Starting a business Spronet blog

5 Questions To Ask Yourself Before Starting A Business

by with No Comment Business GrowthBusiness Ideas

5 Questions To Ask Yourself Before Starting A Business

“Hey! I’m starting a business” sounds nice and pleasing to the ears.
However, it entails a whole lot. Certain factors should be taken into consideration before making any significant move.

We collated 5 crucial questions you should ask yourself before embarking on any enterprise.
They include:

  • What problem am I solving?
  • How much money do I need to start?
  • Who is my target audience?
  • Who are my competitors?
  • How can I promote my business?

What Problem Am I Solving?

Myles Monroe once said “If you want to become successful, seek to become a person of value.”

No truer words than these. The most successful people in business are the ones solving problems.
WhatsApp made communication easier. Indomie provided food that can be prepared in less than 15 minutes. POS(Point of sale) agents make money available, especially to people who might need it urgently.
These businesses offer value!

As long as people have problems, they will always seek possible solutions.
What can your business make better or offer solution to?

How Much Money Do I Need To Start?

Some businesses require little capital, whereas others require much.
To calculate an estimate of capital needed, you will take the following into consideration:

  • The cost of equipment needed.
  • The cost of workspace.
  • The cost of registration.
  • The cost of inventory.
  • The cost of marketing.
  • The cost of utilities.
  • The cost of employee payroll.

What Is My Target Audience?

Your target audience is a specific group of people who would most likely be interested in your product or service. In simpler terms, they are people you target when advertising your goods.

Every business has a target audience. Defining yours is a very important step. Why?

Once you define your audience, it is easier to reach out to them. A brand that successfully connects with their customers is one that will succeed in the long run.

For example:

The target audience for the brand, ‘Indomie’ is children. From the promotion, to the product design, everything is tailored to appeal to children. It’s no wonder they connect easily with their audience.

The following is used to define a target audience:

  • Age.
  • Sex.
  • Gender
  • Marital or family status.
  • Income.
  • Interests.
  • Location, etc.

Note to self; if you try to sell to everyone, you might end up selling to no one.
Define your audience!!!

Who Are My Competitors?

Competitors are businesses which offer similar value to your customers.

For example, Closeup and Colgate are competitors. Both products offer akin value; enhancement of oral hygiene.

Knowing who your competitors are, will help you create a brand that stands out.

The following is analyzed:

  • What they are doing better.
  • How much they are offering.
  • How they market their products.
  • New products or ideas they’re implementing.
  • Does their product target the same audience as yours?

By identifying and monitoring competitors, you will be able to see their weaknesses and strengths in comparison to yours.

Conducting a competitor analysis gives you an edge. It tells you how to out-do your rivals.
However, it should be noted that competitor analysis shouldn’t be conducted before starting a business alone.

To stay relevant, a business owner should conduct this analysis on a quarterly basis.

How Can I Promote My Business?

You could be offering the best service, but if you don’t effectively promote it, you might not make as much impact.

There are many ways to promote a product, and it differs based on industry and target audience.

Here are ways you could promote your new business:

  • Use a special introductory offer.
  • Run a social media contest(example, a referral contest).
  • Spread the word via Email.
  • Host an event.
  • Run Facebook and Instagram Ads.
  • Post on social media.
How to start A Food Processing Business

How To Start A Food Processing Business In Nigeria

by with No Comment Business GrowthBusiness Ideas

Start A Food Processing Business In Nigeria

The agricultural sector is the largest contributor to Nigeria’s economy. It donates about 24% to the GDP (Gross Domestic Product) of the nation.

Food processing, a sub-sector of agriculture, is a rapidly progressive division. It has been, and will continue to be a rewarding enterprise.
If you want to venture into the food processing business, and you don’t know how, this article is specially for you.

Let’s dive right in!

What is food processing?

Food processing is the transformation of agricultural products into food. It converts raw food into consumables.

Activities such as cooking, mincing, mixing, canning, fermentation, liquefaction, pasteurization, and emulsification are utilized in food processing.

