Develop a Business Idea:
A good business idea involves identifying business opportunities and needs in your community.
Write a Business Plan:
This is the blueprint that guides the business. It outlines the route you intend to grow revenue. Investors will want to see your business plan before investing. Banks and other funding organizations will require it too.
Registration of the Business:
This involves registering the business with the Corporate Affairs Commission (CAC) in Nigeria, and it entails the following steps;
Decide on ownership structure of the business
Choose three (3) preferred names
Visit the nearest CAC office to check availability of the chosen names
Provide details such as a business address, memorandum of association, articles of association, details of directors, share capital and allotment etc.
Pay the necessary fee
Taxes and Levies:
It is equally necessary to register with Federal and State Inland Revenue Services. The Federal Inland Revenue collects Value Added Tax, Company Income Taxes and Withholding Taxes, while the State Inland Revenue collects taxes deducted on employees and other necessary taxes.
License and Permit:
This depends on the nature of business. Almost all businesses have their regulatory bodies and agencies governing them and the regulations vary by industry. If you are in the food service business, you need a license from National Agency for Food and Drug Administration and Control (NAFDAC), a chemical solvent related-business has Environmental Protection Agency's compliance to meet, for Daycare/Nurseries, a license from the Board of Education is required and so on. So, you should find out the applicable regulation for your type of business.
Acquire Office Location:
There is need to site the business in a good location putting into consideration some factors such as road networks, closeness to raw material or as the case may be.
Setup website:
The business definitely needs a user-friendly website that gives the business solid global exposure. Nowadays, internet marketing contributes a good percentage of overall business sales.
Develop a Marketing Plan:
A good marketing plan enables the business to acquire a reasonable market share. Whatever the product, it needs a strategy to get to prospective customers.
Branding:
Create a unique identity for the business. Design a logo, business cards, a brochure and any other promotional souvenirs.
Capital Outsource:
Raising funds to run the business is quite essential to operate a successful business. The government has designed and introduced a variety of measures to promote small and medium scale enterprise development. With a brilliant business proposal, a loan can be accessed from the following organizations:
SMEDAN - Small and Medium Enterprises Development Agency of Nigeria.
ADDRESS: No. 35, Port Harcout Crescent, Area II, Garki, Abuja.
TEL.: +234-9-7804708
WEBSITE: www.smedan.gov.ng
BOI - Bank of Industry
ADDRESS: 23, Broad Street, Lagos
WEBSITE: www.boi.ng
ETF - Employment Trust Fund
WEBSITE: www.lsetf.ng
YouWin
www.youwin.org.ng
What are your soft and hard skills?
Take an assessment:
Image you were given a project – how would you approach it?
What comes naturally to you?
What do you love to do?
When were you most in your element?
5 Tips for developing your skills to create a job of your own
Be curious.
Be versatile.
Find your role models.
Find your mentors.
Get feedback through real projects.
Are there risks involved in starting your own business?
The term “business risk” refers to the possibility of inadequate profits or even losses due to uncertainties, for example: changes in tastes, preferences of consumers, strikes, increased competition, changes in government policy, obsolescence etc. Every business organization contains various risk elements.
For example an owner of a business may face different risks like in production, risks due to irregular supply of raw materials, machinery break down, labour unrest, etc. In marketing, risks may arise due to different market price fluctuations, changing trends and fashions, error in sales forecasting, etc. In addition, there may be loss of assets of the form due to fire, flood, earthquakes riots, or political unrest which may cause unwanted interruptions in business operations. Thus business risks may take place in different forms depending upon the nature and size of the business.
What kind of risks are there?
Internal risks (risks arising from the events taking place within the organization) and external risks (risks arising from the events taking place outside the organization).
Internal risks arise from factors such as human factors (talent management, strikes), technological factors (emerging technologies), physical factors (failure of machines, fire or theft), operational factors (access to credit, cost cutting, advertisement).
External risks arise from factors such as economic factors (market risks, pricing pressure), natural factors (floods, earthquakes), political factors (compliance and regulations of government).