How to Start a Business in Nigeria: Step By Step Guide

These days you can find very useful information about entrepreneurship and starting a business. But often time you will need to separate the wheat from the chaff in order to get the right information.

Usually the process of starting a business begins with an idea. Once you think the idea is good enough to build a profitable business with then the next step is to develop your business idea in to a viable business plan. When you’re serious about taking your origination business to the next level, having a partner that treats your business the way that you would is the only thing that matters. We have redefined what a mortgage branching platform can be by giving you the lowest pricing on the market AND (not instead of) the best concierge service in the industry. Built by producers for producers, the owners of MortgageRight understand that everyone wins by protecting and growing what you’ve worked so hard to build. For more details about mortgage right, Go through BranchRight.com site.

A business plan is one of the most important ingredients when preparing the recipe for a successful business. Without a well written business plan, your investment in your business may just be akin to flushing money down the drain. When you’re serious about taking your origination business to the next level, having a partner that treats your business the way that you would is the only thing that matters. We have redefined what a mortgage branching platform can be by giving you the lowest pricing on the market AND (not instead of) the best concierge service in the industry. Built by producers for producers, the owners of MortgageRight understand that everyone wins by protecting and growing what you’ve worked so hard to build. 

In this post, we’ve highlighted a series of easy-to-follow steps that you need to successfully start your business and execute that amazing business idea.

Step 1: Develop your business plan

Writing a business plan can be done by someone else on your behalf but it will be best for you to write it yourself.

The major aspects of an ideal business plan include:

  • The Executive Summary
  • Business Description
  • Market demand
  • Competitive analysis
  • Design and Development
  • Operation and Management
  • Resources
  • Financial forecast or projections

Executive Summary

The highlight of your business plan is found within the executive summary. Basically, the major points of the business are usually outlined in just this single page of the executive summary.

Business Description

In this chapter, you’ll discuss the industry you’re starting your business in, while taking a look at the present and future of the business in the industry.

Market Demand

This is based on the analysis of your market. After the evaluation of your market, you can then proceed to identify your target market. The identity of your target market is very important because this is what influences your market strategies.

You can easily formulate the right techniques on how to impart value to your target market as a means of generating sales and boosting your company’s profitablity.

Competitive analysis

Analysing your competitors’ strengths and weakness will help you identify the potential opportunitie and threats in your prospective business. In terms of the weakness, you can leverage on them to create your unique selling point.

Design and Development

This applies particularly to businesses that are into product development. This phase doesn’t necessarily apply to service based company.

In the design and development phase, it is essential you create a budget to cater for these aspects.

Operation and Management Plan

This is another important aspect of the business that many first time entrepreneur often neglect. Once you business starts running, you’ll need to have an operation and management schedule that should be strictly followed. This should be clearly explained in your business plan so that you can have an idea of your inflow and outflow.

Most times, there are a lot of expenses at the initial stage of starting a business and you’ll need to take this into consideration when planning your business.

Resources

You can’t start a business without resources and you ill need to ascertain your resources. The best way to do that is to write down what you have. Also, you may have received support from your family and friends. In this case, you should ensure that these sources are clearly noted in your plan.

Financial forecast

Although the written forecast for most businesses is often different from reality, it is still necessary that you write it down in your business plan.

Particularly, if you’re looking for funding, one of the things potential investors often look at is the forecast. It puts things in perspective and gives them an idea even if vague of what to expect from your business.

Step 2: Register your business

The next hurdle to scale after mapping out your business plan is to get your business registered with the Nigerian Corporate Affairs Commission commonly called the CAC.

The CAC is responsible for registering all business entities in the country.

But you’ll need to answer a couple of questions prior to getting your business registered.

First, what kind of business are you starting?

Basically, there are 3 types:

  • Sole proprietorship
  • Private Limited Liability Company
  • Public Limited Liabilty Company.

The ownership structure of your business will influence the type of business you should start.

Secondly, what is your business name?

You’d need to take your business name to the commission to get it verified. Sometimes, the name you intend to use may already be used by someone. So, you’ll need to get this sorted first before you can take the next step.

There are several CAC offices spread across the 36 states of the country. You should choose the one closest to you. You can do your registration online as the process can be done online.

Once your business name is verified, you’ll be given a form to fill. Input the necessary details and pay the prescribed fee. Then, your application will be processed. After a few weeks, your business registration should have been concluded and you can move to the next step.

Step 3: Tax registration

The next step is get your company registered at the tax office. Tax related issues are under the Federal Inland Revenue Service (FIRS).

