Starting A Small Scale Business in 2024 - Everything To Know

Your entrepreneurial journey can be easier!

With Bumpa, starting a business online is simple; create a business website in minutes. It doesn’t end there; Bumpa provides you with a host of features for business management - generate invoices & receipts, manage your inventory, get business analytics, manage your orders and more!

Download the Bumpa app, sign up today and get started with growing your business both offline and online, effortlessly!

Join Bumpa today!

Starting a business is an exciting venture, and in 2024, there are so many ways to simplify the process. Everywhere you look, businesses are popping up and scaling very quickly, and there are new opportunities and potential emerging every day.

However, it is also important to acknowledge that it’s not all rainbows and unicorns. Starting a business and then expanding your business over time can be tough, especially in Nigeria. Entrepreneurship comes with its fair share of challenges. But it helps to know everything that can help you scale through these challenges and come out on the other side with little to no damage to you and your business.

If you’re planning to start a small-scale business in 2024, then stick with us as we explore the exciting prospects and potential hurdles you may face, and how to overcome them!

Part 1: Choosing the Right Business Idea

There are so many business ideas to consider, especially in a place like Nigeria where there is demand for almost everything. But this demand is also tricky, as it creates a lot of stiff competition. To choose the right business idea, you should consider several factors.

1. Think of potential ideas that align with your interests and passions. Identifying a niche that resonates with your skills and expertise, as well as market demand, is very important because, at the end of the day, you don’t want to sell what no one is buying.

2. Conduct thorough market research to assess the profitability of the idea you have chosen. You’re in business to make money, so passion and intuition aren’t enough. With data and research, you can turn your passion into a money-making machine. Market research here includes analysing your target market, understanding the customer needs, evaluating competition and identifying the gaps that can be filled.

Some Questions to Help You Choose the Right Business Idea

When you’ve decided that you want to start a small-scale business, these questions could help you clarify what kind of business to start.

1. What do you enjoy? Think about your interests, hobbies, and passions.

2. What problems can you solve? Identify a specific problem or need that people have.

3. Who is your target audience? Understand who your potential customers are.

4. Is there market demand? Research the market to see a demand for your product or service.

5. Can you make it profitable? Evaluate the financial viability of your business idea.

6. Do you have the required skills and resources? Assess your capabilities and determine if you have the necessary skills, knowledge, and resources to turn your idea into reality.

7. What's your unique advantage? Identify what sets your business apart from competitors.

Related: 10 Small Business Ideas you can start with 20,000 in Nigeria

Part 2: The Essentials of Business Planning

The next important thing is creating a comprehensive business plan. A mistake most business owners make is thinking that their business idea isn’t important or ‘big’ enough to create a plan for, but that’s inaccurate. Why?

1. A business plan serves as a roadmap that outlines your goals, strategies and financial projections for your business.

2. A well-crafted business plan helps you clarify your vision and provides a foundation for success.

3. A business plan becomes a powerful tool for guiding your journey and attracting investors.

Now, what should you include when you’re writing a business plan?

Your business plan should include key components like:

1. Market analysis, where you identify your target audience and analyse the competition.

2. Sales and marketing strategies, where you highlight how you’ll reach and attract customers.

3. Operational considerations, to address the logistical aspects of running your business.

4. Financial planning, covering startup costs, revenue projections, and profitability.

Download: Free One-Page Business Plan Template

Part 3: Legal and Regulatory Considerations

While you can start your small business at any time, it is actually important to be aware of the legal and regulatory landscape that comes with it. This includes getting the necessary licenses, permits and registrations specific to your industry. For example, if you run a business in Nigeria, you have to register your business name with CAC.

Compliance with these requirements ensures that you’re operating within the bounds of the law and helps you protect your business and customers, while also ensuring that you’re well-equipped for any opportunities that come your way e.g. grants, loans, etc. You can always seek professional assistance to navigate any complexities, but also make sure you understand the basics so you do not misunderstand explanations. You can take a crash course in business law and regulations to help. Check out Bumpa Academy for a host of courses that dissect business law.

