4 Strategies for growing small-scale Businesses in Nigeria

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Do you dream of building your small-scale businesses in Nigeria but don’t know how to go about it? Are you in Diaspora and would like to start a business in your native country Nigeria? Well, the truth is, Nigeria is the biggest economy in Africa valued at $397 billion and ranks 27th in the world. And while this is so, Small-medium enterprises (SME’s) contribute approximately 48 % of the country’s GDP and employ about 25 % of the total population.

The manufacturing industry is one of the best sectors to invest in Nigeria because of the availability of cheap labor. Unfortunately, most workers solely depend on employers to create most of the decisions for the businesses. Therefore, you need to have a plan right off if you’re to succeed. Below are some of the strategies you can use to start and grow a small- scale business in Nigeria.

Research the competition in the small-scale businesses niches

According to a report from Semantic Scholar.Org, the major problem facing small enterprises in Nigeria is ineffective marketing strategies. Ignoring competitors’ products and moves often results in fluctuation in prices, weak distribution chains, and low-quality goods.

As a result, being aware of what your competitors are doing is essential. A business should not only push for more sales but also be geared towards adding value to buyers. Research methods like market segmentation, market planning, and price control help you evaluate the level of competition. Therefore, before embarking on any business idea, understand the market trends first. Know your competitors and make sure you exceed the expectations of your customers.

Form partnerships with other small-scale businesses

Small-scale businesses in Nigeria not only face competition from similar outlets but from big companies as well. These uneven prizefights pose a significant threat to small enterprises. To ease things up, startups often merge to remain relevant in such competitive markets.

The benefit of partnerships includes increased capital, access to new markets, and economies of scale. However, before you get into any joint venture, make sure you and your partner have similar interests. Failure to have a common goal may lead to losses and delay decision making. Also, remember to do a SWOT analysis to help you know if you and your partner are a perfect fit or not. Achieving this would involve identifying weaknesses, threats, and opportunities available in the field of business.

Diversify your offer lineup

Many small enterprises in Nigeria fail because they do not offer variety. A business that does not provide more than one product may not grow, leave alone compete favorably. Ideally, diversification boosts profitability. Therefore, give your customers a range of products you deem will solve their problems.

In the same breath, branching out sometimes mitigates risks in case of substantial losses. It also helps build an enterprise’s reputation and spreads out about its existence to buyers. So, for your small-scale business to thrive in Nigeria, make sure you’re offering customers two or more products. That way, you’ll not only make profits but give your business a longer lifespan.

Create customers’ loyalty programs

Even though the Nigerian economy is booming, the poverty levels are alarming. This means that only a few people afford to buy expensive products. So, you ought to create loyalty systems to have an edge in your field.

Loyalty systems help you stamp authority in the market. Achieving this would involve giving out rewards such as after-sales services, discounts, or even offering goods on credit. That way, people will stick to your brand hence find it hard to skip to alternatives. Again, try as much as possible to exceed market expectations. Make sure your product is giving clients maximum satisfaction.

Nonetheless, you have to be cautious when giving out credits. Do this to those people you trust. A KYC (Know Your Customer) analysis will help you evaluate your customer’s creditworthiness. But again, an effective loyalty program should benefit your business in the long run.

Conclusion

Make sure each agreement you get into is in good faith and there’s no dishonesty. Let’s agree; doing business in Nigeria has some challenges. For instance, at the beginning of the 21st century, Nigeria faced unsteady revenue levels and some small- scale businesses had to close down. But despite these challenges, the country remains a hub for investors and entrepreneurs. So, come up with nifty plans right off to avoid closing shop in the first few months of operation.

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