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Business Management

21 Reasons Businesses Fail In Nigeria

Reasons Businesses Fail In Nigeria

Businesses don’t just fail. Some things are responsible for such failures. In Nigeria, I have reviewed some of the reasons businesses fail and what you can do to prevent your own business from failing this year.

Investopedia also listed 6 reasons new businesses fail in a report on its site. While those 6 are valid, this post explores many more reasons, which are also peculiar to Nigerian businesses – whether they are startups or existing businesses.

The idea of Reasons businesses fail is to create watch lists for entrepreneurs who are looking to grow their business can avoid. Most of what causes businesses to fail are in the businesses itself. They could be what should have been done or not to have been done.

This report would seek to explore these watch lists, explaining how they could impact negatively on your business, and what you could do to prevent those negative outcomes.

✅ Understand Reasons Business Fail

Sometimes there’s erroneous belief that once a business is successful it can never fail again. Those perceptions are fallacy. One should think about Nokia phones and relive their experience. Nokia was leading the mobile phone industry, but all of a sudden it vanished and lost all of its market.

Successful businesses can fail. Business failure can happen at any time in the life of a business. Even when sales seems to be increasing, it may nor be so for your repeat sales volume.

If the business is failing to retain existing customers, it won’t be long before potential customers starts seeing the same problem.

It’s not only unsuccessful businesses that fail. A business can fail at any level. But it’s within your power to quickly identify those signs that’s pushing your business into failure.

✅ Understanding Business Growth

The idea of starting any business is so that it would grow. But sometimes, growth can be deceptive. It’s not all growing business that is growing to be successful. Some growth are just trends that would fade out with time.

Any business that’s not built on a long term human problem would eventually fail – unless it changes its direction towards something else along the line of business.

Growth can be exhausted. Some kind of growth can also be a sign of an end. That’s why some businesses fail even when they seem to be doing well at the time. You have to understand what kind of growth your business is experiencing. Because failure is often found in growing businesses.

If you are wondering what could cause business to fail, here’s a list of my pick below, and you can add yours in the comment section as well:

🔹️No Business Plan
🔹️No Marketing Plan
🔹️Not Understanding Your Real Business
🔹️No Adequate Experience
🔹️No Proper Funding
🔹️Low Customer Retention
🔹️Hiring the Wrong People
🔹️Wrong Choice of Location
🔹️Targeting the Wrong Customers
🔹️Using Social Media Wrongly
🔹️Not Understanding Your Best Marketing Channel
🔹️Not Managing Cashflow Properly
🔹️Too Much Overhead Cost
🔹️Not Having Appealing Brand Image
🔹️Poor Quality Products or Services
🔹️Over Pricing and Under Pricing
🔹️Bad Customer Reviews
🔹️Selling With Fraudulent Intent
🔹️No Customer Support
🔹️Bad Service Delivery
🔹️Using Wrong Data

✅ No Business Plan

A lot of Nigerian businesses overlook writing a business plan when starting their business. Maybe because they don’t seem to understand the most important reason for writing a business plan.

However, for those who had a business plan, it’s mostly outsourced to a consultant. That in itself is equally not good enough. While the purpose of business plan is to give direction to your business idea, it also conveys the spirit of the business.

If you must outsource it, let it just be the writing of it and not the concept and direction of your business.

Moreover, it’s a great business sin not to write a business plan when starting your business. It doesn’t matter how small the business is – every business needs a plan to give it the best direction possible.

Failure to do so means you have a business without direction – and starting out without proper direction is prone to failure. Not having a business plan is in itself a plan to fail.

✅ No Marketing Plan

The most important success factor of any business is marketing. Without marketing you don’t have a business. If you don’t plan your marketing you are not expecting any form of success in your business.

It’s either you are doing trial and error or you are just an ignorant startup. If you are hoping that customers would walk in to buy from you, then you have to position your business where customers can walk in and buy.

But if your marketing strategy is not to target walk in customers, which in itself is a marketing plan, you need to plan how you intend to market your business to potential customers.

✅ Not Understanding Your Real Business

One of the biggest mistakes for most startups is not understanding their real business. I want you to do a brain game. If you are sick, where do you go to? When you are hungry where do you go?

You must be able understand your business like this. If you don’t understand your real business you will be trying to sell to the wrong customers – and they won’t be interested in your offer.

Another scenario for a brain game is this – What’s the business of a hotel? A hotel primary business is to provide hospitality. If your hotel is not competing to provide customers with hospitality services, then that hotel doesn’t understand it’s real business.

If a startup or any business fails to understand what it’s real business is, it’s a business likely to fail.

✅ Not Defining Your Business Properly

If you understand what your real business is, you are now able to define it properly to your target customers. You will be able to use the right words to attract the right customers. You will see what your competitors may not be seeing in your industry. It will Position to think ahead, plan ahead and introduce futuristic products that beats any competition.

This is so important because every business has a niche. The clearer you can define what niche you are serving the easier for customers who needs you can identify your business in the midst of the crowdsourcing market.

But, if you can’t define your business, it’s left for each customer to try to guess what your business represents. And that could cost you more customers and might likely cause your business to fail.

✅ No Adequate Experience

Experience is the best teacher, but most startups lack this very vital ingredients that could make their business very successful.

If you study the Igbo traders in Nigeria, one thing that distinguished them from other tribes is their apprenticeship program. This program helps to groom successful entrepreneurs . The success of this apprenticeship program has been a case study in Harvard.

You need the right experience in any business you want to engage in. If the Igbo’s could employ apprenticeship in common buying and selling business, there’s no business that doesn’t require apprenticeship.

If you lack the right experience it’s might eventually cost you time, money and success. Even if you appear to be doing well, little challenge can cause the business to fail.

✅ No Proper Funding

Money answers all things. Getting the right funding for your business is key to avoiding one of the pitfalls of business failures. The amount of funding available to a business can be directly responsible for its success.

Most startups lack this all important funding. They are either starting on a shoestring budget or struggling with low Cashflow. If your business lacks funding, it’s like lacking oxygen.

Get proper funding or you could be risking your business failing. It shouldn’t be too much or too little funding – non of it is good for your business. What you need is the right funding to be successful.

✅ Low Customer Retention

Customer is the life blood of any business. Businesses exist for customers. Without customers you cannot have a business. So, you have to do everything possible, not only to win more customers but to retain existing customers.

If your customer retention level is low, your business is at the risk of failing. You have to watch how many customers you are retaining. It’s more important than how many customers you are wining.

You can say your customer retention level is good if your repeat sales is growing. If your customers don’t come back to patronize you, check what you are offering, and what your competitors are doing better than you.

✅ Hiring the Wrong People

Some people don’t deserve to work for you. It doesn’t matter whether they are family members or friends. Your business should have employee handbook that defines the roles, qualifications and character of the people you employ.

Three things that must define your employees are experience, intelligence and character. Note that educational qualification wasn’t part of the three. If the person is not experienced they make a lot of mistakes. If they are not intelligence they lack ability to make good judgments. Without character they chase away valuable customers and partnerships.

If you already have people working for you, revaluate them by these three factors. It may be time to fire and hire new workers.

Don’t allow your employees destroy your business. And if you have these three factors as your hiring watch word, it protects you from favoritism and wrong hiring.

✅ Wrong Choice of Location

Every business is based on location. Even an online business deals with location. If you ignore location choice in your business, you will be missing the target. Target-less marketing is easy road to failure.

Location helps you identify the right customers for your business and focus your marketing to eliminate waste and increase ROI per CAC (customer acquisition cost). If you have higher CAC its either increasing the cost of your product or service – or it’s decreasing the revenue of your business.

Don’t take location for granted. Businesses fail because they ignore the importance of location to their business. There are markets in Nigeria that are known for selling certain products. Those who sell or buy those kind of products go to those markets.

If you locate outside those markets, you will be missing out of very important customer based – especially if you sell in bulk.

✅ Targeting the Wrong Customers

Your product is not meant for everyone. To think that anyone would buy from you is an expensive error in marketing. It’s not everyone that needs your product. Your business should have a niche market.

If you try selling to everyone you will be wasting your marketing resources and getting little or no results. This mistake is what makes businesses fail. The wrong customers won’t patronize your business.

Identify who your customers are and focus mainly on them. That would help you save cost, and also reach out to mainly those who are more likely to buy from you. While saving you from those who may like your product but may never buy because they may never need them.

Your target customers are only those who have immediate problem your business is providing solution for – and who are also willing to pay for it

✅ Using Social Media Wrongly

You can use social media wrongly. That would cost you a lot too. The reason for social media is to engage with your customers, and not really for advertising. That’s not to mean you can’t advertise on social media. But you should advertise the right way too.

Learn to explore social media marketing the right way. The powerful nature of social media helps you warm yourself into the hearts of your customers. If you do it well. It’s stronger and more effective than even advertising.

Many startups fail to explore this advantage and it’s costing them so much. And if you use social media wrongly it has its adverse effects, which including helping to fuel customers rejection that causes your business failure.

✅ Not Understanding Your Best Marketing Channel

Advertising is important to the success of your business, but you have to understand the best channels for your business. There are different types of marketing strategy that works that you can apply.

If you understand what works best for your business it’s better and would be more cost effective. It can also effect your business wrongly if you are expending resources on the wrong marketing channel.

How to know the wrong marketing channel is if the result is not commiserate to the kind of cost you are expending on a marketing channel. You have to identify what channels are giving you the most result at a reasonable cost.

✅ Not Managing Cashflow Properly

Cashflow is an integral part of business success. You must handle your Cashflow well. A healthy Cashflow means your business is healthy. And it’s vice versa.

Cashflow can be negative or positive. For someone who doesn’t understand Cashflow – it means how money comes in and goes out of your business. A record of how much goes out of your business for what purpose, should be followed by how Much comes in.

If Cashflow is not managed properly your business is at a risk of failing. Most companies fail because the money is flowing out into things that doesn’t support the growth of the business. If that’s your business situation, it’s bound to fail at some point – sooner than later.

