Starting a Decent Business with Small Capital in Nigeria: On many occasions, you may have wish starting a , but often you ambition ends up as a mirage. Why? Well, I know that they could be many reasons for that but whatever the case maybe; my interest is to help you get started with this lucrative decent business you have dreamed and long for. with small capital in Nigeria
Sincerely interested in starting a decent business with small capital in Nigeria?
Many people who could not start business in Nigeria have replicated the steps I listed below to begin one or two businesses in Nigeria. If you sincerely apply every step I mention without jumping any, I strongly believed that it will help you start your own decent business in Nigeria with small capital
Before I proceed, I suggest your read • Top 10 factors to consider when starting any business.
Ways to Starting a Decent Business with Small Capital in Nigeria
STEP 1. Prepare your mind: The first step in starting a decent business in Nigeria is to prepare your mind for the business. You may ask, why? The reason is not far-fetched. Business is all about risk. If you accept the fact and reality that you can fail tomorrow, be determine to succeed despite the harsh environment and competitive nature of , attend seminars, workshops and training that will expose you to the business world; you are just a step up the ladder of your success in .
STEP 2. Develop a good business plan: A good business plan is a written document that describes the future of your business. The document explains what you plan to do and how you plan to achieve that. If you pick up a small sheet of paper and jot down all your business ideas, strategies and how you tend to pursue these ideas, at least it is a germ of business plan. This may not earn you bank loan but at least you are able to state your goals and objectives. It doesn’t matter whether you are a sole-proprietor, limited liability or public enterprise. Having a good business plan will save you a lot of headache in time of decision and increases your chances of survival in . About 80% of small business owners in Nigeria start up business without any business plan. This is the reason why many of those businesses fold up in no due time. You can never have everything in your head; put them down now in black and white and save yourself from “fire brigade approach”. If you want to know how to write and develop a good business plan you can read this; How to write and develop good business plan. I have already told you that banks don’t give loan to business owners that operate without business plan. So, if you are thinking of succeeding in your business you must have a good business at the onset.
STEP 3. Carryout feasibility study: Before you start any business, you have to investigate and research about the business. Ask questions! Ask those who had already been into the business. You can use questionnaire to collect your raw information which you would later evaluate. This will help you to determine the chances of your survival in the business and as well as offer you a competitive advantage.
STEP 4. Know your target market: Before going into the business, ensure that you understand your target market, basic principles and secrets governing the market of the industry you are about venturing into. You ability to succeed will be high if you were able to discover this basic secret. My uncle once made this basic mistake and he paid dearly for it. You knowing your target market will help you to determine your channel of distribution and know your competitors which if not known can possible ruin your chances of survival in the business.
STEP 5. Select a viable location: Now, you’re convinced that you need to start up this . Where do you intend setting up this business? Where you will set up the business will be dependent on your target and the nature of the small business. If you take geographical survey of Nigeria, places like Mile 12 PH in River state, kano, Onitcha in Anambra state, Lagos inland are known for high commercial business. Aba in Abia state, Jos in Plateau state are good industry based area. Yaba in Lagos state, Abuja FCT, Kano are for general merchandizes. Enugu and Ado in Ekiti state is mainly civil servant zone. There is no place in Nigeria that you will site your business that will not present its own challenge. So, your ability to absorb them will enable you to forge ahead.
STEP 6. Register your business name: Many small businesses operating in Nigeria are not register in corporate affair commission. The fact is that most of the people operating such businesses never grow. They remain the same way they are in their business from year to year. For your business to stand the test of time you must register business name. Having a business name is simply branding and you can never underestimate or underrate the efficacy of branding in business. Branding will help you business to standout among other businesses in the market. If you are intending starting up a business that will involve supplier, I bet you; you will never get contract to supply to government own establishment if you company is not registered in corporate Affairs Commission. No bank loan for you! Imagine the chances and opportunities you lose when your business does not have a name. So, get your business registered in Corporate Affairs Commission before you begin the business. If you want to know how to register company or business name in corporate affairs commission, you can read this; How to Register A Business Name in Corporate Affairs Commission in Nigeria.
STEP 7. Raise capital for the business: The feasibility study you must have conducted as mentioned above gives you clue on the nature of capital required to start up the business. Having gotten background information on amount of capital you need to start up such , you can now think of ways to raise such capital. You can source for fund from;
Small corporative ,
Relatives and friends bearing in mind the implications of each means of fund raising. Though, having prepared your mind in beginning about this I believe you are equal to the task.
STEP 8. Start the profitable business, why waiting?
I know by now I must have stir up your spirit and mind in this business venture. I just wanted you to get started. Don’t wait! Getting down to the real thing is the most difficult area in beginning a small business. Many Nigeria have bunch of ideas and initiatives. They develop business plans, do all necessary feasibility studies and in fact even raise enough capital for the business but behold you will see them not starting the business. Should I say they are afraid of unknown or failure? Their reasons are best known to them. What about you? Are you willing to take up your future in your hand by starting now your dreamed ? Which I know you will transform into large scale enterprise tomorrow. I will leave this to you to answer. The ball is on your court right now. If you can say Yes then start. It is often said that the journey of a thousand mile begin by the first step. If others are succeeding in their business then why can’t you.
STEP 9. Don’t hide behind your shadow: Now that you have started the good ; if you must grow fast then you must come out from your shell, strike strategies for alliance with bigger team players, apply for bank loans, and make use of all existing and well established instrument or structures of other business to climb up the ladder of your success in the business.
STEP 10. Diversify in your business: Diversification is the key to success in every business. The reason why my uncle who is the owner and the director of Alpha plus Nigeria Ltd, a building and construction company was able to succeed is because outside building and construction, he added furniture. You have to run the for 5 years, the annual profit never change, in most cases it keep going down. Introduce a new opportunity into it and then sit down and watch how these 3 laws:
• Law of comparative advantage
• Production possibility principle and
• Alternative forgone principle would take effect on your business. Please don’t remain in one business it is not the best even when you think that your profit margin is high.
STEP 11. Get share holders: You hear of Multi-national companies because of their share holders who have actually put enough into company. Share holders are individual whose capital are use to run the business with the aim of equitable sharing of the profit of the business. These people are partakers of the risk in the business. They may or may not be directly be involve in the business but at least you are not the only one bearing risk. Seek for them; use their advice and idea to get to where you want. Government and other companies sell shares and you rush to buy it, what did they aim to achieve? Growth! Sell your own shares by seeking for share holders. You can do this before start the business or while you are already into the business seeking for growth.
STEP 12. Survival of the Game of Business: Life is all about survival of the fittest. This is how it is in doing business in Nigeria. Whosoever the crown fit; let him wear it. If you can get to this point in your business; then, I have to say a big congratulation to you. We have to celebrate your success because you are already at the point of your success in your business.
Starting any decent business in Nigeria that is profitable is not bread and butter but by following the above steps without jumping any, I am sure that your chances of success will be high. Therefore, you can start a decent business in Nigeria if you strictly apply those steps above.
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