Step by Step Guide on how to start a small profitable business in Nigeria

how to start a small profitable business in Nigeria

Business can described as an occupation, a trade, the production or purchase of products or services, to sell in other to make a profit. Anyone can own a business or become an entrepreneur. You can start a small business in Nigeria with any amount of capital. And you don’t have to be highly educated to succeed as a business owner or entrepreneur. Passion and persistence is the key to success in any business venture.

It is the dream of most Nigerians to own their business someday. This is because when you own your own business, you have control over your time and schedule. And with the proper measures in place, it will eventually blossom into a profitable venture. Running a business in Nigeria is challenging but it is highly rewarding. I will share a step by step guide below, on how to successfully start a lucrative business in Nigeria.

Step by Step Guide on how to start a small profitable business in Nigeria

Step 1

Think of an innovative business Idea

Every business begins with a business idea. So determine what you want to do and ensure you come up with the right business idea. Not all business ideas are worth implementing, so your emphasis should be on business ideas that will enable you utilize your current skills and generate steady income. However, if you want to embark on an entirely new business idea, then your business should be unique, solve an existing problem for your prospective consumers, offer value at reasonable and attractive rates.

Step 2

Carry out an extensive market research

Market research is a coordinated effort to gather information about the target market or prospective consumers. It helps you identify the size and needs of the market. Also, the direct and indirect competition existing in the market. So, endeavor to get as much information as possible about the business you want to embark on. You can interview some potential consumers, to determine their interest and the relevance and viability of your proposed business. Relating with some successful business owners, will also give you an idea on how position your business properly, giving it a competitive advantage.

Step 3

Draw up a business plan

A business plan is a written document containing the objectives and future of a business (usually a start-up). It describes in details the strategies to achieve it’s business goals. Having a business plan is also necessary to determine how you intend source for capital and how you intend to add value to potential consumers. It also includes how to penetrate the market, achieve steady growth, sustain revenue and profit generation. It will guide you right from the start up and assist you manage your business successfully, with a clear focus on the business objectives. The location of your business is also very important. Ensure it is located close to potential consumers and away from competitors. You can also successfully run a business online.

Step 4

Register your business

Registering your business is a legal requirement and it gives your business the validity it needs to operate successfully. You can either register a company or business name. Registration is done with the body responsible for business registration. Corporate Affairs Commission (CAC) is responsible for company and business registrations in Nigeria. Registering your business enables you own a corporate account and gives you a competitive advantage. You can either go through the process yourself or seek the assistance of a credible establishment, to guide you through the process.

Step 5

Source for start-up capital

Capital is necessary to successfully kick-start your business. With capital in place, you can successfully register your business, set up the infrastructure, source for products and project your business for long term growth.  So, be sure to have a specific and reliable source of capital that you will need to carry out the daily operations of your business. There are various sources of capital available for start-ups; Bank loans, Personal finance, Grants, etc. Without adequate funding, a business idea dies without implementation or withers off with time, if the proper measures are not put in place to boost its long term growth.

Step 6

Choose the ideal team members

For small business start-ups, you may likely plan to have no employee or very few employees to carry out your business operations. For businesses that intend to hire, choosing the right team members can impact positively or negatively on your business. So, be sure to look for individuals with the required skills and qualities, which will contribute to the success of your business. Once you have the ideal team members in place, you are all ready to commence your business.

Step 7

Help your business grow

Just like a plant, a new business should be nurtured to boost and sustain its growth. Failure to do so will make it wither away. So, constantly look for new ways to promote your business to reach a wider audience through well targeted advertising. Fortunately, there are several means of achieving that today. Social media advertising is very effective and more affordable than traditional advertising. Do not forget to keep proper Accounting records to help you track the profitability and growth of your business. Seek the help of a professional, yet budget friendly firm offering such services. Above all, devote time to your business; let the passion and love you have for your business drive it to success.

Share this article...

Leave a Comment

Your email address will not be published. Required fields are marked *

Our Popular Articles...

About Us

At Nenisa BizWorld, we have a passion for Business, Tourism, Health and Beauty. Stay back and enjoy our creative and value-adding articles, thoroughly written and edited just for our readers.

Recent Articles...

Follow Us On Facebook

Sign up for our Newsletter

We love useful and creative writing! Join our mailing list now to get periodic updates and useful tips, resources and special offers.