Types of processed foods include:

  • Drinks: Zobo, Kunu, yoghurt, fruit drinks etc.
  • Fried foods: Chips(potato, plantain), Chin Chin, Akara, Puff Puff etc.
  • Oil products: Palm oil, coconut oil, groundnut oil.
  • Farm produce: Garri, beans etc
  • Meat products: Bacon, sausage, ham etc.
  • Savory snacks: Cake, sausage rolls, etc.
  • Flour products: Wheat flour, wholemeal flour, brown flour etc.

The food processing business is majorly categorized into three. They are

  • Small scale: This doesn’t require heavy machinery, and can easily be performed in a normal kitchen setting. Small scale products can be easily processed, and they don’t require much time. An example is the Akara or Puff Puff.
  • Medium scale: Medium scale products aren’t easily processed, and machinery might be needed. The bakery business is an example.
  • Large scale: It requires heavy machinery, large capital investment, and a high man power demand. Products are most times distributed to an international market.

Utilizing our step-by-step procedure, you can start your own food processing business.

Pick a niche:
Every business has areas of specialization, and the food processing business isn’t left out. If you’re confused about which particular niche to pick, here’s a guide.
When picking a niche;

Identify your passion: Choose an area you’re actually interested in. It can be making fruit drinks, or processing farm produce. Whatever it might be, ensure you want to do it.
Identify problems you can solve in your niche market.
Determine profitability of niche market.
Having a niche means that your target audience is smaller, but because you can easily meet their needs, the level of your impact is stronger.

Carry-out adequate research: The next step is to gather relevant information.
Prior to any form of planning, it is important you have sufficient knowledge on the business. From the product itself, to the target market, and competitors.

Do not rush this phase, rather, dedicate time in carrying out proper research.
We also suggest soliciting advice from individuals or bodies who have had years of expertise in your niche of interest.

Select a desired location:
Picking a location is an essential step. One that shouldn’t be carelessly done.
As a medium, or large scale business owner, it is important you take the following into consideration when selecting a location:

Access to water and electricity:

A readily available market nearby:

Good connectivity: You want to be able to easily transport products and raw materials to and from the location.

Environmental factors: Handling of liquid and solid waste should be taken into account.

Draft out a business plan: A business plan is a formal document that contains the goals of a business, and how they can be executed.

It outlines your goals, making them appear less formidable and more achievable.
The following are enlisted in a business plan:

  • Description of the business.
  • Mission and vision statements.
  • Competitor analysis.
  • Market analysis.
  • Marketing strategies.
  • Operation strategies.
  • Product and service description.
  • Pricing and revenue.
  • Financials.

Register your business and get the necessary permits: This shows you are authentic, and builds credibility in your business. Contact persons who might have gone through this process before, and ask for guidance.

Source for funds: You need a start-up capital. This is the initial capital needed to kick-start your business.
If you already have funds, that’s great! But if you don’t, there’s no need to panic.

Loans can be acquired from individuals such as family members, friends, or acquaintances. Corporate bodies like banks, savings and loans associations, and insurance companies can also be of tremendous help.

Purchase required machinery: This might include mixers, deep freezers, oven, deep fryers etc.

Hire staff: Hire a team of workers who will be responsible for handling various tasks.

A small scale food processing business might not require staff, but medium and large scale businesses certainly do.

Find a supplier: The supply of products depends on the scale of business. In small scale, products can easily be obtained from a local market but in medium, or large scale, a farmer is the optimal choice.

We suggest having two or more trusted suppliers to avoid delay, or setbacks.
Ensure that supply coincides with the production process, such that production isn’t halted due to inadequate supply.

Market and distribute your products: Don’t be in a hurry to distribute into market immediately after production.

Test run your product with a selected number of people. If it’s good to go, then kudos! You can advance to the next step, distribution.

Make a list of wholesalers and retailers you can distribute your products to. This includes individuals, and retail outlets like supermarkets and malls.

With the advent of the internet, you can comfortably advertise your product online. This would not only increase sales, but create an online presence and boost credibility.

A good Online Marketplace to add your business is https://spronet.ng

Spronet.ng affords businesses the ability to connect with other businesses, buyers, suppliers and distributors for free, while helping them advertise their goods and services around the internet.

Learn more from our article on what we do on Spronet.ng here What We Do At Spronet.ng – Spronet Blog

There you have it! Steps to starting the food processing business of your dreams.