✅ Too Much Overhead Cost

This one is directly related to Cashflow. But the reason I’m singling it out is because some startups tends to ignore it, especially if the Cashflow is seemingly healthy. They assume every overhead is part of the cost of business operation.

Some overhead cost could be too much and needs to be reduced. Being able to identify those overheads costs and cutting them down can save your business from failing. But where they were not discovered, a business can continue until these costs destroys the business.

✅ Not Having Appealing Brand Image

Image is everything. The kind of impression you create about your business has a way of attracting the right customer base to it. If your brand image is appealing to the target customers, they will not only patronize you but also refer you to their network.

If the brand image is not appealing, it might only be attractive to the wrong customer base. Your brand image tells your business story in a way nothing else can. If the story it tells is bad the result will be bad for your business.

Also, an appealing brand may lose its appeal over time. You have to constantly reappraise your brand appeal and reposition to trends driving your market.

✅ Poor Quality Products or Services

A Japanese proverb says – good thinking, good product. If the thinking is right, it will necessarily produce good product, which will equally attract good customers. We can say, good thinking will produce good products that good customers would patronize.

In the same way, poor quality products is bad business. While some may get away with selling poor quality products for a while, the business eventually fails as more customers discovers the scam.

The real business growth lies is repeat sales. But where the product quality is poor, repeat sales is difficult.

✅ Over Pricing and Under Pricing

Sometimes it’s difficult for startups to properly price their products. A little overpriced or underpriced could hurt your business in ways you never imagined. Pricing product is an integral part of successful businesses.

However, the problem is not really about the over price or under price, but how you come up with the price. If you deliberately priced your products, then you are then prepared for customers reactions and inactions as well.

Not many businesses gets away with over priced products. It can only work if your product is high end and your target market is luxury goods customers. If you are dealing with mass market, over priced model will kill your business. Same way under priced model won’t help your revenue either.

✅ Bad Customer Reviews

Don’t do things that attracts bad customers review. A lot of buying decisions today are based on reviews. Like they would say, the Internet doesn’t forget. As online platforms provides avenues for documenting customers experience with your business, you should be careful what they are saying about your business.

I noticed that most businesses don’t take this seriously. You may not even know how much damage bad customer reviews are doing to your business. If you are offering any service that has online presence, always scan the net to know what customers might be saying about your business.

To erase bad reviews, try to create better reviews by creating better customer experience. Intentionally over pamper your customers and after a better service experience, ask them to write a review about their experience. If possible let be on the same platform you found bad reviews of your business.

However, don’t try manipulate customers to drop good reviews about your business. Rather, improve your service and let it speak for you.

✅ Selling With Fraudulent Intent

Don’t think people can’t read through your intentions. If you have a fraudulent mindset it will show in everything you do. It won’t be long before customers starts classifying you as dubious.

Words spreads faster than you can imagine. And before long people won’t like dealing with you. Businesses fail faster if the owner has a fraudulent mindset. If you are always thinking of ways to cut corners to make more profits, you have a fraudulent mindset.

There’s no way you can hide a fraudulent mindset for too long. It will always find a way to escape and find expression in what you do. And if you noticed that you have a fraudulent mindset, don’t try to deny it, rather create systems in your business that can help automate processes without your personal involvement or manipulations.

✅ No Customer Support

This one is a major problem with businesses in Nigeria. Support is never part of what they offer. Lack of customer support is a major reason most businesses never experienced repeat sales.

Customer support is not really about treating customers well but solving customers problems. They are two different things. If you solve problems customers will always return back to patronize you.

But if you don’t provide support, your customers will end up looking for solutions elsewhere and eventually find another business that provides same services as you. Each customer lost is additional revenue lost. More loses causes business failure.

✅ Bad Service Delivery

How your customers feel after transacting with your business can either be good, better, bad or worse. Choose your options wisely.

Most Nigerian startups fail for this singular reason. There services leave a bad taste for the customers. And most of them blame the economy and never get to know some of the reasons their business failed.

Although, part of the reason for bad or poor service delivery is hiring the wrong people. If you want to deliver better services, use the best in your industry. There’s a huge difference between an employee who works for the pay and one who works to be paid.

✅ Using Wrong Data

Businesses are built on authentic data. You need data to make realistic business projections and to perform effective marketing. Most startups are either not willing to pay for authentic data or ignorantly work with assumptions.

The easiest way for any business to fail is to work on wrong data. It will mess up your projections and mislead you in every way.

To avoid this, always hire the right consultants to do your work for you. Note that most of the information you find online are based on assumptions of the writer. Hiring a consultant that would conduct physical study when needed is a good investment. It will cost more but it’s ROI will far outweigh the cost.

✅ Conclusion

This list is to help you find what areas your business is lacking and how to correct them. I believe that anyone reading this article up to this point really wants to know how to stop the business from failing.

These are just symptoms. But it will help you diagnose the real problem in your business. Every symptom is a sign of a problem on the way. Dealing with the symptoms early would prevent the problem in the future.

You may also need a consultant to help you find better ways to protect your business from failing. Sometimes, you need someone else to take a look at how you do your business, to help you discover what you may have overlooked.

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Best Guide to Start a Dry Cleaning Business In 2022

Does the dry cleaning business interest you? Have you been looking for a guide on how to start a laundry business? Do you know more Nigerians now patronize dry cleaning businesses than before? If you continue reading you will find out more.

The dry cleaning business is one of the low-risk businesses in Nigeria. It can be run as a side business and does not have to be your main business.

Dry cleaning business is also known as laundry business. To start this business, you need a marketing strategy and a business plan. This is a non-negotiable necessity.

Along with washing, dry cleaning business also involves the ironing and proper folding and packaging of clothes. And goes beyond just cloths to rugs and home furniture’s cleaning.

✅ How Profitable is the Laundry Business in Nigeria?

Although, it will be difficult to give an exact range for dry cleaning business profitability because of certain factors, but you can gauge how profitable it can be for you based on number of clothes you can wash daily and monthly.

Use the following parameters to gauge for yourself. A business plan can equally help you determine that.

?️How many clothes can you possibly wash per day?
?️What’s the cost of washing a cloth in your proposed location?
?️What’s your target market potential?

Forget those claims of figures of profitability. They are simply deceptive and based on speculation. You must know that, no two dry cleaning business can be the same. As these businesses differ, so is their locations, target customers, cost implications and ability to deliver on their promises to target customers.

All these will impact on the business and help determine the profitability for each of the different Dry Cleaning Business, as well as for your own dry cleaning business.

✅ Types Of Dry Cleaning Business

?️Home Dry Cleaning Business
?️Road site dry cleaning business
?️Office Dry Cleaning Business
?️Modern or Machine Dry Cleaning House

✅ Home Laundry Business

The service is targeted at families with lots of washing to do, like washing kids cloths. The service is rendered at the customers home. You may not even need to have your own working tools.

The customer provides you with everything, including bowls, water, detergents, etcetera. Your job is to do the washing and spray them out to dry. You get paid for the washing on the agreed fee. It doesn’t often require ironing. The contract ends once the cloths are washed and sprayed on the drying lines.

✅ Road-Side Laundry Business

Anyone can start it. It doesn’t require so much capital to start. You can even start it right off your backyard. It’s a lot different from home service.

You reach out to potential customers to either bring their cloths to you or usually you pick it up from their homes or office. Then take it with you for washing. This type of dry cleaning can be operated right from any corner or you can also rent a shop as well.

The main difference with other types of laundry business is that you can pick up from customers and you can also deliver to them after washing and ironing.

✅Office Dry Cleaning Business

This one is common and operated out of a small shop. It’s actually a smaller version of the modern laundry house. But a better version of road-side laundry business.

Customers locate and drop off their cloths for laundry services, and pick up after washing and ironing at an agreed date.

This can be operated out of a sole rented shop for dry cleaning or shared shop with other businesses combined. There’s really not much difference with road-side laundry, excerpt for the service operation.

✅ Modern or Machine Dry Cleaning House

A modern or machine dry cleaning house provides the best cleaning services to customers. And it requires the use of modern laundry equipment’s and professionally dry cleaning processes.

The services are top-notch with finished products worth the high cost paid for it. This kind of services are targeted at high net worth customers who want the best laundry services.

The location of this kind of laundry business is key to its success. And to embark on such project you will require to hire a consultant and prepare a perfect laundry business plan with full location assessment study to ensure the feasibility of the location before you invest.

✅ Steps to Start a Laundry Business

Starting a modern dry cleaning business should be done professionally. A well planned laundry business will always do well. These steps can help you process successfully.

✅ Have a Business Plan

Your business plan includes how you plan to run your business. It would help you to know the necessary elements for your business and make sure you follow them because you planned upfront.

A business plan indicates how your business would be managed, your marketing strategies and your cash flow.

It explains the goal of your business, shows investors and grant allocators why they should invest time and money into it.

You need to write one yourself or hire a consultant for as low as $100 to write a simple laundry business plan if you are starting on a small scale. If you hope to start a morgen laundry to target the high end of the market a professional laundry business plan can cost you over $500.

✅ Startup Cost

How much do you need to start a dry cleaning business in Nigeria?

The start-up cost of your business can range from N50,000 to N50,000,000. This price range depends on your vision for a laundry business.

For example, if you already have land or building for your business, your starting cost would drastically reduce. A modern dry cleaning house is more lucrative and cost more to setup.

✅ Location Assessment Is Important

Think about the location of your business. You cannot build your enterprise anywhere. It has to be located in a residential area where people would pass on their way to work and back. So, it should be within easy reach.

Your building should contain your equipment and also portray the future you envision for your business, even if you have not gotten there yet.

The building should have enough space so that people can move freely. This way, it would provide customers with comfort when they can sit and relax.

✅ How to Find a good location:

● Residential areas are a good spot.
● It should have enough space to allow customers to walk in and rest their feet.
● Check for the pros and cons of each location you assess and check your requirements off your list.
● Have a list of necessities your building should have. The one with the most checks on your list, if not all, is the one.
● It should be easily accessible. Your customers would be discouraged if they gave to climb hills and cross valleys before they find your building.
● You should hire a consultant to conduct location assessment for you if you are planning on modern laundry business setup.

