For entrepreneurs with a lot of money saved up, the only obstacle to starting a business is coming up with a viable idea. But many aspiring business owners have the opposite problem — the idea is there, but the capital is not.

Obtaining Finance

Raising capital is one of the most challenging tasks for businesspersons; especially those who are new to the game. In fact, the inaccessibility to business capital is more profound for businesspersons in developing countries like Nigeria. If you are starting or expanding your business you may need to obtain finance. Carefully consider the type of finance as it could affect your cash flow.

Before sourcing finance:

• Determine how much finance you will need
• Develop a sound business plan
• Consider the timeframe you will need to repay the loan
• Determine your ability to repay the loan

TYPES OF FINANCE

Two of the main types of finance include:

• Debt finance — money borrowed from external lenders, such as a bank
• Equity finance — investing your own money, Government loans or funds from other stakeholders, in exchange for partial ownership.

It is possible to have both types of finance in your business.

Advantages of Debt finance

• You retain full control of your business
• The loan can be short or long term

Disadvantages of Debt finance

• The loan must be paid back within a fixed time period.
• Loan repayments will commence shortly after the loan is approved.
• The loan is often secured against collateral which may include assets of the business or the owner’s property.
• It can be difficult to grow the business because of the cash drain of repaying the loan.

Advantages of Equity finance

• Less risky than a loan as the investment does not need to be paid back immediately.
• You will have more cash on hand as profits do not have to be used to repay loan.
• The investor(s) can provide additional credibility and skill sets to your business.

Disadvantages of Equity finance

• The investor(s) will want some ownership or controlling interest of your business and will have a say in business decisions.
• It takes time and effort to find the right investors for your business.

SOURCES OF FINANCE

Find below a list of some potential sources of finance for your new business:

1. SMEDAN: Small and Medium Enterprises Development Agency of Nigeria is an agency that was set up by Nigerian government to support individuals who have great business ideas but may not have enough resources to execute them. SMEDAN is one of the sources of business funds in Nigeria.

They are located in all 6 geopolitical zones in Nigeria and the FCT. If you have a good business idea, just forward an application to SMEDAN on info@smedan.gov.org and await their response.

2. Seedstars Africa: Seedstars Africa is a member of Seedstars Group, a Swiss-based venture builder that is active and invests in 35+ countries around the world, especially in emerging markets in Asia, South America, The Middle East and Africa.

Through Seedstars World, its popular, highly competitive and exclusive startup competition for startups in emerging markets, the company is able to identify promising companies to support with capital and technical help.

3. Local co-operative societies: In Nigeria, people often join co-operative societies and borrow so as to generate business funds. They do money sharing in turns, in that a huge percentage of their savings are given to members to start business with it.

To achieve this, join a local co-operative in your area and understand how they operate. When it gets to your turn, they will give you a huge share of their savings and with the money one can use it to fund his or her business.

Local co-operatives have been known over the years as one of the sources of business funds in Nigeria.

4. African Women’s Development Fund (AWDF): The AWDF is the first pan-African women’s grant maker in Africa. Since the start of its operations in 2001, AWDF has provided $17 million in grants to 800 women’s organizations in 42 African countries.

The AWDF is an institutional capacity-building and programme development fund, which aims to help build a culture of learning and partnerships within the African women’s movement. In addition to raising money and awarding grants, the AWDF will attempt to strengthen the organisational capacities of its grantees.

The AWDF only awards grants to organisations, not individuals. It awards grants ranging from $8,000 up to $50,000.

5. Bank of Industry: Bank of industry gives loans to small, medium and large industries, excluding cottage industries.

They also borrow to credit worthy promoters who will be required to prove their commitment to the project. Part of their objectives is to lend to clients with demonstrable ability to meet loan repayment. To access BOI loans, do the following:

• Write an application letter requesting for the amount you will like to access
• Complete Bank of Industry questionnaire.
• Download their forms at boinigeria.com/downloadscentre
• Submit the form and questionnaire

Note that there are no limits to the amount BOI can lend to borrowers and a loan of about N 75 million can be approved in 2 weeks if all necessary requirements are met. For more information on BOI loans, please log on to www.boinigeria.com.

6. Tony Elumelu Foundation Entrepreneurship Program: The recently launched $100 million Tony Elumelu Foundation Entrepreneurship Programme (TEEP) is an annual programme of training, funding and mentoring, designed to empower the next generation of African entrepreneurs.

Founded by Mr. Tony Elumelu, the successful Nigerian entrepreneur and philanthropist, the fund seeks to identify and support 1,000 entrepreneurs from across the continent each year over the next decade.

The fund expects that the 10,000 start-ups and young businesses selected from across Africa will ultimately create one million new jobs and add $10 billion in annual revenues to Africa’s economy.

The TEEP Fund focuses on citizens and legal residents of all 54 African countries. Applications can be made by any for-profit business based in Africa in existence for less than three years, including new business ideas.

7. Bank of Agriculture: Individuals who do not have money to go into agro-allied businesses may borrow from bank of Agriculture. They provide credit to segment of the Nigerian society who has little access to the services of the conventional banks.

Bank of Industry is owned by Central Bank of Nigeria and Federal Ministry of Finance and supervised by the Ministry of Agriculture.

It is obviously owned by the Federal Government of Nigeria. Bank of Agriculture operates as conventional banks and they give loans to farmers who meet certain conditions.

8. CDC: Founded in 1948, CDC is the UK’s Development Finance Institution (DFI) wholly owned by the UK Government’s Department for International Development (DFID). It is the world’s oldest DFI with a history of making successful investments in businesses which have become industry leaders.

CDC actively supports businesses throughout Africa and South Asia, and its portfolio of investments is valued at over £2.5bn (year end 2013).

In November 2013, CDC announced a US$18.1m investment into Feronia, an agricultural production and processing business focused on palm oil plantations and arable farming in the Democratic Republic of Congo (DRC).

9. Personal finance: One of the ways individuals can get loans is by funding it themselves. People who manage to operate a local account (mostly fixed deposit) can empty it just to fund their business.

You can also sell your shares to generate money to fund your business. It is often said that, “If you save money, money will save you.”

This is the most common and the best of them all because you do not need to beg anyone for support. Traditionally, this is regarded as the best but it does not mean other methods should not apply when you do not have enough to start or support your business.

10. African Development Foundation (ADF): The African Development Foundation (ADF) is an independent Federal agency of the United States government that was established to support African-led development that grows community enterprises by providing seed capital and technical support.

USADF connects community enterprises with capital and technical support. It helps organizations and businesses in Africa to create and sustain jobs, improve income levels, achieve greater food security, and address human development needs.

In 2014 alone, the USADF gave out 336 grants worth over $50 million and impacted over 1.3 million people in Africa.

