The school of success states there is never a right time to start a business. Yes, you may say funding is a limiting factor, but the most important thing is having an idea.
I mean, it is always said that when you have a plan, the resources needed will come.
Looking at Nigeria, while some people scream “bad economy", some are busy making daily and steady income from their various endeavours.
They probably will say, “Nigeria is kind to me,” and this is because they are doing the work by pushing on with their goals and business ideas.
With over 200 million people in the country, it is safe to say that Nigeria is a promising place to launch that business idea you are thinking of.
This means that at least 10 million people out of the Nigerian population need that business idea you are scared of implementing.
However, the big question that always hits people’s minds is the "how” question. How do I go about this? This guide is the pathway you’ve been asking for
Step 1: Develop Your Business Idea
Every great business starts with a solid idea. But here is the thing: your idea needs to solve a real problem.
Ask yourself:
What problem can I solve better than others?
Who is my ideal customer?
Can I scale this business over time?
Pro Tip: If you are struggling with business ideas, look at your daily frustrations. The best business ideas often come from solving personal issues.
Step 2: Carry Out Market Research
Your business is only as strong as the demand for it. This is why market research is non-negotiable. You need to validate your idea by talking to real people. Here are effective ways to do market research in Nigeria:
- Surveys: Use Google Forms to collect insights from prospective customers.
- Interviews: Talk to potential customers one-on-one.
- Focus Groups: Gather a small group to discuss your idea.
- Observation: Visit local markets or stores to see buying behaviours.
- Social Media Listening: Monitor Facebook, Twitter, and Instagram trends and see what people are saying about your products like yours.
- Competitive Analysis: Study competitors’ weaknesses and gaps.
As Tony Elumelu once said, "The future we all want for ourselves is one of our own making.”
Step 3: Find Out Your Supply Chain
If you are selling products, you need a reliable supply chain. Whether it is raw materials, dropshipping, or manufacturing, understanding where and how you will get your products is crucial.
For example, if you want to start a clothing line, you need:
A fabric supplier (local or international)
A tailor or manufacturer
A delivery system to get products to customers
Aliko Dangote once said, "I always make sure I hire people smarter than me.”
Step 4: Create a Business Plan
Would you drive from Lagos to Kano without a map? Of course not. Your business plan is your roadmap. It helps you avoid costly mistakes.
Draft your business plan, adding these key sections:
- Business Overview (What problem do you solve?)
- Market analysis (Who are your customers and competitors?)
- Financial projections (How will you make money?)
- Operations plan (How will you run daily activities?)
- Marketing strategy (How will you get customers?)
Also choose a business structure:
- Sole proprietorship: This is good for small businesses.
- Partnership: This is suitable for two or more founders.
- Limited Liability Company (LLC): This is best if you plan to scale and for legal protection.
Step 5: Brand Your Business
Branding is not just about a logo. It is about creating a memorable experience. Think about top Nigerian brands. What makes them stand out?
Key branding steps:
- Choose a unique business name (Check CAC availability)
- Design a logo and brand colours
- Create a business website and social media pages
- Develop a brand voice that connects with customers
Step 6: Decide on How You Want to Fund Your Business
Let’s be real—you need money to make money. The good news? There are multiple ways to fund your business in Nigeria:
- Bootstrapping: You can use your savings. You can start saving your business capital on the Jollof+. Jollof+ is a secure savings app from Baobab, designed to help you manage savings effortlessly. The app is insured by NDIC and licensed by CBN.
- Family and friends: You can borrow capital from your loved ones. Many Nigerian entrepreneurs start this way.
- Bank Loans: You get loans from options like microfinance banks, SME loans, and BOI loans.
- Grants and Competitions: You can apply for grants from organisations like Tony Elumelu Foundation, or government grants like Lagos State Employment Trust Fund, etc.
- Angel Investors and Venture Capitalists: This is perfect if you are building a scalable startup.
Step 7: Register Your Business
Registering your business makes it legit. The Corporate Affairs Commission (CAC) handles business registration in Nigeria. Here is what you need:
- Choose a business name (Check availability on the CAC portal)
- Provide personal and business details
- Pay the registration fee
- Get your Certificate of Incorporation
You may also need:
- TIN (Tax Identification Number) from FIRS (Federal Inland Revenue Service) for tax compliance.
- Business bank account
Permits/licenses depending on your industry:
- SMEDAN (Small and Medium Enterprises Development Agency of Nigeria): supports small businesses with training and resources.
- SON (Standard Organisation of Nigeria): Issues product and service permits.
Step 8: Decide on Logistics and Operations
If you’re selling products, you need a solid logistics plan. Consider options like:
- Third-party delivery services (GIG, DHL, Kwik, etc.)
- In-house delivery team (If you can manage costs)
- Online payment integration (Flutterwave, Paystack, Opay)
Step 9: Have a Marketing Plan for Your Business
It is simple. No marketing = no customers. Here is how to promote your business effectively:
Online Marketing
You can market your business using these online platforms:
- Social Media: Instagram, Twitter, LinkedIn, TikTok
- SEO and Blogging: Answer questions your audience are searching for
- Influencer Marketing: Partner with Nigerian influencers
- Google Ads and Facebook Ads: Target your ideal customers
Offline Marketing
- Word of Mouth: Still the most powerful marketing tool
- Flyers and Posters: Great for local businesses
- Networking Events & Trade Fairs: Connect with potential clients
As Michael Adenuga said "Business doesn't work well on its own. You have to boost the market from one state to the other
Final Thoughts
Starting a business in Nigeria in 2025 may seem challenging, but with the right strategy and execution, you can build a thriving business. Follow these steps, learn from successful Nigerian entrepreneurs, and take action.
So, what is stopping you? Your dream business is just one step away.
Now over to you: What business idea are you thinking of starting?