✅ Register Your Business

Registering your business with the Corporate Affairs Commission makes your business distinct and exude professionalism. Your name should not be a mouthful. At least, one should be able to hold on to a word from your business name.

Your business should have a website registered with the business name which can be located when it is entered in the search box. Your business name should not be the same as another business so that yours can stand apart.

✅ How to Register your business

Register your business with the corporate affairs commission to make it legit in Nigeria. It makes your business trustworthy and is a starting block to building your customer’s faith in you and your work.

Make connections with other dry cleaning businesses to get information, help and find out if there is another license to get or certificate.

✅ Get The Right Equipment

Quality equipment set a standard for your business. Good quality materials yield good quality service in return.

Some minor equipment’s that are needed for a start:

  1. Washing machine
  2. Generator
  3. Dryer
  4. Hanger
  5. Shelves
  6. Iron
  7. Ironing table
  8. Washing bowls
  9. Packaging materials: bags, nylons.
  10. Laundry soap
  11. Stain remover
  12. Fan
  13. Fragrance
  14. Starch
  15. Chairs

In a case where you do deliveries to doorsteps, a delivery van would be necessary with the business name and logo imprinted on it. It would also increase the charge and therefore increase your profit.

✅ Home Delivery Option

Delivery to homes is a superb way of getting the hearts of customers and making them stay loyal to your business. What is not relieving about one’s clothes getting washed and then delivered to their home?

✅ Dry Cleaning Rate

Costs inputted into the business along with finding out how much others price their services by doing market research would guide you to set the rate for your services.

You may charge at a reduced price in the beginning but not too low that you don’t gain or that people think your business is too good to be true.

Also, make sure you keep accounts. This would clearly reflect whether your business is progressing or not.

✅ Employee Handbook

This depends on whether or not you need help especially in the beginning and if division of labor is required.

Do you need help? Get employees. If your business is small and you can do all yourself, do that too. However, for a modern laundry business you need an employee handbook to help you articulate the kind of employees you need, the educational qualification and your job description for them.

✅ Create a Brand

The standard of your business, what only you offers and what sets your business apart makes up your brand. Learn how to brand your local business.

Your brand is how the public would perceive your business and what your business stands for.

A unique brand would keep your business apart from that of your competitors and make it stand out so that customers see you clearly and recognize you.

Choose cleaning products that would not cause allergic reactions on your customers and would not be harmful to the environment. Choose eco-friendly cleaning products that are more organic.

✅ Marketing: Make it public!

Your marketing strategies would come into play here to get more customers and keep the ones you already have. How do you find your target customers?

A sign in front of your company that says your business name and what you do is an attractant. So also is the social media, flyers, newspapers and quality customer service. Also, have a sign on your building that shows the price of dry cleaning a single shirt.

Good customer service would encourage your customers to spread word of your business.

Also, a delivery service to homes not only brings you profit but also bring customers with comfort. Their clothes are brought to their doorstep and the hustle and bustle of the roads is avoided. Who would not love that?

Welcome your customers with a friendly smile on the faces of your staffs. Give your building a homely feel that would make anyone who enters feel comfortable.

Make sure to call your customers when their clothes are ready for pick up. This would ensure communication and pass on an enviable customer service.

✅ Conclusion

A dry cleaning business or laundry business is one that takes from its customers the stress of washing clothes. It also makes sure that clothes are treated the right way and given the treatment that they need.

I hope you were guided on how to run a successful dry cleaning business.

Well… what are you waiting for? Check business plan samples and formulate a plan for your dry cleaning business or hire a consultant to package one for you quickly.

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Packaged Water Business – Best Startup Guide for 2022

Packaged water business is very lucrative. That’s why there are many water business around now. But you can create a packaged water targeted at certain markets like party and events markets. If you create your water products for specific audience you will win

Water is one of the most vital elements of life. We drink it among a variety of other uses. A majority, about 65% of our body is made up of water. The brain is a vital organ in humans and is also made up of water.

Packaged water production involves the acquiring, purifying and packaging of this vital element called water. It’s a very lucrative business as everyone drinks water five to ten times a day.

Since the advert of satchel water, 90% of Nigerians buy packaged water everyday. It’s one business that can target everybody and every market. Do you wonder how Eva, Nestle, Pax, RevUp waters are being sold all over the country?

The demand for water is high and not many brands understand how to tap into the huge packaged water business. However, in this article I will be showing how to start packaged water now more profitable than existing competitors.

✅ Is Packaged Water Business Profitable?

Packaged water production business is profitable like many businesses. However, it has some challenges like many other businesses. These challenges are not so huge but if not taken care of, they can cost the life of the business.

There is good demand for sachet and bottled water because they are affordable means to get pure water. And since more people are getting concerned about their health, they would seek out pure water to drink.

Because water is in continuous demand, competition would not put you out of business, as long as you have your target.

You need a business plan before starting this business and you need education.

You would need to recruit people for help. An installer for example would install your equipment for you. Get a good one. They would also advise on what other machine you need.

You need to know how to run the equipment by yourself when the installer leaves so stay with them through the process and ask questions.

✅ How Packaged Water Business Works

Water can be packaged in sachets and bottles. The production processes are similar and only differ in the packaging.

?️How to start a packaged water production company in Nigeria
Learn the business
?️Know the authorities over packaged water production, regulations, how the business works and how to handle the business and all that you need to know.
?️Know what you should know. This is a key step if you want to start this business.

Get a Building

You can get a building on lease or build your building. It all depends on your budget. The price varies with location. It would be more expensive than in some areas than some other areas.
It should have a fence to keep out unnecessary traffic within the company.

Business Registration

Do not rush while picking your business name. The idea of a business name might not come easily. Coupled with the fact that there is a great number of businesses already registered in Nigeria.

After getting a unique name, register your business with the CAC – Corporate Affairs Commission.

Business registration does not only make your business secured but also allows you to lawfully own and run your business.

Tax number and NAFDAC registration

You can get your tax identification number from a revenue office so you can hand out your tax when it is due. There is no way around this if you want to be a law-abiding citizen of Nigeria. It may lead to avoidable issues with the government if your business does not have one.

Like every other food item consumed, packaged water must be inspected and approved by NAFDAC. It is important and failure to do this may lead to a company being closed down by the government. Get your company registered under NAFDAC.

✅ Constructing a Water Borehole

A borehole provides you with clean water throughout the year, even during the dry season and at any time you need it.
The price of drilling a borehole largely depends on the soil’s quality and the location.

?️Have an Overhead Tank

To store water, you need an overhead tank. Plastic storage is better than a metal one because a metal tank rusts over time, cutting its life short.

?️Water Purification System

Even if the water looks clean, it must still be treated. The rules guarding packaged water production and distribution are against selling out untreated water.

?️There are 2 kinds of water purification systems:

● Ultraviolet build system
● Reverse osmosis distillation system

The reverse osmosis distillation system is said to be the most effective but is also the most expensive. The Ultraviolet build system also works efficiently and is not as expensive.

Automatic Sealing Machine

The sealing machine you get would increase your rate of production. This is why an automatic one is more recommended than a manual one.

The type and capacity of the automatic sealing machine you get would influence the number of seals that can be done and your overall production. Some can produce as much as 20,000 seals every 8 hours.

Source of Stable Electricity

As light is unstable in many parts of Nigeria, it is wise to have a generator that can power all your machines so that your working time is not hindered. This means that fuel has to be made available to power the generator.

Packaging and Distribution

The way your product is packaged is the first thing consumers would notice and also, the durability of the package. The package can either be polythene sachets as in sachet water or bottles as in bottled water.

The package should show the name of the business boldly with the words well spelt. The packaging should keep the products together and withstand the movements it would face during the distribution process.

Remember, your brand matters a lot, it answers whether or not people would trust you with their health and life.

Quality Checks and Balances

Retain the quality of your water. There should be a system put in place to check that the quality of water does not reduce. This would not only jeopardize your brand but also make you lose the trust of consumers.

Retaining the water’s quality would keep your customers with you, causing your gain to increase, not decrease.

Get feedback from distributors and consumers to find out if there’s something you’re not doing right or if there’s a decline in quality.

Regular Maintenance of Machines

The machines used should be given due maintenance to keep them working at a top-notch rate so that your production is not affected.

Construct Security Fencing

Like I earlier mentioned, the factory building should be sealed by a fence. Also, security guards should be made available to keep the building and equipment safe, preventing loss.

✅ Packaged Water Production Business Plan

A packaged water production business plan is necessary to get you started on all that your business should be about. It is useful if you want to apply for grants or loans from banks.

It should include the following headings: an executive summary, a business description, definition of the market, product description, organization structure, financial management and conclusion.

✅ Packaged Water Regulation

Packaged water production is regulated by NAFDAC in Nigeria. They assess the water you produce and the equipment you use to check if it is safe to be consumed by living, breathing human beings. And animals too.

A NAFDAC number on your products certifies you and gives you the trust of your consumers.

Starting Costs on Small Scale

The following are estimated prices that make up the starting cost:

● Automatic sealing machine – N350,000 – N450,000
● Drilling the borehole – N300,000 – N400,000 (depends on your location and the soil type)
● Truck for distribution – N1,000,000 – N 2,000,000
● Distilling machine – N5,000,000 – N7,000,000
● Generator – the cost depends on the size and model.
● Business registration – varies depending on the kind of business registration.
● Factory building – depends on the location.

✅ Packaged Water Production Process

Water, which is the main raw material involved in packaged water production, goes through the purification processes to ensure that it is clean and pure following NAFDAC approved standards. Afterwards, it passes through the various machines which fill it into bottles or sachets, is sealed and then packaged.

✅ Plan Your Marketing Process

Study the market. Check for how things are done, the prices, the time other pure water factories go around with their packets of water and use it to your advantage. For example, do they sell at N99? Remove N1 from it and sell yours at N98. It may not look like much but when bought in bulk, the difference would show.

Also, take your packets of water around earlier than others. Some water factories drop their products as early as 4 am. Think of different packaging to brand your water and attract certain target markets.

Like a new driver joins a busy road for the first time, so also do. Do not let fear prevent you from infiltrating the market. Do it despite the fear.

