How to Start Your Own Business in Nigeria

If you are an individual seeking passive income. This article will help you on how to start a business, whether it’s your first time or your 10th time

Complete Step-by-step Guide on How to Start and Run a Profitable Business in Nigeria.

PREAMBLE

It's a great idea if you think of starting your own business in Nigeria because running a business can significantly impact your life and the lives of those around you.

If you are an individual seeking passive income, the best time is now! This article will help you on how to start a business, whether it’s your first time or your 10th time.

How to Start a Business in Nigeria.

1. Get Prepared and Determined

The first step to stating a business in Nigeria is to get prepared and be determined because running a business in Nigeria is very tough, so you have to be tougher

Now, the question is "how do you get prepared?"

1. Get Prepared by making up your mind to succeed no matter the odds and competitions.
2. Get prepared by accepting the reality that you can fail and when you fail, you learn from your mistakes and get back on track.
3. Get prepared by increasing your risk bearing capacity. Remember that; the higher the risk, the higher the chance of becoming successful.
4. Get prepared by making more research and attending seminars on the chosen line of business you wish to venture in.
5. Get prepared by inspiring yourself with business inspirational words. Read the 50 Best Inspirational Business Quotes to Inspire Success.
6. Get prepared by not getting discouraged by rejections from customers

Now that you are fully prepared and determined, the next step is you find a perfect business idea to begin with.

2. Find a Perfect Business Idea.

To successfully start a business, you must have a good business idea to start with. You don’t need to crack your head to create something new or trying to reinvest the wheel.

Already, there are over 1000 business ideas in Nigeria that can make you rich. All you need is just to find a proven business line and learn the fundamentals.

Let me quickly share 10 business ideas with you.

10 of the Best Business Ideas in Nigeria

1. Real Estate Business

2. Blogging

3. Gym and Fitness Business

4. Sell Digital Products Online

5. Sports Viewing Centre Business

6. Dry Cleaning Business

7. Okrika Bale Business

8. Importation Business

9. Car Wash Business

10. Egg Supply and Distribution

Whether you choose a business idea from the list above, or from the ideas I have previously published on this blog or you have another one in mind, it’s important to have the experience, training, or skills necessary for the business.

Want to run a gym and fitness center but you have never even visited a successful gym center?

You should spend time conducting research to learn whether this is really the right fit for your experience, interests, and target audience.

This is called feasibility study in business.

3. Choose a Business Name

Find a name for your business that makes it clear what your business is all about, make it short and memorable.

Online business name generators can help you come up with an initial set of ideas, then the rest with be up to you.

Below are some tips to start with:

• Make it short, simple and memorable: it is not proper If you have told someone your business name before and that person frequently ask you to repeat the name.

Don't make people work hard to remember your business name or brand. Avoid hard-to-spell names.

• Standout from the crowd: if you find out that businesses in your category are using similar names or relies on similar element.

Consider avoiding these tropes and standout completely in a different direction. You can blend your name with your product or service you render.

• Be Original: make sure that your business name is not the same or in use by another business, especially your competitor.

Make sure that you, your employees and your customers will be happy saying the name over and over again.

Run a free trademark search in Nigeria. Also check Google and social media sites too. It is important to run a quick domain name search incase you want to create a website for your business.

4. Understand your Market.

Make sure you understand the market before jumping into the business or industry.

Every business has a secret and if you must succeed; you must find such secret. Understand the market of the business you are about to start.

This will increase your chances of success. The best way to begin such is by asking yourself the questions below:

• Who are the customers?
• How do they want to be served?
• Who are your major competitors?
• Who is the market leader?
• Do you have a chance for survival?

These are the questions you must answer before starting your business in Nigeria.

5. Write Your Business Plan.

Next on my list of steps to start your own business in Nigeria is to write a business plan, most Nigerians miss this part.

According to my research, more than 85% of business owners in Nigeria operates without a business plan. I don't want to criticize anyone.

But I think it’s necessary you separate yourself from the pack. Another thing I want you to know is that banks don’t lend money to businesses that are operating without business plans.

Not only that, writing a business plan will reveal more insight into how to start your business properly, especially as you get to the logistics parts.

You'll quickly figure out the questions you don't have answers to. it is also a way forward because it will help you concentrate on fulfilling your business mission.

6. Create a Website for Your Business.

For some businesses, you can create a website after you have started running your business, but businesses like E-commerce and blogging you must create a website from starting.

But in one word, it is important for every business to have a website. So, you should devote time and effort to building a great website for your business.

Prospective investors, customers, and partners are going to check out your site, and you want to impress them with a professional product.

Here are some tips for building a great website for your business:

1. Check out your competitor's sites.
2. Start with a clean template for your site.
3. Come up with five or six sites you can share with your web site developer to convey what you like.
4. Be sure the site is search engine optimized (and thus more likely to show up early on Google search results).
5. Produce high-quality original content.
6. Make sure your site is optimized for mobile devices.
7. Make sure the site loads quickly.
8. Keep it clean and simple; visual clutter will drive visitors away.
9. Make sure you have a Terms of Use Agreement and Privacy Policy page on your business website.
10. Make the navigation bars prominent.
11. Obtain and use a memorable “.com” domain name.
12. Make the site visually interesting.

Make sure it’s easy for site visitors to contact you or buy your product.

6. Focus on Creating Good Products & Services

Another important aspect of starting a successful business in Nigeria is to focus on creating good products and services.

Not only focusing on the profit. Your product must be good if not great. It must be differentiated in some meaningful way from the offerings of your competitors.

Customers feedback is one of the best ways to help improve your product and services.

