New Business

 EDS 411: WEEK 04

8TH NOV 2021 (ALPHA)

 Starting A New Business in

Nigeria
 Professor Tony Ike Nwanji PhD FCIS
 Accounting and Finance
 Landmark University
 Email: nwanji.tony@lmu.edu.ng
 Learning Objectives
 To understand how the skills needed by
the entrepreneur when starting a New
Business (Nigeria)
 To understand the needs / requirement
of a New Businesses (Nigeria)

 To comprehend why the entrepreneur

should consider tailoring the size of the
business to his or her personality
 Starting a New Business
 You Need:
 Business Plan
 Capital ( From Savings, Loans, Help)
 Business idea – What type of
Business?
 Need Knowledge (of What ……..)
 Customers –
 Modern Business - Online/ Mobile
 Six Stages of Business
Development
 Conception / Beginning

 Survival

 Stabilization

 Growth orientation

 Rapid growth

 Maturity
New Business in Nigeria
 Early years
 Time management
 Setting goals

 Measuring performance
 Business Development

 As business grows
 Finding, retaining, motivating

employees
 Move from direct to indirect

management
 Business Control
Change in Company Structure

 Simple structure
 Limited growth structure

 Departmental structure
 Financial Management
 Overtrading
 Company cannot pay short-term
costs incurred in pursuit of growth
 Manage accounts receivable to
collect funds in a timely manner
 Business Finance

Financing Corporate Projects with:

•Long Term
•Medium Term
•Short Term
 TYPES OF FINANCE RAISED
 LONG TERM- If financing the purchase of a
premises, long term financing is appropriate
 MEDIUM TERM - Medium term sources such as
leasing or hire purchase is appropriate for the
acquisition of machinery.
 SHORT TERM - Seasonal peak investments in
stocks and debtors can be financed with
short term finance, such as a bank overdraft.
Marketing Concerns

 Cost-effective advertising

 Increase in competition

 Need to find new opportunities

 Match the Company and the
Entrepreneur’s Personality
 Craftsperson (Skilled Worker \ Craft Worker
etc)
 Coordinator ( Planner Manager, Director,
etc)
 Classic entrepreneur ( Businessperson,
business-tycoon, standard, professional
 Employee teams ( managing and
working with people)
 Business Growth and
Dissatisfaction
 Loss of challenge of start-up

 Loss of family atmosphere

 Changing role of entrepreneur

 Options

 Keep the company small

 Rediscover the entrepreneurial spirit
 Cash in
 Business Growth and the
Business Plan
 Growth is shown through financial
projections
 Show consistent, but manageable,

growth
 Why do Businesses in Nigeria

short live)

 The End Any Questions

Changes in Markets - Nigeria

 Changes in Markets
 Outsourcing

 Virtual organizations

 Market divisions

 Green markets
 Market place

 Market space