11. Family or friends: Family or friends may provide funds in return for a share in your business or as a partnership. Carefully consider this option as a breakdown in business relationships may affect your personal relationships.

12. Acumen Fund: Acumen is a charity organisation incorporated in 2001 with seed capital from the Rockefeller Foundation, Cisco Systems Foundation and three individual philanthropists. The Acumen Fund invests in entrepreneurs who have the capability to bring sustainable solutions to big problems.

In May 2014, The Acumen Fund co-invested $1.5 million in Esoko Networks Limited (“Esoko”), a Ghanaian-built technology platform that connects African farmers to markets via mobile phones.

In October 2014, Acumen announced a $1.4 million investment in SolarNow, a company that sells and finances solar home systems in Uganda.

13. Stock market — raising money by issuing shares to the public. This can be complex and expensive, and poor market conditions may affect your ability to raise funds.

14. 88mph: 88mph is a Seed Fund and Accelerator that started in 2011 and currently operates out of hubs in Nairobi (Kenya), Cape Town (South Africa), and Lagos (Nigeria).

88mph funds only tech companies, with a particular emphasis on web and mobile products and services. It currently has more than $1.5 million in funds for investment in African tech startups.

Some of its successful investments include:

• Baby Group — South Africa’s first online shop for new parents and their babies.
• Byte Money — A mobile payment platform for the insurance industry
• Ekaya — A service that matches good landlords with good tenants

Its main focus is to attract the best entrepreneurs, invest seed cash, and bring them to a point where their businesses can grow independently, or be adequately evaluated by angels and Venture Capital firms.

15. Investment AB Kinnevik: Based in Sweden, Investment AB Kinnevik was founded in 1936 and is one of the largest listed investment companies in Europe with total assets of $7 billion.

Over the past few years, the firm has invested significantly in businesses in Africa. Some of its most notable investments on the continent include: Millicom, Tele2, Jumia, MTG, Rocket Internet, Iroko Partners and several others.

AB Kinnevik is a major investor in emerging markets. As a result, about 8 percent of its portfolio consists of African businesses. It invests and focuses on entrepreneurs and businesses in the following business segments: Communications, E commerce & Marketplaces, Entertainment and Financial Services & Others.

Finding a mentor

As an entrepreneur, you can find mentors by visiting https://smehelp.org. You can follow us on Facebook, Instagram, Twitter @smehelp to connect with us and more.

Step 10: Business Cards

Business cards are the first of the many tools you will use toward marketing yourself, as well as the business you own or are part of. How professionally designed your business card can directly reflect how serious and passionate you are about your business. In addition to promotion, business cards play an integral role in building up your professional contacts through networking.

Hiring a Graphic Designer

If you are able to afford the extra expense, a good graphic designer can easily be retained to create a professional design for you. In many cases, creating a memorable business card is the most effective way of creating connections.

Design and Quality

Avoid designing a business card that contains clashing fonts or it will no longer be pleasing to look at. Ensuring that the eye wants to linger on your card encourages people to whom you give your cards to retain the information they are reading. To that end, keep it simple:

• Contact Information: Place your name or the company’s in a larger font than the rest, below these you will need to include your job title, and basic contact info like email and telephone.
• Social Media: Modern businesses need to use modern tools. If you do not already have a business profile on Facebook, Twitter, LinkedIn, et al, it is time you made some. Having connections through these platforms allows others to not only contact you, but also remain in contact.
• Quality Stock: By giving people a high-quality card, you are entrusting them with a card that obviously did not come at bargain prices. Since the receiver is less likely to throw away the card without a second thought, they are more likely to contact you later.

Finding a mentor

As an entrepreneur, you can find mentors by visiting https://smehelp.org. You can follow us on Facebook, Instagram, Twitter @smehelp to connect with us and more.

Step 9: Choosing Business Location

Your business location will dictate the type of customer you attract, what types of promotions you can run, and how long it will take you to grow. While a great location will not necessarily guarantee your success, a bad location will almost always guarantee failure.

Location is about more than just choosing a building. There are many things to consider in this process because it is costly. Location may depend on a few different factors, especially the type of product and services you are trying to sell. Thus, you have to consider the following:

1. Know your business: Understanding the needs of your business is the first step in finding a location. Will customers visit your location? Do you anticipate walk-in business, or will customers call for appointments? Does your business make use of natural resources? How are your goods delivered? Does your business involve chemicals or excessive noise that might fall under the zoning restrictions? Make a list of your business-specific needs.

2. Find your customers: You need to identify who your customers are and how you can best meet their needs. If you are moving a business operation into a new city or rural area, find out as much as possible about population trends there. When you have gathered as much information as possible, start creating your own demographic profile. Once you know who you are trying to reach, you can determine where you are more likely to find customers. For example, if you are opening a nursery or kindergarten, you will want to open it in an area that not only has many families, but also has a high number of two-income households.

3. Get a taste for the community: Before deciding to set up shop somewhere, investigate the community. Read some of the local newspapers. Speak with other small business owners in the area. Ask them if their business is succeeding and if they think your business would do well there. Try to find out how receptive the established business community is to new businesses that come to town.

4. Find out the competition: For some businesses, this may not matter. Five Internet businesses could be in the same building and nobody would ever know it. However, if you are opening a retail business, a restaurant, or service-oriented operation, you will want to know how many similar businesses are located nearby. In other cities and towns, you may not want any competitors in the immediate area. The key is to determine whether you can gain enough of a market share. Do a competitive analysis, and if you find out competitors, see if you can gain a competitive edge by offering something your competition does not. If you are moving into an area with stiff competition, make sure you have enough resources to hang in there while you make a name for yourself

5. State and City: Rent and other costs, availability of labor, taxes, regulations and government economic incentives can also vary greatly from city to city, even within the same state. Or maybe a small town is the perfect spot for your business. Is the state/city you live in friendly to entrepreneurship? To the specific type of business you want to run? These are the elements that will affect your pricing of your product & services.

6. Location relative to streets, parking, and other businesses: Do you need to be visible and/or easily accessible to pedestrian and automobile traffic? Will being close to businesses that draw a similar clientele help your business? For example, a sporting goods store or health food store might do very well next to a gym.

7. Cost: Most obviously, can you afford it? Also, though, consider whether your customers and employees can afford it. Will higher rent cause you to charge higher prices to your customers? That is not necessarily a bad thing, but a factor to consider.

8. Convenience: Is it easy to find? Is parking close by? Consider your clients. If you are dealing with pregnant mothers and the elderly, they may have a different concept of “convenient”.

9. Safety: This is an increasingly important issue for both customers and employees. Is the parking close by? Well lit? Is there security on the premises?

