10 things to consider before staring a business and investing in Nigeria
HOW TO START A BUSINESS AND INVEST IN NIGERIA
Doing business in Nigeria can be challenging, but it is possible to do it successfully. Many seldom succeed because they don’t take time to understand what it takes to do business in Nigeria.
Nigeria is blessed with countless natural and human resources, these things create a lot of business opportunities. And these opportunities can be converted into revenue-generating assets, if you can answer a question correctly, HOW?
Learning how to start and invest in your business in Nigeria is much more important than having the business idea. Nigeria has a consumer driven economy which makes it easier for companies to enter the market unlike other developed countries.
Many people jump into business without knowing how business works; that is first step on the road to failing in business. When you are done reading this article you would have a detailed knowledge of what it takes to start a business successfully in Nigeria.
The most important question to ask before going into business; why am I going into this? Answer that question correctly.
Why you do want to be an entrepreneur and not to sit down in office working for a corporation. Do you like to be called ‘Boss’, or you believe that having your business would give you more time for yourself and family?
Do you want to make more money, or you have a vision to solve the problem facing millions of people? Let it clear from the beginning why you are going in to business. It will help you to make certain critical decisions and how you run your business.
A good begins with an Idea, and it doesn’t have to be complicated; you want to serve a particular set of people, or meet certain need in a group of people. Simple and plain, no need for elaborate theories.
Generally, the Nigeria Market is unique, so as an entrepreneur must have a viable idea with a burning desire to succeed.
Your idea must be offer what people need, but don’t know how to get, at a large scale.
A BUSINESS PLAN
Before you start a building, you would get an architect to come up with a building plan, to give you a picture of the end from the beginning. The same principle applies in business.
A good business plan contains every details about the business; your aim, the process involved, how will market your products or service, capital to start, how you will manage your finances and others.
A business plan contains out a written plan from marketing, financial and operational view point. Its helps you strategize your business, Know your competitors and your business strategies. Through a written business plan you will be able to identify problem you might face and find their solution.
A well-written business plan positions your business for strategic partnership, loans and grants.
SEARCH FOR MARKET RESEARCH
Experts advise that you look for a hungry market, then create a product that solve their problems. It boils down to the market.
You will find out products or service that best suit your target market. Starting by looking at what problem exist in your environment, try to find a solution and monetize it.
Many Entrepreneur employ expert to write out their business plan without their time to search in the market about their business. All planning and strategy would be a waste of time if you end up creating a product that the market doesn’t need.
Ask questions from people who are into that kind of business or entrepreneur as a whole, read business books. Doing research about business in market or generally saves you from failing.
Read Also: 10 Reasons Why Businesses Fail in Nigeria
REGISTER YOUR COMPANY AND OPEN A BANK ACCOUNT.
When you are starting business in Nigeria you need to register your company. It gives a unique identity. Its protect your from personal liability. It makes you look serious, attract customers and other opportunities.
A registered company with a corporate bank account gives creditability to your company image. It’s easier to get bank credit for investors to invest. It’s also helps with your financial records issues because it’s different from your personal account.
KEEP FINANCIAL RECORDS
Developing a good accounting system is also essential in starting a business. A day to day financial transactions should be penned down. Recording and analyzing financial transactions and financial status is necessary.
You will have an overview of how finances is being organized and spent. This financial records also tell you if there’s gain or loss in the business.
Running a good business goes beyond you, there is a limit to what you can do. Your ability to put together a team that would run with your vision determines if the business would thrive.
Coordinating yourself and team is also necessary in business. Letting your team know their duties and provide an environment to work effectively, this helps you achieve your aim.
Create a team around your weakness, getting people better than you and pay them well.
OTHER THINGS TO KNOW
To do business successfully in Nigeria, pay attention to this things closely.
Capital to start up a business or keep the business going is one of the major hindrances to business in Nigeria. Young Entrepreneur tends to have issues finding their business or even starting up. You can get people to fund your business through family and friends, Government institution, Government Grants, Local Venture, Capital firm etc. You can even reinvest money made from the business back into the business, thereby creating more profit.
ACCESS TO MARKET
Nigeria has a large market sizes with a total population of about 180 million but 30 – 32% are into business and prospective market. So, an important question you should ask yourself is, what percent of the market are you going to serve with your products?
This is another challenge of business because the Nigeria Educational System is not up to standard. Most graduates from universities lack relevant skills to succeed in business. Human capital is very important in controlling products value, quality, and quantities and pricing due to associated skills and labour.
Generally, The Nigeria production and system is the “know-how” system. Know what to produce/sell, how to produce/sell and when to produce/sell.
Knowing these methods and putting them into practice as an entrepreneur or an aspiring entrepreneur helps you start a good and well-structured business.
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