13 Establishing a business in Nigeria, Everything you need to Know

Filed in Business Idea, Top Ideas by on August 4, 2020 0 Comments

Establishing a business in Nigeria, Everything you need to Know:  Are you a Nigerian entrepreneur?

Do you need recommendation on how to start up a business in Nigeria?

Do you need a feasibility study report or a sample business plan template?

Or you need small business ideas and opportunities for starting up a small business in Nigeria?

Do you want to discover the challenges and costs of doing business in Nigeria?

See also: 19 Ways to Start A Dump Truck Business in Nigeria

Please read on to find out.

I was motivated to write this article because I frequently come across Nigerians.

Exhilarating up to start a business; equipped with nothing but a supposed “million dollar idea”.

Well, accomplished entrepreneurs know that starting up a business favorably takes probably more than just an idea.

I am a Nigerian entrepreneur with profitable businesses to testify it.

But this write up is obviously not about me; rather it’s about you.

Nigeria is blessed with immense resources and an exaggeratedly  huge population.

This makes it a perfect place to start up a business.

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More and more migrants are trooping into Nigeria to start up businesses.

And that goes to reveal how profitable the business domain in the country is.

However, accomplishing anything substantial from your Nigerian start-up needs a lot more than having the necessary capital.

First, you would require a very good business idea.

And then you would require to back it up with the appropriate planning, research and implementation.

Read on:19 Ways to Start A Dump Truck Business in Nigeria

To help you favorably kick start your start-up business; here are some of the steps you must take:

1. Prepare Yourself

The very first step to starting up a small business in Nigeria is to sufficiently develop yourself.

You may think this is not substantial but it can probably be the thin line between failure and success.

Managing a business in Nigerian is very tough but awfully rewarding.

So to make it, you have to be tougher.

Nigeria is a very harsh domain to operate in but since we are Nigerians.

I presume we are very well grounded to attack the trials on ground.

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Now how do you develop yourself?

You can develop yourself by going to a seminar on the selected line of business.

You wish to go into and get all the substantial information you possibly can about your chosen industry.

You can also develop yourself by admitting the reality that you can possibly fail tomorrow.

You develop yourself by enhancing your risk bearing capacity.

And finally, you develop yourself by making up your mind to accomplish despite the competition and odds.

Read on:How to Start Embroidery Business in Nigeria

2. Do a Feasibility study

The second step to starting up a small business in Nigeria is to do a complete feasibility study.

Before financing any business opportunity.

This is probably where the downfall of most Nigerian entrepreneurs kicks off.

I have seen people spend in a business idea or opportunity plainly.

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Because a relative or friend said the business is rewarding.

I have seen people fall into an industry subconsciously in reaction to unproved information.

I know entrepreneurship is all about chance taking.

But going into an industry without a competent knowledge of its basics is suicidal.

I know this because I am obviously talking from experience.

My dad previously made this exact mistake and he paid so dearly for it.

See also:How Online Trading Business Goes in Nigeria

3. Understand your Market

Before going into any industry or business.

Ascertain you have complete understanding about its basic metrics.

Every business has an inside code and if you must make it; you must find such code.

Comprehend the market of the industry you are jumping into.

And you will enhance your chances of favourable outcome.

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The best way to start such is by asking yourself these questions below:

Who are your customers?

How do they want to be served?

Who are your main competitors?

Who is the market leader?

Do you stand a chance for survival?

Can you take some market share in that projected business industry of yours?

These are the various questions you have to answer before starting up a small business in any industry.

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4. Develop a business idea

First, you have to do an appropriate research to come up with a unique and smart business idea.

I stated unique because one very mistake most Nigerians make is that.

They disregard many of the extensive business opportunities in Nigeria.

And alternatively decide to imitate other people’s ideas.

If retailing GSM recharge cards looks like a very lucrative business.

Before you know it, nearly everyone is selling recharge cards.

Nigeria is absolutely large, and there are lots of services and products.

That are still nonexistent or could be better.

So, don’t imitate other people’s ideas, alternatively.

You should take time to analyze the solutions you could provide.