10. Facility requirements: Do you have any special needs, such as high power consumption or specialized wiring? Do you need meeting space, but only occasionally? You might consider a shared office suite (often called executive suites) in that case.

Types of Premises and Location

Selecting the right option for accommodating your business is one of the most important decisions when getting started. The location you choose will depend on the nature of your business, for example: retail, manufacturing, or professional services. It will also depend on few circumstances where you have to consider some aspects before entering into any agreement to lease or buy the premises.

1. Home Office:

When considering developing a small business, either as a sole proprietorship, limited liability company or otherwise, it is important to consider if you should work from home. Whether or not your home office is successful may depend entirely on your work ethic, though there can be significant savings when compared to renting space outside the home. Conducting your business from home can seem like the easiest way to get started, but, as with other endeavors, it has its disadvantages as well.

Advantages

There are many advantages when you work from home:

• Many costs can be cut by operating a business from home, ranging from the rental of office space to the cost of public transportation associated with commuting to another place of work.
• People who work from home to save on childcare, and many enjoy the convenience of being able to make their own schedule rather than reporting to an office for a typical 8 am -to- 4 pm job.
• You can write off certain home expenses as business expenses, such as the cost of home office equipment, which is another money-saving advantage the work from home option provides.

Challenges

• Can You Stay Productive on Your Own? What is most important when considering whether or not to work from home is deciding whether or not productive work can be done in the home environment. For some, home provides an endless series of distractions. To be effective, the time spent working should be treated as if away from home at an office, away from those distractions. There are some ways to make sure that this can happen.
• Have a Separate Office: If possible, having a separate home office within the home can remove distractions. Being in this separate room (or at the very least, a desk devoted primarily to work) creates the work mindset. It can also help people who work from home to avoid the feeling, in non-work hours spent in the home, of “always being at work.”
• Set Aside Specific Work Hours: One of the benefits of a work from home job is flexibility of scheduling. Parents can be home when the kids come home from school. In order to be productive when you work from home, setting aside specific hours dedicated to work is necessary.

2. Retail:

Retail is a space you lease for the selling of goods to consumers. Generally, when it comes to business, retailers have one overall goal — to sell merchandise. That’s why they focus on sales floor space, adequate parking for customers, and an overall image that draws in customers. Of secondary interest to many retail operations are office space and storage requirements, since most inventory is on the sales floor. A retail operation’s space is usually subdivided among display, office, and storage. As a rule of thumb, office and storage spaces take up 10 to 25 percent of the total floor area.

3. Commercial Area:

Commercial property is real estate intended for use by for-profit businesses, such as office complexes, shopping malls, service stations and restaurants. It is normally in city area which can take up about 5% of the city’s land. It falls somewhere between residential and industrial property. Since most of the commercial activities including the buying and selling of goods and services in retail businesses, wholesale buying and selling, financial establishments, and a wide variety of services that are broadly classified as “business” been done here, they are extremely important to a community’s economy. They provide jobs and bring money into the community. This is one of the best locations where you can ensure the infrastructures are ready for you to start a business.

4. Industrial Area:

Generally, industry area defines as a planned industrial or technologically-based district of a city; usually intended for light manufacturing, industrial usage, research, or for warehousing. Industrial areas are usually located outside the main residential area of a city and normally provided with good transportation access, including road and rail. They are usually located close to transport facilities, especially where more than one transport modes coincide: highways, railroads, airports, and ports.

Finding a mentor

As an entrepreneur, you can find mentors by visiting https://smehelp.org. You can follow us on Facebook, Instagram, Twitter @smehelp to connect with us and more.

Step 8: What are your Investment Requirements?

It depends on your type of business and how quickly you plan to expand. You should sit down and write out how much your expected expenses will be for at least the next 24 months and how much you project to bring in as far as income on a monthly basis. There are several organisations that can help you get started with funding your business.

You can refer back to your business plan or start asking yourself what type of expenses do you need the money for? Generally, for a startup business, there will be a few costs involve:

• Cost of sales: Product inventory, raw materials, manufacturing equipment, packaging, warehousing etc.
• Professional fees: Setting up a legal structure for your business, trademarks, copyrights, drafting partnership and non-disclosure agreements, lawyer fees for ongoing consultation, retaining an accountant etc.
• Technology costs: Computer hardware, computer software, printers, cell phones, website development and maintenance, high-speed internet access, security measures, IT consulting etc.
• Administrative costs: Various types of business insurance, office supplies, licenses and permits, product packaging, rent, utilities, phones, copier, fax machine, desks, chairs, filing cabinets — anything else you need to have on a daily basis to operate a business.
• Sales and marketing costs: Printing of stationery, marketing materials, advertising, public relations, event or trade show attendance or sponsorship, trade association, travel and entertainment for client meetings, mailing lists.
• Wages and benefits: Employee salaries, payroll taxes, benefits, workers compensation.

No matter what your business type, take into account everything you will spend, from the moment you dig in to the startup process, through the time you are ready to sell a product or service.

For in-depth information on getting your business funded, see our complete guide on Funding a Business, which includes detailed information on each of the above-mentioned funding options.

Finding a mentor

As an entrepreneur, you can find mentors by visiting https://smehelp.org. You can follow us on Facebook, Instagram, Twitter @smehelp to connect with us and more.

Step 7: Write your Business Plan.

Business Planning is fundamental to success in business — managing the company, generating sales and growing jobs. It is the key to getting things done and making things happen. The finished business plan can be used as an operating tool that will help you to make important decisions and manage your business effectively.

In the simplest terms, a business plan is a road map — something you will use to help you chart your progress and that will outline the things you need to do in order to achieve your goals. Rather than thinking of a business plan as a hefty document that you’ll only use once (perhaps to obtain a loan from a bank), think of it as a way to formalize your intentions.

While you will potentially use your business plan as part of your pitch to investors and banks, or use it to attract potential partners and board members, you will primarily use it to define your strategy, tactics, and specific activities for execution, including key dates, deadlines and budgets, and cash flow.

In fact, the business plan does not have to be a formal document at all if you don’t need to present your plan to outsiders. Instead, your plan can follow a lean planning process that involves creating a pitch, forecasting your key business numbers, outlining key milestones you hope to achieve, and regular progress checks where you review and revise your plan.

If you aren’t presenting to investors, your pitch is not the traditional pitch presentation, but instead a high-level overview of who you are, the problem you are solving, your solution to the problem, your target market, and the key tactics you will use to achieve your goals.

Even if you do not think you need a business plan, you should go through the planning process anyway. The process of doing so will help to uncover any holes or areas that you have not thought through well enough. If you do need to write a formal business plan document, you should follow the outline below.

