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HOW TO START A BUSINESS IN NIGERIA

 I know how important your dream business is to you, therefore, I have come up with an all-in-one guide. The startup process to help you turn your vision into reality.

The major steps involved in the process of setting up a new business enterprise include the following;

  1. Identification of business opportunity
  2. Generation of business ideas
  3. Feasibility study
  4. Preparation of Business plan
  5. Launching the enterprise

Step 1: Identification of business opportunity

Business opportunity refers to a business idea which can be converted to a profitable business. The world of business offers a number of business opportunities, but not many people can identify them.

An entrepreneur should b e able to identify such business ideas which can be converted to profitable business ventures. While choosing an idea to work with, an entrepreneur has to be very careful about the line of business (manufacturing, trading or service) as any mistake made in taking such a decision may prove to be very costly.

Moreover, the entrepreneur should ensure there is adequate market for the product or service that he/she want to offer in the market and the rate of return on investment is sufficient.

 Step 2: Generation of business idea

This stage requires generation of an idea that can be converted into a business. The  idea should be able to yield a reasonable return on investment  i.e should be worthwhile for implementation. A business idea may be discovered from the following sources.

  1. Observing markets: The promoter should study the market to find out the demand and supply position for various products. He should then estimate the future demand after taking into accounts the anticipated changes in income levels. Market surveys can also reveals markets competition and price trends. From the data collated through market surveys, the promoter should try to be identify those products and industries an industries where demand exists and supply needs to be increased.

 2. Perspective consumer:  Contacts with prospective customers can give an idea of the features that should be built into the products/perspective. It is  also important to collate data on customer needs and preference before choosing the product to be manufactured, A market test of the prototype product can be conducted before laughing the product in the market.

3 Study of project profiles: various publications of public and governmemt agencies on various projects and industries is an important sourceof business ideas. Such project profiles describe in details the prevailing market situation  and financial and the technical requirement of different projects . A careful analysis of such details can then be taken out for further evaluation.

4.Development in other Nation:  As n entrepreneurs can discover a good business ideas by keeping good knowledge about development in advanced nations of the world. Underdeveloped and developing nations of the world prove to be a good market for those products which are the ‘’ In Things’’ in developed  nations. An entrepreneur can also visit foreign markets.

5.Trade fairs and Exhibitions:A visit to national and international trade fairs and exhibitions can provides information about various products. It is also a good place to explore possibilities of collaboration and dealerships and give a fair idea of the existing competition in the market place.

While selecting the business idea, the following points need to be considered;

a.  There must be sufficient demand for the propose products/service

b.The idea should require such capital, technical know-how,  and raw material and other input which the entrepreneur can arrange for.

c.The idea must ensure a reasonable return in investment

 

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