Nigeria: A Unique Business Market & Industry

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The sole purpose of starting a business
is to firstly solve a problem, then the aim would be to make profit This is why a business is an act of buying and selling in commercial ventures or offering professional or technical services in exchange for money or other forms of goodwill.

Purpose and aim are two different things. While most businesses are aimed towards profits, without a purpose to solve a problem and provide a solution, profit is impossible.

However, there are people who start businesses without the aim of solving a particular problem, they only enter the market to join a competition, and maybe follow the trend of thriving business models already.

The Barriers To Business

The barriers to business are mostly capital or funding and having an initial investment.

No matter how small a business is, Provided there's a stipulated income that's expected from the business then there will be some initial form of investment that'll act as capital to bring that business to life.

This is why, having a target is always backed by money, the proper research, finding one's target audience, and understanding the right product and service which can be offered.

However, building something without a sole target creates an uncertain circumstance. For example, there are different business formats in every market.

Nigeria is an industry with unique specifications. How to approach business in a place like Dubai will be different from here, and this is because of the uniqueness of the market.

The Nigeria-Based Industries

In Nigeria Most organizations and companies are born with an intent to scale after being initially successful in their original endeavors, some people go ahead to solve different problems slightly related to the initial problem they're solving.

For example, a person who sells motor parts might want to sell motorcycle parts and sell other automobile functions. While they're different, they're also unique to the same industry and one of the reasons people do this is to stay versatile.

Solving A Problem Is Crucial

Being able to solve different problems in a particular industry, keeps the money flowing which helps people survive business recessions. One of the most important elements a business needs to survive in Nigeria is to have constant demand and supply that's adequately corresponding.

When a business centers around basic needs, there's the Inevitability that it's going to be successful. For example, business models built around transportation, food, and clothing experience the biggest adoption and saturation.

This is why no matter the people who enter the industries focused on these services and products, people will always make money.

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Diversity Is A Huge Concentration

This is because of the diversity in wants and needs, and also because the constant increase in the number of people means more need for businesses built on these basic needs.

However, this isn't to say over-saturation cannot make a market redundant. For example, the digitization of products by using the internet spaces such as WhatsApp in Nigeria, has bastardized the buying and selling of clothing materials.

Nevertheless, because there are varieties in people's demands businesses that are built here will always thrive.
There are others who also keep solving the same problem, but offer a variety of product and servicing in large quantities, depending on the demand.

Methods Of Scaling

These people scale by producing or offering larger quantities in different places at different places In Nigeria for example, the evidence of growth is expansion. People expand their business to other areas when they have the money to do that.

So it's either they scale by going into similar products in the same market, or they do so by increasing the quantity of the same product, spread into different areas Nigeria is a unique market with a sophisticated area and reach.

Uniqueness In Ideologies

To successfully build a business you need to recognize a problem, discover ways to solve them, see if they align with your capabilities, and check or explore unadulterated or unique areas where it's possible to achieve some level of success.

However, all these are peripheral, if the right kind of capital is not available.
Money is the beginning and end of a business, the other scope and strategy are secondary, just like anywhere in the world.

Interested in some more of my works?

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Money: The Consequences Of Making The Right & Wrong Decisions
The Nigerian Economy: Monopolizing Incompetence
The Experiential Process of Understanding Money
A Case Of Theft On Hive: Here's Why Some People Choose Scam.

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31 comments
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I would love to visit Nigeria one day.
Next year I should plan a trip to Africa, I've never been there.
Any recommendations?

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Nigeria is a great place to visit, another African country would be Kenya, but Nigeria is more lenient and friendly towards foreigners. Overall I think you'll have a really decent adventure

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There's a joke about the number of internet sellers these days being more than actual buyers. The internet is over saturated with people desperately needing others to buy their wares. The crux of the matter is that businesses are everywhere but without capital, which is subjective because we don't need actual capital like before, and also an incentive to work, we may just keep dreaming of a successful life. And that's all it will be . A dream.

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I think it's because there are many people who are just trying to copy others, especially because they think that sector is more lucrative. In Lagos women wares is very lucrative, so now we have more pet selling wares, than people who would buy. Selling is moving to the internet nowadays

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I agree that businesses need to solve a problem and that is something that isn't so easy. At least not to make that profitable. I think the scaling issues are way harder with technology improving. I have a feeling that the saturation of the market can really make that easy or hard depending on how well you use that technology.

