Starting a business in Nigeria comes with its challenges and roadblocks. However, when done correctly, your business can become a leading and reputable company in Nigeria. Whether you’re starting online or opening a physical office/store; there are a few mistakes you need to avoid at all costs, to build the business of your dreams.
When starting a business, you will likely be charged with full enthusiasm and passion, and more often than none the passion begins to reduce as challenges occur. In Nigeria, there are a lot of businesses that started and closed up after a couple of months. To remain consistent, driven, and successful in business, you need to avoid these mistakes. Here are four (4) mistakes you should avoid when starting a business in Nigeria.
Lack of Proper Planning
People underestimate the relevance of having a business plan. A business plan contains an overview of your business, your marketing strategy, financial projection, SWOT analysis, among other projections, and analysis. One deadly mistake, start-ups make is to go with only a vision and a goal without making proper planning. Some challenges arise in business that could be detrimental to your business if you don’t have a business plan. Don’t keep your projections by heart, have a concrete business plan.
Your business plan contains the blueprint of your business. Having one will save you from wasting time and resources. It would also create a road map for attaining your business goals.
Spending Business Funds
Spending business returns or mixing business funds with personal funds is a rookie mistake that could close down your business. Always separate your personal income from your business income. You can create a separate account for your business to avoid accidentally spending it. If you spend your business returns for personal use, you would end up eating into your capital, and this would cause major issues for your business. Keep your family, friends, and even your personal needs from your business. You should only spend your business returns for expansion and other things your business needs. Ensure to keep good records of all your business’ income and expenditure to consciously monitor your business’ finance.
Wrong Market Targeting
Another mistake to avoid is wrongly targeting your market segment. You need to strategically define your audience and customer. Without specifically knowing who you’re marketing to, you’ll end up making little or sales. For instance, you can’t be marketing kitchen utensils in a men’s magazine. Although you may get sales, it would be drastically low. Know your audience demographics, and determine how best you can reach them.
Doing it All by Yourself
Another mistake you should avoid when starting a business in Nigeria is doing everything all by yourself. Although you may not be receiving many returns as a start-up, you need to understand that you cannot do everything by yourself. You can’t be the CEO, customer service representative, storekeeper, accounts manager, delivery service, and marketer. Although there are some tasks you can achieve by yourself, you can’t achieve them all. Whether you have a physical store or you’re running an online business, you’ll need help. Hire people to help you in building your business. Hiring employees is a form of investment that yields great returns when monitored well.
Starting and managing a business in Nigeria may be quite difficult. However, with great funding, a business plan, and avoiding detrimental mistakes, you can build an empire from the scratch. Money/capital is an essential part of running a business in Nigeria. You don’t need to worry so much about getting funds for your business. Sycamore offers easy and accessible personal and business loans for all individuals and corporations in Nigeria. Visit www.sycamore.ng to get started today.