Last Updated on: 26th April 2020, 05:06 pm
The dream of everyone who starts a business is quick growth and the generation of a good return on investment (ROI). Remember though, that nothing good comes easy.
For a business to thrive, it requires a substantial amount of work and commitment. There are many tips for a successful small business in Nigeria. These tips may vary depending on the category of the business. Nonetheless, there are quintessential actions that every business should take to become and remain successful.
In this post, we share some important tips for a successful business. If you would implement these in your business, we are certain that your business will become and remain successful for years to come.
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5 Powerful Tips for a Successful Small Business in Nigeria
1. Write / Get a Business Plan
Proper planning prevents poor performance. This is true even in the business world. There are uncertainties in business, no doubt, but isn’t it better to have a detailed plan to follow instead of just assumptions that may fail?
For a business to be successful, it needs to have a plan in place. Without writing a detailed business plan, it may be difficult to succeed, no matter how passionate and keen you are about your business.
A business plan helps you to keep track of the most important things in your business. It is an important tool to help guide your decisions. Consider it as a roadmap, something that provides clarity on all aspects of your business, from sales and finance to products and service details.
Do not fret when the idea of getting a business plan is brought up. A business plan mustn’t necessarily be complex, as long as it highlights the most essential points in line with the growth of the business. A business plan enables the business owner to experiment on paper first before beginning on the deep dive.
2. Define How You’ll Make a Profit
The ultimate goal of any thriving business is to make a profit. But do you know that so many small business owners do not have a plan on how to generate constant profit? Without any detailed strategy, they dive into business and hope that the cash will flow in just like that.
It is one thing to offer a good product or service; it is another thing being able to make a profit from it. To be successful in business, you need to analyze your expenses (rent, raw materials, processing costs, etc.). After the analysis, you then need to figure out how much you will offer your products or services to cover those expenses and begin generating profit.
This is one of the most crucial tips for a successful small business in Nigeria. You could also try things like decreasing the direct costs, getting more leads, and optimizing your customers’ experience. The ball is in your court. It is not enough defining how you’ll make a profit, but you also need to act upon them.
3. Avoid Getting Into Debts
While it is okay to get a loan to start your business, it is always advisable to start with as much of your own money as possible. It is natural for humans to value things they did with their effort than things that came through other people’s efforts.
This is tactically true in the business world. Except for very strong-willed entrepreneurs, most people end up on the wrong side of business, especially because the financing of the business (through family and friends, grants, etc.) didn’t come from their wallets.
Many small businesses rely on loans to cover their start-up costs, expecting to pay back as the business grows. Unfortunately, some of them forget that new businesses can take up to months or even years to break even and start generating profit. This makes repay of loans very cumbersome.
If you can reduce debts during the start-up of your business, it will lower the likelihood of horrid surprises that could impede the success of the business in the long run.
4. Start Small
It is good to think big and expect greatness, but it is one step at a time. Every business’s dream is to expand, with many locations, hire more employees and be at the top of their niche, but you have to learn how to crawl before walking, let alone running.
To be successful as a small business, you need not take on too many expenses at the beginning. You need to understand your income pattern and grow from there.
There are tons of inevitable glitches related to running a small business in Nigeria. When you start small, you can manage, recover, and learn from these hiccups.
With the knowledge you’ll gain from a modest initial operation of your business, it becomes easier to grow into a successful enterprise.
5. Hire the Right People
These days, it is a very common thing for companies to hire solely based on qualifications. While this is a good criterion, there is more to success at work than just academic qualifications.
Attitude, passion, innovation, and more are also key elements you should watch out for while hiring people to work in your business.
Hiring isn’t limited to just your employees but extends even to your supplies and marketers. While hiring, look for people with ingenuity and the right character that fits the industry.
When you’ve found them, ensure that you treat them well and create a working environment that will encourage them to give their all in.
PRO TIP: Do not be over-dependent on those you hire. No one understands it better than you, the business owner.
We believe that knowledge alone isn’t power. We believe that power comes from the application of knowledge. Now that you’ve recognized the 5 tips for a successful small business in Nigeria, it would be great if you’d commit to implementing these strategies.
Stop reading and start working. Now.
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If you have questions or contributions, please do well to write them in the comments section below.
We are born great, great we shall be. _Airkay