✅ Conclusion

Water is life that’s why it sells faster. If you are looking for daily income business, packaged water business is one of them. You can start wisely by producing special packaged water water for hotels, restaurants and events to grow your business from small scale, before targeting a larger consumer market.

Would you like to start your packaged water production company Do you have questions? Let’s have a chat in the comments.

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How to Start a Dog Breeding Business in Nigeria

Did you know that dog breeding business is one of the most profitable businesses in Nigeria?

Dogs are largely kept as an assurance of security in Nigeria. Aside from this, they’re kept by humans for companionship. The adorable faces, acts and fur of some dogs make them irresistible and craved for by their onlookers.

Dog breeding businesses are highly sought after due to the huge demand for dogs.

And this business can make you rich.

Now, although there’s profit in dog breeding, it must not be the major goal. The health, genetic makeup, and proper care for these animals are highly important.

For every business that booms, you need strategy and you need knowledge.

Why dog breeding business is profitable, how much you can make as a dog breeder, how dog breeding business works, how to start your business, the best dog breeds, among others are outlined in this article.

Let’s dive in.

Why Start a Dog Breeding Business

● You get an opportunity to make a career out of your adoration for dogs.

● You get to provide dogs for families, individuals, for security, cosy hugs, hunting and other differing purposes. You help someone who needs a guard dog get them. Soft, warm and furry companions exist in our homes because of you and people like you.

● You help prevent a species or more from going extinct, preserving their distinct features, characteristics and the purposes they primarily serve.

So, why not?

Who’s Your Target Market?

The target market for dog breeders includes dog lovers, security units, hunters, research institutes, dog trainers.

The targets vary with the breeds; athletic breeds for sports, cute and furry breeds for homes, muscular and fierce breeds for security.

How To Start a Dog Breeding Business

✅Knowledge

● Knowledge of dog breeding: how to cater for dogs; care for puppies, pregnant dogs, sick dogs; recognizing sick dogs and dogs in the heat period.

● Know genetics: this will help you as a breeder in choosing dogs to be paired for breeding. You will also understand their traits and qualities and avoid hereditary disorders in puppies.

● Dog coaching: puppies especially need to be given some basic training to prepare them for their new owner.

● First aid knowledge: just like humans, pets also have accidents and get injured. Knowledge of first aid before the appearance of a vet is very important.

✅Build Relationships

Vets, dog breeders are useful relations that would help you out in this business with their knowledge, tips and experience. Build relationships with them. Get help from them, also, help them when you can.

✅A business Plan

It is never enough to have an idea in your head, especially a business idea.

Write out your business plan. Studies have shown that there’s a greater likelihood for a business idea to morph into a prospering business when there is a business plan.

✅A Business Name

This is what would be used to refer to your dog breeding business by people. Create a name that would stick to the mouths of people like a piece of blown-out chewing gum.

✅A Location

A place where the puppies and dogs would be cared for. The neighbourhood where the kennel would be situated should agree with the noise that would be produced. It should also have enough space for them to roam about and play.

✅Set Up The Business

Acquire the starting or founding dogs- the starters of the breeding business. Make the necessary equipment available.

✅A business Account

This puts your business name upfront. The business account carries the business name and all the money for business goes into it, preventing your money from getting mixed up with that of your business.

It also offers the protection of your assets in a case where your business is sued.

✅Business Accounting

This helps you study the performance of your business. It involves the detailed calculation of income and expenditure for your business.

✅A Business Website

A business website helps put your dog breeding business out. It displays your business as legit and trustworthy and attracts customers to your business.

✅Build Your Brand

What your business stands for is your brand.

The quality and health of the breeds showcase your brand. If the breeds are weak, your brand is affected and people would hesitate to refer you or come back.

A website helps with the brand building too.

✅Dog Exercise

Regular training and exercise for the dogs to keep them active and alert are of great importance . Not doing this would lead to a weak immune system, restlessness, tiredness, among others in the dogs.

✅Regular Checkups

Regular checkups by a vet ensure that the dogs are healthy. You should have a veterinary doctor who you recognize as a vet for your dogs.

✅Marketing

To find customers, relationships built with other dog breeders and vets would come in handy.

Your website, social media and referrals are also ways to market your dogs.

Best Dog Breeds for Business

✅Siberian Husky

They have a lifespan of about 14 years. Siberian Husky breeds are active and have low possibilities of health issues. They are amongst the best selling dogs.

✅Rottweiler

The Rottweiler breed is among the most famous dog breeds. It is playful to the core with familiar people and defensive against strangers. Rottweilers are not susceptible to many diseases.

✅Otterhound

Otterhounds can swim. They have thick fur and a calm appearance. The Otterhound’s coat is waterproof, keeping its body temperature stable while it’s in the water.

✅German Shepherd

This breed of dogs is among easy-to-breed dogs. They are smart and courageous dogs (I’ve read a story where a child was saved by a German Shepherd). They are one of the popularly bred dogs in Nigeria.

✅French Bulldogs

French Bulldogs are adorable, small-sized breeds. They need much care and maintenance.

They are prone to defects like dwarfism and respiratory disorders. These defects can be countered by acquiring healthy starting dogs to produce equally healthy puppies.

✅Tibetan Mastiffs

Tibetan Mastiffs live as long as 16 years and more. They are guard dogs and are extremely intimidating to strangers.

They have a muscular build.

✅Saluki

This breed is one of the swift dog breeds. They would thrive in competitions and hunting. They are also homely dogs for families and individuals.

Best Dog Foods for Breeders

7 best dog foods recommended by Vets:

● Royal canin dog food

● Bavaro

● Josera

● Purina

● Booster

● Taste of the wild

● Arion

Housing Provision For Dogs

● The kennel must be warm and comfortable, a home for the dogs and puppies. There must be absence of fear and discomfort for the dogs.

● Equipment for feeding, warmth, cleaning, disinfecting should be available as well.

● The location of the kennel should also be in close range to vets, pet shops and customers.

How Much Can You Sell Your Dogs

The prices differ with dog breeds, age and sex. After checking in on the cost of feeding among others, study the market before you set your price.

Don’t try to breed after every litter. Give the dog time and space to recover and care for the puppies.

This would allow you to care for each litter sufficiently.

Conclusion

Did this article clear your doubts on whether dog breeding is a good business in Nigeria?

Let me know your answer in the comments.

Don’t forget to share.

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Top 10 Business For Nigerians In Diaspora

If you live outside Nigeria these may interest you so much. Every Nigerian living abroad wants to invest back home. So, I have packaged the best 10 businesses Nigerians in Diaspora can start while living abroad.

Yes, I have carefully looked into how some of these businesses can be done without constant supervision. For those living abroad, you may have experienced how family members or friends squander investment you put them over to manage for you.

So, I’m not going to put you in that situation at all. These businesses are carefully chosen for Nigerians in Diaspora. You can monitor them successfully while still at your based abroad.

How To Start Business As A Nigerian In Diaspora

That you are living abroad doesn’t mean you can’t invest and make extra income in Nigeria. Most of you can’t even return home because you may not be able to finance your trip back to base. But now, I’m showing how you can ensure you live abroad and still make money at home.

The exchange rate is highest in history now. Don’t think it’s ever going to go down. This is your opportunity to earn little abroad and invest better here taking advantage of the high exchange rate.

According to a PWC document, Nigerians in Diaspora would send a total of US$25.5bn, US$29.8bn and US$34.8bn in 2019, 2021 and 2023 respectively. That’s huge money coming back home. And with CBN new policy on forex transaction for Diaspora remittances, you can be sure your money exchange rate is fine.

So, you have the money, it’s time to plan how to invest it securely back home. I’m also going to discourage you from doing investments through family and friends, unless they have experience in investment. Stop giving your money to people who are in financial needs or lack requirement investment experience.

Steps To Create A Diaspora Business

As you plan to invest back home, don’t do it ignorantly. Don’t jump on any offer that looks good. While every business is good enough, there is always secrets how each business works successfully.

Do not neglect the services of experts. Pay good money to get the best guide when starting your business. It’s worth every penny than losing millions in investment. You know the value of using consultants abroad, don’t come back home and be trying to get free information. You are only preparing to invest your money with less professional help. That’s failure in disguise.

I have put together some steps to guide you. Take them seriously, avoid trying to cut corners or do over-sabi.

  • Do Your Research
  • Hire A Consultant to help out
  • Write A Business Plan
  • Plan Your Finances
  • Choose A Business Structure
  • Pick And Register Your Business Name
  • Get Licence And Permits
  • Choose Your Accounting System
  • Setup Your Business Location
  • Get Your Team Ready
  • Promote Your Startup Business

How Nigerians In Diaspora Business Works

I want to assume that you will still live abroad but be operating your business in Nigeria. So, I will devise you that you consider the business ideas carefully and select only what is applicable and suitable for you to do from abroad.

The reason for these Diaspora Business Ideas is to help Nigerians in Diaspora to invest back home in Nigeria without returning to help run or manage the business. The ideas advanced in this article are practically businesses that can be better managed or have the Diaspora investor control important aspect of the business from their base.

Another reason is to get you involved in the daily operation of the business. For example, operating a gas plant may look like something you can’t manage remotely. But being the one to handle the purchase of the gas whenever you need supply helps you control sales as well.

List Of Diaspora Business Ideas

Below is the list of carefully selected businesses you can do as a Nigerian in Diaspora. Make no mistakes, don’t go into any of these business unless you have better information to guide you or hire the services of an expert.

  1. Bitcoin Exchange Business
  2. LPG Gas Plant Refill Business
  3. Built To Rent Real Estate
  4. Build To Sell Rea Estate
  5. Car Wash Business
  6. eCommerce Business
  7. Product Supply Business
  8. Hair Barbing Salon Hub
  9. Fashion Design Business Hub
  10. IT Engineering Business Hub

Bitcoin Exchange Business

Bitcoin is becoming popular in Nigeria now but every transaction is done from sites domicile abroad. Nigerians in Diaspora can tap into this huge potential to provide a trusted exchange for Nigeria on Bitcoin and other virtual currencies.

