12 Proven Ways To Grow Your Small Scale Business In Nigeria

Let’s face it, growing a small scale business in Nigeria can be exciting, but a bit of a hustle. What makes small businesses hard to scale in Nigeria is usually done to a poor start, financial constraints, lack of knowledge and intense competition. 

But with the right approach, you can build a brand that stands out even in a crowded market. Whether you’re selling on Instagram or managing a neighbourhood grocery store, there are ways to grow your small scale business steadily and sustainably. 

Let’s get into it.

What is a Small Scale Business?

A small business could be a side hustle you started in your spare time, a micro business structure with less than 10 employers or any venture turning in less than N5 million monthly. Usually, this business will have a local market or niche market focus with a limited budget. 

Small businesses don’t have the deep pockets of a big company, but they can thrive by tapping into the local market’s needs. Essentially, it’s about finding a way to use what you have to create a profitable venture. And trust me, you don’t need to break the bank to grow that venture.

Here are twelve cost-conscious ways you can explore to grow your small scale business in Nigeria.

12 Ways To Grow Your Small Scale Business in Nigeria

1. Build a Solid Brand Identity

Branding is the perfect tool small businesses need to grow big. It’s a unique identifier that separates your business competitors and helps you gain repeat loyal customers. Find a unique name, logo, and slogan to start branding your way into profits. However, branding goes beyond just logos and slogans. Your commitment to customers, how you deliver on them and your customer support services also form your brand in the long run.

2. Know Your Market Inside Out

You can’t sell to people if you don’t understand them. For small businesses, total knowledge of your customers’ pain points is a superpower. Who are your customers? What are their needs and preferences? Do a small survey or engage them on social media to get insights. With a better understanding of your market, you’ll know how to position your business better for growth.

3. Use Social Media Platforms

Nigeria is a social media hot zone, and platforms like Instagram, Facebook, and Twitter can be powerful for promoting your business. Nowadays, if you want your business to scale fast you have to be on social media. To get started, post engaging content, use catchy captions, and stay active. Customers want to connect with real people, so be authentic with your content.

4. Use Referral Marketing

Lots of small businesses found their mojo with referrals. You create a marketing system where people are rewarded (could be discounts, tokens, or perks) for telling other people about your business. Word of mouth is powerful and can result in powerful growth. As a rule of referral system marketing, “satisfy your customers, and they’ll tell their friends and family about you.”

5. Invest in Customer Service

Have you ever experienced great customer service that makes you want to buy from the brand again? I have! Multiple times. Customer support is the aftersales magic that will take your business far if done right. Treat your customers well, respond to their queries promptly, and always show appreciation. Nigerians have a knack for patronising businesses that respect them. Service wey sweet dey always brings customers back.

6. Focus on Quality, Not Just Quantity

If you’re offering a service, do it well. If you’re selling a product, ensure it’s of high quality. One bad experience can ruin your reputation, especially with how quickly news spreads on social media. Quality will give you repeat customers who may be with you for a long time.

7. Price Your Products/Services Right

Pricing can make or break your business. Price too high, and you’ll scare off potential customers. Price too low, and you may not cover your expenses. It’s important you consider economic climates before finding a sweet spot that keeps your customers happy while ensuring your business is profitable.

8. Get Involved in Your Community

As I said earlier, small businesses are champions at targeting locals. So attend local events, sponsor community initiatives, or even organize small giveaways. You also build a community online around your niche product or service offerings. 

Community engagement builds trust and keeps your business top of mind for locals. Be a familiar face; let people know your business is part of the community.

9. Network, Network, Network! 

Don’t shy away from attending business seminars, trade fairs, or networking events near you about your industry. You never know where your next big opportunity, customer or partnership will come from. Sometimes, it’s who you know that opens doors in the business world. For small businesses, one open door can be the game changer.

10. Take Your Business Digital

No matter your business, you need to get a website. It’s like your destination online. You can also introduce other techs like accounting software, marketing automation systems and even an app if it’s a better way to distribute your offering. It might seem like a big step, but it will simplify your operations and reach more customers.

11. Study Your Competition

Who are your competitors, and what are they doing differently? Are they offering something unique that you aren’t? Understanding your competition will give you ideas on how to improve your offerings or even discover new opportunities.

12. Be Patient and Consistent

Growing a business is not a “get rich quick” scheme. You need patience, determination, and consistency. Even when things get tough, keep going. Stay focused on your goals, and don’t forget the bigger picture. Hard work and consistency always pay off in the end.

