Building a Tech Business: Is Lagos the Place to Be?
Options for ambitious young entrepreneurs
I can’t count on my fingers how many times I and my partner have been told we can’t build up something serious without pitching our tent over in Lagos.
It’s the commercial nerve centre of the country; it has the most infrastructure, great partnership/economic opportunities and abundance of eager - to - work persons. I tend to agree with the second and third reasons though. For the first I’m not so convinced.
With its tiny land mass being over burdened by the constant influx of persons on the search for greener pastures the state of infrastructure is nothing to impress.
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It’s difficult though, despite its shortcomings to run an ambitious business without keeping Lagos in your sights. 99% of the partners, alliance organisations, funding individuals/corporations you will have to reach out to or work with are there. Lagos is the economy for your company’s growth.
But if one is a young, cash strapped entrepreneur he surely cannot set up shop in Lagos straightaway from his base in any other part of the country. If it’s a tech (web or mobile) business that he intends to build then the digital pace of today’s world mean he can overcome the challenges of not being in Lagos. Online you can reach your potential users even when operating from a cave, provided the cave gives you internet access.
The infrastructure in some parts of the country like Enugu, Akwa Ibom, Calabar etc are improving. Ogun is becoming an attractive alternative to the hustle and bustle of Lagos. Several other states have the barest conditions to enable a tech startup to thrive. Except maybe the human resources.
Among the biggest challenges we have running Ngcareers and our other startups from Enugu is that of getting the quality of candidates we need for new positions. For web development and software engineering positions you barely find any capable hands outside Lagos.
Luckily my partner is a good techie and we have been coping. Ultimately we may need to open up in Lagos but then we will be ready for it. You certainly can’t ignore the vast opportunities for strategic partnerships in Lagos that can be used to boost the fortunes of a young company.
I think for any young entrepreneur operating outside Lagos the best thing is not to rush into opening an office in Lagos when your company cannot carry the brutal costs that will surely come. Set a timeline for opening up shop in Lagos, look extra smartly to get the hands you might need from around your base, work to get that revenue up and travel to Lagos to meet potential partners, VCs etc when the need arises.
Move when you are confident you have the cashflow to sustain the obvious higher overheads your company will incur in its new home.