Many people want to start with (MVP), Minimum Viable Products, yes! It's a great idea but that product should be good and differentiated from the competition.

7. Get a Perfect Location

Did you know that good location is the number one key to the success of a business? If yes, then where are you going to locate your business?

Businesses like POS agent and liquid soap production can be within your neighborhood while businesses like materials supply can be within industrial area. 

Where do you want your business to be located?

• Do you want to locate your business within your neighborhood
• Do you want to locate your business in an industrial area?
• Do you want to separate yourself from the crowd by building your own brand in a specially selected location?
• Do you want to operate your business from commercial places in Nigeria?

Your answer should depend on the type of business you are about to start.

Top 5 Best Cities to do Business in Nigeria

1. Lagos Island, Lagos State
2. Onitsha – Anambra State
3. Abuja – Federal capital territory of Nigeria
4. Aba – Abia State
5. Kano – Kano State

8. Register your Business Name

The importance of registering your business name can never be over emphasized. Running a business in Nigeria is beyond choosing a name or a place of business.

Whether you are running your business in the form of a sole proprietorship, limited liability or a partnership, there is a need to have your business registered.

Many investors and agencies will never take you seriously if your business is not registered in Nigeria.

This is why registering your business should not be trivialized.

Nine reasons why you should register your business: 

1. Monopoly to Your Business Name:

• When you register your business, it provides you with legal and exclusive rights to the name. Only you can use the name. 

2. Gives you Credibility with Your Customers:

• There is a lack of trust for most businesses by many Nigerians, because of the high rate of fraud.

3. Gaining Access to Loans:

• Unlimited access to Loans from organisations like banks and many more.

4. Attract Investors to Your Business: 

• Investors are willing to invest in a registered company rather than an unregistered business.

5. Ensures Business Continuity:

• When your business has it's own legal identity, it affords its perpetual succession and enables continuity of such business.

6. Run a Customized Bank Account:

• It is more professional to give your clients a corporate bank name for payment instead of your personal name.

7. Can Hire Employees Legally:

• You gain access to hire and recruit quality and skilled employees easily from job recruitment agencies and other online platforms.

8. Tax Benefits:

• Registered business won’t have to pay companies tax, instead you will be accustomed to paying Personal Income Tax.

9. Limited Liability Protection:

• You are protected, and you are not personally held for certain liabilities.

As I have said earlier, the importance of registering your business can’t be overemphasized.

Learn how to register your business name online in Nigeria.

9. Obtain the Necessary Licenses and Permit

If you don't have the necessary license and permit for your business, government and it's law enforcement agents will come for you.

Make sure you obtain the necessary licenses and permit needed to operate your business in Nigeria. They include the following;

• Fire department permit:

if your business uses any flammable materials, then you should get a permit from fire department.

• Air and water control permit

Check regulations that may apply to your business.

• Sign permit

Check regulations before dabbling into having a sign designed and installed.

• Health department permit

This depend on the size of your business, the health department will want to inspect your facilities before issuing the permit.

List of Legal Documents You Need to Run Your Business

To run a successful business in Nigeria, there are some documents that must be in place. Here are some of the documents that you will be needing;

1. Certificate of Incorporation
2. Business Plan
3. Non-Disclosure Agreement (NDA)
4. Insurance Policy
5. Contract documents
6. Patent or Copyright registration
7. Operating Agreement
8. Business License
9. Tax Identification Number

List of Government Agencies that are In charge of Registering Businesses and Issuing Licenses and Permits

Just like every other countries in the world, Nigeria has its own government agencies that register, issue and license permit to business owners.

Make sure your business is well licensed. Here are a brief list:

NAFDAC

They are the one that check businesses that are into food production, drug sales and manufacturing amongst many others. They are responsible for issuing licenses.

Corporate Affairs Commission (CAC)

They are the one that is highly responsible for the issuance of incorporation papers and licenses. Anyone who plans to operate a business in Nigeria has to contend with this agency.

Signage and Advert Permit

Signage and Advert permit has to do with public display of adverts about your business and all. If you plan to operate a business in Nigeria, then you have to be ready to get a permit form this agency.

Federal Inland Revenue Service (IRS)

The Federal Inland Revenue service is a very important parastatal of Nigeria. The government agency is of the tax division of the government. The IRS is answerable for collecting taxes and the administration of the Internal Revenue Code.

10. Start Your Business

Tomorrow never comes, there will still be another tomorrow after tomorrow and another tomorrow. So, the only right time is NOW!

After going through all the processes I listed above, the next step is to get down to the real deal and this is where you start your own business.

I have a friend who have made a wonderful business plan, feasibility research and even raise the needed capital to start his business.

But for reasons best known to him; he just fail to start. Maybe it's because of the fear of failure, I don't know but what I do know is that not everybody has the guts to start a business.

Most people dream of it, while few dare to take the risk. Here is my question for you, are you willing to take the risk and start your own business today?

11. Market Your Business Like Crazy.

To succeed in business, your marketing strategies most be strong read Digital marketing beginner's guide to promote your business.

To market your business offline, read 10 effective ways to promote your business in Nigeria.

Also make sure your marketing strategy includes the following:

• Use social media like LinkedIn, Facebook, Twitter, Pinterest to promote your business.
• Engage in content marketing by writing guest articles for relevant websites.
• Issue press releases for any significant events.
• Network continually.

CONCLUSION

Congratulation if you have made it to this step. You might make a business mistake or even face intricate business challenges like a change in government policy or You might take some pounding from stronger competitors; 

Don’t give up. Stay strong and fight it through.

Drop your comment below and let's know what you think about this article, are you able start your own business? What is the name of your new business.

Kindly share with us by dropping a comment below. Also don't forget to share!