This is where you’ll send the value added taxes, company income taxes and withholding taxes. It is extremely important that your get registered at the tax office closest to you.

Once you’re done with the process. You’ll be given a tax identification number (TIN) which you can use for your tax processes.

Step 4: Obtain the necessary permits

Most businesses are supervised by associations as a result, one of the things you need to do is to get your business properly registered with the related body. For instance, the Pharmacist Council of Nigeria is responsible for overseeing pharmacy businesses in the country.

You can make enquiries on the stipulated fees and the things you need to do before you open your business to the general public.

Failure to carry out due process can put you in trouble and you can end being fined. Remember ignorance is no excuse in the court of law. Often times, there are fees to be paid and guidelines to be followed and you need to know these things before you can carry business in any of the sectors you choose to.

Once you’ve sorted out the process of getting your permits and other necessary steps then you can move on to the next step.

Step 5: Acquire office space

The process of renting or leasing your office space can be done simultaneous with steps 2, 3 and 4.

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Also, some businesses are extremely location dependent. This is why it is necessary that you must have carried out market research prior to acquiring your office space.

One example is the fast food business. This line of business will do extremely well in a commercial area than it will in a residential environment.

After acquiring office premise, the next step is to furnish it to your taste. Also, the products you will be selling will be brought in at this stage. And if it’s a service based business, the equipments needed to execute your daily activity should also be brought in.

Step 6: Create a website

Almost every business is online these days. Your business should have a web presence at least. This makes it easy for potential clients to easily locate your business.

But, this goes beyond just finding a random web designer and telling him to create a web site for your business. Already, the internet has a lot of crappy websites and you shouldn’t your website to the long list.

You should pay particular attention to the user interface of your site. Also, it is important that your search engine is particularly optimized to search engines like Google.

These features can not be carried out by just anybody with the tag of website designer. If you really want your business to be exceptional then you should employ the services of a professional web designer that knows his onions.

For instance when people search for keywords relating to your business, they should be able to find your company as one of the top on the list and this is what will make the process of getting clients easy. Getting a good designer might need you to pay a reasonable amount of money. Well, by all means please do, because it will certainly help your business on the long run.

Step 7: Implement your marketing strategies

“Build it and they will come”

I’m sure you’ve heard that before. Well, that never works because nobody will come if you don’t tell them to come This is where your marketing team plays a prominent role.

Depending on what kind of business you operate, you need to actively advertise your services to your potential clients.

You should find where your prospective customers hang out and seek ways to meet them to advertise your products.

If you run an educational or tutorial centre, go to schools in your neighbourhood and tell the students about your service.

If you run a poultry business, go to the market or visit the retail stores around you and offer your eggs to them.

There are many ways to execute your marketing strategy and this is where the success of your business lies.

Many businesses have failed because they couldn’t generate enough customers and one major cause of this is poor marketing efforts.

Step 8: Develop a brand

It is easy to fall into the trap of thinking your business is successful due to stream of customers you have and your revenue generation.

But the truth is creating a sustainable business goes beyond that. You need to create a unique value by branding your company appropriately.

For instance, if you run an eatery or restaurant, you can build your value around your unique customer service. With many restaurants lacking in this aspect, you can easily stand out among your peers. Interestingly, it doesn’t cost you much apart from taking out time to train your staffs in customer service.

Branding also includes create a logo to signify what your company stands for. Also, your staff should have a business card or ID card showing where they work. Branding agency helping you stand out among other companies in your niche.

As stated earlier, it’s easy to get stuck in the profit first mentality but a great business is all about value creation. And you can make the value you offer reverberate in your branding message.

Step 9: Promote your business

Once you’ve done all you need to do. You shouldn’t rest your oars. Promote your business and seek opportunities to showcase your business to your potential clients. Promotion of your business is something you should never tire of.

In a short while, you would see steady improvement in your business.

Wrapping up

Starting a business in Nigeria isn’t for the faint hearted. Although, we seem to have given you a step by step guide but it’s not really as smooth sailing as shown in this article. There are some frustrations along the way.

But the difference between the successful business person and the unsuccessful one is simply – persistence. Don’t give up in the face of adversity, keep at it. Seek advice when you’re stuck in a rut and again – don’t give up.

Now, it’s time to take the first step and execute that great business idea of yours -– Get Started!

[Below is the older version of the article. We purposely left it just in case you might still benefit from it in one way or the other.]

How to Start a Business in Nigeria: Step by Step Guide

Nigeria is blessed with vast resources and a very huge population. This makes it a great place to set up a business.

