HOW TO START A SUCCESSFUL BUSINESS IN NIGERIA

HOW TO START A SUCCESSFUL BUSINESS IN NIGERIA.

The cripling economic situation of Nigeria begs the question: is it possible to set up a successful business in the country at the moment?

Let's face it, the Nigerian business sector is going through a hard phase, a phase where the economy takes its toil on Small and Medium sized enterprises (SMEs). Economic conditions like inflation is affecting the cost of goods and services, constant devaluation of the country's currency is causing fluctuations with exchange rates of imported goods, consumers are losing their purchasing power to high costs of living, the power supply is epileptic, and so on.

If these characterise the ongoing harsh realities of an average Nigerian, it is therefore not a bluff to question the possibility of successfully building a new business that not only thrives but also potentially turns into large scale.

Moreover, with the large population of the country, high demands of goods and services, and significant change in trends, we can agree that ‘there is always light at the end of the tunnel.’ These gives new intending business owners the chance to strategically create businesses that meet daily needs and follow current trends.

In all of these realisations, know this: starting.g a business is not hard, maintaining it is. To maintain and sustain a business, there is need for strategy.

Here are 6 important steps you MUST take to start a successful business in Nigeria:

1. CHOOSING THE RIGHT BUSINESS

The first step to having a successful business whether small or large scale is the decision of the type of business. There must be critical thinking on what type of business the individual is willing and able to invest in.There are diversities of sectors like the fashion, food, logistics, tech, agriculture, hospitality, to invest in. But there are things to understand and series of questions to ask oneself before investing. There are 3 W's to look out for when choosing a business:What, Why, Who

What problem(s) would I love to solve, what approach will I take to solve the problem(s), why this business? who are my target audience" After these questions have been answered, proper business plan can start.

1. A BUSINESS PLAN

A business plan is a detailed is a report on a company's products or services, production techniques, markets and clients,etc.It is a comprehensive written description of the business. It is a document that carries the vision and missions of the business. The individual must be fully ready and aware of what he or she is getting into. Immediately the business plan is ready it indicates that the business is ready to launch. Either small, medium or large business, funds is a soft landing for business. A business plan helps an entrepreneur make decisions that helps his business run on a long term. A good and detailed business plan helps attracts investors and partners into the business without so much stress.

1. FUNDING PLAN

The availability of money is one of the major, important starting point of a successful business. There are different sources to fund a business which include personal savings, family support, loans from microfinance banks, cooperative societies or government grants. It is important to know that borrowing loans from any financial institution requires the availability of guarantors and collecterals. When starting a business, there are things to avoid for you to achieve success. An entrepreneur must do all he can to avoid borrowing loans in the early start of his business. He must make sure e that personal money is different from business so proper accountability can be done. Money is the lifeblood of business, it must handled properly so the business doesn't dry up properly.

1. LEGAL AND REGISTRATION REQUIREMENTS

The Nigerian business sector has a strong informal setting. Many businesses in Nigeria operate without full or legal registration or backing. Oblivion to many, this is a limiting factor to having a successful business. Organizations like the Corporate Affairs Commission (CAC) for business registration , Federal Inland Revenue Service(FIRS) for tax obligations, are starting point to having a successful business in Nigeria. A legal business is a recognized business and accepted business in a country.

After the legal registration of the business has been made, such business can be publicized.

1. MARKETING

Marketing is a way of creating awareness for a business. There are different ways or strategies in which a business can be marketed. Personal selling or word of mouth strategy, branding, packaging, E-marketing which involves the use of different social media platforms like Instagram, Facebook, Whatsapp, Tiktok, etc are examples of such strategies. If marketing is properly handled, the business will sky rocket in no time.

1. FINANCIAL MANAGEMENT

Individuals setting up a small scale business must also know how to manage their finance well. They must be aware that business money is different from personal money. In accounting, the business is treated as a separate entity from its owner. This means that the owner and the business are separate for financial purposes, "The ABZ Enterprise is mine, so also the funds" can not be practiced if success is to be achieved. Also small business owners must know how to keep financial records like the profit, trade and loss account, balance sheets, if they are to efficiently handle the business.

CONCLUSION

Whether running small or large scale, an individual must put in efforts. For a business to be successful, the owner's mindset is also very important. Apart from the above points, the individual's personality is key. He or she must be committed, consistent, patient, resilent, dedicated, visionary, innovative, willing to take risks, tenacious, etc. All this will help an individual to achieve a successful business.