How to Start a Business in Nigeria

The dream of every Nigerian is to have their own business where they can do whatever they want without the supervision of any boss. While this sounds easy, it requires some steps and knowledge to acquire. Life is sweet when you can go to work based on your schedule and not on someone else’s schedule.

However, starting a profitable business is very demanding if you want the business to last long. The first six months to a year to 2 years of a business will always look challenging but if you choose to stand and follow the right recipe, you will be glad you did.

There are no limits to who can own a business in Nigeria. Either rich, poor, or average you can start your business. You do not need a huge amount of money or a degree to start and run your business. However, what you need is a good business plan and idea and passion to never give up on your business dreams.

So, therefore in this article, you will be learning the step-by-step guide on how you can start a profitable business in Nigeria.

Steps to Start Profitable Business in Nigeria

A house built on a rock will last longer than a house built on sand because a house with a rock has a solid foundation. So, also if you follow these steps below, your business is going to gain visibility and succeed in no time.

1. Find a business Idea

The first thing you need to have to build a profitable business is to create or find a business idea that matches your budget. Many people go into business without relating their budget with their budget and this causes them to fail in the long run. Don’t just go into business without knowing what problem you will be solving. No business exists without solving problems. So, when searching for a business idea, ensure you the guide below.

  • Think about the problem people are facing in your environment
  • Thin on what you can do to provide a solution to the problem and how you can monetize it.
  • Think about how you are going to execute the solution, how much it will cost you, and the strategy you are going to use to do it.

All these are essential because not all business ideas are worth it. A business idea that is worth you starting should be unique, needed by people, and easy to scale.

2. Create a business plan

Everyone who wants to start a profitable business needs a business plan. A business plan is essential because it includes the aim of the business, advertisement strategies, capital needed, physical and online presence, business growth, and analysis of implementation processes. It would be a bad situation to have only your business idea, acquire the funds to make it happen, and then start the business immediately without a business plan, especially in Nigeria where there are tons of competitors.

3. Acquire business funding

The next step after creating your business plan is to acquire your business fund. You can get these funds through your personal savings or through support from relatives and friends. However, money from this source may not be enough if your business idea requires a lot of money but that is the first option for funding.

Another effective way to get funding is to obtain loans from banks. Getting loans for business can be challenging, especially if you are applying for a long-term loan. But if you are applying for a short-term loan, the loan process may be easy but may come with high charges depending on the bank or financial institution. The key to success here is to avoid any loans that have high charges because you will only focus on how to pay your loan back and this may ruin your business.

4. Register your business

The next thing to do is register your business. This is the point where many Nigerians are missing it. If your business is not registered under the Companies and Alliance Matters Act, people won’t trust you and another business can take over your business name, since it is not legally registered. So, in this case, you will need to consult a lawyer for a guide on which business registration corporation is suitable for your business.

5. Employment

After registering your business, the next thing to do is employ staff depending on what you already have on your business plan. This is essential because you may not be able to do all the work. If you can do everything yourself, you may also need to employ an accountant or someone who will keep your sales record. This is essential because the success of every business depends on its finances. This will also help you avoid spending lavishly. At this point, you will also have to open a business account and place a restriction on the bank account for proper management.

Conclusion

Apart from solving people’s problems by providing solutions, the main purpose of starting a business in Nigeria is to be financially free and for you to be able to afford anything you want. So, as you journey on starting a business, don’t joke with your finances because this is what will determine your business growth. Take a step to financial freedom today, and you will be glad you did tomorrow.

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