17 Things to consider before starting a business in Nigeria
What you must know before starting a business in Nigeria
I wish to congratulate you for taking a step to read this first before starting your business. Many never did, and that's why many businesses have closed down prematurely. In this blog post is a collection of instructions born out of lessons learnt from my 6 years experience of failure and success in business.
In a nutshell, I hate too many theories and little practical experiences. So you can trust what you are about to read. Let's get to work.
17 Things to consider before starting a business in Nigeria
1 Understand the business Idea
The first thing to do before starting a business in Nigeria is to have a good understanding of the business idea you want to start. Note that business is not done in isolation. You will talk to people about your business, and at least prove to people that your business is worth patronizing. People are however convinced to the extent that you are convinced about what you are trying to sell to them. So, knowing your business well is key. It helps you stand bold and sound convincing to your investors and customers.
Now, to balance it, not that I didn't say you must have a TOTALLY CLEAR understanding of your idea or a TOTALLY CLEAR idea of the business you want to go in. People make this mistake and end up killing what could have been worth millions in the end. Imagine Mark Zukerberg having to wait until he has a forecast of what Facebook would become in 2022 before kick starting with the idea (which was only meant to connect people and friends at the start, before it became a multimillion dollar idea).
Starting with no understanding leads to destruction and premature death of the business idea. Waiting to know everything before starting has killed more dreams than you could ever imagine. Therefore, understand your business idea clearly enough to start with the first step. Understand the vision clear enough to be self convinced about it, and you are good to go.
2. Market research
It is said that knowledge is power. This is so true. Next to understanding your business idea is going into the existing market in Nigeria to understand the following both in Nigeria and globally:
- How it runs
- Who runs it
- The best in the market, and why
- The pricing of the product/service
- The rate of demand
- The rate of supply
- What problem they are solving
Having a good knowledge of these will open your eyes tremendously to the market you are launching into. The advantage of knowing all these is, it prepares you to boldly face any question you will be asked anytime any day, and by anyone.
Before Phil Knight started Blue Ribbon which we know today as Nike, he had toured the world and had sampled the best shoe makers in the market. And with such wealth of information, he was able to strike deals that were bigger than his shoulders could carry. He pulled a network of people that he won't have ever had the privilege of meeting on a normal day. This is what information can do.
3. The problem you are solving
Now you have been able to understand how the whole thing runs, and what problem they are solving. It's time you asked yourself what PROBLEM are YOU solving?
When consulting clients, I always give them this example. If you are to start a food business for instance, and you are allocated a shop on a certain block, the first 9shops on that block sell rice, it will be a tragedy for you to get there and sell rice too.
Look for a certain product that has a high demand and low supply, and fill the void. If you are in business and cannot clearly define what problem you are solving, then a 9 to 5 worker is better than you. The difference between a business personnel and an entrepreneur is that the former sets out to make profit, while the latter discovers a problem in the society, and sets out to find the solution.
Problem solvers are world changers. They are innovators and they are always, always rich. They don't run after money. They run after problems, money runs after them. You can ask the men who built America for details.
Till date, it is recorded that the four men who built America, viz: Andrew Carnegie, John D Rockefeller, Cornelius Vanderbilt, and Henry Ford, all appeared in the list of The 10 richest men of all time. Look, people don't care how much they pay you, so long you solve their problems. So again, what problem is your business idea solving?
4. Implementing a marketing strategy
To secure the future of the business and guarantee it's present success, work with a business strategist to create the best marketing strategy for you business that will guarantee growth and sales within a certain period of time.
This marketing strategy will forecast how much sales is likely to be made in the first 3months, 6months, 1, 2, 3 years, and more. Having a tried-and-approved marketing strategy puts your mind at rest and assures you that your business is safe, even if you are starting it with a loan.
Once again, never venture into a business until you have a workable plan, of which marketing strategy should be an integral part of. As a business strategist, I have helped quite a number of businesses and brands with a strong and detailed marketing plan, and it has paid off over and over again. So there is no exaggeration. I could help you with yours too if you want. My direct contact is below.
