steps to achieving any of the above:
- decide on the ownership style of your business.
- Select three preferred business names.
- confirm with the CAC office whether or not your chosen business name is available, reserved or is rejected.
- Provide details of your proposed business such as your articles of association, share allotment and capital, proposed business address, details of directors, memorandum of association, and all other essential information and forms which are required by the CAC.
- Pay the required fees which could be between N12,000 – N15, 000 for a sole proprietorship/business name registration or about N30,000 for other business registrations. You will be issued a certificate of business registration upon verification of your information. You are now free to move on to the next stage.
Acquire office space
Next, you would get for yourself an appropriate office space, from where you would be reached by clients and market your proposed business. Read this article about why you must do business like a prostitute.
Develop a marketing plan
You can’t do without proper marketing as far as effective business operation is concerned. This has to do with advertorials and marketing. Understand clearly how you want to break through the rugged Nigerian market and outsmart your competitors in the same or related business.
Work on branding
Commit yourself to creating a unique identity, that is, your brand. This should go with your business cards, logo, company brochure and other documents and materials akin to the success of your business.