This business is practically online. That gives you the advantage to operate it from your based abroad.

LPG Gas Plant Refill Business

If you are looking to get into a multimillion naira investment with guaranteed success in Nigeria, here’s one you can do now. Nigeria has huge untapped potential for cooking gas. I have written several articles on the potentials and guide on how to setup profitable cooking gas plant anywhere in Nigeria.

However, I also strongly recommend that hire a gas consultant. Doing business blindly is the cause of most business failures. There are basic principles that must be followed during startup and if you miss those basics the possibility of the business failure could be higher.

Since the business deals with specific volume and measurements, you can control gas supply from your based, while monitoring daily sales lodgments through your online banking.

Built To Rent Real Estate

This one is not new to Nigerians in Diaspora. It’s been done over the years. I’m only going to add a twist to it to adopt it properly for Nigerians in Diaspora best interest. One other thing that I advocating for Nigerians in Diaspora to do when investing in build to rent business is to develop rental spaces that’s irresistible to the target market.

As a Diaspora investor, creating a little rental app could give you the power of your tenancy agreements and renewal dates. That way you can monitor and know exactly when rents are due, whose rent was due, how much are expected and which tenants have defaulted in their payment.

Instead of giving your building to your family members to manage, get a real estate lawyer to manage your buildings.

Build To Sell Real Estate

Still on real estate business that Nigerians in Diaspora can invest into without running risks of family interference and liabilities. You can build to sell properties. You can build apartments to sell. It’s just the usual but having your own special designs.

Car Wash Business

Car wash is a very lucrative business if done well. Although, the challenge is usually managing it properly with people being in control while you are based abroad. But a friend of mine shared with me his secret of running his multiple car wash business.

You don’t even need to return from the Diaspora to run your car wash business. Nobody does that, believe me. I have explained the new management secret for car wash business. It works for anyone whether you live in Nigeria or abroad. You can’t wait to read more about that HERE.

eCommerce Business

The current eCommerce business in Nigeria needs more investors. The Nigerian market is in dire need of quality and trusted products. Nigerians in Diaspora have access to these foreign goods that would sell in Nigeria.

There’s a huge market for demand for quality products. You can create an eCommerce DropShipping store to sell anything from overseas, from diapers, soap, creams, etc. All you need is to offer it in bulk purchase to make the offer what the shipping cost. Then, you arrange local delivery partnership.

If this is done better it will be a huge market for basic foreign goods.

Product Supply Business

This one is similar to the Diaspora eCommerce business. The only difference is that it might not be online based. You just find potential bulk buyers of any quality product abroad and supply it. My cousin brings foreign version of some popular soaps in Nigeria.

As long as people can trust your source that’s it quality and foreign you have a business.

Hair Barbing Salon Hub

Now, let me come back to fully home grown option again. This time, it’s not just an ordinary salon. You are not starting a salon business. You are going to rent big shop in a major location in the city, build a standard salon and rent out either the entire salon or per space or seat, as the case maybe.

You are collecting rent as a landlord, while the head dressers and barbers are your tenants. You don’t have to worry about how many hair done per day. You just calculate rent per day.

Fashion Design Business Hub

This fashion Hub works the same way with salon Hub. It’s just for the fashion designers. You also build a well equipped fashion hub with all the fashion machines required to start a cloth and finish it in the Hub without going outside to get any extra help.

IT Engineering Business Hub

This IT Hub is slightly different but works in similar way with all the other hubs. n IT Hub now is mostly targeted at the highly demand handset market. There’s huge demand for handset repairs.

An IT Hub can have its own service parts store and rent out space to technicians who does the phone repairs. That way, you earn money from the space rent and also from parts sold.

Conclusion

Nigerians in Diaspora has suffered so much loses trying to invest back home. They either fall into the hands of family members or trusted friends, who only aim is to extort money from their Diaspora relatives.

It has helped build discouragement and cold feet among Diaspora Nigerians who would have been a large source of direct foreign investment into Nigeria. Most Nigerians in Diaspora has resorted to waiting till when they are ready to return back to Nigeria to fully setup and manage their businesses themselves.

But, I’m not even the only one who feels Diaspora Nigerians shouldn’t relent in trying to build multiply source of income back home while still living abroad. I have also stumbled on a website (HELPMEWAKA.COM) that helps Nigerians in Diaspora to do anything they want to do back home without using their family members.

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How to Start A Company In Nigeria with Zero Capital

This year, unemployment in Nigeria has surged again. Due to the pandemic, many residents have been deprived of their usual sources of income. Losing your job is a nightmare, but there are still ways to become self-employed, even with very little or no investment. I’m going to show you how you can start a company with zero capital.

These ideas can help you succeed despite the saddening turn of economic events. Discover five occupations that pay enough to cover typical expenses and make savings at the same time. You can earn money in one of the following ways.

1. Website Design

You can start a company to create websites, using free online courses to acquire web design skills. In this realm, practice makes perfect, so all you really need is a good eye and perseverance. Instead of spending hours on social media, do something that will pay off in the long term. Then, you may spread the word among your friends, place ads on social media, and gradually grow your clientele along with your portfolio.

2. Fitness Training

Being fit is trendy, so why not leverage this trend? People are still crazy about six-packs and athletic figures. Education is also accessible through the Internet. Begin by toning your own body and offer services to other people. Many Nigerians would like to train, but they have no time to visit the gym or no discipline to work out at home. With home services, you will grow your network quickly, as people will be referring you to their friends.

You can also become a fitness blogger on Instagram and make videos for YouTube. This opens up a world of opportunities in terms of advertising. First, if you have many followers, brands will reach out to you with paid promotion offers. Secondly, you may join the YouTube partner program and to get money for every thousand views. Thirdly, you may open side businesses like the production of sportswear. Overall, if you start small and work hard, there are many possible money flow directions.

3. Online Trading

This year, the popularity of trading online has soared. Skilled traders can make money wherever they are using computers or mobile devices. In 2019, Nigeria had the second-largest volume of FX trading on the continent. Now, it is poised to surpass South Africa. Education is free, and global brokers register demo accounts for risk-free practice on terminals like MetaTrader 4.

The idea of trading in the largest financial markets may sound daunting, but most instruments follow the same logic. Your goal is to buy low and sell high. All operations, from initial analysis to trading and withdrawal of funds are done online. All you need is the right software, reliable brokerage, knowledge, and a sound plan.

Entry into the live market is more affordable than ever, and you may open an account with just two thousand nairas (or $10). Forextime offers accounts denominated in the Nigerian currency, so you will save on conversion fees. Discover what is copy trading and delegate decision-making to professionals.

Start with currency pairs like USD/ZAR or EUR/USD. Subsequently, you will add more assets, which boosts profit and lowers overall risks. Beyond Forex trading, there are precious metals, stocks, and assorted derivatives. CFDs allow holders to profit from changes in different markets without owning any physical assets. There are CFDs on stocks, commodities like oil, market indices like FTSE 100, Bitcoin, and other cryptocurrencies, etc.

4. Private Tutoring

Is there a subject you know really well? Why not monetize your knowledge by teaching others? Young students and kids are not the only audiences. Adult schooling is also in demand, as there are older people who have not studied before due to a lack of time or opportunities. The third avenue is preparation for important exams like WAEC, NECO, GCE, and JAMB.

2020 has changed the education industry as distant learning is the new norm. This means you may not even need to leave your home to work. Register on tutoring platforms and conduct online webinars for groups or one-on-ones. Alternatively, you may build your own brand on social media and get clients from there.

5. Freelance Writing

The written word is still in great demand. You may become a copywriter and create marketing materials for companies, as the Internet is the main conduit for advertising today. Alternatively, you start your own blog and monetize it through Google AdSense. Finally, you can become a proofreader and check other people’s work without the need to write anything new.

Look Beyond the Familiar

Despite its rampant unemployment, Nigeria offers many opportunities for those who want to start their business. These five ideas require little or no capital, and education is free. Build your own brand, and it will help you earn money for years to come.

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How to Start Retail Cosmetics Shop In Nigeria

If you want to start a retail cosmetics shop this year, this could be your best chance of learning very insightful secrets of starting a cosmetics shop. This guide is written to help you from scratch.

I will also answer the most common questions anyone who desire to setup a retail cosmetics shops would ask. Like, is this business profitable? What does it cost to start a retail cosmetics shop? Where can one buy cosmetics at bulk prices for a retail shop?

I have provided you with the right answers and the best advise you can follow to achieve success. As a consultant, I’m also available for enquiries if you have questions. But also know that some enquiries may attract consultation fee – just tokens to help me help you better.

How Retail Cosmetics Shop Works

A retail cosmetics shop is the last line of the cosmetics business before the products ends up in the hands of the end users. There are different lines of action in cosmetics business, from manufacturers, importers, distributors, wholesalers, to retailers. The retail shops is the end-point for cosmetics products.

In a nutshell, a retail cosmetics shop buys products at a hugely discounted price from either the manufacturers, importers, distributors, or wholesalers and sell at retail prices to end users.

Apart from retailing cosmetics products, a retailer should have a better understanding of both the products and the needs of the consumers. That way you can prescribe the right cosmetics to help your customers solve their beauty problems.

Is Retail Cosmetics Shop Profitable?

The first question you must find answer to when starting a retail cosmetics shop is how profitable can the business be? And also how you can make it profitable for yourself. It’s one thing to know if a business is profitable, which in most case is usually the situation. Like, every business is profitable, but a business may not be profitable for someone for some reasons.

So, finding how to make the business profitable for you, should be the right question that you must find answers to. That is one of the things I have provided you answers within this guide.

Cosmetics business is profitable generally. How profitable it can be for you depends largely on certain factors, your location, target market, product efficacy, and price point. The best way to understand the profit potential of retail cosmetics shop is the markup, which is between 30 percent to 300 percent. I will explain it well in my conclusion. Now, let’s finish with the steps first.

Be An Apprentice For Few Months

Make no mistakes, what you know about cosmetics business will be the only reason you will start off successfully or not. And it’s not this article that will teach you that. What you will get from here is the know-how, but it won’t be dealing with the current market realities of the business at the time you are setting up your retail cosmetics shop.