5. Unique Selling Point
Whatever problem you are trying to solve, never assume you are the first to try solving it. Some may have attempted solving it in different ways. So to thrive in the market, you must discover a way to solve the problem in a way that is different from every other person. This is what distinguishes you from other businesses and attracts clients to you.
Before Henry Ford designed automobiles,many have tried solving transportation problems using chariots, carts, horses, donkeys, carmels, etc.
By the way, what we know as weekends today, started with Henry Ford when he noticed people were not familiar with his newly invented products. He gave his workers the company cars each and asked them to take a break from work every Saturday, drive it around town and visit their friends, so people will see it and want to buy it. Nice marketing strategy huh?
You must have a way of selling your services/product, and a way of solving problems that is unique to your brand alone. It makes you stand out.
6. Passion/Time
Starting with passion, here is a big misconception. Motivational speakers taught us that when we do what we love, we love what we do. While this is true to some extent, some believe people end up poor because they don't want to leave their comfort zone.
Here is how to correct it. Personally, I hate Mathematics, but I love to deep my hands into problems, stumble upon business challenges. Now, I can't be a business strategist and not learn economy, and I can't do economics without learning a bit of maths. So what drives my passion is not the activity but the result of the activity.
You have got to have enough passion for this idea you want to start as a business.
And then to time, time is a true test of passion. Some people can be jack of all trades, today, wanting to do this, tomorrow, wanting to do something else. Some are so fond of starting something but have serious issues continuing or completing, because the passion and enthusiasm had died down, or probably they had grown passion for something else.
7. Location
One of the things to consider when starting a business is the 'where' of the business. What is the nature of the environment in which you want to start the business? Or better still, what environment fits the kind of business you have in mind? Are you based in Lagos? Port Harcourt? Abuja? Kano? Osun? Akwa Ibom?
All these places have their peculiarities in business. If for instance you are starting in Lagos, your price range, packaging, branding, and target audience choice will be a little different from other states, speaking from experience. Here are things to consider when choosing a location:
- The nature of the business: is it a product based or service based business? Or is it both? Are you producing or wholesaling?
- Nature of the product or service:
- Target audience: low class, middle-class, high class people, High network individuals
8. Branding
Branding is simply giving an identity to your brand and creating an experience around your brand so that everyone who has anything to do with and around your business will have a certain experience that's unique to only you, and would want to come back for more.
When starting a business, you should consider branding both your business and yourself. Starting a business of your own is a complete transformation. It means you are becoming your own boss and will soon be employing people. It also means you are becoming a force to be reckoned with in the market.
You are some people's solution, some people's competitor, and some people's role model. So you need branding. Not everyone that calls themselves brand consultant and brand strategists are truly brand experts. If you wish, I could recommend some for you that will do a good job based on your budget. Contact at the end of the post.
9. Business plan
It is estimated that over 85 percent of small business owners in Nigeria operate without business plans. And because many businesses have underestimated the importance of business plan, success and growth have become a delusion. Quickly here are some of the reasons you need a business plan:
- A business plan will give you an opportunity to start bigger without taking a loan from the bank or spending a dime from your pocket.
- A business plan can be used to measure your level of seriousness and doggedness to the business
- A business plan makes your idea both organized and documented.
I'll highly recommend you read on How to attract investors with your business plan. It will help you understand what you need and how to write a kind of business plan that will free you from the thought of funds for your business.
The salient truth is many businesses will still continue to struggle in vain for expansion, because the most important thing has not been fixed. Business plan is the road map of your business. It is a document that has an overall summary of your business including specific details such as vision, location, market analysis, swot analysis, structure, marketing strategy, budget estimate, etc
A business plan is like a destiny plan for your business.
10. Business Registration
Next is to register your business. If you want to build a long lasting business, and you want to be professional about it, it is best you register your business. It is very advantageous in many ways:
- It builds customers trust in your business.
- Clients are not scared that you might run off with their money.
