There are many things to consider when starting a business.
Then there are some certain factors to consider before starting a business especially in a country like Nigeria.
These are tips that will strengthen your decision and a choice of a business idea that is most profitable in the nation.
Nigeria is a rich country with many natural resources and some hardworking youths that are ready to Impact success.
You might be wondering whether what are the most important things that you need to consider in establishing a business in Nigeria?
In this article, I will list the 10 things to consider when starting a business in Nigeria.
The 10 Things to Consider When Starting a Business in Nigeria
Now, let talk about the things to consider when starting a business in Nigeria:
1. Nigeria needs Innovative Products.
Nigeria is moving very fast in terms of technology and innovation.
The nation needs a great imaginative and technological product to wow their minds.
Many individuals in the country have taken good steps in manufacturing generating sets, cars, inverter, Phones, and other items.
However, if you are a citizen in Nigeria, benevolently think about the situation of Nigeria ten years back and contrast it and her present state.
You will concur with me that there is a colossal change in the nation.
Nigeria is developing, regardless of whether you let it be known or not won’t change the reality.
Somewhere in the range of 2010 and 2017, new organizations were propelled in Nigeria that upset their different industries.
Instances of such organizations are MTN, GLO, Uber, Taxify (now Bolt), Jumia, Konga and more.
That is the reason why many business people and investors from other nations are investing huge dollars into different Nigeria sectors.
This is because they see the potential and understand business prospects that we residents don’t see.
2. Nigeria is highly developed
There are more than 190 million individuals in Nigeria and the population has been anticipated to overwhelm that of the United States by 2050.
Presently what this implies fundamentally is that the market is large enough to assimilate any item, if enough advertising and mindfulness are made.
However, another high effect of these population’s insights is that youth are more hardworking with less charge.
One reason China developed and turn into a technological center point is a result of their high population and modest expense of work and market accessibility.
3. Nigeria face problems that need solutions
If you are living in Nigeria then you should know about the low standard of education, fuel scarcity, power supply, unemployment, housing, and unemployment.
Many citizens think that such challenges faced by Nigeria cannot be solved or If there are any solutions, it should be from the President.
However, you can take good advantage of these challenges as a business idea and see your profit within a year.
Such a business idea can be the manufacturing of electricity alternative, investing in real estate, building a standard Nursery and Primary school or even Secondary with either US or Canada curriculum.
They are many business ideas you could generate with these challenges before you will discover, it will turn a lucrative business in the nation.
4. The Country needs Increase in Economic
Despite anything, every leader is looking forward to improving the economic system in the country.
The even invites some international investors with more opportunities which could have even been yours.
The fact is, an average Nigeria is not ready to build a solution but always ready for what brings money.
No income could ever be created if there was no challenge that brings a solution.
You can start taking good advantage of these opportunities as many entrepreneurs and investors are funding small and medium scale businesses.
These are because small and medium scale businesses are the main sources of many countries’ income.
Ask the US government.
5. Don’t Focus only on highly populated States.
Many states in the country are left untouched with popular business offices or permanent production locations.
If you are one of the interested entrepreneur or investor who is ready to take off a business in Nigeria.
You could have a better business in order location order than at Lagos, Abuja, and Port Harcourt.
Depending on your kind of business idea, many individuals think that if not this major cities, businesses cannot grow in Nigeria.
For Example, the Former Vice President (Atiku Abubakar) is the highest private employee in Nigeria and most of his companies are located in Adamawa.
Or Innoson Car manufacturing plant which is located in Anambra.
Other cities like Owerri, Aba, Onitsha, Akwa Ibom, Kano, Ogun, Ibadan, Cross River, Enugu, and so forth can be a big city for your business.
6. Have a Better Skills and Understanding about your Business Idea.
To really profit with your business idea in Nigeria, you should have expertise and skill.
The ability to work effectively as an entrepreneur is a result of learning and understanding.
While the ability to create a solution on what you have learned is through preparing.
However, is not wise to begin any business simply because your relative or a friend suggested that is a good business idea.
When you are ready to start any business idea.
Research first, learn some of the most necessary skills required for the business idea before you launched it.
Don’t loan or borrow at the beginning phase of your business idea, work first with your invested time and resources.
7. Plan of employing more workforce.
No matter what kind of business you run or operate, you will surely need the help of other creative employees.
During your idea stage, plan on how many people your business needs.
Start the business with just yourself (self-employed).
Later on, you can incorporate any of your family members into the business only if it worth doing so.
Has the business grow and you have made your first profit, start hiring one or two competence staff.
