Business

9 Steps To Start a Business in Nigeria with Small Capital

Here in this post, we are going to discuss at least 11 steps to how to start a business in Nigeria with small capital. This should be interesting, so sit back and read.

Somehow at a point you have gotten tired of seeing or hearing about businesses to start up and the capital which is needed to start up is a huge capital, something above 300,000naira; and you want something small, something that is not too expensive to start, well we will be talking about that in this article.

You must have thought of various things you want to do and you just felt that you really need to start something within your reach, something that will not make you bite your fingers as you are spending your money to get it, in this article you will see more of that.

Read Also: 6 Freelance Businesses You Can Start Tomorrow Morning

9 Steps To Start a Business in Nigeria with Small Capital
Business in Nigeria with Small Capital – Photo Source:https://nigerianfinder.com

Do you know that many big businesses started from a very small beginning? Do you know that even Africa’s richest man Alhaji Aliko Dangote also started from a very small beginning? He didn’t just become the world’s richest Man in one night or a year; he started from scratch and built his empire to an enviable height.

Even top vehicle producer in Nigeria now and the CEO of INNOSON Motors; Chief Chukwuma Innocent started from selling spare parts and now look at where he is today.

One thing you should know is that starting small gives you time to dedicate yourself to the business and also build it to the height you want; it helps you build a good foundation for your business.

I have never heard of someone who started a business with a small capital and resources and didn’t make it bigger than his/her beginning.

There is lots of business which one can do with a little capital, which gives you a variety to choose from; so in order to reduce competition, you can choose a business which much people have not moved to or started, or one which is more needed in your area.

You should be able focus on a particular set of people where your customers will come from, when you are able to recognize your customers, it helps you to plan on how to satisfy them and on how to reach them and meet their demands.

Also when you start you should have a specific timeframe of which you will reach a high profit level and have a target of when to reach your profit targets; this would help you know if you are on track, gaining or losing, it is essential to know all this details and keep records so you do not just go on spending your money lavishly.

Read Also: Top 20 Lucrative Small Businesses In Nigeria

List of Businesses That Can Start With Little Capital

  1. Selling of Snacks
  2. Selling of female wears
  3. Sale of second hand clothes
  4. Selling of Underwear (Both male and female)
  5. Starting a phone repairs business
  6. Starting a snail farm
  7. Mobile food eatery
  8. Digital marketing
  9. Being a Freelance writer
  10. Starting a Blog
  11. Drop Shipping Business

These are just a few of the various businesses you can start with a small capital, with something even lesser than #150,000 you can start a reasonable business and be counting little gains from it.

If you want to go about your business and begin your business, let us look at how we you will go about it.

How to Start

1. Do A Feasibility Study For Your Proposed Business

You need to conduct a feasibility study on the type of business you want to run, what it entails, what will be the risks, will you solve problems of people, are you going to make gains from it, etc. You have to be sure of what you are getting into before you get into it.

2. Do You Have Knowledge Of Your Business

One of the rules of the market is to have perfect knowledge of the market, same thing applies as you go into the business, you have to know your business perfectly well to enable you manage your business effectively.

If you have little or no knowledge of your business, there may be some problems you will encounter in the business.

Read Also: 9 essential entrepreneurial skills for small business success

3. Where Will You Get Your Raw Materials?

You will need some materials for your business, so you have to consider the materials you will be getting, if they will be far away from you, you have to reconsider the business or its location. You need to choose a business that its raw materials will be close by to you or your business location.

4. Where to Get My Equipment?

Some business do require some equipments, so where you will be getting your equipments will be necessary. Also to consider the cost of the equipments, you should purchase equipments that will be comfortable to your pocket.

5. Technology Needed

Also you have to take into consideration the technology you need for your business, it should be easy to use and operate, not too complicated and also comfortable to the market.

6. Best Location

This is a critical part to any business, as you will have to consider your customers and nearness to raw materials. You have to select somewhere that all your customers will find easy to locate

7. Source Of Funds

Maybe you would have some savings to start up with or you just have someone that would like to sponsor you which is still cool and great for your business.

Yet it is best to start with the little money you have at hand than borrowing because you would not like to be under pressure to repay your debt. So it is advisable to save up to start your own business with the little capital you have.

Read Also: 7 Online Marketing Strategies for Small Businesses

8. Choosing/Registration Of A Business Name

Choose a name which is unique and pleasing to hear, but you have to check with the Corporate Affairs Commission to see if the name you chose is still available, and if it is available, you have to register your business name with them, just for future purposes when your business grows bigger.

9. Production/Service/Packaging

Your Production and service rendering should be accurate and without mistakes to encourage more people to trust your business and come back to do business with you, everyone loves a good service provider.

Also you need to have good packaging for your products and for your business itself so it is acceptable and attractive to customers.

Management/Sustainability

Such a business that you will start with a small capital will surely be a one man business, so you are your employer and employee, therefore you have to put in your best to make your business grow, give yourself targets like you would give an employee and follow your targets diligently.

Promotion Tips

Put in a lot of work and dedication into your business so that your hard work will pay you with great results; give your business a name that is attractive to your target customers.

Be honest in your dealings with your customers so they will not have cause to complain or look for someone better than you. Plan your marketing strategy to be effectively strong to reach out to your customers without you waiting for them to come to you.

Read Also: Steps To Start Pineapple Business And Tips On How To Succeed

Conclusion

Lots of business can kick off with little capital , all you have to do is to select the right business, with a good location, then carry out your marketing plans, then put in great dedication to your business, that’s about all you need to start a business with small capital in Nigeria, start little and make your business grow.

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Godspower Ugadu

Godspower Ugadu is an Economist an a Content Developer at InfoGuideNIgeria.com. InfoGuide Nigeria is a team of Resource Persons and Consultants led by Ifiokobong Ibanga. Page maintained by Ifiokobong Ibanga. If you need a personal assistance on this topic, kindly contact us.

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