Business Brand or Personal Brand?

Business Brand or Personal Brand, Which Should Come First?

by with No Comment Business Growth

Business Brand or Personal Brand?

When it comes to branding, different people have different interpretations, and views on exactly what branding is, especially young entrepreneurs just starting out.

While this holds true, an even larger majority assume business branding and personal branding are two different things.

In this post, we present our perspective on the matter to enable you to make better-informed decisions and brand choices for your business.

What, Why, Where? Brand?

Before answering the question of which should take priority between creating a Business or Personal Brand, let us look at what branding actually is, it’s origins and why branding is important.

In its simplest terms, branding means putting your mark on a something.

Like writing your name on your exercise book in school. -Your exercise book is unique, with your handwriting, style of taking notes, and everything in between.

Same goes for your business. Business branding means putting your mark on your venture, craft or franchise…keyword is “Your Mark”.

The Mark

Putting your mark on any business, implies, setting up your business in a way that reflects your beliefs, shared values, principles and to an extent, your personality.

Just like it takes visionary founders and entrepreneurs to build visionary companies, a vital component of your business brand outlook starts from you the owner.

The first step therefore in choosing a brand images for any venture is taking a deep personal introspection into oneself to identify what values and beliefs you share and how you intend communicating those beliefs to others through your business and the services it offers.

Take for example, you can’t build a business that gives priority to quality and standards if you, as a person (The founder) are all about cheap, substandard and cutting corners.

Everyone speaks about the iPhone and Apple as a company, but that brand image of Innovation, genius, originality and thinking differently are all tied to Steve Jobs core as a person.

Branding therefore is not the product nor the company, but their way of life, shared values, beliefs and what makes them different and influences people’s choices in that field.

Personal Brand

A personal brand is a generally agreeable perception of an individual by his/her community or industry based on that individual’s expertise, accomplishments or actions in that field or industry.

Your personality and your personal brand are both important in developing a brand for your business. While your personality refers to the intangible attributes a person poses, your personal brand relates to a particular skill set, abilities and influence a person has in a particular field.

Business Brand

Business Branding is a way of creating and telling people your business message. i.e. What your company represents or stands for using logos, names, colors etc.

Do note however, that these are mere representations and the perception of your business by others will depend on the way you do business, service your customers and keep to your brand promises.

Personal Brand Vs Business Brand

Your business and personal brands are important and both should be developed as difficult as it may be.

For example; If you are a freelancer without any company structure, it is advised you build a personal brand image by creating content around your work, getting exposed by showcasing your work and finally building influence.

However, it is also important to give your brand a business structure and create a business brand from there. This increases your authenticity and range for doing business.

Focusing on your personal brand alone (You as a person) without regard to your business name, logo, etc, puts your actual business brand behind the curtain.

Building a business brand without a personal brand is common but in recent times, if you can, also build a personal brand for yourself and if any of your teammates or staff has potential for having a personal brand, encourage them, provided it is in line with your company brand values.

Finally, just as important as a brand name is its brand message.

Online Marketplace

Why Your Business Needs An Online Marketplace

by with No Comment Business Growth

An Online Marketplace

The idea of marketplaces is as old as business itself and while the medium of transactions and technology has changed over time, marketplaces remain a viable way for buyers and sellers from vastly far geographic regions to find each other and transact.

Fundamentally, every business in modern times needs a business website, and rightly so, but just like in physical stores, the flow of traffic or customers in any major market can hardly be compared with stores on the streets or other locations away from major markets.

The same way it is for Online marketplaces vs your business website. Both are important and have different roles in marketing your brand or business.

In this article, we share some important reasons why your business, asides having a business website, should be part of an online marketplace.

  • Traffic
  • Save Cost & Time
  • Brand Exposure (Build Brand Trust)
  • Buyer Preference
  • Business Analytics
  • Network/Community

Using a marketplace effectively for your business has other added benefits, but let’s delve a bit into the few highlighted above.

Traffic
As stated, previously, traffic is king when it comes to reasons why businesses use marketplaces. This is simply because just like in physical marketplaces, different people with different needs and segments visit, search through marketplaces, and discover your business, goods, and services in the process.

