3 Important Factors to Consider When Choosing an Area for Your Business In Nigeria
Emmanuel Nnaemeka
Doing business in Nigeria comes with its perks and problems. It will be a great disservice to yourself to set up your business without doing your due diligence and background studies. Many businesses in Nigeria fail in their third year because they fail to understudy the geography of where they want to set up their business. Having the right team with sufficient capital isn’t enough. Geography is as important – even more important – than funding. There are important things you must look at before choosing geography for your business. In this article, we shall look at three important factors to consider.Read more about Business Growth
Location
It is very important to take the location of your business very important due to several things. For example, it is very ideal to establish your business closer to your customers. When starting up your business, it is very important to think about being within walking distance or a short drive away from your target audience. Further, it wouldn’t be a bad idea if you’re into manufacturing to establish your factory in an industrial area within an urban centre or in a rural area, which is a few minutes drive to target markets. Ensure that your business is within a location that is easily accessible. Put into consideration your transportation to your workplace. Can you afford to reach your workplace in record time? Is it pocket friendly? There are some establishments you can’t set up in the city due to government regulations and laws. You might be required to set up your business in a suburban area which might take a toll on your commutation. You might want to build or get an apartment close to your work especially in a case where relocating your family might be difficult or disruptive.Apart from getting closer to your target audience, there is a need to build your digital space where people can also find you online. Therefore, ensure that the location of your business has internet access. Also, location can allow you to reach out to clients to either lobby to evangelise about your product or give them business cards and promote your website. In all, having a physical office matters a lot so that customers can reach you.Sign up to the Connect Nigeria Daily Newsletter
The Customer’s Problem. It is very ideal to set up your business where there is available customers’ problem. The question you should also ask yourself: “what is the problem that needs solving?” Some cases exist where customers don’t have problems, however, you need to believe they do want something they can’t afford. Therefore, you have to spot ways to solve their problems. Four-As customer problems to consider when thinking of solving them. They are Alternative, Affordability, Accessibility, and Availability. For example, customers might have the problem of affordability when goods are expensive, due to several factors such as the distance of getting the product. The problem of availability might be either scarcity or short supply of product. The dilemma of accessibility could be that there are a lot of roadblocks towards getting a specific product.
Cost Of Production In The Area.
Another factor you must put into consideration is the cost of production within the area. This could be access to and cost of raw materials, rent, transportation, salaries, and so on. Therefore, a place like Lagos might be costly when producing and distributing your product compared to other areas.These areas will increase your costs: gross sales revenue, income taxes, employee’s social security and Medicare taxes. Gross sales revenue sales tax is a tax that the State collects on most sales. They usually base it on a percentage of the sale price. Featured image: OkCreditDid you find this article useful? Contact us: editor@connectnigeria.com
