DOING BUSINESS IN NIGERIA – How To Invest and Start A Business in Nigeria
Are you thinking of investing and starting a business in Nigeria? Please read on. It is very true that Nigeria is a country that is blessed with so many resources, both human and natural resources; and it is one country where doing business could be so rewarding. Little wonder so many foreign companies troop into the country every year to invest and establish their businesses.
Despite the obvious fact, investing and starting business in Nigeria is still considered difficult by many start-up entrepreneurs. It is so easy for you to do business and succeed in Nigeria, especially with the right steps, yet very easy to fail as well.
If you know the right steps to take in starting business in Nigeria, then you have no cause for worry. Here are some important steps you will need to take when considering investing and starting up a business in Nigeria.
If you are thinking of investing and starting a business idea in Nigeria, first you must creatively think of a good business idea that will relate to the Nigerian environment. Granted, Nigeria is a very unique country where almost any business could grow and flourish, especially with the right business approach and strategies.
Almost any business could be successfully established in Nigeria. You just have to come up with a good business idea that will focus on solving problems and meeting the demands of the Nigerian environment.
You could decide to start from scratch or you could go buying a reputed franchise, depending on your start-up budget. In developing your business idea, you will have to critically consider whether starting from scratch or buying a franchise will be best for you.
Research the Market and get Yourself Prepared
When you want to invest and start a business in Nigeria soil, it is very critical you prepare your mind for it. Nigeria is a very tough place to do business. It is also a very rewarding place to do business.
Your business has the likelihood to succeed or fail in Nigeria depending on how you go about it. You will want to get yourself prepared by doing all you can to research on the market and the industry where you want to do your business. Gather as much information as you can. You could attend seminars, and learn all you can about your chosen line of business.
Determine your Location
In choosing location for your business, you must consider factors such as nearness to raw materials, target market, etc. The ideal location of your business is one that is particularly close to source of materials, target market, and not too close to strong competition.
You must carry out a thorough feasibility study to know the best location for your business so that you can be able to maximize profits and minimize costs as best as possible.
Determine Your Legal Business Structure
Having developed a business idea and done the needed feasibility study, you must decide how you want to operate your business in terms of the legal structure. It is important to know that there are various types of business structures.
If you would like to operate your business singly, then sole proprietorship is best for you. And if you would like to have at least a partner in the business, then you must register your business as a partnership business.
Also, if you would like to distinguish your business assets and liabilities from your personal assets and liabilities, then you will have to go the path of a business corporation.
Register Your Business
Investing and starting a business in Nigeria, just like every other country, entails that you must legally register your business with the Corporate Affairs Commission. You will have to come up with a good business name that is unique and has not already been chosen.
It is helpful to have other alternative names in mind when preparing for registering your business. If you intend starting your business as a company, it is advisable to seek the services of a qualified lawyer to help you with the whole process of business registration in order to avoid costly mistakes.
Obtain the Required Licenses and Permits
When it comes to investing and starting a business in Nigeria, you must fulfil all the legal requirements. Another phase of the legal process is the obtaining of licenses and necessary permits for your business.
You must carry out a research on the market and enquire on the licenses and business permits you would require for your type of business. Every business has its own required business licenses and permits.
Determine How to Raise Start-up Capital
You will require financial resource to invest and start a business in Nigeria. Finance is one challenge that bedevils many start-up entrepreneurs in Nigeria. You will require finance for a host of things such as acquiring equipment, hiring employees, securing land, promoting your business, and so many other costs which you will have to incur in starting up your business.
You must decide upon how you intend to raise the needed capital to finance your business. You could source your start-up capital from your personal savings and assets, from friends and family, or obtaining loans from banks and investors.
Hire and Set up your Team
Now you have done all the needful, and you are set to start up your business, the next thing you would want to do is to hire and set up your team of employees. You should know that the right team has a great influence on how successful your business will be in the long-run.
You must make sure to hire employees that share your business vision and are enthusiastic about working with you. It is left for you to decide the number of employees you would need to run your business. But if you have done a good feasibility study on your line of business and on the Nigerian market, you should be able to easily determine the number of employees you need to run your business.
Develop a Good Business Plan
This one is very crucial to your business, especially if you are going to seek for loans from the banks or from investors. Many start-up entrepreneurs in Nigeria tend to always bypass this one.
The importance of a business plan to your business is exhaustive. It is too crucial to your business. You should make sure you develop a good business plan for your line of business. It does not have to extend to lots of pages. You could just keep it simple as long as it contains the necessary things about your business.
Discover the best businesses to invest in Nigeria. Make profits from lucrative investment opportunities. Nigeria is the most populous black nation in the world. Her economy is strong and continues to grow annually. Take a wise step, invest your money in Nigeria now! Make your research and invest in a sector of your choice.