Getting Business Right From The Start

The internet has a plethora of articles on starting or formalizing a business; most of which are rather generic and not tailored to any particular industry. Nigeria is a vibrant and ripe economy for starting a business with a host of ideas bouncing all over the place; however, the actualization of starting a business in Nigeria can present itself as a daunting task. Asides from issues that may arise such as inadequate capital, staffing challenges, choice of location and overall business viability, a potential business owner will almost certainly encounter a number of regulatory challenges from concerned Ministries, Departments and Agencies (MDAs) which can be easily overlooked while developing your fantastic business plan. The importance of these regulatory considerations cannot be overlooked, as they will almost certainly involve a level of financial commitment to pay for taxes, fees and permits. Failure to comply with these regulations will often times lead to dire consequences (such as business closure and fines) for entrepreneurs and may affect their ease of conducting business in a particular location.

The aim of this article is to provide an in-depth understanding of the steps required to start a successful business venture while taking into consideration very important regulatory aspects. I hope readers will find this write-up informative and interesting. Here we go!!

1. You are ready to start your business, so what’s next: By now, you already have a business idea and fancy business name. It may help to have your great ideas documented in a business plan and undergo some desk research to ensure the viability of your business. It will be beneficial to identify your competitors and closely examine their business models; not to replicate them verbatim but to improve on those aspects that you consider as standouts or areas of competitive advantage while including your new ideas. At this stage it would be beneficial to consider having mentors who may operate or may not have operated in your proposed industry as a highly useful resource for guidance and direction. If possible, join a business association to receive mentoring and support from business owners in similar ventures.
2. Regulations, Regulations, Regulations!!!: It cannot be overemphasized enough the importance of complying with stipulated business regulations as enacted by the Federal Government of Nigeria.

• Business Incorporation Certificate: Firstly, a business owner will have to register a business with the Corporate Affairs Commission. In the past, this was a very laborious process but recently there have been improvements made by the Presidential Enabling Business Environment Council (PEBEC) which was set-up by the current administration to improve the ease of doing business in Nigeria. You can reserve a company name within 4 (four) hours and register a new company with the Corporate Affairs Commission (CAC) within twenty-four (24) hours from the time you submit the required and correct documentation for registration with the CAC.
• Tax Matters: It is also important to register your business with the Federal Inland Revenue Service (FIRS) and your state tax agency to remit your taxes regularly. These processes have now been made fully automated for FIRS and also automated in some select States.
• Local Government Fees, Levies and Permits: It will also be beneficial to make a trip to your local government council to discover the business fees and permits required to run your business in order run your business securely; as many businesses in Nigeria are constantly harassed by Local Government Operatives (mostly unauthorised personnel).
• Product Registration with NAFDAC: If you are selling a product, it is important to make your products available for inspection and approval with the National Agency for Food & Drug Administration & Control (NAFDAC). Product Registrations can be done online on the NAFDAC website.

3. Acquiring an accessible location: Your business location provides a meeting point between you as a business owner and current/prospective customers. Unless your business is run online or does not require the need of a physical location, it will be beneficial to acquire an accessible location. This is heavily dependent on your available capital.
4. Build your brand identity: Your brand identity reflects your values, beliefs and culture as a business. It is a combination of physical and unsubstantial aspects of your business which include logo, social media, taglines and customer service. Social media has become a revolutionary tool to connect sellers to buyers with just a few clicks. Creating content for digital platforms has become important to retain and increase your social media following and also remain relevant amongst numerous competitors. 
5. The Importance of Book-Keeping: It is important to open a company bank account that is separate from your personal bank account. Hiring an accountant/bookkeeper saves you time and ensures that your books are in order for a proper assessment of your profit for tax purposes. I have encountered many businesses that have been made to pay huge fines due to tax evasion/avoidance. My honest opinion [it’s not worth the stress].
6. Create and Regularly Update Your Marketing Plan: The creation of a marketing plan should have been covered adequately in your business plan. In addition to this, there is a need to constantly update your marketing plan to include changes in tastes and preferences of your target market(consumers). You need to identify how you intend to distribute, market and sell your products with minimal costs. You should also discover your most effective marketing channels and adequately employ them to increase your sales.
7. Hire and Train Your Staff: As your business grows, you will need to hire capable additional hands to serve your customers better. There is the need to ensure that your team is adequately equipped to efficiently handle tasks, as they would become the faces of your company in your absence. You will need to establish values, beliefs and habits that influence your team positively. The culture built within your team will influence the value and quality of service given to your customers.
8. Customers are your first priority: Finally, maintaining great customer service and handling feedback is essential to the sustainability of any business. As a business owner, it is important to ensure you have open and responsive channels which are easily accessible by customers.

Let’s keep the conversation going. The improvement of the operating conditions of small businesses is our top priority at the Lagos State Employment Trust Fund (LSETF). We seek to assist MSMEs in the following ways.

• LSETF Learning Centre: We have created an active learning centre which includes articles, infographics, presentations, blog posts and videos to educate business owners/individuals on topics centered on entrepreneurship and employment. The learning centre is situated on the website page and content is shared on our social media platforms (Instagram, Facebook, Twitter and LinkedIn). You can access our page using the link below;

https://lsetf.ng/learning-centre

• LSETF as an Intermediary between MSMEs and Government Authorities: We investigate policy issues that affect small business and intervenes/mediates on their behalf with Lagos State Ministries, Departments and Agencies (MDAs). LSETF also prepares periodic policy documents/recommendations to oversee MSME intervention activities to boost wealth creation and employment in Lagos State.
• Social Media: Social media content is tailored to engage entrepreneurs with information on doing business aimed at enhancing productivity and sustainability. We are available on the following social media platforms; Facebook, Instagram, Linkedin and YouTube.
• Promotion of MSMEs: LSETF sponsors beneficiaries to promotional fairs and conferences to showcase their products and services.
• Stakeholder Engagement and Community Outreach: LSETF has provided grassroots engagement and education across the 20 local government areas in Lagos State. Radio campaigns in English, Yoruba and Pidgin have been aired to provide awareness and education on updates on doing business.

Please take note of some important websites to visit for more information:

1. Business Made Easy www.businessmadeeasy.ng
2. Corporate Affairs Commission (CAC): www.new.cac.gov.ng
3. Federal Inland Revenue Service (FIRS): www.firs.gov.ng
4. National Agency for Food & Drug Administration & Control (NAFDAC): www.nafdac.gov.ng
5. For complaints and enquiries: www.reportgov.ng