In our business ideas articles, we have explained how you can start different businesses in Nigeria. These business ideas range from buying and selling businesses, to service rendering business and farming business. However, we believe that there is one single guide that helps you start a business in Nigeria no matter what the business is.
This is why we are writing this article today. In this article, we will be explaining everything it takes to start a business in Nigeria. The step-by-step guide and the necessary government bodies you need to register your business with before you can commence.
How to Start a Business in Nigeria
Below are the steps involved in starting any business in Nigeria.
1. Conduct a Market Survey
This is the first step to starting a business in Nigeria. There are many businesses in Nigeria you can go into while some are fast businesses, some are considered lucrative businesses. We also have side hustles. These are businesses that you can do asides from your regular 9 – 5 job.
All these businesses are profitable however; there are factors you need to look out for just to be sure that the business will not run into a loss. One of these factors is the market survey of the business. To be sure that the particular business of choice will yield you money in the area you want to start it you need to conduct a market survey first.
In case you are wondering what a market survey is, it is the surveying of a product or service in an economic environment checking to know if the product or service of that business is needed in that economic environment. To start a market survey in an area you need to create a form or template that people can fill.
This form will contain all questions related to the product(s). This form will be shared for feedback. If the area in question is a rural area, your team will ask the questions orally to get answers. The feedback will determine if the business will be profitable or not. Read our guide on how to conduct market research for new and old businesses.
2. Write a Business Plan
The second step to starting a business in Nigeria is to write a business plan. All businesses need a business plan whether it is a foodstuff business or even a clothing business or any other type of business. Business plans are important because they inform you about everything you know about the business you are going into.
For example, a business plan will inform you of the capital you need to start a business. It will also guide you on how you can build the business from scratch to when you will start making it. If you are really serious about the business you want to start you need to write a business plan first.
We have written an article on how to write a business plan in Nigeria. You should follow the guide to write yours but if you want us to write for you, you should reach out to us through our official email address email@example.com
3. Get the Capital Needed
The third step to starting a business in Nigeria is to get the capital needed. Capital is very important in a business except the particular business you want to go into does not need capital. At this step, you need to get the capital you need to start the business.
There are different ways you can get funding for your business startup in Nigeria. But it is always good to make sure that commercial banks and microfinance banks are your last resort especially due to the interest they place on their loans. Depending on the business you want to start, you can save up for the capital.
Or you ask for support from family and friends. We have an article on how to get funds for your business in Nigeria. You read this post for different options you have as regards sourcing for capital.
4. Register your Business Name
The registration of a business is very important especially if you want to run the business for many years. There are many benefits of registering a business in Nigeria. One of the advantages is that you will be able to get grants and loans from the Bank of Industry (BOI).
If the business is a production business you will need to get registered with NAFDAC and the Standard Organization of Nigeria. We have a guide on how to register your business with Standard Organization of Nigeria. You should read it for more tips.
Aside from these two, you need to register your business name with the Corporate Affairs Commission (CAC). We have a step-by-step guide on how to register business names with the CAC. You should read it for more guidance too.
5. Get a Location or Place
You need a location for your business. This will be where buyers can meet you and buy from you. This could be your home or another place you can use as your shop. If you do not have enough capital you can run your business from home but if you have the money you need to rent a shop.
How much you use to rent a shop depends on the size of the shop you want to rent and the area you want to rent the shop.
6. Fix Equipment, Furniture, and Fittings
This is the sixth step to start a business in Nigeria. After renting your shop, you cannot just leave the shop like that. You have to equip and furnish it. If the place will be used for production you will need to install your production equipment. And if it will be used to render services like a barbing salon you will need to make it conducive.
How much you need to fix equipment and furniture depends on the kind of equipment you want to put in place.
7. Start Production or buy Products
At this stage, you can now commence operation (start producing your products or start buying your products). If your business is about production, for example; the manufacturing of snacks you will need to learn the steps of production first before you can venture in yourself.
But if it is just about you buying and selling the products you will need to buy wholesale, get them delivered to your shop.
8. Hire Workers or Employees
Depending on the size of the business you will need to employ workers. These workers will make your job easy since you cannot be everywhere and you cannot do everything yourself. Depending on the kind of job the workers would do in the business you might need to employ educated or illiterate workers.
How much you will pay them depends on their qualifications and the kind of jobs they will do for you daily. For example, if it is handwork you require it will mean that they will be rendering a service for you daily.
9. Start Selling your Products
To start selling, you need to first determine the price of your products. Not doing this, will make you incur a loss from the first day of business. There are different ways you can determine your price. If you produce yourself you need to add your cost of materials with the cost of production minus the cost of sales.
This will determine your profits. It is very good for you to start selling your products immediately after you have them especially if these products have expiry dates. An example is cosmetics products.
There are many benefits you stand to gain when you start a business in Nigeria. But you need to have the courage to start first. If you do not start first you will not be able to experience all these benefits yourself.