You can start your business idea in your home, a friend shop, or rent a shop for it.
You shouldn’t plan to employ more workforce when your business start profiting but when your business was at its startup stage.
There is no business idea in this world that those not need capital.
The capital might be for your transportation, Laptop, Internet data, or anything that will sharpen your idea.
Capital is one of the most important things to consider when starting a business in Nigeria.
It might not be N1m or N100k, it can be N10k or N50k depending on your business idea.
Nobody is ready to invest in a startup or just an idea except the person see the prospect of the idea.
If you don’t have the capital you need to start, start small;
You can ask any of your family members or friend or even start saving toward that idea if it’s lucrative.
9. Start a Business idea that is yet untapped or highly demandable
This is one of the most important things to consider when starting a business in Nigeria.
Many people start a business idea that is already dead or the population of entrepreneurs operating it is high but the demand is low.
You should stay away from a business idea whose pattern is passing on.
For example, cyber café business,
This type of business had died due to the accessibility of the internet through mobile devices.
However, there are some people who still need a cyber café to either register for recruitment or applying for Jamb UTME.
In order words, cyber café business is still profitable mostly in an Urban area but with less demand than it was in 2009.
10. Profit will not come in a day
There is no doubt that all entrepreneurs and investors want to count their profit very fast.
The real truth needs to be told to any prospective entrepreneur or investor that profit cannot come overnight.
Business needs consistency, effort, hardworking and persistence to really profit.
This can take months, a year or more.
However, stop looking for a business idea that will yield results overnight or someone else is profiting from it.
Look for a business idea that you are enthused about and ready to grow with impact regardless of your circumstances.
#Bonus: Write a Business Plan
Before starting any business idea, write a business plan.
During the stage of writing your business plan, you will discover new strategic by your research.
You will go the extra mile in covering all aspects of your business idea and you will also be learning new things about that idea.
This is always the greater part of any business idea but with LivePlan Software, you can write your business plan like a pro.
The Ture Fact about doing Business in Nigeria
Presently Nigeria still stays a center point for most business people and financial specialists.
Actually, Nigeria is currently the biggest economy in Africa.
Nigeria still remains the main place for Foreign Direct Investment in Africa and one of the quickest developing economies on the globe.
That is the reason South African and Chinese organizations are struggling to put resources into Nigeria.
Some basic fact:
- Tiger brand as of late procured Aliko Dangote’s stake in Dangote Flour. Note that Dangote repurchased a few offers from them.
- GlaxoSmithKline U.K has expanded its stake in GlaxoSmithKline Nigeria PLC.
- General Electric is cooperating with power generation companies in Nigeria to support the country’s capacity supply.
- Chinese organizations are collaborating with Nigerian organizations to set up assembling plants and development Coys directly here in Nigeria. A case of such a plant is the Innoson Vehicle Manufacturing Company in Nnewi.
- Nissan and Toyota have additionally settled a vehicle assembling plant in Lagos, Nigeria.
The numbers of companies investing in Nigeria keep on increasing every day.
However, I believe this is the right time to invest in Nigeria or become an entrepreneur in this nation.
The profit will be massive if you discover the best-untapped business idea that can make you money forever.
How to Start Your Own Business in Nigeria
Before you could think of how to start your own business in Nigeria; first think of these ten questions:
- Why do I really want to start a business? is it for income, create jobs, solve one of the national challenges or for a personal reason?
- What skills do I have?
- Am I ready to take a risk?
- How much am I ready to invest in this business?
- What skills do I need to acquire?
- Will I work Full-time or Part-time in this business?
- Am I ready to learn?
- What type of business an I ready for? is it Product or service?
- What industry is my business idea?
- Am I ready to write a business plan or I will hire someone to do that?
Lastly, If businesses do not involve money, what will I do it for?
However, from these simple questions; you already have the answer with your business idea.
Move on with your business idea and do good research about that idea.
- Business in Nigeria: 20 Most profitable Ones That Makes More Money
- The 10 Fun Facts About Nigeria that will surprise you
- Untapped Business idea in Nigeria
I have personally come across many people who are afraid to invest their money in doing business in Nigeria.
Even those who have the skill but they always feel like starting a business need a huge amount of money.
However, In the last post, I wrote about the Untapped business Idea in Nigeria that is yet untouched but highly demandable.
It will really inspire your decision of taking a bold step to unlock financial freedom.
In the comment, do let us know whether this list of things to consider when starting a business in Nigeria is helpful.
Don’t also forget to share your business idea or seek advice from me, I will be more than happy if I can help.