How To Start A Small Business From Scratch

1. Identify a Profitable Business Idea
   The foundation of any successful business is a solid idea. Identify a need within your community or an area where you have a skill. From fashion to food services, look for a business that aligns with your strengths and the needs of your target market.
2. Conduct Market Research
   Knowing your audience is key. Find out who your competitors are, who your customers will be, and what products or services are in demand. This research will give you insight into pricing, marketing strategies, and potential challenges.
3. Create a Business Plan
   A business plan is essential for any business, no matter how small. Your plan should outline your business objectives, target audience, budget, and marketing strategies. It doesn’t need to be formal or lengthy; just make sure it gives you a clear path forward.
4. Sort Out Your Finances
   Budgeting is crucial. Determine how much capital you need to start and what you need for daily operations. If you don’t have the funds, consider low-interest loans, cooperative societies, or family support to get things rolling.
5. Register Your Business
   Registering your business gives it credibility and ensures you can access opportunities that require formal business documentation. The Corporate Affairs Commission (CAC) is responsible for business registration in Nigeria, and the process is relatively simple and affordable.
6. Leverage Social Media and Digital Marketing
   In today’s digital world, having an online presence is a big advantage. Start with social media platforms like Instagram, Facebook, and WhatsApp. Use these platforms to promote your business, engage with customers, and build your brand.
7. Offer Exceptional Customer Service
   Customer satisfaction is everything. Go the extra mile to make your customers happy, and they’ll be loyal to your brand. Word of mouth is powerful in Nigeria, so a happy customer will bring you more clients.

List of 24 Top Small Scale Businesses You Can Start from Your Home in Nigeria

Here’s a list of profitable businesses that you can start from the comfort of your home with minimal setup costs:

1. Food Delivery Services
   Prepare and deliver home-cooked meals or snacks to local offices and homes.
2. Fashion and Clothing Boutique
   Sell ready-to-wear or custom-made outfits. You can even specialize in trending African prints.
3. Event Planning and Decor
   Offer planning and decoration services for birthdays, weddings, and corporate events.
4. Mobile Phone and Gadget Repair
   With basic tools and training, you can fix gadgets from home and offer mobile services.
5. Mini Importation Business
   Import small quantities of items like fashion accessories or electronics and sell them online.
6. Laundry and Dry Cleaning
   Offer laundry and ironing services for busy clients in your neighbourhood.
7. Freelance Writing or Blogging
   Use your writing skills to offer freelance services or start a blog that generates income.
8. Tutoring Services
   Provide academic tutoring for students or skill-based lessons like music or cooking.
9. Dropshipping Business
   Sell items online without handling inventory by partnering with a dropshipping supplier.
10. Homemade Skincare and Beauty Products
    Create and sell organic skincare products using natural ingredients like shea butter.
11. Social Media Management
    Help small businesses manage their online presence and grow their followers.
12. Fitness Coaching and Personal Training
    Offer fitness sessions in your area or through virtual coaching programs.
13. Handmade Crafts and Accessories
    Sell unique handmade jewellery, bags, or crafts.
14. Real Estate Agent or Property Management
    Help people find rental properties or manage properties on behalf of owners.
15. Graphic Design Services
    Use your design skills to create logos, business cards, and other branding materials.
16. Pastry and Baking Services
    Bake cakes, pastries, and other goodies for events or direct sales.
17. Virtual Assistant Services
    Offer administrative support to businesses and entrepreneurs.
18. Photography Services
    Offer family portraits, and event photography, or sell stock images online.
19. Hair and Beauty Salon
    Set up a mini salon at home or offer mobile services for hair and beauty treatments.
20. Soap and Candle Making
    Produce and sell homemade soaps and scented candles.
21. House Cleaning Services
    Offer cleaning services for homes and offices in your area.
22. Cyber Café and Printing Services
    Set up a small workspace with internet access and offer printing, photocopying, and internet services.
23. Agriculture and Farming (e.g., Poultry, Fish Farming)
    Engage in small-scale farming that’s manageable within a home setup.
24. Online Tutoring and Coaching
    Teach skills or academic subjects through Zoom or other online platforms.

Wrapping Up

Growing a small scale business in Nigeria isn’t always a smooth ride, but with the right mindset and strategies, you can achieve amazing results.

If you feel lost while building your business or need expert advice to help you scale faster, join over 300 entrepreneurs just like you in our free WhatsApp Community where we offer help at every stage of your entrepreneurial journey.