And the needs and wants you can help to fulfill.

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5. Write a business plan

You cannot begin a journey without having a purpose in mind.

Can you? Even Nomads typically have a destination in mind before they usually go out with their cows.

Your business plan is the master plan of your business.

It typically shows where you are going and leads you throughout the journey.

Thus, it is substantial for you to take your time to write down a business plan.

Before upgrading to the next stage of starting up your business.

Writing a business plan is very easy, and there are mostly software packages.

That you can easily use to do it effortlessly.

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6. Register your business

The next step is to finally register your business with the Corporate Affairs Commission (CAC).

Presently, there are three main kind of business you can actually register in Nigeria:

Sole proprietorship.

Private Limited Liability Company.

Public Limited Liability Company.

To enroll your business in Nigeria, these are the various steps you should take:

– Conclude on the ownership format of your business.

– Select three preferred business names.

– Stop by the CAC office closest to you to discount.

If your preferred names are still attainable for registration.

Or have previously been taken by any other company.

Some business names may additionally be rejected if they are reserved or offensive.

– Proffer details of your new company like your articles of association.

Proposed business address, memorandum of association.

Details of directors, share allotment and capital.

And all other substantial information and forms compulsory by the CAC.

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– Pay the required fees. For a sole proprietorship/business name as it is fondly called.

You would need from N12,000 and N15,000 to enroll your business with the CAC.

Whereas other forms of ownership would need at least N30,000 for registration.

– Upon compliance and verification, the certificate would be assigned to you.

And then you are now free to commence running of your business.

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7.Complete tax registration

The legit procedure of setting up your business is not thorough.

Until you have stopped by and registered with the Federal and State Inland Revenue services.

The Federal Inland Revenue Service (FIRS) is where you would normally send all the Company Income Taxes.

Value Added Taxes and Withholding taxes.

Whereas the State Inland revenue would be in charge of fathers all PAYE taxes subtracted on your employees as well as other substantial taxes and levies.

You may also need to enroll with some local government agencies for disbursement of some taxes and levies.

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8. Obtain necessary licenses and permits

This would rely on the nature of business you wish to run.

If you want to start a transportation business for example.

You would require an interstate transport permit.

There are lots of licenses and permits particular to various businesses.

So it is substantial to figure out which permits you need to administer to manage your kind of business.

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9. Acquire office space

Next, you should seek out an appropriate office space.

Which would be attainable to your customers.

And expose you to the kind of clients you need to frequent your business.

10. Set up a website

More than 40% of Nigerians use the Internet daily.

Hence, you should definitely search for a good web developer.

To help you develop a user friendly website that will accord your business solid Internet exposure.

11. Develop a marketing plan

Just like your business plan is substantial, your marketing plan is also greatly important.

Many Nigerian business owners launch a business without an idea.

Or a marketing plan of how they aim to advertise and sell their products.

This is a mistake you should avert.

Have a clear picture on how you want to penetrate the market and outwit your competitors.

Read also:Top 3 Media/Entertainment Business Tips in Nigeria

12. Work on branding

Lastly, you should totally work hard at creating a very unique identity for your brand.

Design your business cards, logo, company brochure.

And all substantial materials to help you advertise your business.

Read also: 10 Tips to Launch Personal Website in Nigeria

13. Survival is the Game

If you can actually make it to this stage, then it’s felicitations.

Because you’ve just launched your own small business in Nigeria.

You have begun the game and showed elasticity; now is the time to break through.

At this stage, endurance is the name of the game.

You might actually take some hits from stronger competitors.

You might probably make a business mistake.

See also: 13 Best Business Development Tips in Nigeria

Or even face complicated business challenges like a random change.

In government policy but don’t ever give up.

Stay strong and fight it through to the end, I will definitely see you at the top.

With all of this in place, you would have achieved all the legit requirements.

And would be more than ready to launch your own business in Nigeria.

If you need a complete business plan, please let us know.

Or, you want us to help you set up this business.

Kindly contact us. Otherwise, Please check out these other business ideas you can do 

 


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