Given that a good marketplace is an aggregation of businesses from different sectors, the higher level of content and request on marketplaces make them rank higher in SEOs when compared to an average website.
Again, marketplaces are all about marketing, that’s exactly what they do.

A good marketplace will spend more cash and effort on marketing all over the internet than you would do with a personal or business website.

Save Cost and Time
The last point brings Besides saving cost on marketing allocation, the low cost of setting up an online store contributes significantly to your business overall profit margin when compared to creating and maintaining your eCommerce store.

This is especially important to businesses just starting, if you are starting an offline or physical store, for example, you need to worry about renting a store, hiring staff, and operational expenses.

On the other hand, using marketplaces like spronet.ng, you won’t have to spend any money either as setup or maintenance fee, because the service is completely free and you only pay little commissions when sales are made…which we can all agree is fair and a win for everyone.

Brand exposure (Build brand trust)

Marketplaces provide a good avenue to inspire buyer trust in your brand especially to people making the first contact with your brand.

This is mostly because marketplaces act as a neutral community brand vetting platform.

The more people experience your products and services and leave positive feedback, the easier it will be for others to want to engage you both on the same marketplace, in your physical store/outlet, or your website.

A positive business brand approval inspires a chain of word of mouth (People telling other people) testimonies about your goods and services making even more people want to check you out.

FYI: We have put up an article about what branding is and the difference between personal and business branding… you can check it out here.

Buyer preference

Most buyers and consumers visit marketplaces because of choices.

They want to compare different products and services with their prices, find out what other people think or are saying about your products and services, before making a purchase.

Your own e-commerce store is controlled by you and therefore people may not trust the process as much especially if you’re just starting and haven’t yet established a good brand reputation.

Business Analytics

Business analytics is a good way to learn about the performance of your business at a glance without needing to do any calculation or math.

Good Marketplaces provide business analytics for your online to show you how your business is performing, what sales are being made and the product is performing better.

This is important as it informs the decisions you make as a business and areas to focus on to increase your chances for success.

Network/Community

Building a successful business either online or offline requires creating relevant business connections. Marketplaces like spronet.ng provide that leverage to meet, network, and interact with other businesses and customers alike.

Learn emerging developments, new tools, products, and ways of doing business. What other way to be abreast with happenings and trends in your industry, local or global business community, or even other industries.

Spronet.ng is a good way to expand your network and business reach as we go beyond buying and selling to provide valuable business connections and community to support your business.

To get started with growing your business through marketplaces, visit www.spronet.ng and register for free all you need is a CAC certificate (if your business is based in Nigeria).

To learn more about what CAC is and why your business needs a CAC certificate please check out our article here.

Corporate Affairs Commission

Why your business needs a CAC certificate

by with No Comment Business Growth

CAC Certificate

Do you own a small business and want to take that business to greater heights?

What if you have worked hard for years only to realize that your business name legally belongs to someone else who has registered it before you?
Perhaps, you got a life-changing opportunity to bid for a government contract or supply your products to a multinational organization…then the question comes…” is your business registered?”

This article shares some insights on why you need to register your business with CAC and how to go about it.

The Corporate Affairs Commission (CAC) in Nigeria, is the body charged with the responsibility to regulate the formation and management of companies in Nigeria.

Your business and its success result from months and years of consistent effort and hard work that should not be taken for granted and should be registered.

While it’s true registering your business with the Corporate Affairs Commission (CAC) might not be necessary for all types of businesses/transactions e.g (Hawkers and Roadside vendors which may be regarded as temporary business structures), it is advised that every well-meaning entrepreneur or business owner should ensure their business venture registered with the corporate affairs commission (CAC) and here is why.

Be The True Owner Of Your Business
Registering your business gives you exclusive legal rights and privileges as the owner. This means no one else can claim that particular business name and its attributes, giving you the right to sell the business if you choose.

Be Credible And Win Trust
People are more comfortable doing larger volumes of transactions/contracts with verifiable registered businesses. If you hope to win better and more high-end clients, you need to get registered ASAP.

Succession And Continuity
Registering your business gives it a better chance and the legal structure for your business to continue even long after you retire or are incapacitated.

