Here in this post, we are going to bring to you detailed Steps To Start a Software Development Company in Nigeria. We hope you find this informative.
Business Overview of Software Development Company in Nigeria
The need for software in Nigeria is on a daily increase all over Nigeria because a lot of people are in need of software and there are few software companies in Nigeria which are either owned by foreign citizens and one may begin to think if it is impossible for Nigerians to venture into the business of software development and be the best in the country.
Read Also: Software Developer Salary in Nigeria
There is already a campaign for Nigerians to patronise made in Nigeria products which do not exclude Nigerian made software.
Nigeria has a lot of software developers but they only deem it fit to work under others but with little or no ambition or plans to set up their own company, they forget the fact that it is easy to establish with a right team.
The business of software development is gaining prominence and the earlier the better it is being invested in. Lots of companies have come from other countries to establish their own software companies and they have seen the profitability in the business being established in Nigeria, if it was not that way, they would have left immediately they started and they saw that the business will not make any waves but currently most software development companies are handling the software maintenance and packaging of over 50 companies and firms.
Read Also: 10 Most Popular Software Companies in Lagos
How Profitable is this Business Idea?
If you are a constant user of phones and laptops you will notice and observe that there is a lot of software which are being introduced daily.
Also, many companies and firms require software which would help in the running of their business. As the demand increases for software updates and maintenance it gives the business a better exposure and more people to demand the services of a software developer or a company that deals in software development to come in and handle their needs and deliver according to their specifications.
For the fact that there are few software development companies in Nigeria with a high demand for people in need of software in Nigeria, it gives the business off as a profitable venture.
Top Software development companies in the business:
There are a few prominent names in the software business in Nigeria like
- Inlaks Ltd
- Chesca Technology & Systems
- Coquina Software Ltd
- Dreamlabs Technology
- Dallas Global Technologies
- Codespace Technologies
These few companies listed are already made names in the software business of Nigeria.
Opportunities for the Business Idea:
There exist some opportunities for these business ideas as there are a lot of individuals in need of a firm or company that can handle all the needs concerning software creation and maintenance.
One software company may be in charge of over 20 clients in need of software which shows that there are few software development companies in Nigeria and there is an open market for the entry of a new company which wants to key into the profitability of the business.
Target Market and Competitions in the Business:
The target market for this business is/are the firms or business enterprises which need the use of software to improve their services. Like banks, online stores, e-payment companies etc.
These set of people need software to offer their customers smoother services. Most of them find it comfortable to make software available to give their customers’ better banking experience and even the online markets do this.
Even most of these organisations need some specific software to enable them to monitor their work and also carry out various business operations within themselves.
Competition is not stiff in this industry, only that most of the big names, you will have to face the issue of trying to win them in the business competition.
Nevertheless, it is important to note that as a new company, you must meet challenges and competitions, but if you are persistent and patient enough, if you have a good working team, then you will be able to build a solid company in a matter of years.
How to Start Your Software Development Company:
1. Gain Knowledge and Experience
Before you venture into any business you must have had prior or formal knowledge of the business. You must have worked under a software development company or with a team of software developers to be able to understand how they work and also how to manage a team and what to do to expect positive results from people that will work under you.
2. Choose Your Field Of Specialization
You will have to choose which area of software you will like to go into as there are many areas of software development.
You may want to be a software developer of all sorts of software, what a client needs to do is to contact you and give their specifications, Or you may just want to be into the maintenance of software Or you could be a company that deals in the production of any software and then you wait for people to buy them from you. It is still possible to indulge in all aspects, so long as you have the means.
3. Develop your Business Plan
There is no business that does not need a business plan to succeed. A business plan acts as a guide towards the growth of any business.
You have to state and outline how you want your business to be, how you want it to grow, all these factors should help you in the running of your business.
A software development company is not an easy business so you have to take delicate care in the planning of the business in other not to miss anything.
4. Choose A Good Location
It matters where you set up as this will determine if you will get jobs or contracts to produce or maintain software. Most software development companies are located in Lagos but it will be better to set up near Lagos so as not to be far from it despite you trying to get somewhere that will put you close to jobs. Big towns like Abuja, Port-Harcourt are also a good place to set up.
5. Purchase/Rent Your Own Office
It is important to get your own suitable location as this will serve as a meeting point for your clients and a workplace for your team. It will be best to have a place where you can sit together with your workers and plan towards a job or project as this business requires teamwork.
6. Equip Your Working Place Or Office
It is advisable to start as a small team so you can grow accordingly, you will need to put in a few things to make the office comfortable like chairs, tables, split units, fans and computer systems, programming applications, storage devices, Wi-Fi connection etc.
You will need to make your office place also to be accommodative to clients in case they want to pay a visit to your office to give you a job.
7. Employ More Hands
Only one person cannot set up a software development company, so you will need some extra team on deck to help you.
The more the better is a common saying which applies in this case. Being a software developer, you will need to work with a team to achieve faster results.
8-10 workers will be good for a start, at least they will work together with you as developers and probably combine other administrative work needed.
8. Register your Business/Get Patent Rights
Next step is to register your business as stipulated by the corporate affairs commission. Then as a company that may invent a new product into the market (software), it is advised that you get patent rights to your company and any of its product to avoid any arguments over ownership of any software you release into the market.
9. Advertise Yourself
The best way to make people know your business is through advertisement. Make use of social media and print media, radio and TV stations to get your business across to people.
Also, create your own online presence through blogs and websites to enable you to reach a wider number of people and make them be able to see the services you render.
Just like any other business, if someone has not heard of it, it means they have not been told about it, so make use of every opportunity to get information about your business to other people.
It is not easy starting up a business with little finance; software development is a business that yields returns at a long run, so it is advisable to save up some money for you to start up your own business, rather than looking for loans.
But if it is possible to get a loan that will allow you up to 5million naira with a long term paying plan, like up to 5years will be good for you to get to start up your business.
But in order not to overstep your boundaries or go beyond what is expected of you, you can start up with your own funds. If you are able to save up to 2million or 3million naira, you can set up your software development company.
It is important for you to note that there are challenges you may face such as competition, low or no patronage in the beginning, problematic workers, and low pricing of your software or services because you are a newbie.
But it is best to be able to put on your best management and leadership practices to help you grow and overcome your first few years in the business.
The use of social media and online presence cannot be underrated in this business as the world has gone global that people do not walk from pillar to post to look for what they need, they just go online to check, which is why you need to be social media activity and also have a website to draw people closer to your services.
Starting a business of your own has never been easy, it needs time, lots of patience, perseverance and management to pull through, even with the problems of Nigerians not ready to patronise anything made by a Nigerian which is one thing to deal with, but as the years go by, you will have to improve in your services and develop market entry and succeeding strategies to help you grow in the tech industry.
If you check all the currently popular companies, they all started more than 10years ago but it is now they are gaining relevance, so you will have to develop a patient mind to work towards growing your business.Buy and Sell Bitcoin in Nigeria - Register for free on Luno
Click here to see the latest Study Abroad Scholarships and Guides
Click here to see the latest Jobs opportunities in Nigeria.