The standard business plan comprises nine parts, including:

1. The Executive Summary
2. Company Overview
3. Products and Service
4. Target Market
5. Marketing and Sales Plan
6. Milestones and Metric
7. Management Team
8. Financial Plan
9. Appendix

Finding a mentor

As an entrepreneur, you can find mentors by visiting https://smehelp.org. You can follow us on Facebook, Instagram, Twitter @smehelp to connect with us and more.

Step 5: Nigerian Labour Law.

Labour law is very well developed in Nigeria; with laws defining the rights and obligations of labour, and regulating most aspects of the relationship between the employer and labour. This section shall examine these laws and seek to distill the mandatory obligations of an employer under Nigerian law.

1. Nigerian Labour Statutes

The following statutes regulate labour in Nigeria:

• Labour Act, cap L1, Laws of the Federation of Nigeria (LFN), 2004
• Trade Union (Amendment) Act, Cap. T14, LFN, 2004
• Trade Disputes Act, Cap. T8, LFN, 2004,
• National Minimum Wage Act, Cap. N61, LFN, 2004
• Employee Compensation Act, Cap. W6, LFN, 2004,
• Factories Act, Cap. F1, LFN, 2004,
• National Housing Fund Act, Cap. N45, LFN, 2004
• Pension Reform Act of 2004
• Employees Housing Scheme (Special Provisions) Act, Cap E8, LFN 2004
• Local Content Act of 2010

2. Obligation to Pay Wages

The obligation of an employer to pay the wages of an employee is usually the primary basis upon which the latter offers services to the former. The Labour Act in Section 1(a) provides that the wages of a worker shall in all contracts be made payable in legal tender and not otherwise.

Section 7(1) of the Labour Act also provides that an employer shall give to his employee (not later than 3 months after the commencement of employment) a written statement, specifying, among other things, the rate of wages; the method of calculation, the manner of payment and the periodicity of payment. Section 7(6) of the Labour Act discountenances the need for a written statement where this particular has already been specified in a written contract.

Section 15 of the Labour Act provides that wages shall become due and payable at the end of each period for which the contract is expressed to subsist, that is, daily, weekly, or at such other period as may be agreed upon; provided that where the period is more than one month, the wages shall become due and payable at intervals not exceeding one month.

The manifest effect of these provisions is to make the payment of wages mandatory for employers under Nigerian law.

It is noteworthy the Labour Act does not apply to all categories of Nigerian workers, in particular Section 91 of the Act defines a worker to exclude any persons exercising administrative, executive, technical or professional functions as public officers or otherwise.

3. Obligation to Provide Written Contract of Employment

Section 7 (1) of the Labour Act mandates that an employer provide the employee with a written contract of employment specifying the particulars of employment no later than 3 months after the beginning of the employee’s period of employment with the employer.

The essential clauses of the employment contract include;

1.The name of the employer or group of employers, and where appropriate, of the undertaking by which the employee is employed;

2.The name and address of the employee and the place of his engagement;

3.The nature of the employment;

4.If the contract is of affixed term, the date when the contract expires;

5.The appropriate period of notice to be given to the party wishing to terminate the contract, due regard being had to section 11 of the Act (section 11 deals with the termination of contracts by notice, and it is later treated in the body of this opinion);

6.The rates of wages and method of calculation thereof and the manner and periodicity of payment of wages;

7.Any terms and conditions relating to –

• Hours of work; or
• Holidays and holiday pay; or
• Incapacity for work due to sickness or injury, including any provision for sick pay; and

8. Any special conditions of contract.

Section 7(2) further provides that where there is a change in the terms of the written contract of employment, the employer is mandated to inform the employee not later than one month after the said change and a copy of the written contract of employment as altered must be made available to the employee. Where a copy of the written contract of employment cannot be made available to the employee, the employer is mandated to preserve a copy of the written contract and ensure that the employee has opportunities of reading it in the course of his employment or that the written contract is made accessible to the employee in some other way.

4. Obligation to Conduct Medical Examination of Employees

Section 8 of the Labour Act provides that every employee who enters into a contract shall be medically examined by a registered medical practitioner at the expense of the employer; but an exemption can be granted from this requirement by an order made by the State Authority (means the Governor or Administrator of a State) where the contract is for employment in agricultural undertakings not employing more than a limited number of workers, or where the employment is in the vicinity of the workers’ homes in agricultural work or non — agricultural work which the State Authority is satisfied is not of a dangerous character.

5. Termination of Contract of Employment

The Labour Act provides for the termination of contracts in three (3) ways, namely:

• By the expiry of the period for which it was made;
• By the death of the employee before the expiry of that period;
• By notice in accordance with section 11 of the Act, or in any other way in which a contract is legally terminable or held to be terminated.

Section 11 of the Act provides that either party to a contract of employment may terminate the contract upon the expiration of notice given by him to the other party of his intention to do so. Period of Notice to be given for the purposes of this provision are as follows;

• One day, where the contract has continued for three months or less;
• One week, where the contract had continued for more than three months but less than two years;
• Two weeks, where the contract has continued for a period of two years but less than five years;
• One month, where the contract had continued for five years or more.

It is noted that Section 11(3) provides that any notice for a period exceeding one week shall be in writing. Section 11(5) provides that nothing in the section with regards to Notice shall affect the right of either party to a contract to treat the contract as terminable without notice by reason of such conduct by the other party as would have enabled him to treat it before the making of this Act.

Similarly, subsection 6 of the Act provides that nothing shall prevent either party from waiving his right to notice or from accepting payment in lieu of notice. Note that the Act also provides that all wages payable in money shall be paid on or before the expiry of any period of notice; and in the calculation of a payment in lieu of notice, the Act provides that it is only that part of the wages which a worker receives in money, exclusive of overtime and other allowances that shall be taken into account.

6. Obligations with Regards Work Hours

Section 13 of the Labour Act provides that normal hours of work in any contract of employment shall be those fixed;

• By mutual agreement;
• By collective bargaining within the organisation or industry concerned; or
• By an industrial wages board (established by or under an enactment providing for the establishment of such boards) where there is no machinery for collective bargaining.

Overtime is defined under the Act as hours which an employee is required to work in excess of the normal hours fixed (by mutual agreement, by collective bargaining, or by an industrial wages board). The Act does not state the rate of calculation of overtime pay, but the practice is to calculate on an hourly rate.

Section 13(3) of the Act further provides that where an employee is at work for a period of six (6) hours or more a day, his work shall be interrupted (to the extent which is necessary, having regard to its character and duration and to the working conditions in general) by allowing one or more suitably spaced rest intervals (rest interval is defined to mean an interruption of work of which the length is fixed beforehand and during which the employee is free to dispose of his time and not required to remain at the place of work) of not less than one hour on the aggregate.

