Running a company in West Africa is an adventure. If you want to build a company that lasts, here are the 10 rules you must follow for doing business in Nigeria successfully
- Never borrow high-interest funds. If you must, ensure your profit margins are at least double the interest rate.
- Understand local market dynamics.
- Build strong Government and Regulatory Relationships
- Know your cost drivers, especially if you’re in an inventory-based business
- You need a very very good Accountant.
- Develop Local Partnerships and Networks
- Play the long game. Business growth in Nigeria requires patience
- Working ‘on’ your business alone is a luxury you can’t afford, you need to work in it as well. Stay actively involved to navigate Nigeria’s unique challenges.
- Leverage Technology for efficiency and reach. Cloud-based solutions like ERPNext can provide cost- effective and scalable growth options for Nigerian businesses (shameless plug)
- Pay yourself first. Prioritize setting aside profit before paying employees, suppliers, customers, or financiers.
