So you want to know how to build a successful startup in Nigeria? It is not as tough as you might assume to start a profitable business in Nigeria.
There are numerous options available for Nigerian entrepreneurs who are willing to work hard. If you want to know how to build a successful startup in Nigeria, you should start by going through this article.
Being a practising serial entrepreneur and business owner in Nigeria, I understand what it takes to run a small business, especially in a country where practically everything operates counter-clockwise.
Interestingly, most first-time business owners, dealers, and aspiring entrepreneurs face one big challenge: not knowing where to invest their money.
The market demand that your product or service is attempting to satisfy; the market target (demographics and economic power of that market group); and your ability to Predict Revenue and Position a Business for Growth all influence your chances of success or failure in business.
To establish a firm, an entrepreneur must be able to spot opportunities where others are uncomfortable. It should be noted that, while entrepreneurship appears to be a better path to financial success, there is no guarantee of success.
Hence, to increase your chances of success as a Nigerian entrepreneur, there are proven actions that successful entrepreneurs have followed, steps that we feel would increase your chances of success in Nigerian business.
The following are the steps to take if you want to know How to Build a Successful Startup in Nigeria.
These steps were developed after extensive research and interviews with more than 50 successful Nigerian entrepreneurs.
Here is How to Build a Successful Startup in 8 steps
Develop the concept of the Startup
Have you ever thought about what makes a great company idea? But you simply must. A country like Nigeria offers a wide range of popular business models. Yet, I believe you’ll agree that a lot of things are saturated, and you may never be able to add anything to them.
So, what do you do now? There is undoubtedly something available for you because Nigeria has numerous issues in various industries. You only need to identify the problems in Nigeria that you can effectively tackle.
2. Know your startup goal and focus on it
Before moving on to anything else, focus on the fundamentals. Understand the primary goods and services you aim to offer through your startup. Take note of how you differ from or outperform competitors in the market.
While there is already a lot of competition, be sure you have a distinction (USP). It is critical to be aware of it so that you can plan your marketing while keeping your USP in mind.
3. Create your Startup’s strategy
The following stage is to compile all of the information you’ve acquired into a short, well-organized business strategy. It is acknowledged that some Nigerians may bypass this stage and still produce something great. Yet, if their company had a business strategy, it would have become successful far sooner.
A firm strategy does more than merely assure a successful launch. It may also assist your firm in brilliantly managing success. I have seen extremely successful businesses bought out by competitors or go bankrupt as a result of their founders’ lack of long-term planning.
A business plan should not be viewed as merely a necessity for submitting a loan application. With a business plan, you may begin your firm in one month with all of the operations and initial capital you require.
4. Raise funds for your startup
Before you launch your enterprise, you must have a clear strategy for funding your startup’s everyday operations, item purchases, brand marketing, and much more. These tasks must be paid for to be accomplished.
Angel investors, personal loans, friends and family, and a variety of other possibilities are accessible to you as ways to fund your new venture. You can pick what type of legal business structure you want to establish once you’ve found out how to raise your first money and have a share of it.
5. Apply for a license from the applicable regulatory agency
The National Agency for Food and Drug Administration and Control (NAFDAC), The National Office for Technology Acquisition and Promotion (NOTAP), The Nigerian Copyright Commission (NCC), The Nigerian Investment Promotions Commission (NIPC), the Nigerian Customs Service, the Central Bank of Nigeria (CBN), and others monitor, regulate, and license specific startups. To avoid criminal charges, you must obtain the necessary license and follow all health and safety, environmental, and other legal standards.
6. Hire the best hands for your Startup
To co-manage a startup, you must hire the best employees. In Nigeria, you rarely need more than 10-20 employees to establish a firm. Regardless of how many personnel you need to work with, make sure they are the smartest people you can find. Make sure you invest in the greatest hands and minds available.
7. Locate a place and launch your business.
After you have checked all of the items given above, you must choose a location for your startup and begin operations. The location of startups has shifted dramatically throughout time. There are many established kitchen offices in Nigeria for successful entrepreneurs. As a result, you may or may not require a physical store. Before making a decision, examine the benefits and drawbacks of each potential site.
8. Boost your online visibility
Whether you manage a small or large startup, effectively utilizing social media may alter the trajectory of your business. Social media marketing is the cheapest and most effective way to broaden your brand’s reach. It could give your firm the best first impression on potential customers.
As a result, it makes sense to consider increasing your social media advertising budget because it may considerably help your company and ensure a decent return on investment (ROI).
One final aspect to consider about starting a business in 2022 is that it is now less expensive and simpler to do so.
Hence, to start and manage a successful business, an entrepreneur must first explore ways to avoid the stated obstacles; the government and other high-growth enterprises should collaborate to discover ways to increase entrepreneurs’ access to recognized resources.
Making one available without the other will have no effect; the three aspects must be addressed and managed correctly before beginning a firm.
Fortunately, with the establishment of organizations such as Experts.ng, the shortage of skills may be readily addressed by gaining access to verified experts prepared to carry out micro-consulting jobs for a fraction of their regular prices outside of the experts.ng platform.
Because of the magnitude of the accessible market, the Nigerian market is resilient enough to deal with potential shocks from a lack of capital.
As with Jack Ma’s Alibaba, the Nigerian entrepreneur must find ways to develop a chain of easily available resources and partners to form the much-needed ecosystem, even if it is virtual.