Take A Quick Course: 8 Nigerian Laws That Are Relevant To Your Small Business

Part 4: Securing Funding and Financing

To turn your business idea into a reality, you’ll need money. There are various methods you can explore.

1. Self-funding allows you to use your savings or personal assets to finance the business.

2. Loans from banks or other financial institutions, though they often require a solid business plan and collateral.

3. Grants from government or non-profit organisations.

4. Crowdfunding platforms can help you raise funds through pre-orders or donations from a supportive community.

5. Seeking investment from angel investors or venture capitalists to provide the capital and expertise needed for growth.

Remember, exploring various options and enticingly presenting your business can help you secure the necessary financial support you need to launch.

Related: A Guide on How to Apply for Small Business Loans

Part 5: Setting Up Operations and Infrastructure

Once you’ve secured funding, it’s time to set up the operations of your business. What the operations of your business will entail will largely depend on the nature of your venture, but these are some of the common aspects to consider.

1. Product or Service Delivery: Define how you will produce or source your products or services and how they will be delivered to customers. This could involve manufacturing, procurement, or establishing partnerships with suppliers.

2. Inventory Management: Determine how you will manage your inventory, including tracking stock levels, handling storage, and implementing a system to ensure efficient inventory turnover.

3. Customer Service: Outline how you will handle customer inquiries, complaints, and support. Decide on channels of communication (e.g., phone, email, social media) and create guidelines to provide prompt and satisfactory experiences for them, and constantly improve customer service.

4. Financial Management: Establish financial systems and processes like bookkeeping, budgeting, and creating invoices. Monitor your cash flow, track expenses, and implement measures to ensure financial stability.

Setting up can seem like a lot but with a great tool like Bumpa which helps you manage your business with ease, you can track inventory, orders, finances and business performance from one place, thereby reducing the stress of operations for a new business. Download the app here to get started in minutes.

Remember, as a new business owner, you have the flexibility to shape your operations to suit your needs. Be adaptable, and agile, and listen to customer feedback to continuously improve your operations as your business evolves.

Part 6: Digital Marketing and Online Presence

It’s 2024, so your business being online is crucial for success. More consumers are increasingly online, and implementing effective digital marketing strategies is necessary to capture the attention of your target audience. When it comes to building your online presence, here are the key elements to consider.

1. Get a website: Your website is the virtual storefront of your business, and it should effectively showcase your products, services, and unique value proposition. Optimise it for both desktop and mobile devices to accommodate the growing number of users accessing the internet via their smartphones and tablets. You can set up a fully functional website within minutes with Bumpa. Click here to download the app, sign up and that’s it!

2. Leverage social media marketing: Platforms like Facebook, Instagram, X (Formerly Twitter), and LinkedIn provide an opportunity to engage with your audience, share valuable content, and build brand awareness. Craft an engaging social media strategy that aligns with your target market, and use these platforms to foster meaningful connections, generate interest, and drive traffic to your website.

3. Go hard on content: Create valuable and shareable content, such as blog posts, videos, podcasts, or infographics, that educates, entertains, or solves problems for your target audience. By consistently delivering valuable content, you can position your business as a trusted resource and attract organic traffic.

Additionally, embracing search engine optimisation (SEO) is essential in ensuring your business gets discovered by potential customers. Invest time in researching keywords relevant to your industry and create compelling, informative, and keyword-rich content that resonates with your audience.

Read: The Best Guide to Search Engine Optimisation (SEO) for Small Businesses

Conclusion

Starting a small-scale business might not be the easiest thing in the world, but carefully planning, adapting and having a thorough understanding of the modern business landscape can help ensure success. With everything covered in this blog post, you have the essential foundations for this success. Good luck on your journey!

Subscribe to our Blog

If you love tips & content like this that will help with your small business marketing and growth, then you’ll be excited to know we have more! We could always send you notifications when they are published if you share your email with us. We promise to not be a bother, and you can always unsubscribe anytime!

Subscribe Now

Want to Learn More about Bumpa & How to Grow your Business with it?

You can sign up to Bumpa in 5 seconds as a small business owner and let us begin the journey of growing your business with you!

Sign Up Now