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How to Start a Business in Nigeria
When an entrepreneur wants to start a business in Nigeria, he must first decide on what he wants to do and how. He will first need to scan available options and then select the type of business given his or her major considerations.
Are you an entrepreneur thinking of how to start a business here in Nigeria? Then, this post is for you as I will be carrying you along with the necessary steps you will need to get your business started here in Nigeria.
This post is going to be a very long post, you will be learning so many things you thought you knew. My intention for this post is to make it different from other posts that promise to explain to you how to start a business in Nigeria.
Since you want to start a business, there are major steps for you to take before launching that business. In no particular order, they are;
1. Business Name
As an entrepreneur, your business needs to have a name. You are not just an hustler going for the money. You are building a business that will run for the long term. Come up with a particular name that tells your potential customers your kind of business.
Your business name should be very easy to remember and pronounce. It should also tell people the kind of business that you are so people don’t have to start thinking. This is the first step which is also important.
Registering your business makes people know that you are really ready for the journey. If your business is registered, you can go seek for bank loan, open a business account which is very important.
The federal environment in Nigeria requires that all enterprise to register with the Corporate Affairs Commission (CAC).
To register a business name, a duly completed application form and signed by the relevant person must be submitted to the CAC office. That means, you will have to visit any nearest CAC office close to you to get the form and apply to get your business registered.
You will be required of;
• The Proposed Name
• The nature of the proposed business.
• The full address of the location of the business (if any). You can use your house address if you don’t have a location yet.
• The proposed date of commencement of business.
• Passport size photograph of the owner(s) or partners.
These are what you will need to get your business name registered.it takes a maximum of 2 weeks to get everything done. And, I can’t vividly tell you the amount because every lawyer has his or her own fee charge but you won’t spend more than ₦25,000. Normally the last time I checked, CAC charges ₦10,000 but you can’t register a business name without a lawyer that is conversant with CAC terms.
Location of a business is the choice of a geographical area such as a state, town or local government area in which to establish a business enterprise. The performance of a small business is related to its location.
Selecting a good location is very important for the success of any business as most of them do not have the resources to fund the extensive marketing required to attract potential customers beyond their immediate neighbourhood.
A good location is an excellent competitive advantage for small businesses because they are easily accessible, whereas a poor location can ruin a business.
Factors that Affect Location Decisions
• Owner’s personal preferences.
• Objective of location decisions.
• The size of the proposed organization.
• Nearness to market.
• Infrastructural facilities.
• Community factors.
• Government policies and taxes.
• Convenience of customers
• Compatibility of the business with local environment.
These are some of the factors you need to put under consideration before making the choice of location for your business.
4. Employing People (Assuming you have purchased the products)
A successful business can’t be run by only one person, it needs people to move the organization forward to achieve its goals.
Employing people with the ability to create value and fit occupational positions at different levels is a systematic activity requiring technical and human related skills. The people in your organization are so important. They are the best resources in the organization.
You must make sure you employ the right people with the right skills that can take your business to meet its goals and objectives.
5. Marketing your Products and Services
The practice of marketing cannot occur without the availability of product for the market. You have to learn the different means you can use to get your products and services known to the general public or else your business will collapse in no time.
Four Keys to Marketing
There are four essential elements of marketing. These are:
• Specialization: This requires that you focus on specific products or services, specific markets, or specific customer’s needs. You must fight the temptation to try to sell too many products and services to too many customers in too many areas.
• Differentiation: This implies you differentiate your product or service by determining exactly how you are going to be superior to your competitors.
• Segmentation: This requires that you clearly define the exact customers who can most benefit from what it is that you do better than anyone else.
• Concentration: This requires that you focus your viral resources of time, talent, money on marketing and selling more and more to your very best potential customers. Sales effort directed to your highest probability prospects yield the highest possible return on your activities.
These are the critical steps needed to start a business in Nigeria. Hope this post help? If you feel bless by this, you can do me good by sharing using any of the social media buttons. Thanks!