More and more expatriates are trooping into Nigeria to set up businesses, and that goes to show how favorable the business terrain in the country is.

However, achieving anything tangible from your Nigerian start-up requires a lot more than having the required capital. First, you would need a very solid business idea and then you would need to back it up with the proper research, planning and implementation.

To help you successfully launch your start-up in Nigeria; here are some of the steps you need to take:

1. Develop a business idea

First, you need to do a proper research to come up with a smart and unique business idea. I mentioned unique because one mistake most Nigerians make is that they ignore many of the vast business opportunities in Nigeria and instead decide to ‘copy’ other people’s ideas.

If selling GSM recharge cards looks like a very profitable business, before you know it, almost everyone is selling recharge cards. Nigeria is very large, and there are a lot of products and services that are still unavailable or could be better.

So, don’t copy other people’s ideas, instead, you should take time to brainstorm on the solutions you could proffer and the needs and yearnings you can help to satisfy.

2. Write a business plan

You cannot start a journey without having a destination in mind. Can you? Even Nomads usually have a destination in mind before they set out with their cows.

Your business plan is the blueprint of your business. It shows where you are going and guides you throughout the journey. Hence, it is important for you to take your time to write a business plan before moving to the next stage of starting your business.

Writing a business plan is quite easy, and there are even software packages that you can use to do it easily.

3. Register your business

The next step is to register your business with the Corporate Affairs Commission (CAC). There are three main types of business you can register in Nigeria:

  • Sole proprietorship.
  • Private Limited Liability Company.
  • Public Limited Liability Company.

To register your business in Nigeria, these are the steps you should take:

  • Decide on the ownership structure of your business.
  • Choose three preferred business names.
  • Visit the CAC office closest to you to find out if your preferred names are still available for registration or have already been taken by another company. Some business names may also be rejected if they are offensive or reserved.
  • Provide details of your new company such as your proposed business address, memorandum of association, articles of association, details of directors, share capital and allotment, and all other necessary information and forms required by the CAC.
  • Pay the necessary fees. For a sole proprietorship/business name as it is popularly called, you would need between N12,000 and N15,000 to register your business with the CAC, while other forms of ownership would require at least N30,000 for registration.
  • Upon verification and compliance, the certificate would be issued to you and then you are free to commence operation of your business.

4. Complete tax registration

The legal process of setting up your business isn’t complete until you have visited and registered with the Federal and State Inland Revenue services.

The Federal Inland Revenue Service (FIRS) is where you would send all the Value Added Taxes, Company Income Taxes and Withholding taxes, while the State Inland revenue would be in charge of collecting all PAYE taxes deducted on your employees as well as other necessary taxes and levies. You may also need to register with some local government agencies for payment of some taxes and levies.

5. Obtain necessary licenses and permits

This would depend on the nature of business you wish to operate. If you want to operate a transportation business for instance, you would need an inter-state transport permit.

There are a lot of licenses and permits specific to different businesses so it is important to find out which permits you need to apply for to run your kind of business.

6. Acquire office space

Next, you should seek out a suitable office space, which would be accessible to your clients and expose you to the type of clients you need to patronize your business.

7. Set up a website

More than 40% of Nigerians visit the internet daily. Therefore, you should look for a good web developer to help you create a user-friendly website that will give your business solid internet exposure.

8. Develop a marketing plan

Just like your business plan is important, your marketing plan is also extremely important. Many Nigerians business owners start a business without a marketing plan or an idea of how they intend to promote and sell their products. This is a mistake you should avoid. Have a clear plan on how you intend to penetrate the market and outsmart your competitors.

9. Work on branding

Lastly, you should work hard at creating a unique identity for your brand. Design your logo, business cards, company brochure and all necessary materials to help you promote your business.

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Ike Turner’s Net Worth, Biography, Career, Awards, Fact and Life Story

