It is the desire of every entrepreneur to someday bring to reality all the business ideas they have. However, one of the major challenges most entrepreneurs face today is capital to start their business and it is for this reason that we have compiled this piece of informative writing on How to Start a Profitable Business with Little Capital In Nigeria. Perhaps you’ve got a business idea and capital seems to be your only challenge to start your business and you don’t know how to gather capital, ensure you read through this article to the end.
How to Start A Profitable Business With Little Capital In Nigeria
Not every business requires good a huge amount of capital to startup in Nigeria. Aside from capital, you need a good business idea, a tangible execution plan, and passion. There are profitable businesses that you can start with a little more capital than you think of. We have highlighted 9 key tips that you need to consider if you want to start a business with less capital.
- Keep Your Present Job
- Get and work on a business idea
- Conduct market research
- Assess Your Capital Needs
- Explore Crowdfunding Platforms
- Network with People
- Get business funding
- Run a Trial
#1. Keep Your Present Job
It is important that you are practical with yourself when daydreaming about creating your business. Having made up your mind to start a business, you need to carefully assess yourself by asking some vital questions such as:
- Do I have the skills needed to run this business?
- Do I have the requirements to lead or manage a team?
- Do I have the means to raise capital for the business?
- Do I have the passion and motivation to make this a success?
These are honest questions that deserve your sincere answers. If your answers to the above questions are “YES”, then you are ready to start your own business.
#2. Get and Work on a Business Idea
It is not enough to source for capital, you need a business idea as well which is the first step to take in starting your business. Make sure your business ideas are unique, practical, and needed by the market. When searching for business ideas, it is not about copying others rather look at existing problems in your environment and try to provide a solution to such a problem and monetize it. You can seek assistance from experts in case of any difficulty.
#3. Conduct Market Research
As you seek for How to Start a Profitable Business with Little Capital in Nigeria, you need to carry out a market survey so that you can have a good and better understanding f the business you are about to venture into. Ensure you survey the market by asking your potential customers questions about the existing problem which you have identified and ready to solve. Aside from that, you also need to research competitors who have probably begun a similar business so as to have a comprehensive idea of what to do and how to perform better than what is existing.
#4. Assess Your Capital Needs
As you go about trying to create your business, bear in mind that it requires money to start your business, that is why you need to be clear on your financial position by asking yourself how much you really need to startup your business? You need to be certain of your startup capital so that you won’t run the risk of coming up with an unrealistic valuation of your business, which will lead to the turndown of your loan application or turn off investors.
That is why evaluating your funding requirements is important before you go about seeking financial help to startup your business.
#5. Explore Crowdfunding Platforms
You can explore Crowdfunding platform to raise fund for your businesses. this practice let you fund your project or venture by raising small amounts of money from a large number of people, typically via the Internet or through the collective effort of friends, family, customers, and individual investors. You can explore this method to raise fund for your business.
#6. Network with People
Interested to start a business with little capital or better still you have no funding at all, you can network with people to help raise funds for your business. You can find the right people who can help raise funds for your business. Ensure you attend events and trade shows in your niche where you can find potential investors.
#7. Get Business Funding
Taking us further on How to Start a Profitable Business with Little Capital in Nigeria is to get funding for your business. This is to say your business ideas and skill is not sufficient enough but also finance play an important role. Startup capital is required to help you fund the day-to-day operations of the business.
Perhaps you do not have business funding, not to worry because there are different ways to source funding such as bank loans, grants, equity investments, etc.
#8. Run a Trial
A trial is needed so that you can be sure if your business idea is indeed unique. Conducting a pilot study will give you the confidence you need to help your idea go to the next level and as well reduce any future risk. You can carry out a trial on a small scale by giving freebies to a few people in your target audience group to test your product or render free services to get their feedback.
Also, you will be able to get some new insights to grow your business and identify challenges that you might not have noticed.
Your market research should be followed with feedback to inform you with more information about the business you want to start and helps to form a strong basis for the business. Make sure the feedback you get from your research is properly utilized.
Conclusion on How to Start a Profitable Business with Little Capital in Nigeria
We have come to the conclusion of our discussion on How to Start a Profitable Business with Little Capital in Nigeria. you shouldn’t let lack of capital stop you from birthing your dream business and be the boss of your own. Rather read through the article where we have provided you with practical steps that will help you start a profitable business with little capital.
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