Business Bank Accounts, Loans, Contracts, and Other Business Relationships
You’ll need to have your business registered if you intend to open a business bank account, huge loans, contracts, and other business relationships because as stated earlier, people and other businesses prefer working with registered and credible businesses.

Stay Safe From Fraudsters And Scammers
It is safer to deal with other registered businesses as their records can be traced in any case of fraudulent activities.

Gain Access To Spronet Marketplace For Businesses
At Spronet.ng we permit only registered businesses to upload their goods and services. Being a registered business gives you complete access and freedom to platforms such as ours to transact or showcase your goods and services.

Legal Liability And Protection
You gain some form of legal liability protection especially when you’re registered as a limited liability company. As a registered business, you will not be held personally responsible for certain accidents and other liabilities that your business may have generated.

Brand Identity, Reliability, And Reputation
Do you want your business to stand out as a brand? Then the first step in securing your company name legally before someone else does. Remember, you can lay claim to something you don’t own.

Some Reasons Why people don’t Register their Businesses?

It’s no news that some business owners have deafened their ears to registering their businesses legally, while this trend has changed drastically over the years, here are some reasons:

  • Tax Evasion
  • Misinformation and Ignorance

How To Register Your Business With CAC
Registering your business with CAC can be done in two ways:

Do It Yourself
The CAC launched an online portal through which businesses intend to register a Business Name (Doesn’t Apply for Limited liability companies-Ltd).

By following the instructions at https://pre.cac.gov.ng/home you can do your online business registration yourself.

However, there have been reports of delays both on the website and in the process. This approach is best suited for those that are tech-savvy.

Registered CAC Agent
A registered CAC agent might be all you need if you don’t have the time, skill, or experience to get your CAC done yourself.

Often, these registered Agents and professionals especially, Lawyers and Chartered Accountants, are recognized by the CAC to make the registration process stress-free and convenient for you.

Need a registered CAC agent to help you with your business registration process?
Contact us at Spronet Hub as we connect you to our pool of verified CAC agents to make the process affordable, stress-free, and fast. To get started:

Visit our office at Spronet Hub, 1st Floor Chaza Mall, Ada-George, Port Harcourt., send us an email at hub@spronet.ng, or call: 09037135958

Have your business registered if you haven’t and join thousands of other verified businesses to showcase your goods and services on spronet.ng for free. Give your business the needed exposure, win more clients, serious buyers, and contracts and grow your business.

To join our community of businesses for free and start selling online, go to https://spronet.ng and signup, verify your email address and create your business profile all at zero cost.

See also: What We Do At Spronet.ng – Spronet Blog

Business lockdown covid 19 spronet

Can Your Business Survive Another Lockdown?

by with No Comment Business Growth

Find out what other businesses are doing to stay ahead during Lockdown

The Covid’s complimentary economic lockdown witnessed many go out of business, lose jobs and worse still accrue debts without any glimpse of when the nightmare will be over.

We can all agree it was really bad for most businesses. As bad as it was, other businesses thrived and even made exponential gains. Some made gains, because they were ready and better positioned as the only businesses available to serve the needs of existing and new customers.

Covid-19 Business Impact Report

The Impact of the covid-19 outbreak on the Nigerian economy, for example, shows that the Nigerian economy having been projected to experience a 2.5% GDP growth, was instead truncated by the pandemic.

Fate foundation & BudgIT’s (2020) studies on the impact of Covid-19 on 1943 MSMEs across the 36 states revealed that 94.3% of respondent businesses recorded negative results during the pandemic principally in areas of cash flow, sales, and revenue by over 74%.

In truth, wealthier Nations can afford to give business stimulus packages, loans, and grants to help impacted businesses get back on their feet. Unfortunately, that is rarely the case in developing nations like Nigeria where a large number of the population are already living below the poverty line.

It’s no news that the pandemic plunged many into suffering, poverty, unemployment, and even business closure which many are yet to fully recover from.

Businesses have the sole option of taking full responsibility in averting the direct impact of a strangled economy both now and in the nearest future.

Security Crisis

Besides the Lockdown due to covid-19, there have been a series of State-wide to Regional Lockdowns, especially due to conflicts and other security reasons. Various staged protests and sit at home, all to the detriment of businesses.

