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’s what they said:
“Having customers doesn’t mean you’re making a profit” — Tobi*, 29, Fashion Entrepreneur
When I started my fashion business, I was so focused on getting customers that I didn’t 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’t 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’d make ₦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’t successful because money is entering. You need to pay close attention to the margins.
“Your friends and family are not automatically your customers” — 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’d 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’re selling, not just waiting for people who love you to support you.
“Passion isn’t enough, you need systems” — 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’re personally involved is not really a business. I still have a lot to learn, but the journey has been enlightening so far.
“Learn how to say no” — 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’d 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’t mean you’re rude, it means you understand the value of your work. I urge more business owners to say no. It’ll save you so much stress.
“Separate your business money from your personal money immediately” — 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’d take money from the business. If I wanted to go out, I’d take money from the business. I didn’t 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.
“Having a good product doesn’t mean you’ll get funding” — 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’t. 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’s just on the back burner for now. Looking back, I wish I had understood earlier that you can’t build your business around the assumption that funding will come. I was so focused on fundraising that I wasn’t 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.
Want to see what you missed? Watch the recap of the last edition here.
The next online edition is happening on 29 August. Register here and follow Renmoney to stay updated on the session and future editions.
