January 24, 2022 All Things Fintech in Africa

How to start a Startup in Nigeria

How to Start a startup in Nigeria

Have you ever thought about building a Startup in Nigeria?  Then you probably need the strategies I will share with you in this informative article.

Building a business from the inception of the idea itself demands a lot more than wishful thinking. It needs an elaborate plan that should transform that vision into a tremendous and successful structure. If you want to build a successful startup in Nigeria, you must pay heed to each step in this guide. Without a perfect step by step plan in place, it just as though you are flushing money down the drain. And so here are the major steps you need to kickstart your startup in Nigeria.

Step 1 – Evaluate yourself

Many business owners skip this step only to encounter many problems later on when their personal skills are called to question. It is important that your business reflects not only the needs of society but your passions. Maybe you are better off with a 9 to 5 job rather than being your own boss. Or maybe you will do well in a business that simply requires your money while someone else does the hard stuff. You can never know the truth until you have assessed your strengths and weaknesses. You can begin this assessment by asking yourself these questions:

  • What is my purpose in life?
  • What are my strengths
  • What am I passionate about?
  • Which skills do I have? Which skills can I gain within the next week or month?
  • Can I afford to spend my time on this knowing that many businesses fail?

Step 2 – Create the idea

Have you ever given a thought to what makes a killer business idea? Well, you really have to. In a country like Nigeria, there are many popular business models. But you will agree with me that a whole bunch of it is seriously saturated and you might never be able to bring in something to it. So, what do you do? Nigeria probably has a lot of problems in different sectors, so there’s something out there for you. You may also be faced with the fact that funding might be a problem. But it rarely ever is, if you can do some odd jobs, save 80% of your salary and leave like a dog for a year. One more little trick, if your business idea is not exactly new, you should brainstorm a cheaper and faster way to get your hands in it.

Step 3 – Do a market analysis

Whether your business idea looks new, there’s always a similar one in the works. Check out the kind of people that will probably patronize your business. This includes their age, profession, buyer persona and possible ways to market it to them. Not every business idea should be marketed on the internet at the initial stage. And not every business demands a house to house visit. Always remember, there’s no such thing as a business without competition. You may have one even if it’s not a direct competitor. Take your surveys beyond the internet, go out to the market. See how people would react to your solutions. Ask randomly. Who knows you might meet like minds like you who will be your partners? You may also receive insights that would further refine your business concept.

Step 4 – Seek counsel

You should be very careful with this step. Some people with unlimited resources and connections can steal your idea. So, check with your friends and mentors. You don’t have to give them the full idea, just a hint of the real deal. Whatever service or product, you might likely offer, you can build a prototype. If you are looking at opening a service-oriented business, try selling these services for free to see the reactions to your business. If you have a product in mind, you can also develop it and share with your friends. By doing this, you will receive constructive feedback that could move your business to the frontiers.

Step 4 – Draw your business plan

The next step is to place all the information you have gotten into a clear, structured business plan. Some Nigerians have been known to skip this step and still build something good. But, again with a business plan, their business would have taken a lot less time to hit success. A business plan does not only help you start without hitches. It can also help your business handle success admirably.  Yes, I have seen highly successful companies get acquired by others or hit bankruptcy because their owners were not looking far into the future. You shouldn’t look at a business plan as something you need for a loan application. With a business plan, you can kickstart your business in only a month with all the operational and seed capital you need for the next 1 year.

Step 5 – Make it official

Under the laws of Nigeria, anyone can pick your business name, sell a carbon copy of your products and get away with it, if you did not register your business. It’s a really scary thought and you shouldn’t be caught in such a situation. It’s even amazing to know that registering your business won’t really cost a lot of money. Depending on the type of startup you have in mind, your business can be registered for as little as ten thousand nairas (10,000). Aside from registering your business, you may need some licenses or permits if your business is health related. You will also have to register with the Tax authorities. Since nothing ruins a business like one whose corporate reputation is called to question, you can’t afford to skip this step.

Step 6 – Get finance for your startup

This is equally an important step. There are many ways to get financing for this step. You can get funds from friends and family, seek a small business grant, get an Angel Investor, use equity financing or get a loan. But you should always check the pros and cons of each kind of financing. In all things, you should also evaluate your personal finances. If you have money problems, you should consider getting a budget in place as well as a job on the side.

Step 7 – Develop your product or service

Next, you need to put your product together. For instance, if you will be manufacturing products, then you have to scout the market. One more tip to add, there are new ways to sell goods directly from the manufacturing outfit without doing the actual production yourself. This is new business models you can seek out. However, you should always check out the alternatives, pros, and cons of the business model you choose. On the flip side, if your business is service-oriented, then it is time to build an excellent portfolio of past jobs. This is not a money-making segment because your services will be offered for free or next to nothing. But, make sure your clients know its only a sample stuff so they don’t come back expecting the same treatment later.

