How to Start a Profitable Business in Nigeria
Starting a profitable business in Nigeria requires critical thinking and planning. Before jumping into any business, ensure that you have a thorough understanding of the fundamental metrics of its market. Every business has an inside secret. You must find that secret if your business will succeed. Understand the industry you are going into to increase your chances of success.
Becoming an insider in any business sector you venture into is a step you should not overlook. Ask questions such as:
- Who are my customers?
- What are their preferences?
- Who are my major competitors?
- What are the market leaders doing differently?
- Do I have a chance for survival?
- Can you grab some market share in that proposed business industry of yours?
These are the questions you must answer before starting a profitable business in Nigeria.
Starting a Profitable Business
The easiest business to start is one that requires little to no financial investment upfront. Also, it should not require extensive training to learn the ropes. Here are some things to do when starting a new business in Nigeria:
Register your Business
Most businesses operate as “unregistered sole proprietorships” in Nigeria. You can choose to go in the same direction. However, we advise that you take a different path to build a successful business.
We suggest that you register a business name or factor it into your cost projections as a short-term plan. There are different kinds of business ownership registrations. You should visit the Corporate Affairs Commission (CAC) to find out. Registering your business enables you to do business in the country legitimately.
Set Up a Good Team
Developing a winning team is critical to a business’s success. This applies to the manager or top executives in the company and every unit within the business organization. A good team determines if the business survives the first few years of existence.
When it comes to hiring and managing talent, two basic strategies work. The first is to hire the very best talent on the market. Another strategy is to hire available talent and train them to bring them up to speed.
Location and Market Availability
This decision is dependent on the type of business you want to venture into. There are a few questions to answer before making this decision. They include:
- Will you site the business in your neighborhood, or do you prefer an industrial area?
- Are you going to separate yourself from the crowd by building your brand in a specially selected location?
- Would you rather operate from the centers of trade or commercial zones in the State?
Whatever you do, ensure that you have access to your target market. Also, ensure that your location is easily accessible for prospects and customers. Finally, choose a location that gives you a competitive advantage.
Develop a Good Business Plan
Develop a robust business plan that includes every aspect of your business and follow it judiciously. A business plan is especially important because it further provides you with a clear set goal and objectives. It also provides a reference point you can return to at any point in your business.
Banks don’t loan money to businesses operating or that plan to operate without business plans. If you cannot write a detailed business plan, you can create a one-page business plan. Your one-page business plan may not get the bank’s attention. However, it is a step forward because it helps you to concentrate on fulfilling your business objectives.
Get Organized
Proper organization is important when starting a profitable business. It helps you to complete tasks and stay on top of business activities. Creating a to-do list helps to improve daily organization.
As you complete each item, check it off your list. This ensures that leave out important tasks. You can also make use of different administrative and automation tools to improve business organization. There are several apps that also help to improve your organization such as Evernote.
Provide Great Service
Many successful businesses forget that providing great customer service is important. If you provide better service for your customers, you’ll keep them coming back. Top-notch customer service is a key component to keeping hold of customers.
Check out what your competitors are doing to woo their customers. Seek out ways to outshine them. To be successful, you can’t be afraid to study and learn from your competitors. After all, they may be doing something right that you can implement in your business to attract more customers.
Branding and advertisement
Before you start selling your product or service, you need to build a brand. This is the way to get people to jump once you launch the business. Branding is a continuous process so it continues as long as the business exists. Once you have your brand in place, you can begin advertising.
Make use of social media on digital platforms, build your company website, and use other advertising methods. Add freebies and discounts as part of your promotional strategies.
Conclusion
That’s it for how to start a profitable business in Nigeria. What are your thoughts? Share them with us in the comments section.
