In this guide you’ll learn everything you need to be a entrepreneur in Nigeria, build a business that solve peoples problem, and reach your career goal.
You may have heard the word, entrepreneurship. And have heard of famous names like Oprah winfrey, bill gates, Walt Disney, jk Rowling, and the legendary Steve jobs. All this international figures that have shape history, made the world more easier and fun. And also amazed great wealth for there family and generations.
And maybe thought has been running on your mind, how can I create a business in Nigeria. That can solve someone’s problem and at same time rewards me financially. If that have been your heart desire. You are not alone, in this guide I’ll work you through the process. and bring down some resourceful information that’ll penetrate and answer all your mind bowing questions concerning entrepreneurship. And how you can turn an idea into a business that solve real problem.
Table of Contents
- What is entrepreneurship?
- Do you have an entrepreneur spirit.
- How to start a business in Nigeria.
- 2. Choose and register your business name.
- 3. Secure licenses, permits, and more.
- 4. Build your mission and vision statements:
- 5. Write your marketing plan.
- Starting your business even without any founding.
- What is “bootstrapping”?
What is entrepreneurship?
Entrepreneurship is the process of starting or improving upon a business with the ultimate goal of making a profit. and also in is article at Entrepreneurs.ng. redahlia a Nigerian serial entrepreneur and founder of the entrepreneur.ng magazine, define entrepreneurship has the process of running a business and navigating through its attendant with the aim of making profits.
Though, entrepreneurship often involves great risk and uncertainty, buts it’s also an opportunity to overcome those challenges and manages multiple aspects of a business operation. From marketing to accounting to logistics and beyond, entrepreneurs overseas the many facets of running a business.
We all know of the metric that 90 percent of startups fail, despite this statistics, entrepreneurship remains an exciting career path. Like many high risks activities, it often draws people who takes risks as an enticing challenge rather than a disclaimer.
Do you have an entrepreneur spirit.
Heck’s, no one has to tell you that must of this entrepreneurs has a spirit that drives then beyond there comfort and critic To invent, innovate and do more to solve those problems. Entrepreneurship can be learn but mere head knowledge can’t do more. As the challenge you’ll face can’t be overstated. It’s worth note that you don’t have to be a successful business owner to have a strong entrepreneurial spirit. Heck, you don’t even need to have started a business and also don’t need to be a extrovert or reckless risk-taker.
So what does it mean to have an entrepreneur spirit?
Let’s began to tour it apart.
1. You believe in a better future.
As the media mogul Oprah winfrey said, “I don’t think of myself as a poor deprived gheto girl who made good. I think of myself as somebody who from an early age, know I was responsible for myself, and I had to make good.”
Are you tired of the present? And feels like you can always make more money, find new opportunities, and progress somehow? Are you optimistic, even when others try to convince you that something is “hopeless,” or will never work?
Entrepreneurs feel like anything can be changed, improved or transformed given enough time. They look to a better future-and then try to understand what step can be taken today to make that future a reality.
Endless hope and a belief in abundance is a sure sign of entrepreneurial spirit.
2. You love to learn:
You are obsessed with self learning. Entrepreneurs believes giving time they can learn and Master any skill. They believe and think you can grow and change into whoever you want to be? Whether it’s content marketing, building a personal brand overcoming addiction and beating procrastination.
They have confidence in their ability to learn and master all skill on their own.
3. Not been afraid of failure:
Entrepreneurs goes by one strong mantra “failing forward. If you live by saying, ” failure is just a feedback,” you likely have a very strong entrepreneur spirit.
When things doesn’t work out, entrepreneurs know that it doesn’t mean they personally, are a failure all that’s happened is they’ve gathered some invaluable feedback that will help them increase their chances of success with the next attempt.
4. They question the status quo.
As Mark Twain, said “when ever you find yourself on the side of the majority, it is time to pause and reflect.
Are you constantly questioning things. “Why do we do things this way?” Wouldn’t it be more efficient if we did things differently? What’s the point of doing this?
Questioning the status quo may irritate parents, teachers, and bosses, but it’s a sure fire sign of entrepreneurial spirit.
Why? The act of questioning comes from a place of curiosity.
Entrepreneurs are always trying to understand the world and in doing so, they often stumble across innovative solutions to everyday problems. That many people would never think of.
5. You love a challenge:
Taking risks, testing ideas, stepping out of your comfort zone, growing, learning-these are all challenging things to do. Consequently, people with entrepreneurial spirit tend to embrace and enjoy challenges.
you embrace big goals and challenges with excitement? Are you always looking for a way to make “impossible” things work? These are good signs of entrepreneurial spirit.
For these reasons, people with an entrepreneurial spirit often take on big goals- in their personal and professional lives. As they see challenges like playgrounds for entrepreneurs.
