How to start a profitable business and be successful

The cost of starting a business has long been acknowledged to be high. In times like these, when income remains stable but the expense of living continues to rise, we are faced with a higher capital requirement to start even the most basic enterprises; after all, businesses depend on the indirect or direct purchase and sale of goods and services.

There is a need to look for ways to start profitable enterprises that cost little to no money yet have the potential to develop massively.

This article aims to present a list of profitable enterprises in Nigeria that you may start with minimal money, as well as the important stages and processes that you’ll need to get started.
List of business to start in Nigeria.

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How to Start a profitable business with Less Capital

The foundation of a house built on a mountain is solid. A company that is built on good planning is almost certain to prosper.

1. Develop a business concept.

To start a business, you must first locate or create a business idea that is appropriate for your financial resources. Many people spend years nurturing enterprises that don’t make enough money in comparison to the amount of worry and energy it takes to keep it going. When looking for a company idea, there are a few aspects to keep in mind:

Consider the issues in your neighborhood.
Can you find a way to commercialize a solution to such a problem?
Consider the execution processes: how much will it cost and how will it be done?

Not every company idea is worth pursuing. A worthwhile company idea is one that is distinctive, practical, market-driven, and easy to scale.

It’s also possible that your business concept is entirely original. As a result, you must be certain about your company’s services and pricing. You might need to ask people questions, conduct your own research, and seek guidance from entrepreneurs.

2. Research the market.

Examine the existing state of the market for the prospective venture.

Who would this suggested business’s potential customers be?
Is this a business that I can thrive in?
Do I have the required skills to help this company succeed?
Will it be simple to expand this business?
What is the minimum amount of capital that this business requires, and do I have it?
Don’t be scared to abandon business ideas that aren’t working just because you put too much time and effort into them.

3. Put together a business plan.

A business plan is required by every company in order to evaluate its implementation. It may be counterproductive to have a company idea, get the required cash to bring it to life, and then go to the implementation stage.

4. Acquire business funding

Of course, the most common way for entrepreneurs to get cash is by bootstrapping, which entails scraping together all available personal funds as well as support funding from friends and family. Money from this source is rarely sufficient, so it must be used as a last resort.

Obtaining loans is the second and most common technique of obtaining finances. Loans can be intimidating, and it’s recommended that you use them only as a last resort unless the terms are simple. Otherwise, you’ll be looking at a future of monthly payment build-ups that could eventually ruin your business.

You might want to look into WEMA Bank small business loans that are geared to specific business needs, such as the WEMA Bank Pharma Loan, which is designed to assist pharmacies and small drug store operators. Applicants can borrow up to 5 million naira without putting up any collateral.

The WEMA Medi Loan, which is aimed at private hospitals, clinics, and diagnostic laboratories, is also available. Applicants may receive up to 5 million naira.

Another loan effort aimed at assisting the operations of educational buildings is the School Support Facility Loan, which allows applicants to receive up to $10,000,000 in funding.

WEMA has also teamed with the Development Bank of Nigeria to offer low-interest loans to SMEs and small companies with a five-year tenor and up to $200 million for SMEs and 720 million for small corporations.

These lending programs are meant to make it easier for you to run your business. The application process for these loans has been simplified.

5. Register your company

This is a crucial stage in the process of founding a business in Nigeria. The Companies and Allied Matters Act requires that every firm operating in Nigeria be registered. Depending on whether your company meets the CAMA 2020 standards, it can be registered as a business name or as a corporation. It’s a good idea to talk to a lawyer about the advantages of both.

6. Employment

Following registration, you’ll need to hire people to help you achieve your goals. If you believe it is a tiny business that you can operate on your own, go for it. If not, try hiring a team to handle the various aspects of the business while staying within an acceptable salary range based on the company’s profitability. Examine whether your company requires professional guidance or expertise.

7. Accountability and bookkeeping

Every company’s financial performance is dependent on its cash flow. It’s a good idea to put yourself on the same pay scale as the rest of your team. Even if there aren’t any, go ahead and do it. It assists you in avoiding unnecessary and extravagant expenditure. Separate your personal and business funds and keep them separate.

8. Establish a business account.

A business account will aid your company’s financial viability. You can restrict the account to allow for effective financial management.

This is where a WEMA business account comes in handy. It’s a small business account that can be operated online for convenience. It is intended to assist small firms in expanding. It features a low minimum opening balance of 10,000 naira and all of the benefits of a current account. At a monthly turnover, the charge rates on this account are reasonable.

In order to stay on track, you should generate monthly, quarterly, and yearly business reports that must be verified by professionals.
In the long run, the goal of beginning a business is to get the financial freedom that only a personal enterprise can provide, as well as to be free of the economic insecurity that the economy imposes. With the above ideas, you may start your business today with almost no money and develop it exponentially.
Today is the day to take a step toward financial independence.

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