7 Steps to Start a Successful Business

For every successful business, there are countless others that never get off the ground.

Starting a business can be overwhelming, especially with the numerous tasks and decisions involved.

Many of us love the thought of working for ourselves. It comes with a rush of excitement mixed with a dash of fear.

Maybe a business idea has been simmering at the back of your mind and you’re eager to turn it into a reality. 

You found the right post.

You will get a clear roadmap to guide you through the process to ensure your business gets off to a strong start.

I’ll walk you through the essential steps to start a successful business. So, let’s get started and turn your business idea into a thriving reality!

Why You Should Start Your Business

Even if you are an employee, starting a business is a great way to expand your income, especially with the crumbling economy in Nigeria.

Having a business can provide an additional source of income, which can help you achieve financial security and reduce your dependence on your salary.

With a business, you can also create multiple income streams, which can help you weather financial storms and reduce your risk of financial instability.

Running a business can give you a sense of purpose and fulfillment, especially if you’re passionate about the industry or product you’re working in.

Running a business can give you more control over your work and life, allowing you to make choices that align with your values and goals.

Let’s delve into the steps to get started.

1. Identify a Problem and Provide a Solution

So, how do you identify a problem? It’s not just about identifying a problem, but also about understanding the pain points and frustrations that come with it.

What are people complaining about? What are they struggling with? What are they wishing they had?

For example, let’s say you live in a busy city like Lagos and notice that people are always struggling to find parking spots. This is a problem that needs a solution.

But, it’s not just about finding a parking spot, it’s about the stress and frustration that comes with it, the wasted circling around the block, the anxiety of being late, and the feeling of helplessness.

Now, think about how you can provide a solution to this problem. Maybe you could start a parking app that helps people find available parking spots quickly and easily. 

Do some online research to gather more information about the problem. Study the data and try to spot any patterns, trends, and insights.

It doesn’t end there. Creating a unique value proposition that sets you apart from others. Look for gaps in the market and areas where existing solutions are falling short.

What makes your app different from a thousand other apps out there serving a similar purpose? Is it the real-time updates? The personalized recommendations?

The rewards program? Whatever it is, it’s essential to identify what makes your solution unique and valuable to your target market.

That is your unique value proposition (UVP). Your UVP is the reason why people should choose your solution over others. It’s the promise of value that you make to your customers.

In this case, your UVP could be “Find parking spots in seconds, guaranteed.”

2. Conduct Market Research 

After identifying the problem that you want to solve, it is also important that you understand your target audience in order to provide a solution that truly satisfies their needs.

Your target audience is the group of people you want to sell your products or services to. Who are they? What are their needs, wants, and pain points? You need market research to find out.

• Ask people questions about their demographics, interests, and behaviors.

• Analyze social media conversations about men’s wear in Lagos.

• Read reviews of similar businesses to understand what people like and dislike.

• Understanding Your Industry

Your industry is the market you’re operating in. What’s happening in that market? Who are your competitors? What are the trends and opportunities?

Proper market research enables you to understand your target audience and create a business plan that meets their needs and stands out in the market.

3. Develop a Business Plan

You might ask ‘Why Do I Need a Business Plan?’

A business plan is like a blueprint that guides you through the process of building and growing your business.

It helps you clarify your ideas, identify potential problems, and create a strategy for success.

Think of it like building a house. You wouldn’t start construction without a plan, would you?

You need to know what the house will look like, how it will be built, and what materials you’ll need. It’s the same with a business.

How to Craft a Business Plan

Include these key elements in your plan:

• Executive Summary: A brief overview of your business, including your mission statement, products or services, and goals.

• Market Analysis: An analysis of your target market, including demographics, needs, and trends.

• Competitive Analysis: An analysis of your competitors, including their strengths, weaknesses, and strategies.

• Marketing and Sales Strategy: A plan for how you’ll reach and convert your target market into customers.

• Operations Plan: A plan for how you’ll produce and deliver your products or services.

• Financial Projections: A forecast of your income and expenses, including revenue, profit, and cash flow.

4. Register Your Business 

A lot of small business owners overlook this aspect while setting up their businesses and that’s a mistake.

Imagine using a business name for a while, only to find out that an existing business already has the same name.

How do your target audience distinguish yours?

Why Register Your Business?

• Legal Identity and Protection: Registering your business makes it official and separates it from your personal life. This means that if something goes wrong with your business, your personal assets (like your home or savings) are protected.

• • Credibility Boost: Registered businesses look more professional and this gives your customers more confidence in your brand.

• • Security: It protects your business name and brand. No other business can legally use a business name that you have registered in your business name.

• • A registered business name allows you to open a business account with commercial banks.

• Access to Funding: Registering your business gives you credibility and legitimacy in the eyes of customers and investors. Many investors and banks prefer to invest in registered businesses.

• Government Benefits: You can access certain government programs and incentives

Steps to Register Your Business:

1. Choose a Business Name:

•   Pick a unique name that’s not already taken

•    Check availability on the CAC (Corporate Affairs Commission) website 

2. Reserve Your Business Name:

•   Apply for name reservation on the CAC portal

•   Pay the required fee

•   Wait for approval (usually takes about 3-5 working days)

3. Prepare Required Documents:

•   Completed registration forms

•   Passport photographs of all owners/directors

•  Means of identification (e.g., driver’s license, national ID)

•  Proof of address

4. Submit Application:

• File your application on the CAC portal

•  Pay the registration fee

•  Wait for processing (can take 3-14 days)

5. Obtain Your Certificate:

• Download your electronic certificate

• You can request a physical copy if needed

6. Getting Necessary Licenses:

After registration, you might need specific licenses depending on your business type. Common ones include:

• Local government permit

• NAFDAC registration (for food, drugs, cosmetics)
• Environmental permit

• Professional body registration (e.g., for medical or legal practices)

Research your industry requirements or consult a business registration service to ensure you’re fully compliant.

