This post will educate you on what to do before starting a business in Lagos, and also help existing business owners to solidify their business as a legal entity in Lagos.
This is a collaborative post Between Lagosnownow and Ekom Dandee, an online marketing services provider in Lagos.
Let’s get to it.
Lagos is a mega city with a lot of business opportunities and different brands striving to dominate the business landscape in the state. As an aspiring entrepreneur or an existing business owner in Lagos, you should note that what is worth doing is worth doing well, that’s why we bring to you the vital information you need before starting a business in Lagos.
I assume you have your business model and strategies figured out already. But if you don’t we previously discussed profitable businesses you can start in Lagos. Back to the topic, now you have figured out the type of business you want to do. so, let’s take some steps backward and look at what you need to do before starting your Business in Lagos.
Note: From experience, these tips should be followed accordingly, as skipping one for another may cause serious problems in the future.
What To Consider Before Starting A Business In Lagos
For your business to have credibility, legal footing, and to succeed in Lagos these are the steps to take.
- Make a Market Analysis
- Register Your Business With the Government
- Secure A Physical Location
- Invest In Branding
- Have A Marketing Budget
Let’s discuss each of these further.
1) Make a Market Analysis
Market analysis is a comprehensive assessment of a market within a specific industry. It involves researching and evaluating market dynamics, customer needs and preferences, market size, growth potential, competitive landscape, and potential barriers to entry. The process typically includes data collection through surveys, focus groups, industry reports, and competitor analysis.
Market analysis is crucial before starting a business because it provides a deep understanding of the environment in which the business will operate. It helps identify the target audience and their needs, ensuring that the business can tailor its products or services effectively. By analyzing the market size and potential, businesses can forecast demand and plan for growth. Competitor analysis reveals the strengths and weaknesses of existing players, allowing new businesses to identify opportunities for differentiation.
Furthermore, market analysis aids in risk management by highlighting potential market shifts, threats, and regulatory challenges. It supports financial planning by providing realistic revenue projections and cost estimates. For investors, a thorough market analysis demonstrates a solid understanding of the market, increasing confidence in the business’s potential for success. In essence, market analysis is foundational for informed decision-making, strategic planning, and resource allocation, all of which are critical for launching and sustaining a successful business.
2) Register Your Business With the Government
The importance of this section can not be over-emphasized. Registering your business with the Nigerian government through a body called The Corporate Affairs Commission (CAC) gives your business the footing to operate on Nigerian soil. Also establishes the business as a legal entity in the state
Registering your business possesses several benefits that make it stand as a real brand to operate and be reckoned with, these include:
- Operate Under A Given Name: Registering your business with the government ensures that your business secures a name it operates under, this eliminates the challenges of multiple companies having the same name. in situations where other businesses use the same name, the government only recognizes the registered one as a legitimate business.
- Operate A Separate Legal Entity: Legalizing your business with the government improves credibility by making a business and the owner a separate entity, this means that your business stands as an organization and operates as a body of its own.
- Access to Government Contracts: This is one of the most important reasons why a business should solidify its footing by registering with the government, from experience The government only identifies with registered businesses, when awarding contracts or any other form of transactions. they always business registration number and a tax clearance certificate before any form of business dealing.
- Opening Of Bank Accounts: Operating as a business corporate bank account in Lagos requires valid business registration documents. having a bank account that aligns with the business name builds credibility and trust with customers.
3) Secure A Physical Location
Having a physical location is essential when establishing a business in Lagos, this builds credibility and trust with customers and potential customers who want to do business with you.
Especially for a Lagos-based business, people tend to find companies with local offices more trustworthy. I understand that some businesses operate solely online like mobile money operators, yet having a physical location gives customers the confidence that their investment is safe and complaints can be forwarded to a recognized office.
4) Invest In Branding
Branding is what sets your business apart from others. many people mistake branding for logos, graphics, and colors alone. Branding also includes your business’s core values, tone of voice, and what your brand stands for.
With our experience in business branding, we set up all identifiable elements that make a business unique such as tone of communication, visions, fonts, typography, colors, and choice of images. For your business to stand out in a competitive marketplace like Lagos, it’s important to give your company an appealing and customer-oriented feel and maintain consistency across all touch points.
To proceed with branding you need to identify your business core proposition and specify your target audience and how you want them to perceive your business.
Here’s what one of my favorite branding experts has to say about what branding is.
Video Credit: The Futur
Some vital branding tips include:
- Define Your Brand Identity: Clearly define your brand’s mission, vision, and values, and ensure these elements are consistently reflected in all your communications and actions. Your brand identity should convey what your business stands for and how it differs from competitors. Develop a cohesive visual identity, including your logo, color scheme, typography, and imagery. These elements should be used consistently across all marketing materials and platforms.
- Understand and Target Your Audience: Conduct thorough market research to understand your target audience’s needs, preferences, and behaviors. Create detailed buyer personas to tailor your branding efforts effectively.
- Develop A Unique Value Proposition: Clearly articulate what makes your product or service unique and why customers should choose you over competitors, this should be central to your branding and marketing efforts. Focus on the benefits and solutions your business provides rather than just the features of your products or services. Show how your brand adds value to customers’ lives.
5)Have A Marketing Plan
Another important aspect to consider before establishing a business in Lagos is how to generate customers for your products, services, and offers. Marketing is a sure means of reaching potential customers who don’t know about your brand.
To compete with other similar businesses like yours in Lagos, it’s important to have a solid marketing strategy that will expose your company to relevant prospective customers in Lagos, This could be done through traditional or online marketing.
When choosing a marketing option it is important to know that the pros of the latter outweigh the other. Online marketing is essential in today’s business terrain, engaging professional online marketers helps create tailored marketing strategies that showcase your business to a wider and targeted audience cost-effectively.
Conclusion
Starting a business in Lagos presents immense opportunities, but success hinges on thorough preparation. Begin with a comprehensive market analysis to understand your landscape and customer needs. Ensure your business is registered with the government to access legal benefits and support. Choose a strategic physical location to enhance visibility and convenience. Invest in strong branding to differentiate yourself in the competitive market, and allocate a robust marketing budget to reach and engage your audience. By following these crucial steps, you lay a solid foundation for your business to thrive in Lagos’ vibrant and dynamic economy. Success awaits with careful planning and execution.