Ike Turner Net Worth: Ike Turner was an American musician, songwriter, and producer who had a net worth of $500,000 at the time of his death. Turner is considered to be a pioneer of fifties rock and roll, but his roots are found in the blues, which he returned to in the late days of his career. Ike is most well-known for his work with his then-wife Tina Turner, with whom he formed the Ike & Tina Turner Revue, which became a tremendous success by the end of the 1960s. Turner’s first recording, 1951’s “Rocket 88,” was produced during his early twenties and is considered by many to be the first rock and roll song. Cocaine and crack addiction and his abusive behavior ruined Ike´s career in the 1980s, according to Tina Turner´s autobiography, “I, Tina.” Ike released 10 studio albums during his career, and he published his autobiography, “Takin’ Back My Name: The Confessions of Ike Turner” (co-written with Nigel Cawthorne), in 1999. Turner died in December 2007 at the age of 76.Early Life: Ike Turner was born either Izear Luster Turner Jr. or Ike Wister Turner on November 5, 1931, in Clarksdale, Mississippi. His mother, Beatrice, was a seamstress, and his father, Izear, was a Baptist minister. Ike grew up thinking he was named after his father, but when he applied for a passport in the 1960s, he found out that he was registered as Ike Wister Turner. He had an older sister, Lee, and his father died when Ike was a child. Turner stated that he saw a white mob beat his father and leave him for dead, and Izear lived in a tent in the yard for a few years before dying from his injuries. Beatrice later married a painter named Philip Reese, who Ike described as a “violent alcoholic.” Ike revealed that he first experienced sex at age 6 with a middle-aged woman known as Miss Boozie and that he was involved with a different middle-aged woman, Miss Reeny, by age 12.Turner dropped out of school in eighth grade and got a job as an elevator operator at Clarksdale’s Alcazar Hotel. There was a radio station, WROX, in the building, and Ike would spend his breaks watching DJ John Friskillo, who eventually showed him how to work the control room. Ike began playing records on the station whenever Friskillo took coffee breaks, and he was offered a job as a DJ; Turner’s show, “Jive Till Five,” aired during the late-afternoon shift. Ike learned how to play piano from blues musician Pinetop Perkins, and he learned guitar by playing along to blues records. In the 1940s, Turner moved to the Riverside Hotel, where he met many touring musicians, and he played piano for Sonny Boy Williamson II at the age of 13.Career: Ike joined the Tophatters, a rhythm ensemble, as a teenager, and the group eventually split into two, with Turner becoming the leader of the soul and R&B band the Kings of Rhythm. In 1951, the band released the single “Rocket 88” under the name Jackie Brenston and His Delta Cats, and it topped the “Billboard” R&B charts. The song’s success led to tension in the group, and the Kings of Rhythm temporarily disbanded. Ike began working as a session musician, freelance talent scout, and production assistant at Sun Studio in Memphis, Tennessee, and around this time, he played piano on some of B.B. King’s early albums. He later reformed the Kings of Rhythm, and they recorded tracks for Federal Records and Cobra/Artistic. In 1960, Ike formed the Ike & Tina Turner Revue with then-girlfriend Ann Bullock, who he renamed “Tina Turner” after a record executive offered the duo a $20,000 advance for the song “A Fool in Love” and suggested that Ann should be the star of his act. The Kings of Rhythm performed with the Ike & Tina Turner Revue, along with the Ikettes, a group of female back-up singers.In 1966, Phil Spector produced the track “River Deep – Mountain High” and signed Ike and Tina to his record label after getting them released from Loma Records. The single was very successful in Europe, and Ike and Tina served as the opening act on the Rolling Stones’ 1966 British Tour. They were headlining in Las Vegas by the end of the decade, and in 1969, Turner released an album, “A Black Man’s Soul,” with the Kings of Rhythm, earning a Grammy nomination for Best R&B Instrumental Performance. Ike and Tina had their biggest hit in 1971 with “Proud Mary,” selling over a million copies, peaking at #4 on the “Billboard” Hot 100, and earning the couple a Grammy. Turner opened the Bolic Sound recording studio in 1972, and several notable artists recorded there, including Paul McCartney, Little Richard, and George Harrison. Ike released the solo albums “Blues Roots” (1972) and “Bad Dreams” (1973), and Ike and Tina’s single “Nutbush City Limits” received the first ever Golden European Record Award after selling 1 million+ copies in Europe.The Ike & Tina Turner Revue ended in 1976, and Tina left Ike in July of that year. Ike had a difficult time finding success as a solo artist due to drug addiction and multiple arrests, and after serving time in prison, he sold 20 masters that he and Tina had never released to Esquire Records. He earned approximately $500,000 in royalties after Salt-N-Pepa sampled his song “I’m Blue (The Gong Gong Song)” in their 1993 hit “Shoop,” and he