If you are considering doing business in Nigeria, you would have plenty to do before setting up shop. However, the requirements of a business in Nigeria’s economy are not always apparent. Below are some factors you should consider if you want to know how to start a business in Nigeria:
1. Make Sure Your Idea Is Viable
It’s easy to get a lot of ideas about a business venture, but are all of them useful, profitable, or even feasible? For instance, many people in Nigeria may want high-quality food but not the processed kind. Hence, your plan to supply TV dinners may not go so well. On the other hand, you may have quite a lot of success selling cured meats, freshly baked items, and anything that is nutritious and can contribute to a home-cooked meal.
You should also make sure that your business idea is possible in the existing infrastructure in Nigeria. This economy is notorious for having problems with power, roads, and other important facilities which are essential to a business. Thus, if your business involves a lot of travel, you may need to take a look at the condition of the roads you would use the most. There are several business opportunities in Nigeria, but not all of them are possible for everyone.
2. Make a Business Plan
Before breaking ground on your business, you should look at what it is you want to do and how you mean to accomplish it. This is best done by charting out a proper business plan. You can hire a professional to write it if you’re at a loss yourself.
Your business plan should include the following:
- A description of your business
- A professional summary of your activities
- The demand for your proposed product or service
- An analysis of the competition in the current market
- How you mean to develop the company in the future
- How the business would be managed and operated
- What resources you need and how you would get them
- A projection or prediction of your future finances
When you have a proper plan for business, the next step should be to register your company name with the CAC. This means the Nigerian Corporate Affairs Commission. This is the entity which registers all the businesses in Nigeria.
Registering would mean answering some questions about your company. You would have to tell them what kind of business you mean to do, the number of partners, stakeholders, etc. You would also have to tell them the name of your business in order to make sure it hasn’t already been taken by anyone else. This would also ensure that your name wouldn’t be copied by any competitor later on.
There would be a lot of advice floating around about several aspects of conducting any kind of business in Nigeria. You would have to glean the correct, useful and updated information in order to make your venture a success.