In a previous blog, part 1 of this “how to start a business in Nigeria” series, we explored 3 major deal breakers. In this part two, we will explore just 2 points beneath which is extremely important when you want to start a business in this country. I have seen way too many people rush out on their venture without actually having this figured out. Well, if you have decided to become a boss of your own, wait a minute o, here are 2 more steps you must take.
Be Ready For The Market to Start A Business In Nigeria
Ok, many of you believe you already have a product. Sorry to let you know that often what you feel is a product to sell might just not interest anyone. Maybe one person or that your best friend or church member will be so nice to buy now. But in the real market out there, nobody wants to buy. So when you start off by selling 4 pieces and you are excited thinking that there is a market for that product/Service, because those loyal friends bought, you invest more money and then end up sitting on top of lots of products wasting away. This happens because most business people have not taken the pain to get their product ready for the market. Are you offering something someone actually wants to buy?
Is there demand? Is it solving a real problem?
What version sells well? Which customer will buy? What are they ready to pay for? Have you mastered all you need to stock that product? If you produce, do you have a steady supply of raw materials? Is the quality better than the one in the market? And lastly, the golden question – What makes that your product/service better than what is already in the market? So these are things you must figure out now. I mean answer all these questions sincerely before you start a business in Nigeria.
Incorporate/Register your Business
In Nigeria, you don’t necessarily need a lawyer to register your business name, but you sure need ‘an article of association’ if you are registering a company. However to determine which you need, you must know that we have
- Sole proprietorship: Only you in business
- Partnership: it means you’d be having more than one partner in the business
- Corporation: If you want to separate your personal liability from that of your company.
Ok this is where legal advice is often good. But as a small business owner, you might just start with a business name like setup.
STEPS TO REGISTER YOUR BUSINESS IN NIGERIA
- You must decide on which ownership structure or what I call legal structure/model you want for your business
- Come up with at least four names for your business and visit the Corporate Affairs Commission website to confirm if it had not been taken by another business owner. Click here to check now. This would cost you an average of N623
- Pay all the required fees specified by the commission. For Business name/Proprietorship, you should be paying between N12000-N15000. While corporations and others would cost you an average of N30,000. You should get your certificate within 14days
LIST OF DOCUMENTS FOR REGISTRATION WHEN YOU WANT TO START A BUSINESS IN NIGERIA
- Form CAC1.1
- Memorandum and Article of Association
- Proficiency Certificate
- Form of Identification for Director/Secretary
- Evidence of Payment to CAC
- Stamp duty Certificate
Please note that without registering your business, you’d always find it difficult to access loans and grants either from public or private bodies. No investor or borrower would give you funds without you providing registration documents for verification of authenticity. If you have done this and your issues are with capital, find out How to succeed without social capital a.k.a Connections.
Here is the full list from our previous blog – Step by step to start a business in Nigeria
- Have A Rich Business Idea – 3 Business Idea to Start With 100k or Less
- Develop a Working Business Plan – Have problems implementing your plenty ideas? Read – become successful.
- Choose a Strategic Location
- Have Your Product/Service Ready For The Market
- Incorporate/Register your Business
- Enrol your Business under Federal Inland Revenue Service
- Open a Business Bank Account
- Obtain Necessary Permits/Licenses
- Promote your Business both offline and Online
- Offer Quality Product/Service Proficient
- Control Your Process
Like I said, let’s take this small small thing. Inour last part of this series, we will explore the remaining points briefly. Make sure to subscribe to our newsletter to know when we post the other parts. If you have questions, use our chat box beneath. Remember to subscribe to our newsletter for updates. Follow us on social media.