Business managers and CEOs still doing business as usual are often directly impacted by these lockdowns both immediately and in the long run.

It’s said that, “You can’t be doing the same thing, the same way and expect different results.”

New Threats

Despite the prolonged lockdown and how we abhor them, the truth is, we are yet to see the last of them.

From resistant strains of the Covid virus to civil unrest, all we can do is be better prepared.

According to a Premium Times report, The Nigeria Center for Disease Control (NCDC) announced in a statement, confirming that it has recorded its first case of the Omicron variant (B.1.1.529 lineage) of the Covid-19.

Businesses, therefore need to be prepared, before anything else, preparation is key to success, for anyone who fails to prepare, prepares to fail.

The Economic Impact of the lockdown has exposed businesses to find better alternatives to staying ahead and surviving while ensuring such history never repeats itself at scale concerning their business.

Businesses are now more than ever, smarter and better prepared to navigate a post covid economic era.

What Does This Mean?

Businesses large and small are looking for more sustainable ways to cut costs and optimize profits and operations while being on the lookout for developments such as covid.

Banks, Multinationals including International Oil Companies (IOCs) have drastically streamlined spending, operations in both sourcing & service channels. More than ever, organizations are becoming more global while adopting various online systems for service process optimization and automation.

More Businesses have Moved Online

From small and fragile to large and agile, everyone is now making sure they can be found online and have an online footprint both for operations and customer service.

More customers are online now…and so are businesses.

A Mastercard report suggests that 81% of Nigeria Consumers shop more online since the start of the pandemic.

This is not limited to Gen-Z, as even many procurement departments in large organizations have further strengthened their sourcing framework to give room for more online purchases.

Emerging Trends

While online shopping is gradually becoming the next normal, the pandemic has drastically changed how we gather information.

A higher number of organizations perform more market surveys online compared to pre-covid and as stated earlier are more likely to make an online purchase in a post covid world.

This is not only limited to goods but also services and suppliers.

What Other Businesses Are Doing To Stay Ahead of Lockdowns

One question every well-meaning business owner or organization should ask is…are you better positioned for the new normal?

In an event of a lockdown, do you have any process that will ensure business continuity? What about trusted suppliers to ensure you keep delivering value, can they be available for you during a lockdown?

If you don’t have any clear answers yet, you may need to re-evaluate how future-proof or resilient your business may be in a lockdown event.

Business success is about creating value while building and maintaining meaningful business relationships.

Being better informed should translate to being ready… which means giving your business an online presence. Not just a social media kind of presence…but an online marketplace presence for real, serious, and verified businesses.

Spronet.ng is more than a marketplace…but an online business community for verified businesses to find each other, transact and connect regardless of any lockdown.

Spronet.ng Empowering Businesses To Thrive

Have you tried sourcing for equipment, tools, materials, goods, supplies, services e.t.c to no avail?

Spronet is open for all types of verified businesses to connect and transact for free. There is no middle man as businesses, dealers, and manufacturers, or local producers across the country, connect directly with each other.

Spronet gives you a free online store and a unique website/business profile.

Besides having your business website, there are many benefits of being part of an online marketplace.

SEE ALSO: Why your business needs to be part of an online marketplace

Be found Online And Trusted

Do you know, many businesses and individuals resort to import after Local/Online sourcing efforts have failed? That’s your money leaving the country before you (Ha-ha).

With Spronet.ng online marketplace, we ensure your business, goods, and services are found easily by placing them to the right audience or customers both inside and outside spronet.

Contracts Should Be Won by Merits Not Bribe

Spronet.ng enables businesses to create and bid for contracts through our unique bidding system. Businesses are directly in control of the outcome of the bidding and section process. This way, even rare items/goods can be found easily.

It gets better because there is more value in store for every business.

See Also: What we do at spronet.ng

How To Get Started

Adding your business on spronet.ng is completely free and businesses have an unlimited number of products/services slots to showcase their goods and services.

To get started: Go to https://spronet.ng/signup

It’s free now…it’s always free. Be proactive and stay profitable.

Further Enquiries

Email Us:  contact@spronet.ng

Phone/Whatsapp:  +2349043718235

See Also: What we do at spronet.ng