Here in this post, we are going to give you guidelines on how to start up a business in Nigeria. We hope you find this article informative and resourceful.
In this article, I am going to present you with steps through which you can start a business in Nigeria. With the rate at which unemployment is looming, this is a very good article that can help you to be independent.
Basically, every business starts with an idea. The idea is like an embryo of every business, once the idea is born, the next is to develop it into a business plan.
The business plan determines how successful the business would be. If the business plan is not well written, you might end up wasting the money invested into such business.
I am going to make the steps very easy to follow so that you will not find it difficult to assimilate and implement it to start your business.
Here are the Steps:
1. Develop and write down your business plan
This can be done by someone on your behalf but it is best to write it by yourself. The following are the major things that need to be included in a perfect business plan.
- Business Description
- Market demand
- Competitive analysis
- Design and Development
- Operation and Management
- Financial forecast or projections
- Executive Summary
The main emphasis of any business plan is seen in the executive summary. It contains the major points of the business.
Business description entails the industry you are starting the business in; present and future of the business in the industry is also included.
Market Demand involves the analysis of the market. Your market is evaluated and from the evaluation, the market target can be identified. The market identity, in turn, influences the market strategies.
The competitive analysis involves analyzing the strengths and weaknesses of those in the same business as you. This is going to help you to know how to start your own building on their strengths and weaknesses. From there, your unique selling point would be created.
Design and Development concern businesses that are still into product development. Service based company doesn’t need this stage.
Operation and Management Plan helps you to get an idea of your inflow and outflow while resources have to do with supports you get from your family and friends and other sources. It is nice to clearly note all these down as you are starting your business.
The financial forecast is another important aspect to note down. Although most times this is different from reality, it is necessary to have them in the business plan.
2. Register your business
After mapping out the business plan, the next stage is to register the business with the Nigerian Corporate Affairs Commission (CAC).
There are some certain questions that you need to be answered before your business get registered and they are:
- What kind of business are you starting? There are three main types of business you can venture it and they are Sole Proprietorship, Private Limited Liability Company and Public Limited Liability Company. What influences the type of business is the structure of the business you want to start.
- What is your business name? Business name needs to be verified before CAC gets it registered. If the name chosen had been taken by another person, another search had to be conducted and sorted out before registration can commence. Once the name is verified, a form will be given to you to fill. The registration can as well be done online.
3. Tax Registration
After registering with CAC, the next is to register with the tax office. Issues with tax are under the Federal Inland Revenue Service (FIRS).
Three things you will have to send to tax office are value-added taxes, company income taxes, and withholding taxes. The best is to register with tax office closest to you. Once you are done with the process, Tax Identification Number (TIN) will be given to you which can be used for your tax processes.
4. Obtain the Necessary Permits
Necessary permits should be obtained from the related bodies because most businesses are being supervised by them. For example, people that are into pharmaceutical business are being supervised by Pharmacist Council of Nigeria (PCN).
5. Acquire Office Space
The fifth stage involves getting a space to run your office. You can decide to rent or lease a place for your office. Some offices can as well be started at the comfort of your home
Once you get the space, furnish it and equip it with products you need to sell but if it is a service based business, you need to put in the necessary equipment you would need.
6. Create A Website
Most businesses these days are online because that is how you would get your business known to the world and attract more clients.
To have your business online, you have to create a website. Get in touch with a web designer that could put up a very captivating website for your business and off you go.
7. Implement Your Marketing Strategies
At this stage, you have to enter into serious marketing to advertise your product. If you don’t advertise it people will not get to know about it.
Get marketing strategies that would work for your products and implement them to get more targets. The success of your business lies greatly here.
8. Develop a Brand
Don’t just stop at marketing, also try to brand your business. Effectively improve your customer service and train your staff to build around this area.
Create a unique logo for your business and let your staff have ID cards that indicate where they work and what you do. These help you stand out among numerous businesses in the same area.
9. Promote Your Business
You need to find ways to promote your business. Even when you see profit coming in, don’t relax, work more on promoting your business to attract more customers and increase sales.
Finally, one important thing you need to be mindful of is that sometimes the profit might not really flow in as supposed. It takes up to six months or even more than at times before you start to witness profit in your business. So when it is like that, you don’t need to get discouraged.
With these steps started, you can comfortably start up a business in Nigeria and thrive in it.
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