Entrepreneurship contributes immensely to Nigeria’s growth. Micro, Small, and Medium Enterprises (MSMEs) contribute 43% to Nigeria’s GDP and 83% of total employment.
Entrepreneurship has created job opportunities for many people in Nigeria. However, becoming an entrepreneur in Nigeria is not easy; you must have a thick skin to weather challenges.
It is one thing to start a business in Nigeria and another to scale it. Scaling a business is not as easy as people might think. There are many things to do to take your business to a level where you no longer fear failure. If you continue reading this article, you will learn about how to start and scale your business properly.
Starting and Scaling a Business in Nigeria
The current state of the Nigerian economy has made it difficult for businesses to thrive. Entrepreneurs cannot comfortably operate their businesses due to the volatility of the naira, high taxes, economic downturn, poor infrastructure, limited power supply, and corruption.
Many businesses have folded up over the years, while some have withstood the storm, scaled, and become major players in the Nigerian economy. Nobody who started a business started with a mindset of failing. Scaling a business is more difficult than starting it. That is why you will see people start a business on the right foot but then lose footing and come crashing down.
Despite all the challenges that pose a threat to businesses in Nigeria, you can still scale your business if you are strategic and innovative. That is why I have done some research and come up with workable tips you can use to scale your business.
How to Start a Business in Nigeria
If you want to start a business in Nigeria but do not know how to go about it, the following are the ways to do so successfully.
1. Know the Type of Business You Want to Start
Some people see their friends succeeding in a particular business and think they can also do the business successfully without even knowing the nitty-gritty of the business. Before you start any business in Nigeria, make sure you have an interest in the business so that you will persevere in the face of challenges. Also, research the business you want to do. Make sure that it is a business that will thrive in Nigeria and that the competition in your niche is not stiff. If there’s stiff, look for innovative ways to make your business stand out. Look for a business that will solve societal problems, and you won’t have to search for customers and clients.
2. Get Required Training and Experience
As soon as you come up with the business you want to do, the next thing is to get the required training and experience. Don’t try to figure out everything on your own if you do not want to fail immediately after you start. Get training and advice from people who are doing exceptionally well in the industry. With these experiences, you will bypass some challenges and make good decisions that will foster the growth of your business.
3. Get Your Finances Ready
You cannot start a business without money. Money is an integral part of starting a business. You need to save up enough money for your business to manifest. You need to have enough finances so that you do not have to depend on your business profit at the initial phase of your business. You can work first and save up money to start a business. You can get a loan from the bank, or you can get it from family and friends. Whatever way you want to use and get money, make sure the money is more than enough to fund your business.
4. Get a Good Business Plan
Without a business plan, your business will just be drifting. A business plan is essential for your business; it is a compass that will guide you on your business journey. Your business plan will help you stay on track and attain your business goals. People will always request your business plan when they want to invest in your business, so a good business plan will get you good investors and business partners.
5. Get Accurate Legal Knowledge From a Professional
In this era, businesses are not operated without legal backup. You have to employ a legal practitioner who will guide you on how to go about your business. The person will check every document and give you legal tips to help your business avoid problems. Many overlook this and only seek legal help when their business runs into trouble. Don’t wait for the last moment; set everything right from the beginning.
6. Register Your Business
The next thing is to get your business registered. Make sure you get your business registered with the Corporate Affairs Commission. Many business owners have completely ignored this part of their business. There are so many benefits of registering your business. People will trust you when your business is registered; you will have access to funding opportunities such as loans, grants, investors, and legal recognition and protection.
How to Scale a Business in Nigeria
Scaling a business has to do with having the ability to grow your business without restrictions. Everybody can start a business, but nobody knows how to scale a business. Below are some tips on how to scale your business in Nigeria.
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1. Set Realistic Goals
One thing that will help you scale your business is setting realistic goals, goals that you know you can achieve within a given time. Many people fail in businesses because they set unrealistic goals. Setting unrealistic goals can demotivate you and your team members, and your business suffers when that happens.
2. Strategize On How to Increase Sales
As a business owner, increasing sales should be your top priority if you want to scale your business. You have to look for strategic ways to get more customers and relate well with the existing ones. Customers are the backbone of business; without them, your business cannot grow. Your business cannot easily collapse when you have many returning customers.
3. Invest in Technology
If you want to scale your business, you need to invest in technology. You will experience tremendous growth when you infuse technology into your business. Instead of doing manual administrative tasks, you can get the right tools and automate some of your tasks. If you are into production of any kind, you can get machines that will speed up your work and save time.
4. Get Funding
Scaling a business is not cheap; you need to have money to invest in it. During the process of scaling your business, you might need to hire staff, get new technology, buy equipment, and pay for some services. All these require money to achieve. Before you plan on scaling your business, make sure you have all these in place.
5. Employ Competent Staff
You need people to grow your business with you because you cannot do it alone. Technology will help you in some aspects, but you need people in other aspects. You need to hire customer service professionals to attend to your customers one-on-one. You also need to hire marketers, accountants, and delivery personnel, depending on the nature of your business and any other staff you may need. Hire the staff you need; don’t hire for a position you don’t need. Also, make sure you hire talented individuals who understand your vision and are willing to achieve it with you.
The Bottom Line
The entrepreneurship journey in Nigeria is filled with potential and promise for those willing to navigate its unique challenges. Starting and scaling a business demands more than just vision; it requires tenacity, strategic planning, and the embrace of innovation. With the economy offering vast opportunities in various sectors, entrepreneurs who are prepared to conduct thorough research, secure robust funding, and adopt technology stand a better chance of not just surviving but thriving. Remember, the path to success is paved by your dedication to adaptability and learning from every situation—start your business today with confidence and the right strategy for scaling tomorrow.