This interruption of work stated above, however, may not be possible where unforeseen circumstances render them necessary (unforeseen circumstances are not defined or listed in the Act, this leaves the category of what makes up unforeseen circumstances open ended and capable of manipulation by an employer). Furthermore, where it is found unavoidable in view of the nature of the work and the working conditions in general, time off for a meal at the worksite or in the immediate vicinity may be substituted for the rest interval.

Section 13(7) of the Act provides that in every period of seven (7) days, an employee shall be entitled to one day of rest which shall not be less than 24 consecutive hours. Where any reduction takes place in the weekly rest period as immediately mentioned, the Act provides that;

• Corresponding time off from work shall be allowed as soon as is possible (and this shall not be later than fourteen (14) days thereafter); or
• Wages at overtime rates shall be paid in lieu thereof.

7. Obligations with Regards Pregnant Employees

The Labour Act provides in section 54 that in any public or private industrial or commercial undertaking or in any branch thereof, or in any agricultural undertaking or any branch thereof, a woman:

i . Shall have the right to leave her work if she produces a medical certificate given by a registered medical practitioner stating that her confinement will probably take place within six (6) weeks;

ii . Shall not be permitted to work during the six (6) weeks following her confinement;

iii . If she is absent from work pursuant to paragraphs (i) and (ii) above and had been continuously employed by her then employer for a period of six (6) months or more immediately prior to her absence, shall be paid not less than fifty percent (50%) of the wages she would have earned if she had not been absent; and

iv . Shall where she is nursing a child, be allowed half an hour (30 minutes) twice a day during her working hours for that purpose.

Furthermore, Section 54(4) provides that, where a woman is absent from work as a result of the six (6) week confinement period or remains absent from her work for a longer period as a result of illness certified by a registered medical practitioner to arise out of her pregnancy or confinement and to render her unfit for work, then, until her absence has exceeded such a period (if any) as may be prescribed, no employer shall give her notice of dismissal during her absence or notice of dismissal expiring during her absence.

8. Prohibition of Night Work for Women

The Labour Act in Section 55 prohibits the employment of women for night work in a public or private industrial undertaking or in any of its branches, or any agricultural undertaking or any of its branches.

The word “Night” for the purposes of this section is defined to mean:

• With respect to industrial undertakings, a period of at least eleven (11) consecutive hours, including the interval between ten o’ clock (10pm) in the evening and five o’ clock (5am) in the morning; and
• With respect to agricultural undertakings, a period of at least nine consecutive hours including the interval between nine o’ clock (9pm) in the evening and four o’ clock (4am) in the morning.

We note, however, that the prohibition of employment of women for night work does not extend to women employed as nurses in any public or private industrial undertaking or agricultural undertaking, or to women holding responsible positions or management who are not ordinarily engaged in manual labour.

Section 55(5) does provide that the Minister charged with Labour may by an order exclude from the prohibition of night work for women, women covered by a collective agreement in force which permits night work for women. However, before making any such order, the Minister must satisfy himself that adequate provision exists for the transportation and protection of the women concerned.

9. Obligations to Members of Trade Unions

The phrase “Trade Union” is defined in Section 1 of the Trade Unions (Amendment) Act to mean any combination of workers or employers, whether temporary or permanent, the purpose of which is to regulate the terms and conditions of employment of workers, whether the combination in question would or would not, apart from the Act, be an unlawful combination by reason of any of its purposes being in restraint of trade and whether its purposes do or do not include the provision of benefits for its members.

Of particular interest in the Trade Unions (Amendment) Act is section 12 (4) of the Act which provides that membership of a trade union by employees shall be voluntary and no employee shall be forced to join any trade union or be victimised for refusing to join or remain a member. This provision of the Trade Unions (Amendment) Act is supported by section 9(6)(a) of the Labour Act which provides that, no contract of employment shall make it a condition that an employee shall or shall not join a trade union or shall or shall not relinquish membership of a trade union.

Furthermore, section 9(6)(b) of the Labour Act provides that no contract of employment shall cause the dismissal of, or otherwise prejudice an employee;

• By reason of trade union membership; or
• Because of trade union activities outside working hours or, with the consent of the employer, within working hours; or
• By reason of the fact that he has lost or been deprived of membership of a trade union or has refused or been unable to become, or for any other reason is not, a member of a trade union.

10. Obligation to Provide Work

For employees who fall under the category of workers to whom the Labour Act is applicable, there is a mandatory obligation upon their employer to provide them with work. Section 17 of the Act provides that insofar as the collective agreement does not provide otherwise, the employee has presented himself fit for work and has not broken his contract, he must be given work suitable to his capacity. Where the employee is not provided such work, the employer will still remain under an obligation to pay for the period, except there occurs a supervening emergency (in such cases pay will be limited to the first week only of the period) or if the failure to provide work is a result of suspension arising from disciplinary measures.

For employees who are not under the purview of the Act, it appears that an obligation to provide work may only be deduced from the terms of their contract of employment. In the reported Nigerian case of SPDCN v. Nwaka (2003) 6 Nigerian Weekly Law Reports (NWLR) Pt 815, p.184, where the issue were, interalia, whether a Nigerian employee of Shell could obtain declarations against the employment of an expatriate into a position which he claimed to be qualified and also whether he could obtain declarations against rendering him redundant ad his ultimate termination.

The Supreme Court held that If the contract of employment stipulates that an employee should be found a job after reorganization, the court will enforce such contractual term but for the court to assume jurisdiction to review the decision of the company to redeploy an employee within its organization in the absence of contractual term to guide it, will not only be an unwarranted interference with the freedom of contract and in the affairs of the company but also an exercise for which the court is ill-suited.

11. Obligation in Cases of Redundancy

The Labour Act defines redundancy as the involuntary and permanent loss of employment caused by excess manpower. The Act places an obligation upon the employer to inform the workers union of the reason for and anticipated extent of the redundancy; operate the principle of ‘last-in’ ‘first out’ (subject to relative merit) and use best efforts to negotiate redundancy payments to employees who are not protected by regulations made under the Act for compulsory redundancy payments.

12. Obligation to Provide Safe System of Work

The Labour Act places a qualified obligation upon an employer to provide a safe system of work i.e. to carry out his operations in a manner that complies with safety regulations. Sections 66 and 67 of the Act provides for the creation of Labour Health Areas and the matters in such areas for which regulations can be made. Labour Health Areas are areas designated as such due to their remoteness from modern amenities like medical facilities; water and communications. The matters for which regulations can be made include the provision of sanitary arrangements; supply of water, food and fuel; medical examination of workers; measures to be taken to check the spread of infectious diseases; establishment of proper hospitals and employment of qualified medical personnel.