So, I recommend you become an apprentice to another retail cosmetics shop to learn more about the business, especially regarding the location you want to start the business. What you will learn as an apprentice will help you understand the business dynamics much better.

You may need to pay to become an apprentice for just a few months, like 3 to 6 months period. But know that the mentor may not want to teach you everything he or she knows about the business. Be smart to learn even when no one is teaching you. Also be aware that most of what you learn as an apprentice is based on what you saw or experienced. Take note of these two events as you learn.

Make A List Of Suppliers

While you are learning as an apprentice, one of the things you must endeavor to do is find where your boss is buying cosmetics products from. These contacts would help you when you want to start. It will also help you to learn how much your boss buys and how much he’s selling to make profit. It gives you an idea of the profitability of the business based on markup.

Your boss may not want to give you these contacts, but pay attention to details, listen in into phone calls when he is ordering or enquiring from suppliers. Ask others who are in the business to know where they buy from too. And visits some of the markets listed in this articles to meet with suppliers.

Write A Business Plan

Now that you have undergone apprentice for some months, you should have a grasp of how this business works and how you can make your cosmetics shop profitable. So, it’s time to write how you want to do your business differently.

Your business plan should address important aspects of your retail cosmetics shop. It should help you articulate the types of cosmetics you want to retail, who your target customers should be, where to locate your shop, how much you require to get started, what your retail prices should be like, how you intend to market your products, etcetera.

Pick Your Niche

If you have decided almost everything in your business plan, it’s time to take the plunge. Define your cosmetics shop niche. As a startup, don’t make business complicated for you. Pick a niche to start and add more as your grow, or as market demands.

For example, you can choose to start with a particular brand or with just creams and soaps, or with perfumes, or makeup kits, etcetera. Start with the one you know and understand the most. Once you are in the business you will learn more and be able to move to what sells the most for you.

Plan Your Setup Cost

Your setup cost is a product of your plan. This cost is personal to you. You must put it together. Nobody knows what you want to do more than yourself. But this is how I can help you know what your setup cost should be.

Start by inquiring on the cost of shops in your target location. That’s your first cost. Write it down as cost one.

Also, you should have made a list of cosmetics products, based on the products that are either selling more during your apprentice days or have better market potentials. In your list you should have both their retail prices and cost prices. Add carton orders to each product to get the total. And that’s your second important cost.

Other things you need to put into your cost consideration includes:

  • Interior decor cost
  • Power supply generator cost
  • Marketing and advertisements cost
  • Staff requirement cost

These things you can find out and at a cost prevalent at the time of starting your retail cosmetics shop.

 

 

Find A Shop

Once all the cost have been put together. You know what all that’s required would cost, it’s time to start implementing each of them. The first step here is finding a shop in the target location defined in your business plan.

Your shop will be where most of the sales take place. Retail cosmetics shop is a location based business. So, the best location must be your goal when looking for a shop. Here are a few tips to help you pick the right location for your retail domestics shop.

  • Know your target customers too well
  • Pick a location that’s easily accessible to them
  • Pick a shop that’s visible from the road

Buy Products In Bulk

For a retail shop, you will be buying stocks in bulk to sell at a good profit margin. That means you should know the contacts of either the importers or wholesale distributors. These are suppliers to buy your cosmetics products from.

However, if you know the distributors in your city that might be helpful to save you cost and time, try to connect with them. If you did the apprentice I advised you to do, this would have been sorted out while you were an apprentice. If you didn’t, then you have to do it the hard way.

Trade fair complex in Lagos is a major business hub for cosmetics importers and wholesale distributors. You can start your search from there. Other major markets for cosmetics are Onitsha main market and Cemetery road in Aba. Suppliers abound in these markets.

Pick Profitable Cosmetic Products

No matter what products you stock, there are those that would make you profit and there will be those who would just seat on your shelf and gather dust. Pick your products wisely.

During your apprentice, make the list of the best top 10 or 20 selling cosmetics in your target market. They should be among the products in your list for startup. It’s not the wisest decision but a good place to start.

Another thing to consider when buying cosmetics products is the product and the retail margin. It’s okay to just stock every well known products, but it’s smarter to pick some unknown products that can deliver on their promise. New products have higher profit potentials than already known products.

Marketing And Advertising

Sometimes it’s difficult to try promoting a retail cosmetics shop, if you sell the same products with other competing shops. But you should not discount advertising from your business. I built my retail cosmetics shop on Facebook advertising.

My secret is simple, I have a new cosmetics products, and I was also the distributor in the city. I leverage on it. Although, it wasn’t the idea from the beginning. My target customers, which are other retail shops were not patronizing me because the product was new. I had no choice than to try to sell directly to the end users.

Advertising worked best for me. From no sells I moved to 3 customers per day, and then 5 per day, until I started seeing much customers per day.

Don’t discount marketing and advertising. Find a way to leverage it for your retail cosmetics shop.

Conclusion

In summary, if you subscribed to apprentice you would be well informed about the profitability of retail cosmetics shop. When I started cosmetics, my best idea was to become a distributor for a cosmetics company in my city. But when I got one, I realized while I was making N1,000 per carton of cosmetics I sold, the retail shops were making as much as N20,000 from the same carton.

Although, it takes me little time to sell a carton, but until those retail shops sell off the carton they won’t be coming back for more. So, I wasn’t in a better position than them.

Also, your shop location is a major key. If you make this mistake, the business will struggle until it will eventually shut down.

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Start A Business

How To Start Bakery Business As A Beginner

If you want to setup a bakery business, even if you don’t know how to bake, here’s your step by step guide as a Beginner. In Nigeria, bread is one of the staple foods. That goes for all the bakery products. They are now staple in our lifestyle.

Sometimes the challenge is the thinking you should know how to bake before you can venture into bakery business. To start a bakery business, you only need to think like an investor. However, having the knowledge of baking is an advantage.

The market for bakery products is very huge and competitive as well. But you can choose to stand out with your own delicious recipes. Anyone can win in the bakery market. It’s not a first come takes all. A new entrant can sweep the entire market to its favour if you know what to do.

Understanding Bakery Business

Bakery business involves the production and sale of food made out of flour and prepared in an oven. These foods include bread, cake, pies, cookies, biscuits and pizza.

The bakery business is interesting. It involves a wide variety of products. Some bakery industries specialise in a collection of flour-based products while some only specialise in just one, for example, a bread bakery.

As a beginner, bakery business is lucrative and gives you a certain freedom to an extent to work from your home. If you’re a huge fan of baking and work-at-home jobs, you can start a bakery business at home even as an online business.

You can also transform your kitchen or garage to a mini bakery and shop with tables and chairs to accommodate those who want to sit and eat.

Tips On Setting Up Your Own Bakery

#1 – Get started with the kind of shop and business you want. Take your time with this. This step involves your view and the idea of your bakery. What does it look like in your head? Sketch it out.

  • Do you want to work from home?
  • Do you think a shop is the best for you?
  • What are your preferences?
  • What are your ideas?
  • How do you want your bakery business to be?
  • Answer these questions yourself to help you figure things out.

#2 – Make a plan, like every house before it’s built, and every business before it starts, a plan must be drawn. If you can do it yourself, get a business consultant to do it for you. Once you have figured out your strengths, weaknesses and preferences, write them down. Draw it out. More than keeping them in your head, it’s better to have a sketch on paper.

This plan should include your start-up cost, the amount needed to start your business. Also, include the specificities of your business. These include the products you’ll be making, their prices or price range of you don’t know it yet and all the equipment you need to start your business.

#3 – Map out your pricing plan. Formulate a plan you’ll use to figure out the price of each of your products. The factors to consider when choosing a price should include the time spent preparing the product, the price of ingredients, the time spent publicizing your business, and packaging.

Time is money. The time spent on a baked food or a batch of baked foods should be accounted for.

#4 – Find a space. Your space is your kitchen or garage if you’re working from home. If you would be owning a shop, be patient and be selective in your search for the perfect one. The right space should pay for itself overtime.

#5 – Marketing: Before you start baking, especially if you’re home-based, announce your business to the world. Or your community at least.

Use mouth to mouth and person to person mechanisms to inform people of your new bakery and the kind of goodies you make. Make sure you accompany your talk with beautiful pictures of your goods or printed flyers.

You can also spread the word via social media platforms like Facebook, Instagram and WhatsApp.. Send digital flyers to your friends, family and followers and make them send it to their friends and followers too. To further brand your bakery and increase your publicity, open social media accounts for your business.

#6 – Storage: A fridge or freezer is important in your bakery business. Baked products need to be preserved because they have a short lifespan which can only be extended by freezing them.

Buy the right cooling storage system. The regular home fridge may not be most ideal. But if that’s what you have , ensure it’s the type that has temperature control. Baked products have their proper cooling temperature for storage. Avoid letting them freeze above the required temperature.

Startup Cost And Requirements

The start-up cost of a bakery business is required to cover the necessary pieces of equipment, ingredients and the cost of a shop (if you would be getting one). The start-up cost depends on how large you’re starting. If it’s a small in-house business, it would cost less and the opposite for a larger business.

Pick your cost level based on the size of the bakery business you. If you are starting small, know what’s needed and invest only on such equipments for a small startup. You can upgrade as the business grows.

Types of Bakery Equipment

There are several pieces of equipment used in bakeries. The following are five classes of bakery equipment:

Cleaning Equipment: These includes equipment used to clean used and dirty equipment. Examples are dishwasher, soap and sponges.

Preparation Equipment: The equipment in this class are the ones implemented in the preparation of the baked goods. Examples are mixing bowls, cookie cutters, electric whisks, spatula and tables or boards for kneading.

Baking Equipment: This includes equipment used in the baking process. They include baking tins and trays.

Exhibition Equipment: These equipment are used to exhibit baked goods. They include display containers or boxes and display racks.

Storage Equipment: These are equipment used to store ingredients and baked products. They include freezers for perishable items and shelves for non-perishable ones.

Types of Bakery Products

The number of bakery products is inexhaustible. More new pastry ideas are being created everyday. You too can create yours. However, you can also explore some popular local pastries around the world and give your customers something new.