Challenges provoke curiosity, excitement, and thoughts like, “I wonder how this play out!”
6. You’re driven:
Take it from Steve jobs, the cofounder of Apple, who shared the entrepreneurial spirit quote: “I’m convinced that about half of what separates the successful entrepreneur from non-successful ones is pure perseverance.
As you are driven to achieve your goals? Do you work hard to become more productive and focused? If you’re nodding your head “yes,” you almost certainly have a strong entrepreneurial spirit. Perhaps the most important characteristics of entrepreneurial spirit is drive. Entrepreneurs have an intrinsic motivation that compels then to explore their interests and their achieve goals.
Though this are not the only entrepreneur spirit but I bring out this first and foremost starting and succeeding at a business haves more to do with our attitude and approach to life than any thing else.
And ultimately, everyone has an entrepreneurial spirit to some degree. Reid Hoffman, the cofounder if LinkedIn, explains: “all humans are entrepreneurs not because they should start companies but because the will to create is encoded in human DNA: and entrepreneur spirit can be developed.
How to start a business in Nigeria.
Entrepreneurship is the process of starting a new business. Entrepreneurs identify a market gap and develops a product or service to address that need. Being your own boss, calling all the shots, hustling to hit your goals. For many people entrepreneurship is the ultimate career goal.
Here’s the good news: starting a company can be one of the most rewarding, exhilarating, and interesting opportunities you’ll ever get. If you’re aware of the risks and you’re still dead set on being an entrepreneur, use the strategies and advise below, in this guide.
- Determine the legal structure of your business.
- Choose and register your business name.
- Secure licenses, permits, and more.
- Your mission and vision statements.
- Write your marketing plan.
1. Determine the legal structure of your business:
From a legal perspective, what kind if business will yours be? This may change as you grow, and state laws vary. Let’s take a look at four major types of Legal structures you might choose to implement when starting your business.
a. Sole proprietorship:
Sole proprietorship is the most run business structure in Nigeria. As a it required one individual to own and run the business. As the owner is solely responsible for the company’s liabilities and this places his assets at risk of seizure to satisfy a debt or legal claim filed against him.
With Sole proprietorship raising financing is more difficult as a result, one might need to depend on one’s savings, grants, home equity, and family and friends.
The sole proprietorship is cheap to register (sole proprietorships may choose to operate under a registered business name which is registered with the corporate affairs commission (cac)
As. sole proprietorship is a business structure own and managed by a single individual. So partnership is own and manage by two or more individuals.
Business partnership in Nigeria are regulated by the partnership act of 1890 and the partnership law 1958 (western region). With business partnership each owner contributes to all aspects of the business as well as shares in it’s profits and losses. Maine agary in is article at Punchng throws more light on it.
The biggest benefits of corporation is the protection against liability-as it’s a legal entity separate from it’s owners and has most of the rights and responsibilities on individual possesses like, filing for contract, loan money can sue and be sued. Hire employees, own assets and pay taxes. A coorperation get it’s owner safe if the company runs into any issue has it’s personal asset won’t be involved.
2. Choose and register your business name.
Your business must have it’s own identity and one way your business can be identified is with a business name. And the Corporate affair commission in Nigeria has simplify the process. By introducing their website with certain search tools and online portals which minimizes wastes of time of going to the CAC office and carrying out procedures there.
3. Secure licenses, permits, and more.
Make sure you have all the right permits and licenses to ensure your business is legal. But keep in mind that has business activities differs in several sectors so are the regulations if business activities.
4. Build your mission and vision statements:
If you went out of business tomorrow, what would happen? Who would care? What problem would there no longer be a solution for? How big of an impart would it have on other businesses? Without a clear mission statement, it’s hard to consider this outcomes.
What does your business do? What do you stand for? What problem do you solve? How do you plan to make the world better? These are questions your vision statement should answers.
Mission Statement vs. Vision statement.
For modern businesses, strong brands requires you to nail your purpose and promise down to the specific emotions you want your customers and employees to feel when they think of you. And this is where mission and vision statement. Explains the purpose of your organization and how your business serves customers.
A vision statement:
Describes where your company aspires to be upon, achieving its mission. It describes where your company wants the community, of the world to be.
Four steps creating a mission statement.
- What do you do? At [name your company] we create [specific your company’s core technology, software, or hardware services and/or products]
- How do you do what you do? We work with [target audience] to help them [list 2-3 concise value propositions that clearly explain how your company’s product or service offers a solution for your target audiences most common pain points].
- What do you do for your customers? We [insert clear actionable words and/or phrases like: help, assist aid, work with, provides etc] our customers by creating [technology, software, or hardware services and or products] that [insert value proposition].
- Edit and refine: example: at Abc talk we create task management software to help tech professionals by providing seamless workflows, easy interactive team, collaborateion, and total team transparency to everyone involved.