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Well, solving a problem is one thing that can improve the chances of a business doing well. I know that there are other things that technology could do. The saturation of the market in Nigeria takes value away from an industry in Nigeria. Making it less lucrative.

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I think idea is a beginning and end of a business money is secondary, so Many people have enough money but don't know what to do with that money

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Well sometimes too, some people have ideas but don't have money. It's more of this situation in Nigeria at the moment

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Business will solve problem of the business owner by providing money for the person to live his life.
Also, it will solve problems for people by providing their needs or wants

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People who know about these things say that companies can basically use three different approaches to solve social problems. The first plan is to focus on making processes work well and getting goods to customers quickly, like McDonald's does. This method needs low profits and a lot of sales. The second strategy is to tailor goods and services to what customers want. This leads to fewer sales, but higher margins are needed. The last plan is to keep adding new product features to the market. This is a common tactic in the tech industry, especially when it comes to cell phones.

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It takes money to make money indeed. But then, the right way to do it is important. I often wonder how people enter markets simply because they see that it's thriving, but then do nothing different to actually ensure their success.

Everyone is selling this or that, but they're all doing the same thing by not being unique in any way. I don't know how it is to run a business, but I sure as hell know what a competition is, and that it's important to be unique.

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The business model on WhatsApp has over saturated the market in Nigeria. You would see how your WhatsApp is filled with people selling different stuffs at a very expensive rate. It's all same thing with nothing to spice it up. I think creating something to spice it up is what these business lack.

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Business is a multi-part process and money is an integral part of it. Having a purpose and solving a problem is the way to keep going during hard times and also make a good mark that ends up making the business money. Being unique is always important in a sophisticated market with many products and services. It's always easy to copy but emulation is much better.

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You're right, being unique is very important, however, it's difficult to be unique in an already saturated industry, like the one we have in Nigeria here. However, the more unique we become, the more advantageous.

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Yes, it will be already be difficult in a saturated market. Being unique will be more rewarding too. Because you will be able to stand out from the many.

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To successfully build a business you need to recognize a problem, discover ways to solve them

This is the easiest way to thrive in any business and with this, profit is guaranteed consistently.

I will give you an example based on what you said in this post. In my community, we don't have all these local gas stations unless you transport yourself to the nearest filling station to fill Ur cooking gas. Recently a young guy discovered this problem and solved it for the community by establishing a gas plant. Currently, we don't have to spend extra cash and time transporting ourselves to the filling station to fill our gas, yet we still get it at the same rate

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If I was the one, I'd recognize this same problem and try as much as possible to solve them as well. There are times I've done so in the past, but the lack of capital and all that made it difficult for me. There's no one who solves a problem that doesn't make money from it. I think just being unique with solving a problem is where the issue is. Sometimes, it's hard as Nigeria is already over saturated

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This is why Indi believe we still have many business opportunity in Nigeria somebody just have to think, see the likes of flutterwave and the idea behind it. Recognizing the problem is the main work there and find definitely

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Yeah, although it's difficult to recognize a problem, that's the hardest part of business conceptualization. I think because almost everything has a solution already. But there are still ideas.

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Versatility over rules Nigerian. This is why you find someone selling different things with the saying;

One way is no way at all.

Funny as it sounds, it is the truth.

And you are right, buying and selling in Nigeria is different in Dubai and any other country.

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Yes, everything in the market is absolutely unique. Different country has different unique market and the Nigerian market is probably the most unique. Over here, we're truly versatile

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Haha, yes we are.

I am so sorry for the late reply.

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Someone once told me that even id you bring dog faeces to sell that you must see someone that will buy
Nigeria is a very huge market and i am glad that we are harnessing it well.

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Nigeria is actually a good place everyone would want to be in. Business aren't easy but I think it worth having to solve financial problems

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The ideal way of doing business really is to create (or improve) a solution to an existing problem. Joining competition or business models that are already thriving without looking into them is just like investing in meme coins. Your success will largely depend on luck because the trends making the said businesses successful can change anytime and you go bankrupt.

Around here, people understand scaling as like basically expanding by opening branches of the same product or service at different locations. They don’t really think of diversifying during expansion, even though different business thrive at different locations depending on the needs of the people there.

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