There are many types of bakery products but below are just a few popular ones.

  1. Bread
  2. Cakes
  3. Muffins
  4. Cookies
  5. Pizza
  6. Dessert
  7. Pastries
  8. Biscuits

Highest Demand Bakery Products

The bakery products with the highest demand are bread and cake. Bread is a popular choice of food eaten all over the world. Bread can be served in different ways and with a variety of accompaniments.

Cakes are consumed as desserts, breakfast and during celebrations. But depending on your target customers, the best products might not be bread or cake. For example, if your target customers are people planning events, pastries like small chops, buns and cakes may just be what is best offered to them.

You just have to identify your own best bakery products based on your target customers.

Challenges of Bakery Business

There are many challenges of bakery business, from setup cost to picking the right location, and creating the best user experience. But the top three challenges that stands out are about staffing, waste management and customers knowledge-base.

Getting The Right Staff:

The staff of a bakery is as important as that of any business. The staff is needed to serve customers, produce baked products and do deliveries. A bakery business with few staffs than needed would need to source for more.

Minimizing Waste:

Waste is one of the major challenges in a bakery business. Scrapings from cakes, leftover pastries and dough are some examples. To prevent wastage, cake scrapings can be sprinkled as toppings on cakes and the leftover dough can be collected and used to make an additional baked product or frozen for later.

Customers with little knowledge of gluten-free products:

This may come as a challenge to a bakery since most people wouldn’t buy what they know nothing about. This challenge can be curbed by letting the staff (waiters) briefly explain what it means to the customers.

Digital Marketing For Baked Products

It’s more easier to promote your bakery business using digital platforms. It creates even the best word of mouth of publicity that you need. Moreover, with location based advertising you can reach only those who are within reach to buy your bakery product.

You can find a lot of bakery marketing ideas online. Most bakery businesses explore the potentials of Instagram, Facebook and WhatsApp. You can also expand it with a website for quick ordering.

Selling baked products online makes it easier and faster for customers to make a choice of what they really want from the collection of finished bakery products you post online.

Conclusion

Starting a bakery business is profitable, interesting and satisfying. If baking is something you love to do, owning a bakery business means you get to do what you love every day.

However, whether you can bake or you just invest in bakery ideas, horn your skills well and create mouth-watering baked goods with varieties. Customers love to change their taste. Create bake products that doesn’t exist before.

Finally, don’t be afraid to venture into unknown territories of the baking world. You can create eating areas for customers who would love to just take a seat and enjoy some pastries and a chilled soft drink. You can’t go wrong with great ideas for your bakery business.

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Internet Marketing

How to Start A Successful Niche Blog In Nigeria

Do you want to start a blog? I would recommend you start a successful niche blog. In case you don’t fully know the benefits of a niche blog and how you can grow this type of blogs faster than general blogs, I will be showing you things you need to focus on more.

Starting a blog today is no longer an easy job as it was some decade ago. A lot of Nigerian bloggers are struggling with generating traffic for their blogs. The reason is not that blogging no longer works, but the game has changed. Even the SEO techniques has shifted from on-page to more of off-Page.

It takes a lot now to grow a blog. And the way search engines treat blogs now, it’s difficult for general blogs to grow their traffic faster than a niche blog would. That’s why it’s in your interest to narrow your niche and help Google understand your blog and help you grow faster.

Why Niche Blog

There are many reasons you should start a niche blog instead of general blogs. I know most startup bloggers think that writing on every topic increases your traffic. That’s a farce.

Having a general content makes it difficult for Google to properly rank your site under one topic. It would rather treats each post as a single topic, reducing the impact each post could have on the entire blog, since the contents are not directly related. That affects the traffic you get from the search engine too.

I’m going to break it down for you, in a way you will understand and take advantage. Most importantly, I will also remove the fears many have in starting a blog. Yes, blogs are still the fastest way to gain online relevance, as social media networks are now censoring and reducing the reach of users posts.

What’s A Successful Niche Blog?

Niche blogs are specialized blogs that addresses only a particular niche. It’s like a question and answer approach. So, a niche is the problem you want to solve with your blog. This gives you advantage with search engines.

Your blog is easily categorized in search engines and that shoots it up through the page-rank faster than general blogs. Your blog is only competing with other blogs in the same niche, which is limited, and not with all the billion blogs on the internet.

Examples of a niche blog are too many to ignore them. There are countless niche blogs online that you won’t have a problem finding your kind of niche to learn what other Before have done.

And you can easily know what niche would flow with you by knowing what natural type of intelligence God gifted you with. If you have a hard time figuring it out, I recommend you read this: 9 Types Of Intelligence In Smart Entrepreneurs.

 

How Niche Blogs Work In Practice

A niche blog is an information resource targeting at a particular audience with a focused need. It deals on a specific topic or content. Although, everybody has a different idea of what a niche should be, but that doesn’t change the fact that a niche is addressing a specific topic.

So, choosing the topic of your niche and focusing on that topic, by addressing every sub topic that exist in that niche is what makes a niche blog powerful. It’s like a compendium of specific information.

For example, football is a type of sports. It’s a niche in the sports arena. Doing a football blog is a niche. However, a football blog can also be a general blog when you now look at blogs that deals with only players transfer market, or fan clubs, or betting, etcetera.

Finding A Niche For Your Blog

In picking a niche for your blog, it’s not entirely a straightforward approach. Even after you select your niche, you still need to calculate the traffic volume, the revenue model and conversion funnel.

However, you don’t have to be a pro blogger to figure it all out. You can follow what existing blogs are doing well, and you will be just fine. The first step is in finding a profitable niche is finding your niche. It matters what you have enough motivation for.

Don’t do news blog if you don’t have the flare for news media. The same goes for gossip blog, etcetera. Remember, blogging is like teaching, you stay with the subject you are best at. That’s the only way you can create the best content and win the best endorsements from sites with higher domain authority.

Avoid trying to jump into niches that seemed to be attractive or profitable. The game of search engine traffic is changing everyday. It takes more efforts now to win in the online traffic war than was possible in the past.

Tips On Profitable Niche Blog?

To find a lucrative niche would largely depend on your target audience. The most profitable niche blog is that blog that provide answers to problems most people have in a way that’s helpful and easy to access to their benefits.

Nigeria is a complex online community. Most of what drives blog growth are freebie blogs. That’s why blogs like free music download sites are gaining momentum. But the real problem is also how to monetize them since bloggers don’t usually have copyright to those songs.

If you are to go by Google standard of a profitable niche, then you can just add problem with number of people who are looking for solutions online. Also know that it’s not every problem have large number of people looking for its solution online. But generally, any problem with large number of victims would make a profitable niche blog, and finding such problems won’t be difficult.

For a profitable niche blog, your concern should be to find the problem that the victims are capable of paying for solutions. Google search is built as a way for people to find solution or answer to their question. If your solution is worth money that’s a way to gauge the power of your content with search engine approval rating.

A comprehensive answers on a blog to a niche problem would get more searches than those in a general blog. You don’t need to start looking for a profitable blog in a niche you know nothing about. There are problems everywhere and you can find one that you are qualified to solve.

Focus On The Right SEO Techniques

In SEO, it’s a give and take kind of thing. You give the best solution and you get rewarded with more traffic. But there’s a lot that helps make that transaction possible. It’s not just about the best content wins. The battle is now beyond the cliché ‘content is king’.

That phrase ‘content is king’ is getting a new definition. Your blog also needs to be endorsed by top internet sites. Yet, it’s more so like how it operates in the real world. If you get endorsement from the big companies you can get virtually anything done in the business world. Google thinks that way with its search algorithm.

You can do your best in on-page SEO, but if your off page SEO sucks, you still can’t get much of a traffic from search engines. I made this mistake for over 2 years, working mostly to perfect my on-page SEO. But when traffic stagnates at the same level for more than one year, I knew something else has to be done. You don’t have to wait that long to find out the truth.

However, most of what you do to optimized for on-page SEO is now being done for you by Google algorithm. The search engine understands your content now more than even your keyword is trying to make it see. And because there are billions of other sites competing, Google pays more attention to site endorsed than your on page SEO.

How To Do Off Page SEO Right

The reason for off page SEO is to get the much needed endorsements from other sites. Think of it this way, that you have a book and CNN, BBC, Bloomberg, New York Times, etcetera are reviewing it on their networks. That’s a huge endorsement that your book is a best seller, and that would translates to more sales.

That’s pretty much what happens to your search traffic when big sites link back to you. Although, some are still thinking backlinks as in quantity. But Google values the site quality more than the number of backlinks you get from many sites. If you get more high quality backlinks that’s a huge win over your competitors. That’s how fast to get to the first page of Google ranking.

The theory of backlinks is based on MOZ domain authority ranking, which rate sites from zero (0) to hundred (100). The higher the number the more authority that domain commands. One backlinks from a site with DA 80 is more valuable to your site SEO than hundreds of backlinks from sites with DA 20.

How To Get High DA Backlinks

If you understand the power of backlinks, you will also know that it doesn’t come so easily. You are not going to get backlinks from sites like Amazon, CNN or New York Times just by asking. Don’t listen to the gurus. Those theories they preach doesn’t always apply to everyone.

Think of backlinks as a growth formula. If your site is still low in domain authority, start by attracting backlinks from site with much higher DA than yours. It’s a journey you are undertaking. So be patient to follow the routes.

Alternatively, don’t ignore this one as well, pay to get backlinks. I know it’s not something to say openly. But it’s a common thing happening online. People are selling backlinks. It’s a huge business. As Google tries to limit the use of paid backlinks, sellers are getting smarter and successful.

There are so many sellers on Fiverr where you can buy backlinks. Okay, don’t fret, follow this link to Fiverr site. I don’t recommend any other platform because it’s also so easy to get conned by spammers who sell bad backlinks.

Conclusion

Blogs don’t just grow online. It requires a lot of online traffic to grow. Unless you are willing to Invest enormously in advertising, then your best source of traffic is the search engines. To get search engines to trust you and send you traffic you have to play the search engine game.

