How to start a successful business in Nigeria

You might have considered starting a Business in Nigeria, but you didn't know where to start. If so, it's the right place for you. In this post, I'll share the key steps, registration, and legal requirements for starting a profitable business in Nigeria

A good business idea, a practical implementation plan, is what you need. 

What is Business 

A business is designated as a commercial, industrial or professional organization or business entity. Businesses can be profitable organizations or they can be non-profit organizations operating to carry out a charity or social task.

Now that we know what is a business you need to first assess yourself and Put these questions to yourself to see if you are prepared in terms of your abilities and finances. When deciding how to enter the Nigerian market, you will need to make a decision between starting a new company and purchasing an existing one. Both options are available to you.

There are several Business models to choose from when starting a new company. A Sole proprietorship, Partnership, Incorporated trustees, and Companies are the four primary categories of businesses. Come up with a Business concept. You must choose a business arrangement that best meets your needs. Price, tax, legal, administrative, and financial risk consequences will be determined by the business structure. A Solicitor's advice may be needed in your case.

1. First Assess yourself.

Since you have decided to start a business, you have to assess yourself carefully by asking yourself these questions.

Do I have the necessary skills to run this company?

I'm curious about the possibility of leading or managing a group; is this something I could do?

Is it possible for me to raise capital for my company?

Do I possess the willpower and focus necessary to see this through to the end?

So, be honest with your responses, and if you answered “YES” to the majority of the above questions, you are ready to start your own company.

2. Come up with a Business concept.

Is there a formula for creating a good business idea? There isn't any, in a nutshell. However, there are ways to develop a foundational concept that will help you turn your concept into a successful company.

Before the next up-and-coming company is born, there is always the "aha!" moment. Indeed, it seems that everybody has a successful startup concept. Only a few, however, will take the risk.

If you're ready to put this dream into action, you'll need to first figure out what kind of company you want to start. Creating a business idea is a crucial step in putting the whole strategy on paper.

When you've gathered all of the money and resources for your new startup, a business concept statement serves as a road map.

When it comes to starting a company, not every business idea is worth pursuing. The best business concepts are one-of-a-kind, realistic, market-driven, and simple to scale. Examining the problems that are present in your environment and making an effort to find a solution that may also be profitable is a good place to start when looking for a new business concept.

If your business concept is brand new, consider what your company can do and how you can make it better and cheaper. You can need to ask people questions, do your research, and seek advice from entrepreneurs and a solicitor.

3. Market research should be done.

Make sure you know what you're doing before you start a company. Ask your future clients a few questions about the issue you'd like to tackle for them to conduct market research.

Also, look at the market's direct and indirect competitors. Learn about their goods and services, as well as how you think your company will stand out among them.

4. Follow-up.

It's one thing to conduct market research when you want to start a business; it's quite another to put the information you learn from your research to good use. The aim of this is to help you learn more about the company you want to start and to help you build a solid foundation for it.

You don't want to start a company today and watch it crumble tomorrow, or to watch your business collapse instead of rising. That is why you must learn how to start a business.

5. Make a business model/plan.

Make a marketing strategy.

A business plan is a systematic statement of a company's objectives, reasons for achieving them, and strategies for achieving them. It may also provide background information on the Business or team working to achieve those objectives.

Any company, no matter how big or small requires a business plan. A business plan will help you stay focused and organized while you're starting a business. Remember that one of the skills of a good entrepreneur is organizational capacity. As a result, you look up some business plan templates online to use as a reference when writing your own.

6. Acquire funding for your business.

• Self-funding allows you to finance your own business...
• Investors can provide venture capital.
• Crowdfunding is a great way to get cash for your startup.
• Apply for a small business loan from the bank.
• Use Lender Match to find lenders who offer SBA-guaranteed loans.
• Small Business Administration investment programs.

Starting a company necessitates not only your expertise and commitment but also your financial capacity. Any business needs startup capital, which is used to finance the company's day-to-day operations.

If you don't have the necessary capital to start a company, there are many options for obtaining funding (bank loans, grants, equity investments, and so on). Most companies fail due to a lack of financing, so make sure you have enough money to weather any financial storms.

7. Registration of a business in Nigeria.

Detailed Instructions on How to Register a Company in Nigeria (in Step-by-Step Mode) (Private or Public Liability company)

1. Check for the availability of the proposed company name on the CAC website 

name reservation and Reserve a new Name  

1. Complete the pre-registration form and upload all relevant documents (Online using Company Registration Portal)
2. Pay the filing and Stamp duty fees  

• Now your registration is end-to-end on the COMPANY REGISTRATION PORTAL (CRP)
• with electronic Certificate of Registration and Certified Extract of Registration information

Step by Step on how to Register a Limited by Guarantee

1. Search and Reserve a Name   (click here)
2. Fill Registration Form and upload all relevant documents (Online using Company Registration Portal)
3. Pay the filing and Stamp Duty fee
4. Before registering the Company Limited by Guarantee, the Commission must obtain approval from the Attorney General of the Federation.

then with the Chamber of Commerce at the state level. Your company gains validity and legitimacy by registering with the appropriate bodies.

8. Create a team.

.If you want to run your company by yourself, you do not need to start assembling a team right away. But, if you're going to hire staff, you'll need to put together a good team.

You're putting together a strong team for your company and these individuals are supposed to contribute to its success, but if the team isn't well-built, they could also work against it. So, is it designed to expand and succeed?

9. Growing Your Business.

A company's sustainability depends on its ability to develop. Any company that does not expand will eventually die, no matter how long it takes. Ensure that you are not leaving any stone unturned in your efforts to expand your business.

A steady positive cash flow is the most important metric for measuring a company's success. The more cash flow a company creates, the greater its capacity to prosper and develop. As a result, from the start of your company, make sure you have the right resources to help you keep track of your cash flow.