Setting up a successful business in Nigeria can be very tricky but with the right knowledge you should be able to set up a successful business.
Here are a few short steps to ensure the success of your new business Idea.
1. Validate Your Idea
A lot of people fail to do this an end up with a product that nobody wants. You must be able to answer the question: Would people pay me for this product? You can follow the below steps to answer this questions
- Design a questionnaire and distribute online to your potential customers to get their feedback on what their pain points are and if they are willing to pay to get it solved
- Ask customers of your competitors for feedback on whether they are comfortable with their current provider
- Share your business Idea with as many people as possible to receive feedback on whether it is viable. Don’t be afraid of someone stealing your idea. They might want to copy you but they are not you, so they can’t deliver the product like you
2. Create a business Plan
Most of us are very excited when we get a new idea and don’t take the time to create a business plan but jump into business. Don’t make that mistake.
Take the time to create a simple business plan to highlight how you are going to make the business work
3. Create a Budget
You would need to define how much you need to start your business, what your expenses are and also when you expect you expect your business to start making money. Draft out a plan.
4. Seek Investment
Pull together your resources! Decide on how you will get funding to start. You might need to start approaching friends and family members for investments. If you have savings that you can spare, this could serve as a startup fund.
5. Register Your Business
It’s time to go official. Register your business name with CAC by applying online or hiring a lawyer to handle your registration. This would open several doors to bigger customers who might want to deal with only registered businesses.
6. Get your Tax Identification Number and Open a Bank Account
Once you register your business under CAC, a TIN number is auto-generated for your business. It comes with your CAC certificate or you can search for your TIN number using the FIRS TIN Verification portal. The TIN would be used to open your corporate bank account.
This would ensure that your business funds are kept separate from your personal funds. Also most large companies and customers don’t deal with business that use personal bank accounts for transactions.
7. Set up your accounts
Step up your accounting records and start keeping track of all your income and expenditure. This is essential and should not be overlooked!
You need to be able to know if you are profitable, if your business is making the right moves, if you are getting cheated etc. All of these can be sorted using your accounting records.
Read our article on the best free accounting software for SMEs in Nigeria
If you have any questions about any of the steps, drop a comment below.
Need a great accounting software to set up your accounts Try Zoho Books today! Kuditree also provides accounting and installation and training services, if you need extra help.
