Nigeria being one of the most populated countries in Africa, is a country with a very high unemployment rate. Starting a small business in Nigeria has become the best alternative for young graduates and entrepreneurs alike, to Stаrt a Smаll Business іn Nіgеrіа a few factors should be considered. Today am going to be explaining in 6 steps Hоw tо ѕtаrt a ѕmаll business іn Nіgеrіа this 2019.
HОW TО STАRT A SMАLL SCALE BUSINESS ІN NІGЕRІА
- Get a Business Idea
- Find Source of Startup Capital
- Do your feasibility
- Find a Good Location
- Register your Business
- Start Marketing
The foundation of every small business is a good idea, their are a lot of business niches you can focus on in Nigeria, just make sure its something your passionate about and understand well. You should also consider the location where you would want to start the business and see if your idea fits into the demographics.
This could be anything from personal savings, a loan from a bank, donations from family members etc. Remember the main thing here is starting, even with 5000 Naira you can start a successful business. You should consider the rent (if any) of the location you choice as well as wages and potential maintenance expenditures. And if you’re thinking on getting a soft loan, these article composed list of 12 website you can get loan without collateral
Do your feasibility
Feasibility analysis is simply a process of determining if a business idea is viable.
I know entrepreneurship is all about risk taking but jumping into an industry without an adequate knowledge of its fundamentals is suicidal. I know this because I am talking from experience; my dad made this very mistake and he paid dearly for it.
Now how do you conduct feasibility study on a business opportunity? I can’t answer this question in detail here but I have provided all the answers in the articles below.
Find a Good Location
A good location could be the difference between a successful small business in Nigeria & a failed one, its a wise idea to always get a place closer to the kind of audience for your niche i.e Food restaurant near an Office or school, its common sense. People cherish accessibility more than anything else, no matter how good your business products are, if they are not accessible then you wont make any tangible income.
Register your Trading Organization
a Registered Business whether big or small in Nigeria is a trusted one, Just registering our business alone gives people this confidence that you will never dupe or scam them. You can learn how to register your small business in Nigeria here.
Last but not least is marketing, if you don’t do any form of marketing then its going to be hard to get customers. Truth is for every small business idea you might come up with there are already a 100 more people running a similar business, your marketing simply announces to the public why yours is different and better. marketing can include anything from handing fliers to printing and placing banners in strategic places which costs almost nothing compared to the ROI.
So those are the few tips i have for starting a business in Nigeria, but before we round up let’s look at what problems small scale business personnel are facing in Nigeria.
PROBLEMS FACING SMEs IN NIGERIA
Past works have shown that SMEs are potent sources of growth and development in Nigeria. However the sector is still faced with mirage of factors such as;
- Finance: it is one of the essential resources in the growth of small scale business in Nigeria. Unlike the developed countries of the world with efficient and functioning credit system. Adequate SME has presented a major setback in the country. Financial institutions are often not ready to finance small scale business projects. Sometimes these SMEs are told to present collateral before loan are granted to them and these collaterals are not easy to come by. Aside this, the interest rate is aslo on the high side thereby discouraging new as well as old SME operator to expand their businesses.
- Infrastructural facilities: Despite the huge investment of the Nigeria government in the power sector, there has not been appreciable progress in the nations’ electricity. Almost all public infrastructural facilities such as motorable roads and water supply are performing below expectations.
- Conducive Business environment: This is another factor impeding the growth and development of small scale business in Nigeria, and atmosphere where the entrepreneur is not appreciated and supported will lead to a high level of business risk. No wonder most small scale business die as soon as there were created. An unfavorable government policy is also capable of destabilizing the business environment for the smooth running of SMEs.
- Inefficient administrative skills/ management: lack of efficient administrative skills/ management capacities resulting from large scale illiteracy improper record keeping of financial transactions and poor control system as well as weak understanding of the economy environment of the country have affected the SMEs in no small measure.
If you have any questions don’t hesitate to ask. Want to Learn More?