There are many factors involved in starting a business in Nigeria; proper planning and execution, financial planning and management, marketing and several other factors.
A lot of start-ups in Nigeria fail because they fail to properly consider these factors when setting up their businesses.
To help entrepreneurs avoid this, we have decided to put together a checklist of things to put in place when starting a small scale business in Nigeria.
Come up with a business idea
The first step towards starting a small scale business in Nigeria is coming up with a lucrative business idea. A small scale business in Nigeria is any business that can be started with less than a million naira and there are several of them. Some of them include-:
- Party rentals i.e.renting out of canopies, chairs, drums and other party supplies.
- Fish farming
- Poultry farming- Quail Bird, Chicken, Turkey, Ostrich Farming etc.
- Livestock Farming-Cow, Goats. Sheepetc.
- Plantain Chips Making
- Used Clothes and Shoes Selling.
- Used Book Selling
- Office supply services i.e. selling different items around offices to busy workers who barely have time to shop.
- Food Vending
- Dog Breeding
- Food Processing
- Equipment leasing services
- Seminar Planning and Organization
- Hairdressing and Barbing
- Cake making.
These are just some of the lucrative small scale business ideas in Nigeria right now; a little further research would reveal several other lucrative ideas.
Decide on Your Goal for the Business
Your goal is what you want to achieve by setting up your business and is what you would use to decide on the modus operandi of the business.
Write your Business Plan
A lot of people skip this aspect thinking“it’s a small scale business anyway, what do I need business plan for?”
Business plans are not only for when you need bank loans. They serve as a guide and a blueprint for your business. They help to chart your growth and provide a control mechanism for your business.
Decide on a Legal Structure
Are you going to run your small business as a sole-proprietorship or would you involve your friends, parents or colleagues as partners? This is something you must really consider because you would need it by the time you want to register your business.
Register your Business
You may skip on this aspect in the early stages of your business but it is highly recommended that you don’t.
Registering your business helps to protect you from unnecessary harassment from trade unions, law enforcement officers and several other bodies.
Asides that, you would be able to open a bank account in your business name and would also be able to source for business Unsecured SME Loans using your business name.
Source for Capital
This is in fact the most essential ingredient because without capital, you can’t do anything.
Avoid using cash loans for your business, they reflect poorly on your credit score and ability to repay. The only case to take cash loans for bad credit holders is when all other avenues have been exhausted and you cannot wait to restore your credit to start your business earning revenue. Some of the places to source for business loans for your small scale business in Nigeria include Thrift and Cooperative societies, NGO’s, Micro-finance banks, religious bodies,crowd funding websites and several other Government bodies.