In this article, we shall be seizing a little opportunity to analyze 5 steps on how to start a successful business in Nigeria.
One of the most discouraging factors that have hindered many people from starting their own businesses, is the issue of capital for the business. This means that sourcing or raising capital for business is not always easy as it always sounds to some people. This is why it is always joyous when ever one finally makes it to have his capital sourced.
But most times even after we might have gotten our capital for a business, it becomes another problem to proceed with our plans because of uncertainty about the business or other reasons.
This is why we decided to put up this article, hoping that it would be a great guide to one that has the capital already but finding it difficult to know the right steps to start a successful business.
Let’s believe you have sourced your capital already, then this particular step should be the first to put into consideration.
Having used all the necessary strategies (including savings, loans, grants, etc) to raise the possible capital for a business, the first thing you should ask yourself is “how much capital do I have at hand?”
I think this will determine the kind of business you will start thinking about. For instance, one that was able to raise a capital of N100,000 can never start thinking of starting a Super Market, I think that’s crazy. He should rather think of possible businesses that he can possibly start with a capital of N100,000.
So, what I’m saying here is that, after weighing your pocket to know how much capital available for you, then you should start considering those businesses that your capital can actually afford.
But how would you do this?
Even with a common sense, one can easily analyze the the kind of business a particular amount of capital would be able to start. But even if you don’t have such idea, then this is what you should do: 👉Make a list of the possible businesses you like, which you think your capital may likely afford. 👉Make researches about those businesses. You can browse about those businesses online, or better ask questions. Ask those that are already into the business, the good ones will definitely guide you.
I could remember one boy that sourced for a little capital during the pandemic lockdown, the capital he had in his hand was already suggesting to him, the type of businesses he should put in his mind. That was why he started thinking of starting up cooking gass business, in regards to the capital in his hand. He started started making researches about the business; which he later called me to help him to confirm how much it takes to start up cooking gass business. It was after he was done making researches about all the possible businesses he listed in regard to his capital, that he got to know the one he can run.
Study The Selected Businesses
Now that you have known the capital in your hand, and the possible businesses it can afford; the next important thing you should do is to compare these businesses to know the one that can survive in your hand, in regard to many factors that will be discussed subsequently. Check how viable those businesses have being in the hands of people that have being into it; are they successful? Is there anyone succeeding in that business?
Analyze The Environment For The Business
This is another important factor you should never undermine, as environment contributes a lot to the fate of your business. Before you make your final choice of the business among your list, use your intelligence to study how viable that business would be if situated in that environment you want.
Let’s assume you heard that POS business is very lucrative, and unfortunately you are staying in an environment where there are a lot of banks and ATM spots; in this case, it would really be deceitful if you still think that the POS business would succeed in your hand. This is because there are better alternatives which are the banks and ATM, which people would always chose over your POS.
So, in this case, it’s either you think of going to another environment that doesn’t have any bank and ATM, or you think of another possible business that can fit better in your environment if you must stay there.
Now that you have made the choice of the business and the environment that it would fit in, the next thing in your mind would be to put up what you have been planning. But while you forge ahead, it is very important you have a mentor who is already doing that business.
The mentor must not be the one that has his own business in the same environment with yours, it may even be better if your mentor has his business in a different environment from yours. This is because, if you are in the same environment with your mentor, he may start thinking that you may out compete him in that environment; and this may always discourage him from offering help you. Though not everybody that has this kind of mindset.
It is not always good to think that the knowledge you have is enough for all you need; you may not really know how helpful your mentor would be towards the success of your business, especially through guidance and advice, because he had being into the field before you. It’s either you get the mentor before setting up the business, or you set up your business running, before getting your mentor.
Also, I won’t forget this; some experts are of the opinion that you should not start your business in a very large scale. While some said it’s good to start in a very large scale.
Let me give this example to clarify you better: let’s assume you have rented or built your shop and you want to start a wine business.
The question is, is it better to stock the new shop with many cartons of wines or just to get few cartons, but many brands? Standing on the example above, I would say that it’s better getting few cartons of wines for many brands, than stocking the shop with many cartons. This is because, you are still new in the business, and you may not actually know the nature of the patronage you will have in the business. It’s better you start buying more cartons when you start having enough customers, than buying the ones that would later expire in your hand.
Create Awareness To People Living Within The Environment
I won’t forget what one girl said one day; she said why she loves buying her cooking gass from her favourite gass station, is that the station filled gass free for customers, the first day the station was opened. So, that was the strategy the gass station used to create awareness to people living within the environment. You must not share things free for your potential customers on the first day, as you may actually have your own strategy. Just think about the best strategy that would work best for you towards creating awareness to your potential customers on that first day of opening your business.
Raising a capital for a business always appear to be the most difficult step in starting up a business, but it may actually be funny that even when the capital has finally come; it still becomes more difficult to set up the business.
But since you have read this article up to this point, it simply means that you have all required to set up your business as long as your capital is in your hand.
Lastly, after setting up your business successfully; one of the key things you need to keep the business afloat is good customer relationship. You should never forget that, though we may be talking about that in our subsequent posts.