Resources:

• CAC Official Website: www.cac.gov.ng

• Business Registration Services: Many reputable law firms and consultancies offer this service

5. Explore Your Options for Financing Your Business

Starting a business is often accompanied by a daunting question: “How am I going to fund it?”

The good news is that you don’t have to break the bank to get started. In fact, many successful businesses have been built with little to no initial capital.

So, let’s dive into your options for financing your business.

Bootstrapping: The Zero-Capital Option

Believe it or not, some businesses can be started with zero capital. This approach is called bootstrapping.

It means using your own skills, resources, and creativity to get your business off the ground.

For example, if you’re a writer, you can start offering your services as a freelancer without investing a single penny.

Similarly, if you’re a social media enthusiast, you can start creating content and building an audience without spending any money.

Low-Cost Business Ideas

Not all businesses require a significant upfront investment. Here are some low-cost business ideas to consider:

Online coaching or consulting

Affiliate marketing

Selling digital products (e.g., ebooks, courses)

Freelance services (e.g., writing, designing, programming)

Dropshipping

These ideas often require little to no initial capital, and you can start generating revenue quickly.

External Funding Options

If you do need external funding, there are several options to explore:

• Loans: Traditional banks, credit unions, and online lenders offer various loan options for small businesses. Make sure you work with an accredited institution if you must take a loan.

• Grants: Government agencies, foundations, and organizations offer grants for specific industries, demographics, or business types.

• Investors: Angel investors, venture capitalists, and crowdfunding platforms can provide funding in exchange for equity or rewards.

Resources for Finding Funding in Nigeria

• Small and Medium Enterprises Development Agency of Nigeria (SMEDAN): SMEDAN provides funding, training, and support for small and medium-sized enterprises in Nigeria.

• Bank of Industry: The Bank of Industry offers loans and other financial services to support industrial development in Nigeria.

• Venture Capital Firms: Firms like Lagos Angel Network, Venture Capital for Africa, and African Business Angel Network provide funding and support for startups and early-stage businesses in Nigeria.

Additionally, you can also explore online platforms like:

• Nigeria’s Federal Ministry of Industry, Trade and Investment: This government agency provides information on funding opportunities, grants, and loans for small businesses.
• Tony Elumelu Foundation: This foundation offers funding, mentorship, and training for entrepreneurs in Africa.
• Africa Startup Initiative Program: This program provides funding, mentorship, and resources for startups in Africa.

Financing your business doesn’t have to be a major obstacle. Explore your options and leverage available resources to find a solution that works for you. 

6. Build a Strong Online Presence

Having a strong online presence is crucial for any business to succeed in this digital age. It’s like having a virtual storefront that’s open 24/7, where customers can find and interact with you. 

Why You Need an Online Presence

We will talk about the how, but before then, let’s talk about the why. Having an online presence helps you:

• Reach a wider audience

• Increase brand awareness

• Drive website traffic and sales

• Stay ahead of the competition

• Build credibility and trust with customers

So, what do you need to build a strong online presence? Here are the essentials:

• Website: Your website is your virtual storefront. It should be easy to navigate, look attractive, and provide valuable information to customers.

• Social Media: Social media platforms like Facebook, Twitter, and Instagram help you connect with customers, share updates, and build a community.

• Content: High-quality, relevant, and consistent content helps you attract and engage with customers.

• Search Engine Optimization (SEO): SEO helps your website rank higher in search engine results, making it easier for customers to find you.

Use consistent branding across all online platforms. Maintain  your brand’s voice and values and encourage customer interaction and respond to feedback.

7. Launch and Grow Your Business

Launching your business is the part where you get to share your product or service with the world and start making sales.

Before you launch, make sure you have:

• A solid business plan in place

• A professional website and/or a social media presence

• A marketing strategy

• A system for tracking sales and customer feedback

Once you’ve got these essentials in place, build anticipation by sharing behind-the-scenes content, sneak peeks, and exclusive offers. Provide discounts, free trials, or other perks to encourage early adopters.

Share your launch on social media and encourage your followers to spread the word.

The work is not over after your launch, actually it just began. Focus on growth. Here are some strategies to help you grow your business:

• Collect and act on feedback: Use customer feedback to improve your product or service and make data-driven decisions.

• Continuously market and promote: Keep promoting your business through social media, email marketing, and other channels.

• Expand your offerings: Consider adding new products or services to attract new customers and increase revenue.

• Build strategic partnerships: Collaborate with other businesses to reach new audiences and create mutually beneficial opportunities.

• Learn from business mentors: Seek guidance from experienced entrepreneurs and industry experts who can provide valuable insights and advice.

Conclusion

Growing a business takes time, effort, and perseverance. From identifying a problem and providing a solution, to conducting market research and developing a business plan, you’ve got the foundation laid.

Next, register your business and explore your options for financing it. Then, you build a strong online presence to reach your target audience.

Finally, launch and grow your business, learning from mentors and adapting to changes along the way. 

Now, it’s time to take action! Don’t let your business idea stay just an idea – start building your successful business today!