Doing
business in lagos is a very interesting fact noting the fact that they
will be alot of customers and the fact that it is the commercial centre
of the country Nigeria is also a point to note but doing business in
this city has its downside, advantages and dissadvantages. in this topic
today, we are going to be discussing in details things you should know
before trying to start up a business in lagos, even if you are already
running a business in Lagos, you still have to note this things.
1.HIGH COMPETITION
Doing business in lagos is faced with a high competition because they
are vividly are type of business in lagos and the population of stores,
companies and businesses in the mega city of Nigeria lagos is on a high
side as you will likely sell businesses in almost all corners of the
city. Lagos has one of the largest computer and phone centres in Nigeria
which is computer village. Lagos is populated with the headquarters of
vividly almost the largest companies in Nigeria with branches scattered
every where in the city. Lagos is very competitive, before you can think
of starting business in Lagos, you should be ready for the competition
but the good thing is that, they is always some thing for an hustler in
this city.
2. TAX
Tax is always an issue in Lagos as a business man or woman especially
the larges and medium scale business, the small scale business is not
left aside as you will likely notice local government agents at you
store always requesting for tax. Lagos major source of revenue is on tax
from businesses and commerce, the great city is not an oil producing
state neither do they have any major mineral resources in Nigeria but
its still boost of being one of the richest states i n Nigeria every
year, how do they achieve this, the city has the largest and highest
number of industries, companies and businesses ranging from small scale
to large scale, so what this state does is to level tax on every
business in the state. i heard small stores do pay 5k every year at the
time of writing this post but this may change any time. so if you want
to do business in lagos, be ready to face tax from government and unions
3. INSECURITY
well, this does not apply to every part of the state, but certain
areas of lagos is very unsecured to do business especially the mainland
areas and ghettos like ajegunle, mushin etc. This areas have the most
rugged and dangerous street boys in lagos as the cost of living in this
areas is very low compared to other parts of the state. setting up a
business in this areas will attract thieves and robbery. you store,
business or others may be broken into at Night and all your goods
stolen, some people even use fetish powers to buy things from you and go
away without paying you or you will end up giving them excess change,
so be carefull of certain areas and streets before setting up your
business in lagos.
4. COST OF RENT
This is a major issue in the city of lagos because rent and office/
store space is very expensive considering the included and compulsory
agent and agreement fees you have to pay which most times its around
40% to 50% of the total store rent paid. some areas, small and average
stores will cost you around 150k to 300k per year and in the island
areas, you have to pay between 500k to millions depending on the store
location, size and quality, note that you have to pay an additional
agent and agreement fee which is not specified among the rent, it could
range from 40k or 50k to 200k depending on the area and store rent and
size. so if you wanna start up a business in lagos, you should be
financially prepared for the rents.
5. COST OF TRANSPORT AND TRAFFIC
Doing business in lagos some times or most times can be very
fraustrating especially when your business location is very far from
your house, the stress of being locked up in a long lagos traffic for
hours making you arrive late at store or business place will make you
loss alot of customers, the cost of transport is also on a high side as
most lagos transport is short distance drops, you may enter 4 to 5 buses
before getting to your business place and some some case, you may be
compared to use bike, oride or gokada which will cost you alot of money
for transport. so if atall you want to do business in lagos, i will
advise you to live around the location of your business place unless you
have your personal car which you will still consider fuel burning and
traffic. Thesame thing also involves workers and employees.
6. YOU NEED TO GO ONLINE
Lagos is a modern and civilized Nigeria city as most of its residence
especially on the island areas are rich and very civilized, most
businesses done in Lagos are online also because they is no way you can
cover the large size and population offline alone.
Lagos being the headquarters of big offline and online firms like
jumia and the rest will be a great treat to you if you dont operate an
active website where people can see what you do and order online through
phone call or through the website if possible. You can also chose to
stay offline if you want, that doesnt mean you wont sell, you will see
but your business will be limited to only you area and its residence.
7. ADVERTISEMNT
Doing business in lagos especially on a large scale, requires alot of
advertisement, you have to spend alot of money on advertisement
especailly with the use of banners, fryers, bill boards, tv/ radio
stations such as wazobia fm, lagos fm , city fm etc, tv stations like
lagos tv, hiptv, siverbird, africa magic, NTA and others will attract
alot of fame and customers to you business. you have tp print banners
and boards in front of your store or around your store to specify what
you do and attract passer byes to buy from you. so if you want to do
business in Lagos, you should be ready for advertisement and promotion
especially the large scale business but the good thing is that, you can
promote it the little you can, offer excellent service and wait for
customers to troop in especially when you have an excellent and good
customer care system
8. PACKAGING
Packaging as alot to do with your business growth in lagos, Lagos as a
modern and civilized city is in high love of tasteful and flashy things
especially when you are into beauty and salon business. your store have
to be very neat and well organised, do this does not apply for all type
of business but for a beauty, cosmetics, electronic and computer, and
salon business, this is very essential in Lagos as no one will love to
go to a store without AC, nice tv, mirrors and standard clipper to barb
his/ her hair or similar for an hair dressing salon and the truth is,
your packaging determines the kind of customers you will have, whether
poor or the rich as most rich people love neat, organised and flashy
places and business centre.
9. STAY AWAY FROM OVER CROWDED MARKETS
Doing business in an over crowded market will attrack alot of
competition and struggle for customers, i wont advise any one who wants
to go into computers and phones to stet up stores in computer village
because almost thousand of large stores and small computer and phone
stores are located in that places, you will see cheap product and stores
who are ready to sell out theirb product at a very cheap rate because
of their size and you as a starter will be left with very little or no
gain thesame applies gto other business types and their market. it is
better to start up a business in area which is not a market than to
start up in a market.
10. YOU MUST HAVE AN EXCELLENT AND GOOD CUSTOMER SERVICE
As a business owner in Lagos, you must have a very cheerful smiling
and neat customer service, even if your business is not up to the size
of employing some one as a customer care rep, you as the owner and
seller should always put on a smiling face and welcoming approach to you
customers, try to act always happy, dont try to be sad or down face on
your customers, dont try to argue with customers or insult them,
customers are always right, always try to make your customers fee
welcomed and happy and always try to make them feel at home and
appreciated, make them believe they are the one who are making you still
remain in business, always admit when you are wrong and if you are
right, always make them see reasons with you with the calmest and
coolest manner of approach. Try to make your prices and sales pattern
very clear to your customers as to avoid arguement and feeling of them
being cheated, this point will make you stand out very well among the
competition and you will see people rushing to your strore always. still
also try to always relate well with people around you, dont keep
enermies, greet people around and watch and see the magic, people will
be rushing your store like never before.
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