5. Write your marketing plan.
After you have got the name, license permit, and build your mission and vision statements. The Next step should be start, planning how to communicate your stories. that’s getting your customers know about you. And to do that you must first define your target audience and write smart goals.
1. Define your goals:
Can’t go somewhere unless you have a road map, how true is that statement. You can’t improve your ROI inless you know what yours goals are. After you have figured out and know your audience, you can begin to define your smart goals.
Example; your goal could be to increase your Instagram followers by 15% in three months. Depending on your overall marketing goals, this should be relevant And attainable.
That above is a smart goal, as it is specific, measurable, attainable, relevant, and time-bound. This mean all your goals should be specific and include a time frame for which you want to complete it.
2. Define your target audience.
As not everybody will buy from you. It’s important, to have an understanding of the market and your company’s situation. Make sure you know who your target audience is (e.i, your potential customers.)
Starting your business even without any founding.
Many has called off their desire for impart and freedom, and conclude for themselves that entrepreneurship is not for them. “I don’t have a rich uncle to fund to fund the startup,” my parent are not very rich to fund,” many Nigerian died with their dream fortunes in them, because of excuses, of not enough money to start with.
Is it true that lack of money can stop you from starting your business? Actually now, yes an aware of the economic condition of the country. But you can called it a shot and start any business you dream in Nigeria no matter how poor you may think you are.
The definition of entrepreneurship that Harvard business school professor bill sahlman made it prolific, he define entrepreneurship as the “relentless pursuit of opportunity without regard to resources” that’s form the center of the entrepreneurial mindset. Real entrepreneurs that has make history, don’t worry about the resources they lack, but about the resourcefulness re-quired to get the big idea done.
And what is this resourcefulness? It’s a skill that must be developed.
What is “bootstrapping”?
You might have held of the famous phrase “to pull oneself up by ones own bootstrap,” it’s the process of using one’s own finances grit, and resourcefulness to build and grow a new company, this is to say that instead of investment from ventures capital firm or angel investors. A entrepreneur will often rely on their personal finances to get started.
And relies entirely on customers, sales and profit to provide the necessary money that the business will need for growth.
Sound entirely like a “trick” right? No, that’s how some of influential startups will are celebrating today starts, and it doesn’t matter the country or location. What works for American entrepreneurs will also work for Nigerian entrepreneurs if put in like resourcefulness.
How Nigerian entrepreneurs can bootstrap a idea.
If you are looking to start a company in Nigeria with very little capital here are tips for you.
1. Source some startup capital.
Perhaps the most challenging part of bootstrapping a business is getting it off the ground.
But though the startups capital we depends on the type of business you want to start. Thank God with the help of the world wide web, there are a lot of opportunities out there online.
To start a business now, you don’t need all the stress of securing a office space and more, the Internet give you the resource to start and run a profitable business with just a minnor startup capital.
Online opportunities, like blogging, drop shipping, software development help you start a business with very low capital.
So, if you are a Nigerian entrepreneur looking to bootstrap a startup idea you should consider going online.
2.Stick to what you know and love:
When bootstrapping, it’s likely you’ll be the SEO expert, and graphics designer, and also content creator. Has you won’t have the resources to delegate some of those tasks to experts, you will likely have to become everything to scale the startup growth.
And all this fields will require some knowledge in those areas to scale. That’s why you have to go for what you love. As in most circumstances it’ll take some time to start seeing return on your efforts. If you are not passionate about it you’ll likely burnout.
3. Work with MVP mindset:
Don’t wait until you develop the perfect thing. As what can be perfect in your eyes won’t be what customers need and want to pay for. Get your idea off the ground and your product/service out there when it’s good enough or when you have a minimum viable product. Start with the minimum or core features your product should have to send it out so you can begin having cash flow as early as possible.
Don’t be in a haste developing more features. with the minimum core feature you are ready to launch. When sales and customer begin to respond. And you start generating revenue. You are then in a good position to respond.
4. Text, fail, restrategize.
Most of the time what you’ll settled on last will not be the idea you start with, I’ve seen many and many case like that.
There is a common tendency among us entrepreneurs to get overly attached to our business idea. Your business idea or business plan should not be set in stone. There is a problem you want to solve (profitably) and there are many ways to solve that problem so don’t get so stuck to your idea that you are unable to strategize even when it has become obvious that your current idea is not sustainable.
5. Choose a business model and optimized for cash flow.
Bootstrapping a business idea means your business will relies on cash flow from sales to find growth. That’s as the business grow and made profit. Some percentage of your profit has to go back into the business.
This should make you choose a business type that enhance recurring sales like subscription. For example if you start a accounting app. Your Customers will need to subscribe monthly or annually after there plan expires they still need to subscribe again.