Similarly, the Factories Act places an obligation upon employers/ owners or occupiers of a factory to ensure the health, safety and welfare of employees within the factory. Thus, it is the duty of the employer to ensure that the provisions of the Factories Act relating to cleanliness, overcrowding, ventilation, lighting, drainage and sanitary conveniences are complied with. Furthermore, the Act makes it the duty of the employer to provide a safe means of access and safe place of employment, sections 47 and 48 of the Act also makes it mandatory for factory workers to be provided with protective clothing and appliances, where they are employed in any process involving excessive exposure to wet or to injurious or offensive substance. Similarly, where necessary, suitable gloves, footwear, goggles and head coverings should also be provided and maintained for use by the workers.

There remains however, a common law duty of care that is owed to an employee, which entails, among other things, the provision of a safe system of work. In the Nigerian case of Western Nigeria Trading Co. Ltd v. Busari Ajao (1965) Nigerian Monthly Law Reports (NMLR), a case where the Respondent had lost an eye as a result of an accident that occurred while working as an employee in the Appellant’s workshop. One of the points of contention between the parties was whether there existed a burden upon under common law to not only provide safety goggles but to ensure that the Respondent actually used the goggles.

The court held that under common law duty of care existed to not only provide the goggles but to ensure that the goggles were used by the Respondent.

13. Obligation to Provide Transport in Certain Circumstances

Section 14 of the Labour Act provides that where an employee is required to travel sixteen kilometres or more from his normal place of work to another worksite he shall be entitled to free transport or an allowance in lieu thereof. Where free transport is provided in the form of a vessel or vehicle, it is mandatory of the employer under the Act to ensure that the vessel or vehicle is suitable, is in good sanitary condition and is not overcrowded.

Subsection 5 of section 55 of the Labour Act does provide that the Minister charged with Labour may by an order exclude from the prohibition of night work for women, women covered by a collective agreement in force which permits night work for women. However, before making any such order, the Minister must satisfy himself that adequate provision exists for the transportation and protection of the women concerned.

14. Obligation to Grant Leave with Pay

The Act provides in Section 18 that every employee shall be entitled after 12 months’ continuous service to a holiday of;

• At least six (6) working days; or
• In the case of a person under the age of sixteen (16) years (including an apprentice), at least twelve (12) working days.

The same section provides that the above stated holiday period shall be with full pay to the employee. However, an exception to the entitlement to a holiday after 12 month’s continuous service is that such holidays can be deferred to a later date by agreement between the employee and employer provided that the holiday earning period shall not be increased beyond 24 months’ continuous service.

Subsection 3 of section 18 of the Act makes it unlawful for an employer to offer or pay wages to an employee in lieu of the holiday period mentioned in section 18 (1) above.

15. Obligation to Grant Sick Leave

The Labour Act in section 16 makes it the obligation of the employer to grant an employee paid sick leave of up to twelve working days in one calendar year where absence from work is caused by a temporary illness certified by a registered medical practitioner. Where, however, the sickness is so serious and so protracted as to frustrate the purpose or objects for which the employee was engaged, the contract may be discharged, and the employer absolved from further liabilities without prejudice to the earned entitlements before discharge.

In calculating leave pay and sickness benefits, section 19 of the Labour Act provides that only that part of an employee’s wages which he receives in money (excluding overtime and other allowance) shall be taken into consideration.

16. Employer’s Pension Obligations

The Pension Reform Act 2004(“Pension Act”) was enacted for the establishment and attainment of a contributory pension scheme for employees in the Public and Private sectors of the Nigerian economy.

The Pension Act in Section 1 provides for the establishment in Nigeria, a Contributory Pension Scheme (the Scheme) for payment of retirement benefits of employees to whom the Scheme applies. The section goes on to provide that the provisions of the Pension Act shall apply to all employees in the Public Service of the Federation and the Private Sector, in the case of the Private Sector, employees who are in employment in an organisation in which there are 5 or more employees. One of the main objectives of the Scheme is to ensure that persons who have worked in either the Public or Private Sector receive their retirement benefits as and when due.

Section 9 of the Pension Act makes provision for the amount of contribution to be made by an employer and employee to the Scheme. It provides that subject to the approval of the National Pension Commission “the Commission” (the body charged with the regulation, administration and supervision of the Scheme established under the Pension Act), the contribution for an employee shall be made relating to his monthly emoluments, for a private employer in the following manner;

i. A minimum of seven and a half percent by the employer, and

ii. A minimum of seven and a half percent by the employee.

Section 9(2) goes further to state that notwithstanding the fact of the above rate of contribution, an employer may agree or elect to bear the full burden of the Scheme provided that in such case, the employer’s contribution shall not be less than 15% of the monthly emoluments of the employer.

Section 11 of the Pension Act provides that for the purpose of the Scheme, every employee shall maintain an account (to be known as the retirement savings account) in his name with any pension fund administrator of his choice. Subsection 3 of section 11 mandates the employee to notify his employer of the pension fund administrator chosen and the identity of the retirement savings account opened.

The employer is mandated under the Pension Act by virtue of Section 11 (5) to deduct at source, the monthly contribution of the employee in his employment. Such deduction (which comprises the employee’s contribution) should not later than seven (7) working days from the day the employee is paid his salary, be remitted along with the employer’s contribution to the custodian specified by the pension fund administrator chosen by the employee.

Any employer who fails to remit the contributions within the seven (7) days specified in the Pension Act shall, in addition to making the remittance already due, be liable to a penalty to be stipulated by the Commission provided that the penalty shall not be less than 2% of the total contribution that remains unpaid for each month or part of each month that the default continues and the amount of the penalty shall be recoverable as a debt owing to the employees retirement savings account as the case may be.

Section 9 (3) of the Pension Act makes it mandatory for an employer to maintain a life insurance policy in favour of the employee for a minimum of three (3) times the annual total emolument of the employee. Thus section 5 (1) of the pension Act provides that where an employee dies, his entitlements under the life insurance policy shall be paid into his retirement savings account.

Where the above is the case, it is the duty of the pension fund administrator to apply the money paid into the retirement savings account in favour of the beneficiary under a will or the spouse and children of the deceased or in the absence of a wife and child, to the recorded next-of-kin or any person designated by the deceased employee during his life time or in the absence of such designation, to any person appointed by the Probate Registry as the administrator of the estate of the deceased.

17. Obligation to Provide Reasonably Competent Workforce

Under the relevant labour Law statutes there is no express provision for the employer to provide a reasonably competent workforce, however, at common law the employer is under a duty to provide a reasonably competent and responsible workforce, especially where the duties of one staff are closely linked with those of another.

