Starting a Small Business in Tough Economic Times

It's one thing to start a business; it's quite a different ball game to keep it going.

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If you're a Nigerian intending to start a business in Nigeria, you'll understand how incredibly difficult it is, considering how expensive things are now.

If starting a clothing business cost 1 million naira a year ago, starting the same business on the same scale will probably cost three times that amount now.

Truth be told, starting a business is a herculean task in any environment, and it gets increasingly difficult in tough economies.

Still, you shouldn't be alarmed; nothing is impossible with appropriate planning and direction.

Whether you like to admit it or not, finance is a very vital factor of any intending business owner.

I have heard people say 'don't worry about money, just start, money will come' or 'finance should be the last thing on your mind, start the business first'.

I can't help but wonder, how do you even start in the first place without having finance as a foundational factor?

It takes money to make money. If you want a fair slice of the business pie, you need to work smart and hard on your financial projections; how much you need to start the project, your operating costs, and so on.

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If you're looking to start a business in a not so smooth economy, here's a few steps to take.

1.Source funding

I have never been one to advise people to get loans from banks, cooperatives and the likes, to start a small business, because I do not in any way think it's a great first move.

Nonetheless, if this is your preferred choice, you want to do your research; ask trusted friends or experts in the field to help go through your business plan with you.

Have them go through your long term and short-term goals, are they feasible? Is the business you want to start a smart move? Are there prospects? etc. Remember that no man is an island.

Before going to source for funding from commercial banks, cooperatives, and credit unions ,ask a friend, or a relative.

If you're the type with a smart business idea and integrity of course, you should find help from this group in no time.

You can also ask a loan officer at the bank you currently use. Most importantly, you want to compare and contrast the interest rates all of these options offer.

2.Have a Backup plan

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Securing your finances is important, but having a financial back up plan is 'importanter'.

Remember, it's a startup, so you want to control your expectations to avoid being disappointed.

Be sure to have a backup plan just in case you're unable to hit your initial revenue projections. Have enough in your reserves to last you 6-12 months for sustenance.

3.Market like a freaking genius

Starting a new business in a bad economy requires a great level of hardwork and creativity.

Clearly define; what are you going to sell? How do you intend to promote the business? What do you intend to charge for the services you offer? Who are your target customers?

Remember, you'll most likely always have competitors. Marketing is crucial to get ahead of them, or to be one of the big names in the market today.

Study them, what are they doing? What techniques and campaigns are they using? Are they offering discounts? Do you have a website? Are their prices considerably lower than yours?

Watch them like a lion watches its prey. When you understand their tactics, you're able to come up with better and improved marketing techniques.

4.It's okay to start small...with a plan to expand your horizon.

When it comes to starting a business, you must understand that there will be a lot of expenses, so you want to minimise cost in every way possible.

If you can start in a smaller and less expensive location, by all means do so. If it's a business that you can easily do virtually, do so, thereby eliminating the cost of a physical address or location. As the business grows, you can consider expansion every now and then.

Also, in terms of staffing, it is only right to employ independent contractors, part-time staff or temporary workers, considering the fact that your new business doesn't have that much traffic yet.

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5.Technology: Utilise it!

First, there's no need to mince words. All businesses, especially small businesses need to use social media marketing to an advantage in order to reach a wider audience and drive traffic in the process.

Digital marketing is your best bet in this case, if you can't afford a digital marketing expert, you have absolutely nothing to fear, just learn. It's not difficult, I promise.

Technology has indeed paved ways for businesses to thrive in the digital space, take advantage of it.

I have written a few articles here, relating to how technology impacts your business, please click here to read.

Beyond your physical address, expand your market by utilising different social platforms, create Facebook, LinkedIn, Instagram, twitter, etc accounts, and a website for your business.

In conclusion, any business can thrive, however, there's no progress without proper planning and commitment. I could go on and on, but I'd rather stop here.

Thank you for your time!

I'm on Twitter: @hive_omoseefe
Discord:Omosefe#5960

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