Step 8 – What location appeals to you?

The location today is nothing like the past. Many successful startups in Nigeria have well established “kitchen offices”. So, you may or may not need a brick and mortar shop. Make sure to check out the pros and cons of all kinds of the location before making your choice. In addition, whatever location appeals to you the most, you should understand that your potential customer’s buyer person would determine the location that is suitable.

Step 9 – Marketing and Sales

This step is a bit of a combination of marketing, sales, and teamwork. Yes, you will need a team. This does not mean you need employees. For instance, some members of your team can be a social media influencer, whose followers need your products. You may also need an employee, partner or freelancer, it’s simply a matter of clearly stating out your goals and objectives. With the right team, you can begin reaching the right market of people for your business in no time and get good returns in no time.

Step 10 – Growing your business

There are a million ways to grow your startup. Whether you are building an innovative product, acquiring another business or kicking into a trending platform, you need well-crafted goals. You need to set goals, objectives and from time to time come back and reevaluate your progress. For some business, it is wise to evaluate every week, others do not need evaluation for up to six months. By evaluating and changing the structure of your business plan, you can keep an eye on your competition, get a hold of new opportunities and improve your marketing campaigns.

Kickstart your startup in Nigeria by using these steps and strategies. However, you must realize that your work will never be done. Yes, it’s important you don’t get high on your own success. You need to keep researching the market, seek new team players, improve your product and before you know it, you will hit tremendous success.

Also Read; Five Online Payment Platforms and How To Use Them

Related Posts

Quick Bus Secures Seed Funding to foster their international expansion Q

February 3, 2020

February 3, 2020

Kenyan startup QuickBus,  a platform that allows its users to  book, review  and pay for bus tickets, has secured a ...

Decode Fintech: PayStack Launch a Weekly Newsletter For Leaders in African Fintech

May 9, 2019

May 9, 2019

Decode Fintech is a newletter for leaders in African Fintech launched by Paystack, one of the leading payment platform in...

Car45’s Parent Company Raises $400 million from OLX Group

November 28, 2019

November 28, 2019

Frontier Car Group, the parent firm of Car45 has raised $400 million from OLX Group. The company is looking to...

Health Tech startup Lifebank Partners NIMR To Launch COVID-19 Drive Through Test Centre in Nigeria

April 1, 2020

April 1, 2020 5

Health Tech startup Lifebank Partners NIMR To Launch COVID-19 Drive Through Test Centre in Nigeria Healthcare technology and logistics company,...

SEC to Implement the FinTech Roadmap in the Nigerian Capital Market

September 2, 2019

September 2, 2019 1

  The Securities Exchange Commission (SEC) is set to implement a Fintech roadmap to blend into the Nigeria capital market....

Eco Bank to Launch a Pan-African Sandbox

February 5, 2020

February 5, 2020

Ecobank Group has announced a pilot launch of its Pan-African Banking Sandbox that will allow partners and fintechs across 33...

Airtel Africa Goes into a Partnership with MasterCard

October 28, 2019

October 28, 2019

  A few weeks ago, Airtel announced its partnership with MasterCard. Giving over 100 million Airtel Africa mobile phone users...

European Investment Banks injects 50 million into Bolt

January 30, 2020

January 30, 2020

  The European Investment Bank (EIB) has given   a sum of 50 million Euros to Bolt, a ride hailing service...

HPE GreenLake – Selectium Program: The Cloud That Comes To You

January 11, 2022

January 11, 2022

HPE GreenLake – Selectium Program for analytics enable customers to accelerate modernization initiatives, for all data, from edge to cloud....

10 Tech Startups in Nigeria and What they do

April 19, 2019

April 19, 2019

Table Of Contents10 Tech Startups in Nigeria and What they do10 Tech Startups in Nigeria and What they do Nigeria’s...

Master Card Extends its Engage Programmme to Target Africa’s FinTech Community

May 2, 2019

May 2, 2019

Master Card has extended its engage programme to Sub-saharan Africa, with events lined up to be held in Nigeria and...

5 Facts About Keystone Bank Nigeria You Never Knew Before

May 1, 2019

May 1, 2019 1

5 Facts About Keystone Bank Nigeria You Never Knew Before On Friday 5 August 2011, something interesting happened – the...

Top Leadership Skills Every Entrepreneur Need To Posses

May 29, 2019

May 29, 2019 2

Successful Leaders-you might have heard about them, read about them, and undoubtedly want to be like them. So what set...

Bolt Launches a Tricycle-hailing service in Uyo

January 27, 2020

January 27, 2020

Bolt, formerly known as a Taxify,  has launched a tricycle-hailing service in Nigeria’s south-southern city of Uyo.   Bolt started its...

The Central Bank Of Egypt to Launch an Electronic KYC

February 5, 2020

February 5, 2020

The Central Bank of Egypt is set to launch a new electronic know-your-customer (KYC) , which would  to aid financial...


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.