- Without it you cannot open a bank account specifically for the business, which is very needful.
In Nigeria it doesn't cost you more than N15,000 of you want to do it yourself. A little more than that if you need the help of a lawyer or a professional in registering your business. For a quick cheap and easy registration, there's a contact at the end of this post.
11. Starting small
So the thing with idea is that when it comes to our head, we have a way of imagining iit so big, so flamboyant, so cool, error free, stress free, multimillion idea, and all those icing. And then we make the mistake of wanting to start with that same picture in our mind.
It's totally cool to have that picture in your mind for at least forever, until you see the picture come to pass. But to want the picture now, you will only kill an idea that is yet to be born. Start big things in small ways. Give big support to small things. That's how to grow it. Instant gratification is a scam. No man or woman who seeks quick riches lives happily for a long time. Ask around.
Need I say more?
Note: that you are to start small doesn't make you put small effort into it. No. Do small things in big ways. Here is an instance. It's better to invite 10people to your birthday party and have enough drinks, enough food, enough gifts and enough fun, than have 100peoole in a room and the things needed are barely enough for 20people.
12. Creating a website
Depending on the kind of business you want to go into, you might and might not need a website. For a business you are starting with 1million and above and your clients are high network individuals, I will recommend you get a website. It is part of the branding that will sell you.
Highly earning individuals don't talk too much. They prefer to see your product or a proof of your services online or physically. And they make their decision right there to either purchase their products or not.
But if your business does not attract such an audience, I'll strongly put it to you that it might not be necessary at the beginning of the business.
13. Learn from other Nigerian entrepreneurs
This is so LESS talked about, and yet full of treasure. I heard this once, that a day with a wise man is worth more than 50 books read together. I tried it and it was so true. Books will teach you a thing or two. But listening to a wise man will teach you practical experience and wisdom.
Reading books is like picking a book on how to cook, while listening to a wise experienced business guru is like standing in the kitchen and watching a professional cook cooking. By the way, I recommend that if you are going into business, whether fully or part time, you should read at least 3 books on business before starting. You would know why after reading.
Learning from an experienced business mogul in Nigeria is understanding not just how to do business but how to thrive financially in business in a country where you have got to fight hard against several giants to penetrate the market and succeed. You would understand what they'll never teach you in Harvard Business schools.
This is how to go about it. Simply create a relationship by asking the person out on a coffee talk, bill on you. It doesn't cost to send an email
If you do it the right way and present your intentions well and convincing enough, then you will get a chance...which will change your life forever.
14. Seek for business mentorship
Eventually, the new relationship can turn into mentorship. And there is no safety as having a mentor follow you up and watch over you in business. Many make mistakes that could be easily avoided because of lack of mentors. Many go as far as losing millions, like I did when I started my business.
Do you need a business mentor? Attend business conferences, seminars, business hangouts, search online for key people in your industry that you admire their leadership skills, and then send them a mail requesting time with them.
15. Seek legal advice
This is self explanatory. To avoid any issue with the law enforcement agency at any stage, it is advisable you seek legal advice on business in general, get to know that laws that govern such business. This will also help you to know your right and not be cheated. You can contact me for a legal adviser.
16. Build a strong team
If you are starting a business with over N200,000 and more, you will need to build a team, get people who will be responsible for one thing or their other in the business.
17. Start the business
The best way to start is by starting and defying the spirit of procrastination. Many have had this idea, but few have executed it truly. It's up to you.
You might not be able to do all of these by yourself. So, if you need any help with any of the things I mentioned above, simply contact me on +2347080225737 (call/WhatsApp) or through our email: manicleworld@gmail.com
I look forward to your comments. If you feel there is more to the list that I haven't added as regarding what people need to consider before starting a business in Nigeria, kindly contribute. It will be highly appreciated.
Questions asked in the comment box will be answered too. And if you prefer to ask directly, my contact is two paragraphs away from this. I do hope it was worth the read? Thank you.
Istifanus Sarki
Business Strategist
...with Manicle, it's all about you...
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