How to start a profitable small scale business in Nigeria involves methods, ways and strategies to deploy inorder to start and grow your small scale business.
Therefore, we will explore all you need to know about how to start a profitable small scale business in Nigeria, objectives, risks and lists of different small scale businesses in the country currently. Read on.
What are Small Scale Businesses?
The terms “small-scale industry,” “small-scale enterprise,” and “small-scale entrepreneurship” are all used to refer to the same thing.
Small businesses can be started with little or no money and operated as a single proprietorship, partnership, private or public limited company.
It’s also known as a small or medium-sized enterprise (SME), and it has a lot of potential to help our country’s industrial transition and development.
How to Start a Small Scale Business
To start a profitable small scale business, consider the following:
- Create a fantastic business concept
- Create a business Plan
- Choose a location for the business
- Raise funding for the start up of the firm
- Register your business
- Get your TIN number for tax payment
- Open a bank account ofr your business
- Choose the best candidate for the job
1. Create a fantastic business concept
The most important thing you can do is think of a good business idea. Take your time to find out what you truly want to do and whether you are willing to put forth the effort necessary to make it a reality.
2. Create a business plan
The next stage is to put together a business plan. Your business plan will help you figure out what major problem your firm will answer, how it will provide value to your target client, the company’s lifespan, how you plan to create short-term revenue and subsequently long-term profits, how you plan to accomplish market penetration and growth, and much more.
3. Choose a location for the business
After you have created a clear and extremely intuitive business strategy, you will need to pick the right business location where your company will be based.
Instead of being near your competition, your organization should be near your target clients.
So it is important you note down that one of the basic ways on how to start a profitable small scale business in Nigeria is by choosing the right location for your business.
4. Raise funding for the start-up of the firm
Raising funds for the business is one of the ways on how to start a profitable small scale business in Nigeria. You must have a clear understanding of how to fund your day-to-day operations, acquire Ra materials, market your brand, and much more before you start your business. These things require financial resources to be carried out.
However, you can choose to find resourceful ways of sourcing funds which can be different loans like Carbon Paylater Loan for small business, grants for small business or world bank grants for small business in Nigeria.
If you don’t know how to go about it using these methods I listed, check out how to get loans for your small business in Nigeria and so many other legit small business loans in Nigeria.
5. Register your company
The registration of your business with the Corporate Affairs Commission is required. If you want to register a business, you will need an article of association.
This frequently delivers a wealth of information about your business.
6. Get you TIN Number and pay your tax to state tax authorities
You will need to register with the federal and state tax offices after you’ve registered your corporation or firm.
You will be given a Tax Identification number when you register with the Federal Inland Revenue Service (FIRS), which you can use for a variety of purposes, including opening a bank account.
7. Open a bank account for your business
Opening a business account is another way on how to start a profitable small scale business in Nigeria today. To save your initial money and income, you will need to open a company bank account after successfully registering your business and acquiring your Tax Identification Number (TIN).
8. Choose the best staff/candidate for the job
The next step is to hire the right people to assist you in running your business.
If you’re starting a small business in Nigeria, you usually won’t need more than one employee to get going.
However get to know or read up employee definition and types, before you take your decision on the type of staff to recruit.
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About Small Scale Business in Nigeria
A small scale organization, or simply a tiny business, has a small number of employees and a restricted flow of funds and resources.
Google, General Motors, and Wal-Mart, for example, are clearly not tiny businesses. A one-person home business or a mom-and-pop corner candy store, on the other hand, are clearly the essence of a tiny business.
What do you think an acceptable definition of a small business is? What is the minimum number of employees or level of activity required to distinguish a large from a small business? There is no single criterion for separating small, medium, and large firms.
When it comes to small businesses, different government agencies and private organizations use different sets of criteria.
3 Small Scale Business Objectives
The following are some of the most vital objectives of a profitable small scale business in Nigeria:
- Make work for others.
- Improve the per capita income and living standards of lower-income groups.
- They also help developing countries prosper economically.
What Are the Risks of Starting a Small Business?
Here are some of the reasons why a small business could fail:
- The business isn’t even attempting to resolve issues.
- It solves problems, but it isn’t enough to distinguish you from the crowd.
- The company isn’t dealing with the proper problem.
- It’s a problem that must be tackled, but it’s being approached in the wrong way.
- The company is dealing with the right problem, but with the wrong people.
- It’s offering the correct people the incorrect remedies to the incorrect problems.
6 Small Scale Businesses You Can Start in Nigeria
Here is a list of some of the profitable small scale businesses you can start in Nigeria:
1. Cassava Farming
Which do you prefer as a meal: garri, fufu, or starch? If you answered yes, you are one of the many millions of Nigerians and other West Africans who consume one or more Cassava plant products as a main meal.
According to one source, Nigeria became serious about food security the day they started cultivating enhanced cassava varieties.
People in Nigeria are starting to pay attention to this field of agriculture, not only because they appreciate the food produced by the Cassava plant, but also because they enjoy the money. Cassava cultivation is, in fact, a very profitable business.
2. Car Wash
The good news is that starting a car wash does not necessitate any special training or certifications.
All you need is a great location, a pleasant demeanor, and a desire to go above and beyond to please your customers.
3. Dry Cleaning
There are those we refer to as “professional dry cleaners” for reasons we can only speculate about. To be honest, you’ll be alright if you have a talent for doing laundry.
Civility, or understanding how to communicate with customers and ensuring that you do not disappoint them, is an extra benefit. It’s also critical to locate your company in a favorable location and set acceptable costs.
4. Transport Business
In the transportation industry, it’s like printing your own money. However, it should be noted that those with a background in car engineering or mechanics are most suited for it.
Despite Nigeria’s terrible maintenance culture, a mechanic would know better than to let his buses run without oil changes and other important vehicle maintenance procedures.
5. Petty Trading
The word “petty trading” refers to a wide range of activities. There’s something for everyone, from raw foods to fast-moving consumer products and even technology.
Little, on the other hand, is the keyword. Even now, if you look around your neighborhood, you may see a large number of people working in this field.
However, if everyone is offering the same thing, sales will fall. Think outside the box, take chances, and offer your business in an original way.
6. Sports Viewing Centre
‘Football viewing center,’ however, might be a better term for this establishment. The vast majority of people who go to these places do so to watch football, not just any sport.
Popular possibilities include the English Premier League, Spanish LaLiga, UEFA Champions League, African Nations and World Cups, and Italian Serie A. You might wish to pursue this venture if you live in an area with a lot of young people.
Frequently Asked Questions
Small Scale Business in Nigeria with Low Capital
- Organic Farming
- Home service nursing
- Mobile Car Wash
- Home Cleaning
- Starting a Blog
Hidden Business Opportunities in Nigeria
- Agriculture/ seasonal farming
- Social Media Marketing
- Rental Services
- Bead Making
- Small Chops Packaging business
- Ice Block production and sales
- Liquid Soap Making
- Microfinance Business
- Video game center
Daily Income Business in Nigeria
- Betting Shop
- Barbing Salon
- POS Payment Service
- Makeup Artist Services
- Selling of Fruits
Conclusion
Small-scale businesses, in addition to improving your financial situation and making you more self-reliant, relieve you of a great deal of stress from employers who are sometimes overly demanding and time-consuming.
Look through the list of small businesses to see which one you can do. You, too, can be in charge.