Starting a business in Nigeria is often easier said than done. For many Nigerian entrepreneurs, starting a business is a crash course in learning on their feet.
We asked six Nigerian business owners the lessons they wish someone had taught them before they started. Here鈥檚 what they said:
鈥淗aving customers doesn鈥檛 mean you鈥檙e making a profit鈥 鈥 Tobi*, 29, Fashion Entrepreneur
When I started my fashion business, I was so focused on getting customers that I didn鈥檛 pay attention to my numbers. If people were ordering, I felt like I was winning.
It took me a few months to realise that sales weren鈥檛 the same thing as profit. I was pricing my clothes based on what I thought people would pay, rather than calculating fabric costs, labour, delivery, packaging, and everything else.
There were times I鈥檇 make 鈧300k in sales and still be broke because I had spent everything restocking without actually paying myself. I wish someone had told me from day one that a business isn鈥檛 successful because money is entering. You need to pay close attention to the margins.
鈥淵our friends and family are not automatically your customers鈥 鈥 Amaka*, 27, Skincare Vendor
One mistake I made was assuming everyone around me would support my business once I launched. I thought my friends, cousins and colleagues would be my first customers because they knew me and I stocked up what I thought they鈥檇 like.
But most of the time, the people closest to you are not your target audience. Some people will cheer you on and never buy anything. Some people will expect discounts because they know you personally.
I wish I had understood earlier that building a business means finding people who actually need what you鈥檙e selling, not just waiting for people who love you to support you.
鈥淧assion isn鈥檛 enough, you need systems鈥 鈥 Esther*, 30, Food Vendor
When I started my food business, I thought my obvious passion was what I needed for success. I loved cooking, people loved my food, and I assumed that was enough.
But running a business requires a lot more than passion. I had to learn how to cost my items, deal with suppliers, handle customer complaints, manage finances, staff, and delivery issues, and plan for contingencies. There were days when I was exhausted to the bone because things were so overwhelming.
I wish I had known earlier that I needed strong systems. A business that only works when you鈥檙e personally involved is not really a business. I still have a lot to learn, but the journey has been enlightening so far.
鈥淟earn how to say no鈥 鈥 Fadedemi*, 32, Events Planner
One thing nobody prepared me for was how much people would try to negotiate or beg for discounts when you own a business.
At first, I accepted every job because I was afraid of losing customers. I鈥檇 reduce my prices, add extra services and bend over backwards just to keep people happy.
Eventually, I realised some customers were costing me more money than they were bringing in. Saying no doesn鈥檛 mean you鈥檙e rude, it means you understand the value of your work. I urge more business owners to say no. It鈥檒l save you so much stress.
鈥淪eparate your business money from your personal money immediately鈥 鈥 Blessing*, 30, Thrift Vendor
My biggest mistake when I started my thrift business was mixing my personal funds with my business money. I treated my business account like my personal account.
If I needed to buy something, I鈥檇 take money from the business. If I wanted to go out, I鈥檇 take money from the business. I didn鈥檛 realise I was slowly eating into my own growth.
It almost drove me crazy when I first tried to balance the books, so I reached out to my mum for help. She advised me to separate the money, and my accounting has been much smoother since then. I wish someone had told me from the beginning to pay myself a salary and leave business money alone. I would have escaped the initial panic when I first tried to account for their business.
鈥淗aving a good product doesn鈥檛 mean you鈥檒l get funding鈥 鈥 Rotimi*, 32, Tech Founder
One of the biggest lessons I learnt after starting my business was how difficult funding can be, even when you have a product people are using.
My co-founder and I built a software platform that helps small businesses manage their sales, and at one point, we had good traction and were growing, so I assumed raising funding would be straightforward. It wasn鈥檛. Investors wanted to see stronger revenue and retention, and a clearer path to profitability.
We tried to keep the business running, but eventually had to get full-time jobs to survive. I still plan to scale the business. It鈥檚 just on the back burner for now. Looking back, I wish I had understood earlier that you can鈥檛 build your business around the assumption that funding will come. I was so focused on fundraising that I wasn鈥檛 paying enough attention to making the business self-sustaining.
Every entrepreneur has a “I wish someone had told me this earlier” story. The good news is, you don’t have to learn every lesson the hard way. Through the Renmoney Business Mastery Series, entrepreneurs and SME owners can access free, practical sessions led by industry experts focused on building stronger, more sustainable businesses.
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