Under the Mineral Oil (Safety) Regulations, for example, Regulation 6 thereof provides that it shall be the duty of the Manager (a Manager is defined as the person appointed by a Licensee under a license or by a Lessee under a lease to be in charge of all operations authorized by the Licensee or Lessee) to appoint in writing competent persons for the purposes of supervising all drilling, production, transmission and loading operations.

Similarly under the Petroleum Refining Regulation, Regulation 6 thereof also provides that it is the duty of the Manager to appoint in writing competent persons for the purpose of general supervision of all operations in the refinery including all aspects of construction, maintenance and refining.

Finding a mentor

As an entrepreneur, you can find mentors by visiting https://smehelp.org. You can follow us on Facebook, Instagram, Twitter @smehelp to connect with us and more.

Step 4: Registering Your Business (Local Business)

Realistically speaking, registering your business as a business is the first step toward making it real. Other things you will need to do include deciding on a business name and researching availability for that name.

As stated earlier, under the Companies and Allied Matters Act, 1990 (“CAMA”) the body responsible for the registration and regulation of companies in Nigeria is the Corporate Affairs Commission (“CAC”), which has its head office in Abuja, the Federal Capital Territory.

Registering a Business Name

If you want to register a business name, you can do it in 2 ways:

1. One is to engage the services of a lawyer and he will get it done for you with about N10, 000. The trouble is that the next time you want to register another business name; you will have to pay him another N10, 000.

2. The second way to get your business name registered is to do it yourself. Yes, you can walk into any branch of the corporate affairs commission and you will get your business registered.

Getting started:

Once you are ready to register your business name with the corporate affairs commission, the first thing you should do is to go to their office/branch nearest to you and ask for name reservation form. It costs just Five Hundred Naira only (#500). You will be given a receipt and a form. On the form, you will be asked to fill in a few details. Details like…

• Your Name
• Your Address
• Your Desired Business Names
• A Space To Fill The Type Of Business You Want to Register (Choose Enterprises/Business Name)

You will be required to choose two business names. The reason is that if one is not available, they can reserve the other for you. If none of them is available, you will need to do it all over again. You will have to pay the N500 again and you will have to wait for the result.

How long does it take to reserve a name with CAC?

When you ask for a name reservation, it takes about 2 weeks before the results are returned. It is sometimes as fast as one week or 10 days but it generally takes 2 weeks. If your chosen business name is not available, you have to go through that 2 week process again. If the new one is not available as well, you have to go over the process… again… and… again.

So how will you prevent that from happening to you?

What you need to do is to choose a name no one else would have chosen. You have to be creative and ingenious about it. If you choose just any name, someone may have registered it.

Don’t even think about registering names like these…

• Obyno Enterprises
• Prosperity Ventures
• Good Hope Enterprises
• Adamu Hassan Ventures
• Wealth Resources Consulting

If you choose names like these, then there is a high probability that they have already been taken by someone else and as an entrepreneur; you don’t have time to waste experimenting on new names at every 2 week interval. Having sorted out the name issue and having submitted your form, you will have to wait till the result comes out.

What you need Prepare

• 2 passport photographs
• The details of a partner (you cannot register alone, add someone…anyone)
• The partner’s photographs.
• Your address (you can use your home address)
• Telephone number (use GSM)
• Local government area and a few other requirements.

Why be prepared ahead of time?

Majority of upstart entrepreneurs will fold their hands while the 2 weeks passes but you are advice to work while you wait. Start gathering the materials you need one by one. Why? Your name reservation is just for a number of days, you have to register properly before the grace period expires and someone else can take up that name. When name reservation results come out, what people normally do is to start studying the new documents they are provided with to fill. If you prepare early, you will get your registration done once the results are out.

According to the CAC Website, Fees for some services include:

• Registration of Business Name N10,000.00
• Change of Name N2,000.00
• Business Name Search N500.00.
• Change of Partnership N1,000.00
• Change of Address N1,000.00
• Certified True Copy of a Business Name Certificate N1,000.00
• Filing of Annual returns N300.00
• Business Name Registration Form N250.00

Finding a mentor

As an entrepreneur, you can find mentors by visiting https://smehelp.org. You can follow us on Facebook, Instagram, Twitter @smehelp to connect with us and more.

All business enterprises, both local and foreign must be registered with the Registrar-General of the Corporate Affairs Commission (“Registrar of Companies”), and must comply with the internal regulations applicable to particular businesses. The law governing the formation and regulation of business enterprises in Nigeria is the Companies and Allied Matters Act, 1990 (“CAMA”), and under this law is the Corporate Affairs Commission, which is the body responsible for the registration and regulation of companies.

Foreigners may invest and participate in the operation of any enterprise in Nigeria. By virtue of the provisions of the CAMA, a foreign investor, wishing to set up business operations in Nigeria is obliged to take all steps necessary to obtain local incorporation of a Nigerian company, or branch or subsidiary of an existing company, which would be a separate and distinct entity from its parent company. Until so incorporated, a foreigner may not carry on business in Nigeria or exercise any of the powers of a registered company.

The CAMA, however, sets out exceptions to the general rule that all foreign investors doing business in Nigeria must incorporate in Nigeria. These exceptions include companies engaged by the Federal Government to execute specific projects, companies undertaking approved loan projects on behalf of donor countries or international organizations, and foreign government owned companies engaged wholly in export promotion activities.

These exemptions are granted for a fixed period of time (usually three years), are hardly ever renewed and may be revoked by the Federal Executive Council. Investors envisaging a long-term existence in Nigeria are therefore well advised to incorporate a local company.

Business activities may be undertaken in Nigeria through any of the following vehicles; that is:

1. Sole trader

2. Private Limited Company (Ltd)

3. Public Limited Company

4. Guarantee Company (not for profit)

5. Representative Offices

1. Sole trader: This is the simplest form of enterprise, it does not require registration, though the sole trader may wish to register the business name to exclude other businesses from trading by the same name.

It is the type of business in which the owner of the enterprise is exposed to the greatest personal risk, because the sole trader is personally responsible for all aspects of the business and has unlimited liability to all debts and legal actions.

The sole trader may also find it difficult to attract outside investment or partners, which can hinder the expansion of the business. The sole trader may also find it difficult to attract business as the sole trader does not file accounts or records with the Corporate Affairs Commission (CAC), giving a lack of business transparency, and making it impossible for potential customers to verify the background of the business via an official third party.

2. Private Limited Company (Ltd): A private limited company is a legal entity in its own right, separate from those who own it, the shareholders. The limited liability and simplicity of running the private limited company makes it the most common of registered business in Nigeria. As a shareholder of a private limited company, the shareholders personal possessions remain separate (unless they are secured against the business for borrowing), and the shareholders risk is reduced to only the money they have invested in the company and any shares the shareholder holds which has not been paid for.