While niche blog gets approval from search engines as authentic resource for that particular niche, you also need to prove that your blog overall content can be trusted. That’s why you need backlinks as online endorsement from high domain authority sites.

If you get things right fast enough, your blog grows. The idea that if you have many blog posts it’s faster way to grow traffic is not entirely true, but it does help. One blog post can get you more traffic if it has highest DA rating than all the entire traffic from Washington Post.

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Grow Your Money

Startup Nigerian Investment Guide 2020

If you are thinking of investing in Nigeria this year, you will need to know how the market works now and be guided on your investment. This year is gone, over half of the year and a lot has happened already, with the pandemic still ravaging the economy. There’s so much to understand about the state of the economy in the first ever startup Nigerian Investment guide.

Nigerian investment Guide for this half of 2020 is to look at what the CoronaVirus pandemic has reduced the economy to and how investors can maneuver themselves through this stormy waters.

There’s hopelessness in the country right now, coupled with government reckless display of inability to tackle the pandemic or pilot the country out of the economic woes that’s staring it in the face.

New startups may have serious challenges taking off this year, even into next year. And that’s not good for the economy. In a time more businesses closed up in history, startups should be a reviving steps, but that’s not even happening now.

However, the marketplace is not shut down. There’s still growth, even though small. Investors can look in the direction of this growth and still maintain cash flow.

How Startup Investment Guide Works

As a business review site, we are determined to guide both local and foreign investors who are interested in investing in Nigeria. The idea is to explore new growth areas and show investors where there maybe hope for their survival in the economy.

Nigerian Investment guide is no a political tool. Although we may look at what government is doing right or wrong, but that’s usually not mandatory in this report. We try as much as possible to stay clear of politics. And when we do, it’s not a smear campaign or to boost party affiliation.

The primary focus is always to protect the Nigeria investment environment, and to help startups and small businesses navigate the stormy waters of our economy. Everyone knows how bad the Nigeria economy was before this pandemic. So, not much is expected from this government, in terms of handling the situation.

If there’s any good development from the government, it would come as a surprise. However, much of what NCDC has been up to seems like a televised script. There’s little or no Nigerian content in it to help it overcome the pandemic. NCDC should be looking at our cultural, religious and tribal characteristics of an average Nigerian.

But what has happened is NCDC making decisions in the morning and changing it by noon. So, there’s no particular proven approach being implemented since this pandemic.

What Is Happening In Nigeria Now

The Nigerian economy is facing its worst challenge in history. That’s why investors should be careful. The stock market will keep crashing, because there’s no real market developments to sustain stock growth. Any investment in stocks now would be to amass share volume to be held till when the market would rebound.

Import business is also suffering under this pandemic, with dollar rates spiraling almost out of control, even now that consumer spending is waning. People will not be able to keep up with increase prices of imported goods. That would result to lower demand.

Generally, money will be in short supply, and government would attempt to horde cash flow by awarding fewer contracts and suspending salaries of workers. A dangerous twist, but due to lack of an economic policy, government will seek to horde more money than spend more.

Navigating the slum of the riverine community

 

If you look at what the United States government and other European governments like Germany had been doing, is to increase liquidity of the economy by pushing more money into circulation. But Nigerian government will do the opposite or push large monies into some private pockets instead.

Consumer Spending Power

If there’s anything that is grossly affected now, it’s consumer spending power. This power is important in any economy, and Nigeria shouldn’t be losing it now. The government should be focused on how to sustain this power from waning out.

It’s not only the people that would be affected, the government would become poorer, unproductivity would increase and people’s needs would outstrip supply. And that would lead to a higher negative GDP as well.

I once advised a state government on the need to pay salaries regularly and as at when due. They are killing their state economy when they don’t pay salaries. It’s even wiser to borrow to pay salaries. But not many people in government understands the economics of paying salaries.

They think it’s wisdom to hold onto workers salaries. It’s the worst policy of any government. That’s why the Nigerian economy or any state for that matter is not growing. There’s no mystery in economic growth than in consumer purchasing power. Every level of government in Nigeria should focus on that.

Sometimes it’s erroneous to think that creating new jobs is the only solution. But how would new jobs be created when consumer purchasing power is low or non existent? State governments in particular should stop making excuses for payment of salaries if they want their state economy to grow.

How Money Is Circulating Now

For any economy to be growing, money must be exchanging hands. Currently, there are just few means through which money is being exchanged in this country. And that’s a major problem. The economy won’t show signs of any improvement until these area is reversed.

Government needs to reopen the country fully. There’s so much ignorance on the virus. And until government stops playing politics and starts growing the economy back, it’s too risky to invest in Nigeria now.

If you take a look at some of the biggest drivers of cash flow in our economy, you will see that they are all dormant. Almost a quarter of the population is in the educational sector. The money that circulates in that sector is a big part of our cash flow economy.

The other sector is workers, both in private and public sectors. Government being the largest employer of labour in the country still has more than two-third of its workforce at home. And since no impactful palliatives was given to these workers, majority of them may never get salaries paid during these period.

You can see, and it’s not just these two sectors. There are many other sectors having the same issues. If money is not circulating from the consumer to businesses, how can the economy grow back?

Nigerian Employment Percentage

The number one investment in Nigerian is employment. I consider employment as an investment because it’s a major source of income for most families. The percentage of Nigerians in employment is over 76 percent of the 200 million population.

You can’t ignore that large percentage. It’s huge and it means that more Nigerians are in dire financial circumstances that could crash our economy. While the remaining unemployed 23 percentage plus depends on the employed ones for survival.

Imperatively, if these percentage are now under salary scare, what’s the hope of the economy? We are indeed in a middle of a pandemic that’s worst than CoronaVirus. The only thing defending our economy is our local market structure and small businesses.

The Diaspora Challenge

One major Nigerian Investment that’s suffering as well is our Diaspora imports. International flights are shut down and not more Nigerians could be sent abroad.

Nigerians living outside the country are a major revenue earner for the country. So much cash flow coming from Nigerians all over the world into the country has been a sustaining power for our economy.

Although, this time it was affected but we saw the power of Diaspora economy as many communities got palliatives from their people overseas. Billions of naira flowed into this country. But guess where most of it went, food.

However, there will be less inflow from Diaspora economy this year. Nigeria is not the only country facing this pandemic. Our diaspora economy is also facing CoronaVirus pandemic. There are job issues where they live too. And less income is expected to be generated as well by Nigerians in Diaspora.

Most families in Nigeria depends on this inflow from the Diaspora, especially in the rural areas, where our parents live. And since there’s a cut in Diaspora money, money is going to be in short supply in our rural areas.

Making Purchasing Decisions

As this trend continues, consumer wants would become regulated. Not by choice, because of their limited financial resources. Even for those whose income may not be affected would also regulate their purchases.

One thing that’s present in a situation like this, is the penchant for fear. There’s perplexity of nations, and so, many will lose hope in the present and even in the future expectation for market rebound.

Consumers are going to be making purchasing decisions that only addresses their most important and urgent needs. Things like food, health and shelter would remain paramount in the list of preference.

The scale of preference won’t favour luxury goods. There would be major reduction in tourism and entertainment. And consumers would resort to self help where necessary.

How Investors Should Be Thinking

In Nigerian investment guide, I try to look at investors both as individuals, corporate and government. In this special COVID-19 guide, my main focus will be on how government investors should be thinking.

Every state government should be looking at ways to grow its state economy. And the best way is to increase employment in the state. But there’s a way investors think, and government need to think like investors to attract growth.

For a big company like Nestle to invest in any location, it’s primary focus is the consumer spending power and not just population. Sometimes, smaller states think they don’t have anything to attract big investors. While investors don’t just look at one state, they also see the neighboring states markets.

If you grow your consumer spending power you will attract the big investors who would use your state as a launchpad to target neighboring states markets. The key is for a state government to ensure that a larger percentage of its employed workforce get paid regularly to increase is consumer spending power.

Who’s not thinking about Nigeria

Retail Industry Will Continue Booming

One good news in this whole pandemic is the retail industry. It has a sustained growth than any other sector. People will continue buying and selling. Although, the volume may not be higher compared to pre-COVID era, but the margin will be sustainable for businesses.

The visits to the markets would increase as well. More consumers would consider buying from the main markets as a means of saving cost of living, while the online market would suffer as a result.

Almost every product on the market has increased its retail price. While value may be affected, as companies struggle to compete over the available consumer expenditure. The kind of value that would be affected won’t be quality but quantity of what the old price offered.

Investors should focus on these markets to push their products into the hands of consumers. These markets still remains as Nigerians offline network for buyer’s and sellers. Take advantage of them to sell more products.

You can use the distribution network system of networking your goods across the country, using other people’s money and leverage on their existing retail network and customer base.

How And What To Be Advertising

I have read some experts asking businesses to increase their online advertising budget and not reduce it. That’s a big deception if I must say. If there’s any reason to increase your advertising budget it would be to build hope in the marketplace.

Advertising is majorly a tool to increase awareness and sales. The majority of the consumers are prioritizing their meager income now. Most online users now resort to using Facebook free mode. They won’t even see your product picture or video ads.

The only thing consumers wants to hear now is how to get out of this quagmire. Do you have any solution, now is when to try it. MTN did something interesting. They gave their subscribers 10 free sms daily to help them connect with love ones. That’s a noble idea. It can increase sms usage and revenue for MTN like it did with me.

Imagine if Nigerian banks decided to give back some cash to their customers during this period. I don’t think our organizations know how to perform social responsibility marketing. They believe so much in lobbying government than winning over the consuming public.

Conclusion

In this first review of startup Nigeria investment guide, I made it easier to understand Nigerian market outlook in a pandemic era. What’s happening now in the market was never expected. No one saw 2020 as a year of the virus, but that’s everyone’s experience now.

The markets are crashing for most stocks. Consumer purchasing power is failing rapidly and without restraint. Supply is also drying up for most needed items, even as the global market is experiencing its worst production cut ever.

Most factories are shut down, including businesses, worship and entertainment centers. International tournaments and events were either postponed or taken online were its applicable. And the world changed this year, but not just the Nigerian investment outlook for startups.

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