How To Become An Entrepreneur With No Money In Nigeria

How To Become An Entrepreneur With No Money In Nigeria – Many people have tied the success of a business to the startup capital and they are not wrong just that the success of a business doesn’t start and stop with the money that you put into the business as a lot of businesses started with a lot of money and are nowhere to be found today.

Establishing a business goes beyond money as there are other things that should be considered most especially your idea and ability to expand.

You might be considering to become your own boss, to be the one calling the shots and making decisions for your business but one thing that is stopping you might be lack of funds. Well, we bring you good tidings as you can actually start up your business with little or no money and see it become something great.

Do you have a great idea without the necessary capital to start up the business or you don’t even have a business idea and you want to become self-employed, this article is the solution you need.

We are sure that after this article, you will be fully equipped with what you need to make your dream of becoming a successful entrepreneur in Nigeria a reality.

Without further ado, let’s proceed…

How To Become An Entrepreneur With No Money In Nigeria

We are going to be showing you some tips on how you can become an entrepreneur and start up a business without money in Nigeria. Nigeria is a land that is blessed with a lot of resources and potentials and you can actually become a successful entrepreneur in Nigeria if you know what to do and how to do it.

Let’s take you through what we have for you.

  • Have a great business idea

In as much as money is very important in starting and growing a business, you cannot neglect the importance of having a great business idea as this is the foundation of becoming a successful entrepreneur. The money you put into your business will yield nothing if your business idea is faulty or isn’t great.

For you to generate a concrete and wonderful business idea, you will have to look for an unsolved need or problem and brainstorm on how you can proffer long lasting solution to the problem or meet the need.

If your idea meets a need or solves a problem, whether you have funds or not, you can actually proceed with starting your business. When your idea meets people’s needs, they will be willing to pay for what you are producing whether it’s a good or service.

Talk to friends, neighbors or people in your locality on what their problems are or what frustrates them as this will help you brainstorm on what you can bring to the table so as to start up a business enterprise.

  • Create something better than what is already existing

This is one way to penetrate the market for your product or get a foothold in the market. Since you might not be the only one producing that product or rendering the service, you will have to create something that is better than what the consumers are used to.

If your product meets the needs of the consumers in a better way or proffer a better solution to their problems, your business will surely kick off even with little or no money.

You should be creative about what you are bringing to the market so as to surpass your competitors because it is not always easy for start-ups to penetrate the market not to take of when you are entering the market without money.

You will have to make sure your product is unique, modified, improved and defined as it will not only get you customers but will also retain them.

You can also make your product cheaper but better.

  • Look into a growing category

For your business to grow and also with the fact that you don’t really have start-up capital, you will have to consider a business category that is still growing as it will help you grow with it and become a pioneer of that business category.

It won’t be easy surpassing competitors especially those that have stayed in the business for a long period of time because they have not only gotten customers but they also have market influence and experience.

This is why we advise that you go for a business category that is still growing as it will make it easier for you to penetrate the market and also get customers.

You might not necessarily be producing a brand new product; it might be a modification but try to be unique with your brand. Try to see if you can add a new feature to the existing product and what are the best improvements you can add to the product to make it stand out from others in the market.

  • Start a service business

Service businesses are easy to start up as they require little or no capital. What you need here is time and space. This is more like using your skills to meet the needs of people or solve problems.

There are two things involved here; It is either you look at the skills that are in demand in the market and venture into any one of them or you tap into the skill you already have and see how you can start making money from them.

For whatever skill you have, there is always a demand for it and if not, you will have to create a demand for it by reaching out to the people that are in need of the service you render. You can do this through the social media platforms.

It could be content writing, website development, graphics design, laundry, house cleaning, etc.

  • Know how to use time properly

The thing is if you don’t have money, you should have time for your business and devote your time and energy to the growth and success of your business. Time management is very essential for every entrepreneur as this will help you become more disciplined in running the affairs of your business.

Time is of essence and you cannot have enough of it if you don’t use it properly. You should know what to do and the right time to do it. You should also know that time is money and so you have to use it wisely.

You will face challenges like every business does and since you don’t have enough cash to help you overcome the challenges, you should at least have enough time to help you work on how you can overcome the challenges and become better.

  • Know and understand your target customers

This is an important marketing tip and that is why a lot of businesses conduct market research. You will certainly need to conduct a market research to know your target and potential customers and this shouldn’t include your family members and friends.

The market research will help you know the people that are in need of the product or service you want to bring to the market and it will help you channel your resources properly. Remember that the available resources are limited and so you have to optimally use these resources in order to maximize profit.

The market research will help you know how your target customers purchase the product or service you want to offer and also why; this will help you with any modification you want to make on your product so that it will suit them better.

If you want your business to grow even if you don’t have money as an entrepreneur, make your customers the cynosure of your business as this will help you remain relevant in the market as they will see that your product is always meeting their needs.

In knowing your target customers, you will also have to know where they are and how to reach out to them in the best possible and easiest ways.

  • Have a business plan

How would you start a business without a plan? When you fail to plan, you plan to fail and this is why a business plan is very important. When we say a business plan, we don’t mean just a business plan but a realistic, defined, clear and specific business plan.

A business plan shows where you are and where you will like to be in years to come and also, it lays out strategies and guidelines to help propel your business to greater heights. It shows the purpose, structure and picture of your business.

As an entrepreneur that wants to start a business in Nigeria with no money, you will have to create a good business plan as you can use it to source for startup capital to run your business as some venture capitalist, angel investors or financial institutions would want to see your business plan before they would help you with capital for your business.