reformed the Ikettes soon after and began performing as the Ike Turner Revue. Turner was featured in the 2003 documentary series “Martin Scorsese’s The Blues,” and in 2006, he released the solo album “Risin’ With the Blues,” which earned a Grammy for Best Traditional Blues Album.Personal Life: Ike claimed that he was married a whopping 14 times, and he sometimes remarried before he was legally divorced from the previous wife. At age 16, he married Edna Dean Stewart on April 10, 1948, and they split up when Edna decided that she no longer wanted to live in Clarksdale. Turner wed Velma Davis on September 19, 1950, and though she claimed that Ike fathered her daughter, Linda, Turner denied it. Ike then wed Rosa Lee Sane, but after her family had her committed to an insane asylum, he never saw his wife again despite his efforts to get her out. He married Kings of Rhythm pianist and vocalist Marion Louis Lee (aka Bonnie Turner) on September 24, 1952, but she left him for another man in 1953, and they divorced two years later. Ike wed Annie Mae Wilson, who played piano in his band, in the mid-1950s, and she left him for a police officer after they moved to Illinois. He then began a relationship with Lorraine Taylor, and they had two sons, Ike Jr. (born October 1958) and Michael (born February 1960).Turner met Ann Bullock (better known as Tina Turner) in 1957, and when she became pregnant by Ike’s saxophonist, Raymond Hill, the couple lived with Ike and Lorraine. Hill left her before the birth of their son, Craig, and she later became involved with Turner, giving birth to their son, Ronnie, in October 1960. They formed the band the Ike & Tina Turner Revue, then married in 1962. Tina has said that Ike was abusive and unfaithful during their marriage, which led her to attempt suicide in 1968. Tina filed for divorce in July 1976, and Ike got to keep publishing royalties for their compositions as well as Tina’s share of the Bolic Sound recording studio, real estate, and publishing companies. In his autobiography, Ike wrote, “Sure, I’ve slapped Tina. We had fights and there have been times when I punched her to the ground without thinking. But I never beat her.” After Tina, Turner was married to Margaret Ann Thomas (1981-1989), Jeanette Bazzell (1995-2000), and Audrey Madison (2006-2007); Ike and Margaret met in the 1960s and had a daughter, Mia, in January 1969. In 1988, he found out that he had a daughter named Twanna, whose mother is Pat Richard.Ike was arrested numerous times, including a 1980 arrest for cocaine possession, a 1981 arrest for shooting a newspaper delivery man, and a 1990 arrest for driving under the influence of cocaine (which earned him 18 months in prison). Turner’s cocaine addiction eventually caused a hole in his nasal septum. He was diagnosed with emphysema in the early 2000s and had to use an oxygen tank, and after his death, his autopsy showed Seroquel in his system, which can be used as a treatment for schizophrenia, bipolar disorder, and Alzheimer’s disease. Both his ex-wife Audrey Madison and his personal assistant/caretaker, Falina Rasool, have said that Ike was bipolar.Death: Ike became reclusive shortly before his death, and he told Falina Rasool, that he thought he was dying and wouldn’t make it until Christmas. Turner’s prediction proved correct just two days later, and he passed away at his San Marcos, California, home on December 12, 2007. His funeral took place at the City of Refuge Church on December 21st, and Little Richard, Phil Spector, and Solomon Burke spoke at the service. The Kings of Rhythm performed “Proud Mary” and “Rocket 88” at the funeral, and Ike was cremated after the service. In January 2008, the San Diego County Medical Examiner’s Office revealed that Turner’s cause of death was a cocaine overdose “with other significant conditions, such as hypertensive cardiovascular disease and pulmonary emphysema.” Ike didn’t leave a valid will when he died, and though his ex-wife Audrey Madison filed a petition that claimed Turner had named her as a beneficiary in a handwritten will, a judge ruled that the will wasn’t valid and that his adult children were the rightful heirs to Ike’s estate under state law.Awards and Nominations: Turner was inducted into the St. Louis Walk of Fame (2001), Mississippi Musicians Hall of Fame (2002), Guitar Center’s RockWalk (2005), Blues Hall of Fame (2005), Clarksdale Walk of Fame (2010), Rhythm and Blues Music Hall of Fame (2015), and St. Louis Classic Rock Hall of Fame (2015). He received a Memphis Heroes Award in 2004 and a Mojo Legend Award in 2007, and the song “Rocket 88” was inducted into the Blues Hall of Fame in 1991. Ike was nominated for seven Grammys, winning Best R&B Vocal Performance by a Group for “Proud Mary” in 1972 and Best Traditional Blues Album for “Risin’ with the Blues” in 2007. The songs “Rocket 88,” “River Deep – Mountain High,” and “Proud Mary” were all inducted into the Grammy Hall of Fame. In 1991, Ike and Tina were inducted into the Rock and Roll Hall of Fame, and “Rocket 88” was inducted in 2018. Turner also won a Blues Music Award for Comeback Album of The Year for “Here and Now.”
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