Limited liability companies are also considered prestigious by other companies and the general public due to its legitimate nature and the way important information is recorded at the Corporate Affairs Commission. Anyone wishing to do business with a limited liability company can verify who is connected to the company and also the financial status of the company by paying the Corporate Affairs Commission a small fee. The level of transparency is very beneficial in terms of building public confidence in the company.

The private limited liability company have very few restrictions which makes the simple but yet flexible solution for many businesses.

The very minimum requirements are:

• The company must have a registered office in Nigeria
• The company name must not be exactly identical to any other company name currently held in the registry of the Corporate Affairs Commission
• At least twenty five percent of the authorized shares must be allotted at incorporation
• At least two people above the age of 18 must subscribe to the memorandum and articles of association.
• The total number of members in a private limited company must not exceed 50, not including those who are bona fide in the employment of the company
• The authorized share capital shall not be less than N 10,000

3. Public Limited Company: A public limited company differs from the private version in that it is able to sell its shares to the public and may be quoted in the stock exchange. A public company must have at least N 500, 000 authorized share capital and the subscribers must take up at least twenty five percent of the authorized share capital. The cost of running a public limited company is reasonably higher than that of a private limited liability company. It is therefore better suited for large organisations.

4. Guarantee Company (not for profit): In simple terms a guarantee company is not for profit and is the type mostly formed by charitable organisations. A guarantee company does not have share capital, and the members do not own the company, they do not receive any profits and have no claim to the company assets. All income generated is used to cover operating costs and to achieve the objectives of the company.

5. Representative Offices: Foreign companies may also set up Representative Offices in Nigeria. A Representative Office however, cannot engage in business, conclude contracts or open or negotiate any Letters of Credit. It can only serve as a promotional and/or liaison office. In this circumstance, its local operational expenses have to flow in from the foreign company. A Representative Office also must be registered with the CAC.

Finding a mentor

As an entrepreneur, you can find mentors by visiting https://smehelp.org. You can follow us on Facebook, Instagram, Twitter @smehelp to connect with us and more.

Step 1: Test Your Business Idea

Begin by taking stock of yourself and your situation:

• Why do you want to start a business? Is it money, freedom, creativity, or some other reason?
• What skills do you have?
• What industries do you know about?
• Would you want to provide a service or a product?
• What do you like to do
• How much capital do you have to risk?
• Will it be a full-time or a part-time venture?

Your answers to these types of questions will help you narrow your focus.This step is not supposed to discourage you from starting your own business. Rather, it is here to get you thinking and planning. In order to start a successful business, passion alone is not enough. You need to plan, set goals and above all, know yourself. What are your strengths? What are your weaknesses? How will these affect your day-to-day operations? You could conduct a SWOT Analysis on yourself to figure this out :

• What would you do if money was not the problem?
• Is money really important? Or rather, is making a lot of it really important?
• What things really matter to you?
• Do you have the support of your family, especially your immediate family? They may have to make sacrifices at the beginning, so it is important to have them behind you.
• Who do you admire in business? Perhaps in the industry you would like to go into? Why do you admire them? What are their likable traits? What can you learn from them?

Answering these questions and asking many more about yourself and your abilities is not necessarily going to ensure you are successful but it will get you thinking about your goals and about what motivates and inspires you. Use this time to make sure that you are matching the business you want to start to your personal aspirations.

Step 2: What About Market Research?

Once you decide on a business that fits your goals and lifestyle, you need to evaluate your idea in conjunction with the industry/market. Who will buy your product or service? Who will your competitors be? At this stage you also need to figure out how much money you will need to get started. Your personal evaluation was as much a reality check as a prompt to get you thinking. The same thing applies when it comes to researching your business and the industry you would like to go into. There are a number of ways you can do this, including performing general Google searches, going out and speaking to people already working in that industry, reading books by people from the industry, researching key people and reading relevant news sites.

Assessing your market

In order to identify how attractive your prospective market really is, there are a few things you should consider :

• How urgently do people need the thing you’re selling or offering right now?
• What’s the market size like? Are there already a lot of people paying for this thing?
• How easy is it (and how much will it cost you) to acquire a customer?
• How much money and effort will it cost to deliver the value you would like to be offering?
• How long will it take to get to market? A month? A year? Three years?
• What size up-front investment will you need before you can begin?
• Will your business continue to be relevant as time passes? A business that repairs exclusively iPhone 7 screens will only remain relevant so long as the iPhone 7 sticks around. If your business is only relevant for a specific period of time, you will also want to consider your future plans.

If you like, you can even take things a step further and consider the consumer needs currently not being met by businesses in the industry. This is a good time to take a look at potential competitors. And remember, the presence of competitors is oftentimes a good sign! It means that the market for your product or service already exists, so you know that from the outset, you’re not flying entirely blind.

While you’ve got the time, learn as much as you can about your competitors, about what they provide to their customers, how they attract attention, and whether or not their customers are happy. If you can figure out what’s missing before you even get started, your job will be made much easier when you do finally start up.

Finding a mentor

As an entrepreneur, you can find mentors by visiting https://smehelp.org. You can follow me on Facebook, Instagram, Twitter @mildskills to connect with me and more.

When you have decided to start your own business a new world is opening up, with a wide variety of possibilities. You could open a shop or start your own consultancy firm; become a full-time or a part-time entrepreneur. Clients may wish to hire you for advice or construction work. Before plucking up that which is planted, there is a time to plant. In other words: you will have to be prepared to tackle challenges as well — either as a provider of services or products, as a self-employed entrepreneur, a sole trader, or an independent contractor. Being self-employed radiates a pleasant sense of freedom and independence, but it may carry certain risks as well. Whether you offer services or products: you will do so at your own risk, expense and with full responsibility towards third parties. Apart from that, being self-employed entails certain obligations, such as paying taxes and VAT and keeping records of your business activities. Preparing well is the best way to start and our SME Advice through our Mentorship App will help you, from developing and researching your ideas, learning basic business start-up skills and expanding your potential with marketing and financial planning advice.

Here are Eleven (11) steps to get you started:

1. Test your Business Idea
2. What about Market Research?
3. Forms of Business Enterprise
4. Registering your Business (Nigerian SME)
5. Foreign investment in Nigeria
6. Nigerian Labour Law
7. Write your Business Plan
8. What are your Investment Requirements?
9. Choosing a Business Location
10. Business Cards
11. Creating a strong online presence for Marketing Success.

Finding a mentor

As an entrepreneur, you can find mentors by visiting https://smehelp.org. You can follow us on Facebook, Instagram, Twitter @smehelp to connect with us and more.