  • Build your social media presence

Creating a website might be expensive for you since you are starting your business with little or no money and so if you want to have an online presence, you will have to work on your social media presence like Twitter, Facebook, and Instagram. These platforms will help you showcase your product or service and also grow your business even if you are starting little.

With the social media platforms, you get to reach out to a larger customer base as a lot of people in Nigeria are on social media and use social media every day so it is an opportunity to reach out to a larger audience.

Because it is a social media platform doesn’t mean you shouldn’t be professional. You have to act professional and give out relevant information about your brand; remember the social media platform represents your business.

Try to maximize your social media presence and build a relationship with your audience; it might be by posting quality and relevant contents or information. Do not always be about selling your product or service instead, interact with people and build a relationship and with these relationships; you have a chance of boosting your customer base or client base (if you are rendering a service).

  • Let what you preach be what you offer

When showcasing or advertising your product through any means you can, let what you are telling your potential customers be what your product offers or even better as this will gain their attention and loyalty.

As an entrepreneur that wants to establish a business with no money, you will have to give your target customers exactly what they want if you ever want your business to thrive because your customers can either promote your business or end it.

Your product should live up to expectation so as to get your customers attention. It is better to say less about your product and it exceeds the expectation of your target customers than to over talk and deliver less.

When you under promise and overdo, it will build their loyalty and trust in your brand. You should know that before your product comes out, the words about your product or brand is already out there and so it should live up to the reputation and the hype too.

  • Be ready to work hard

Even if you don’t have enough money to start up your business, you should at least be ready to work hard and give in your best to see that your business does well with the little you have put in it.

Starting your business means you would have to dedicate hours and effort to the business whether you have money or not and if you don’t have money, it would mean that you will have to work harder and smarter to outdo your competitors and stay ahead in the market. Although the number of hours you dedicate to your business might not guarantee your success but it is a plus to the progress of your business.

Every entrepreneur is expected to work-hard as this is one of the key to a successful business outfit. Be ready to dedicate your time to your business and make success your priority and end goal. Even in the dictionary, hard-work comes before success.

  • Work with a team

If you don’t have money to start up your business, you will have to consider working with a team as it will help fast track the progress and success of your business.

Working with a team is very important as it will help reduce the stress of running the business alone. Since you don’t have much money to start up your business, you can build a team where everyone will participate in the funding of the business as you all will pool your resources together to finance the business.

The strength of your workforce or team goes a long way in determining the success of the business and also how far it will go.

How To Get Funding For Your Business In Nigeria

Since you don’t have start-up capital for your business, you will have to source for funds for the business and the funds you will get will depend on the type of business or scale of operation of your business.

There are a lot of ways you can actually get funds to finance your business in Nigeria and we will be looking at a few of them.

  • Get personal loans from family and friends

This is more like the first place to run to when you are looking for finance for your business. Ask your family and friends to invest in your business and they will surely invest if they see your business as a viable one with potentials.

Some of the successful entrepreneurs in the country reached out to their family and friends to sponsor their business.

  • Pitch to angel investors

These set of people are looking for start-up companies to finance with the aim of getting returns on their investments. They will be willing to invest in your business if after seeing your business plan, they are impressed with what you are bringing to the table and you have shown them that the business is going to be one of a kind.

Along with the finance the angel investors offer, they also link you up with strong connections to help you in your business and also ensure the growth of your business. They receive equity for investing in your business.

So you will have to create a strong, measurable and realistic business plan.

  • Source for venture capitalist

Just like the angel investors, the venture capitalists look for potential business that they can invest it. They give finance to young and private businesses that would yield a high returns on investment.

These firms or individuals invest at the early stage of your business provided the business is feasible and viable. This is why your business plan should be realistic, measurable and clear as it will show them how you plan to propel your business to greater heights in the nearest future.

  • Apply for business grants

A grant is different from a loans and this is because you don’t have to pay back a grants unlike a loan. There are a lot of entrepreneurship programmes in Nigeria that are setup by the government, firms or individuals to help entrepreneurs with funds to finance their businesses.

The Nigerian government has doubled its effort in encouraging youths and other people to become entrepreneurs and own businesses. They believe that entrepreneurs are change agents and are a driving force in the growth and development of the country so they have designed some entrepreneurship programmes that offer grants to any one that wants to establish a business in various sectors.

Also, some private firms and individuals offer grants to potential entrepreneurs that want to start up businesses through their own entrepreneurship programmes. These are ways to promote entrepreneurship in the country as it will surely lead to job creation and industrialization in the country.

  • Source for microloan

The thing is that you can’t apply for a loan in the first year of your business as not lender will be willing to take the risk of giving you a loan except you have collateral that is has a value worth more than the loan you want to collect.

Look for government programmes or non-government programmes that give microloans to prospective entrepreneurs to help you finance your business.

Final Note

In as much as money is important for you to start up your business, it is not the only thing you would need and from what we have said so far in the article, you must have seen that you can actually become an entrepreneur even without money and there are a lot of businesses you can actually start with little or no capital.

READ ALSO: Best Businesses To Start During Lockdown In Nigeria

If you have a great business idea, you can source for start-up capital from the sources of funds we have highlighted in the article and carry on with your business. You have to be ready to do what it takes to succeed as an entrepreneur and you should know that becoming successful doesn’t happen overnight as it takes a lot of time, effort, hard work and failure especially for someone that doesn’t have money to run the business.

Leave a Reply

Your email address will not be published.