8 Tips on How to Start-up a Small Business in Nigeria
This article was culled from Kingnetkk’s blog which was recently started to provide entrepreneurship advice to blogs, startups and businesses from Nigeria. I’m featuring this article on this blog to provide useful advice to wannabe entrepreneurs in Nigeria.
Starting a Small Business
Starting a small business requires determination, motivation, and know-how. Here’s a list of available resources to provide you with the know-how to have a successful small business startup.
1. Identify Your Business Opportunity
Choosing what kind of business to start can be an immobilizing task when confronted with the multitude of opportunities. Here at About, we have identified the hottest business opportunities to give you a few ideas. It’s important to determine where your passions lie and to understand your entrepreneurial personality type. So you think you have found the one business opportunity that will bring you freedom, fame, and plenty of profits? Does it meet the 8 simple rules?
2. Build a Business Plan
For the majority of start-ups, a business plan allows you to gain a better understanding of your industry structure, competitive landscape, and the capital requirements of starting a small business. If business planning is beneficial, why do so few startups use business planning? Learn the critical steps to writing a business plan.
3. Name Your Business
What’s in a business name? Everything and nothing. The right business name will help distinguish you from a sea of bland competitors, provide your customers with a reason to hire you, and aid in the branding of your company. Apply these 10 commandments when choosing a name for your business.
Choose a Business Structure: Find the best ownership structure for your small business. The most basic of all business legal structures is the sole proprietorship. Other possible structures include the popular limited liability company, a partnership, or an S corporation.
4. Register Your Business
Starting a small business requires the usual paperwork and regulations. Corporate Affairs Commission (CAC) is responsible for this, for a small business start up you might not really need to incorporate the business as a Business name registration will do. Setting up your small business may require a business name registration to avoid embarrassment from local government authorities and to enable you get a a corporate account with a bank.
5. Find Start-up Money
Contrary to popular belief, most small business start-ups aren’t funded by grants, venture capitalists, or banks. Your seed money will come from your personal savings, friends, family, and any other creative means such as bartering.
6. Determine Your Business Location
A 2001 Inc 500 survey revealed over 56% of the fastest growing companies were started at home. Discover what you need to make your home office design more productive. If home business isn’t for you, learn how sharing office space can aid your startup. Don’t forget to review the pros and cons of office space leasing vs. buying.
7. Get Business Insurance
(This might not really be applicable here in Nigeria, ask me why) As a new small business owner, you have the responsibility to manage the risks associated with your business. Don’t put your new start-up at risk without getting the proper small business insurance to protect your company in the event of disaster or litigation.
8. Create an Accounting System
Unless you’re a number person, the accounting and bookkeeping aspect of running your business can’t be avoided. Setting up your accounting will help you understand the financial aspect of running a business.
Many Thanks to the author.
He has given the practical steps would-be entrepreneurs (like me) need to take… But i must ask- what are the ‘ten steps’ he mentioned? And also, how do i acquire the necessary accounting knowlege? Thanks once again!
Nice tips. A quick one for those that are always asking, how do I start. Cheers.
I really have this urge in me to start a small business of my own. But I am a very busy person who doesnt have time to sit at any one which means I would need someone to manage it for me. what kind of business would best fit in to this?
– kemi
am. a housewife and i really would love to start up my own business but ireally dont have an idea of what i want oby
@Kemi and Oby - Thanks for your comments. Why not send me an email - loy at startupsnigeria dot com, and we can take it from there. Cheers
I had wannted to start a business but :1.I dont have my time because of work.2.the kind of business to start.pls assis.thanks
asist on my urge to start a business.thanks.
i just graduated n i need a small business i do for a start but i can’t think of any. please assist me
thanks for the tips, however u didnt expand on the 8 steps or 10 steps you mentioned.
To the people who dont know what business to start up, i find it easy to do something u’re passionate about because that is the only way you can put all your effort into it, u wont get bored waking you every morning. and u’ll always be motivated. If what you are passionate about is already very popular e.g- hairdresser make your own unqiue, provide something that other dont provide or open up in an area where there is little or no competition
Thank for the 8 idea of how to start a small bizness in nigeria.what can of bizness can one start with cos there are so many bizness scaterring of over the places.
i need to incorporate a company ltd by share 100,000. pl who can do that for me and in kow cost.
dear Kemi, am mr. moses i ll be very glad to show u some business ideas and would love to manage it for pl do contact me on mosco1012000@yahoo.com, tanx.
Hi Kemi , nice to stumble on your site,like some guys said,the global meltdown had made it imperative to look for other income streams.Although i work but i would like to have a small business or you can link me to any person that has an existing business to which i could provide counterpart funding and thus be a sleeping partner while the owner of the idea remains the active partner.
Hoping to hear from you soon
please I want to if there is a business which i start with 150,000… thanks